Shares of Beyond Meat (BYND -8.61%) weren't very tasty Monday, tumbling as much as 7%. When the market closed, the stock was still down 4.4%.
The macroeconomic conditions have investors convinced that consumers won't pony up for plant-based meat substitutes, but the company continues to add to its vegan-friendly lineup.
Beyond Meat announced on Monday that it had expanded its "award-winning chicken portfolio" with the introduction of Beyond Chicken Nuggets and Beyond Popcorn Chicken, which join its Beyond Chicken Tenders. The company described the latest additions as "crispy, golden brown on the outside and juicy on the inside ... [and] satisfy consumers' craving for delicious chicken options that are better for people and the planet."
The new plant-based chicken products will make their debut at more than 5,000 Kroger and Walmart stores nationwide while also appearing at select Albertsons and Ahold locations.
Beyond Meat touted the nutritional benefits of its latest plant-based protein, which is derived from a proprietary blend of faba bean and pea, and contains zero cholesterol and 50% less saturated fat than traditional chicken nuggets.
Given the persistent rising inflation and higher interest rates, consumers continue to make tough choices at the grocery aisle and will likely choose lower-cost options -- at least for the foreseeable future.
Still, over the long term, Beyond Meat's success depends on achieving price parity for its meat substitutes and providing a tasty, healthier choice for vegetarians and those looking for a non-meat option.
The broad-based transition to plant-based substitutes is ongoing, with many consumers seeking better lifestyle choices. This represents a fertile field for Beyond Meat to plow, but it will no doubt be a multiyear process. Beyond Meat stock is selling for a song at a price-to-sales ratio of less than 2, which could earn it a place in the speculative part of your portfolio.