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Beyond Meat (BYND, $15.90) suspended Chief Operating Officer Doug Ramsey after he was involved in a physical altercation over the weekend which resulted in third-degree battery and threatening charges. Its shares fell 1.1% in premarket trading on top of a 6% slide Tuesday, marking its sixth consecutive down day.
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Beyond Meat's balance sheet is hurting. Long-term debt totals $1.13B, and the cash balance is rapidly dwindling. Total cash stood at $455M at the end of Q2, down from $733M six months prior. Shareholders' equity has now dipped into negative territory.
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In recent months, shares in Beyond Meat have taken a tumble, losing more than 70% of their values this year alone. The firm has said it has taken a hit because of the cost-of-living crisis as consumers baulk at the sometimes higher price for its products when compared to meat.
Why it matters
Beyond Meat was a market darling when it debuted in early 2019, but has since fallen on hard times. Investors soon realized that in order to prosper, the company would have to convince non-vegetarians to substitute plant-based items for meat as part of their regular diet. However rising inflation has led to a pullback in discretionary spending that has seen shoppers flock to value-based grocery chains such as Kroger (KR, $45.27) and Walmart (WMT, $134.77).
