Beyond Meat (BYND 5.53%) has struggled to generate much in the way of growth in recent years. Demand for its alternative meat products simply hasn't been strong, particularly at a time when people have been looking for cheaper food options due to inflation.
The company has been launching new products in an effort to diversify its offerings and take advantage of new opportunities. Earlier this year, it announced the launch of protein drinks. Could they help give this struggling food stock a boost?
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Why protein drinks could be a big win for Beyond Meat
On Jan. 15, Beyond Meat announced its Beyond Immerse product line, which will use plant protein to give consumers a refreshing beverage in multiple flavors -- peach mango, lemon-lime, and orange tangerine.
This launch comes at an opportune time, when weight loss drugs are helping people lose weight, but concerns about lost muscle mass has them looking to consume more protein. The launch of these new beverages could put Beyond Meat in a good position to take advantage of these trends at a time when demand may be higher than normal.
The company says that the new products will be available on its direct-to-consumer site, Beyond Test Kitchen, for a limited time, likely in order to gauge how much interest there is in them.
NASDAQ: BYND
Key Data Points
Beyond Meat desperately needs a winning product
In just the past 12 months, Beyond Meat shares have plummeted 78%. The company's sales have been declining, and its losses have been climbing. Its biggest problem, however, may be that its incredibly low gross profit margin (usually in the single digits) simply leaves no path to profitability for the business, even if its growth rate were to improve.
The company needs a compelling new product line to help improve its financials. The good news is that with Beyond Immerse, it's at least working on new avenues to achieve that. Unfortunately, there's no guarantee that the protein drinks will take off, or that they'll improve margins.
Ultimately, without a winning product that can transform its growth prospects and its margins, Beyond Meat's stock may be destined to continue going lower in the future. While all hope may not be lost for Beyond Meat just yet, the safest option for investors may be to simply take a wait-and-see approach, as there's still too much risk and uncertainty ahead with the stock today.
