Beyond Meat's Price Approaches That of Real Beef
When Beyond Meat (NASDAQ: BYND) reported earnings for the second quarter of 2020, most investors focused solely on the headline numbers. Net revenue was up 69% year over year to $113 million. Its net loss was $10.2 million, as COVID-19 charges weighed down results. And adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $11.7 million.
These numbers are all important, but investors might have overlooked an equally crucial metric for Beyond Meat. The company's price per pound continues to fall, and was down to $5.69 in Q2. Lowering prices might seem counterintuitive. After all, normally we want companies to raise the price of their products and services, since this leads to higher revenue. But lowering its price per pound is central to Beyond Meat's strategy of attracting carnivorous consumers.
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Source Fool.com
