Foreign Brokerage where you can get 15 free stocks when you open an account and deposit at least one thousand dollars Link in the description below. Over the past few years, the Fake Meat company Beyond Me has taken the World by storm. when they iPod on the NASDAQ in 2019, Their stock price doubled on the first day of trading and they soon grew to a market cap in excess of 10 billion dollars. They promised to revolutionize the meat industry with their plant-based fake meat Burger which they claimed was indistinguishable from real Me.

During the Easy Money environment of 2020 and 2021, the stock price continued to hold strong, maintaining its 10 plus billion dollar valuation. This is despite the fact that the company was burning hundreds of millions of dollars in the path to profitability looked dubious at best. In the most recent quarter ended October 1st 2022, the company reported free cash flow of negative 259 million dollars. They only have 390 million dollars of cash on their balance sheet, so at the current rate of cash burn, they could declare bankruptcy within the next six months.

and with their share price down more than 80 since their IPO it could prove difficult to convince any investor to pour even more money into this cash incinerator. So what happened? How could this company, which was once be loved by individual and institutional investors alike now find itself on the brink of bankruptcy? Beyond meat, uses plants such as legumes and brown rice to create its Burgers It also includes vegetable oil to replace beef fat and a whole host of other plant-based ingredients to create the color and texture to replicate real meat as closely as possible. The most important question is how does Beyond Meat stack up? From a consumer perspective to real beef, there are four main considerations a consumer makes when choosing: what good to buy: How does it taste, how healthy is it, how much does it cost, and how safe is it? As we will see, Beyond Meat fails on almost all of these aspects. We will compare Beyond Meat versus real Meat on these four characteristics to see which one is the superior value proposition for consumers.

Starting off with taste, according to a survey of 3 000 American adults conducted by Kansas State University In Purdue most consumers think that real meat tastes better than Beyond Me. As it turns out, creating a plant-based substance that mimics the taste of beef is very difficult, if not completely impossible. So much so that Beyond Meat has had to resort to loading its burgers with salt to cover up for the inferior taste. Based on this, we can definitely give Real Meat a win in the taste category.

This brings us to the next category which is Health One Beyond Meat Patty has about the same amount of protein as a real meat Patty On the bright side, beyond Meat Burgers have fewer calories and significantly less fat. However, Beyond Meat Burgers have an obscene amount of salt more than four times what real meat adds. They have to add a lot of salt to conceal the fact that it's not real me. Of course, this is just my opinion.

The Company May disagree as to why they add such an exorbitant amount of salt. Excessive consumption of salt can cause adverse health conditions, including but not limited to high blood pressure, heart disease, and stroke. While Beyond Meat does have more sodium, Real Beef has more fat, so we give the two of them a tie. The next issue is price, which is perhaps the most important issue, especially given the high inflation environment we are in today.

Consumers are forced to stretch their budgets to make every penny count. Currently, eight ounces of Beyond Meat burger patties cost six dollars At Kroger 19.2 ounces of real meat burger patties cost seven dollars. This means that Beyond Meat costs 75 cents per ounce, which is more than double the 37 cents per ounce for real beef. At first, this might sound surprising.

You might think that plant-based products should be much cheaper to produce than real meat. Over the life cycle of a cow, they have to consume a huge amount of grain which has to be purchased by the farmer. Let's take the example of corn fed beef. If you had to guess how many pounds of corn feed it takes to produce one pound of beef, what would you say? Maybe 50 or 100.

If you guessed this, your answer would be wrong. The average full-grown beef cow weighs about 1250 pounds. It eats roughly 2 800 pounds of corn throughout its life. This equates to 2.25 pounds of corn per pound of finished animal.

Of course, not all the 1250 pounds turns into edible beef, but almost all of the cows use one way or the other. The hide is turned into leather, cowl organs are perfectly edible, but they are not widely consumed in the United States for cultural reasons. So their exports of foreign countries including Mexico, France, China and many others where they are sold for human consumption about 15 of the cow is Bones which are pretty much useless. If you subtract all of this, you get 2.6 pounds of corn per pound of end product, which is actually an extremely efficient conversion rate.

So how is this possible? The cow doesn't start eating corn until already weighs about 600 pounds for the first few months of its life. it feeds on its mother's milk. After this, it starts grazing on grass and other fibrous vegetation that are not edible for humans. Only for the last part of its life does it start eating corn.

And for the corn, the cow does eat. Oftentimes the feed is the byproduct of high fructose corn syrup production that would otherwise end up in landfills. Cattle farmers can buy this waste product for very cheap prices, you might say. Yes, it drinks milk for the first few months.

but doesn't the mother cow have to eat grain to produce the milk? The answer is no, almost all calf producing cows eat grass, not corn. And another thing to consider is that a typical beef cow only lives for two years before its Judgment Day There's very little time being wasted as it is slaughtered almost immediately after it stops growing. While you might have moral reservations about the cruel lives that cows live, it is a very efficient process that has been developed over centuries. It does require a lot of land, but most of this land is in places like the American Midwest or Brazil.

With huge amounts of cheap grazing land, cows have been bred to be extremely efficient meat producing machines which can turn mostly grass in a small amount of corn into beef very quickly and for a very cheap price. Beyond Me, on the other hand, has a complex production process with over a dozen ingredients. Some of the ingredients like coconut and beets are far more expensive than corn. It's not even necessarily an issue of Technology.

From a biological perspective, it may not be possible to create a real tasting meat substitute that is cheaper than real meat. and that's just beef. If you run the same amount analysis against pork or chicken, the results are even worse for Beyond me because these forms of animal protein are even cheaper than beef. So on the price category, real beef gets a resounding win.

The only definitive advantage that Beyond Meat has is its environmental sustainability. While it is much more expensive and tastes worse, Beyond Meats Plant-based fake meat creates far less greenhouse gases than traditional cattle farming. While many people do care about the environment, the question is: are you willing to put the safety of yourself and your family at risk to achieve this? According to a Bloomberg report, a former employee at Beyond Meets Pennsylvania Factory posted pictures of horrific and unsafe conditions. Photos show mold on containers and Equipment placed haphazardly on top of each other.

There is even mold growing on the walls of the facility, indicating that the unsanitary conditions had been in place for quite some time. It's one thing if there are unsanitary conditions at the production facility. The more important question is whether or not unsafe products made it to grocery stores to be eaten by end consumers. And at least in some cases.

this apparently did happen in April of 2022. Costco Canada Recalled Beyond Meat Burgers after consumers reported finding wood inside of them. The seemingly disastrous state of Beyond Meats Production Facilities points to the lack of professionalism amongst the company's senior management team. With this background, you might not be surprised to hear that in September of 2022 Beyond meets Chief Operating Officer Doug Ramsey was arrested.

He allegedly assaulted a man and bit his nose after a road rage incident ripping off the Flesh on the tip of the nose. Mr Ramsay was relieved of his position shortly after the incident. For the first few years of its existence, Beyond Meet grew its Revenue impressively. However, since 2021, its Revenue has stagnated and has recently started declining even more concerningly.

In the most recent quarter, the company reported negative gross profit, indicating that it cost them more to produce each Burger than they can sell them for. In the early days, people were willing to try out the new fake meat Burger out of curiosity and to see what all the media hype was about. They also spend tens of millions of dollars on commercials going so far as to hire Kim Kardashian as their Chief taste consultant. But all the marketing in the world can't change the fact that Beyond me underperforms real me on almost every single metric.

And when the company's losses accelerating and their cash reserves deteriorating at an alarming pays, it looks like they're 15 minutes of fame May Soon be coming to an end. Alright guys, that wraps it up for this video. what do you think about Beyond Me: let us know in the comments section below. As always, thank you so much for watching and we'll see you in the next one.

Wall Street Millennial Signing out.