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· Posted on
February 21, 2024

Beyond Meat has undercooked their earnings

Beyond Meat are the US plant-based meat company backed by Billy Gates and Leo DiCaprio.

What's the key learning?

  • After a successful IPO in 2019, Beyond Meat revealed demand for their products was slowing down
  • Analysts reckon this is a sign that the company is reaching market saturation
  • Market saturation happens when the volume of a product or service in a particular industry hits its max.

Background: Beyond Meat are a US plant-based meat company that was founded in 2009. They're backed by Billy Gates and Leo DiCaprio.

What happened: When this crew went public via IPO in 2019, they had a very successful time. Fast-forward to now, and it ain't such a pretty picture.

What else: Beyond Meat revealed demand for their products was slowing down. And analysts reckon this is a sign that the company is reaching market saturation.

So what's the key learning?

💡Market saturation happens when the volume of a product or service in a particular industry hits its max. Kinda like when a sponge has soaked up all the water in a sink...and it can't get any bigger.

💡At the point of market saturation, a company can no longer grow at the rate it was growing before. So, the only way to increase growth is to:

  1. Invent new products to sell
  2. Take market share away from other competitors.

💡In this case, Beyond Meat is seeing competitors take market share away from them, which is costing them sales.

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