Pro: Beyond Meat shares could eventually be ‘worthless’

Beyond Meat Inc (NASDAQ: BYND) could eventually go “bankrupt” as it lacks a plausible strategy to turn free cash flow positive, says New Constructs’ CEO David Trainer.

Competition is hitting Beyond Meat shares

Trainer dubs “competition” a major headwind for the plant-based meat substitutes company that’s already down more than 50% from its year-to-date high. On CNBC’s “Power Lunch”, he said:

The Nasdaq-listed firm is scheduled to report its Q2 financial results on Thursday, after the bell. Consensus is for it to lose $1.14 a share this quarter.

Wall Street currently has a consensus “hold” rating on BYND with downside to $21 on average. Beyond Meat shares once traded at a high of $235.

Beyond Meat is unlikely to find a potential buyer

Trainer agrees that Beyond Meat has the option to merge for survival. Unfortunately, though, valuation stands in the way of that as well.

Many of its larger competitors, like Tyson Foods, already have an alternative meat business that further fades the possibility of a takeover, he added.

The California-based company has tested its products at several notable food outlets like McDonalds, Panda Express, and Yum Brands but none of them have created promising prospects.