4 ms·
Yup, the product is fine, but there's a reason all the other brands in the freezer aisle aren't raising hundreds of millions of dollars at 100x multiples. Burge
by paxys 8mo ago
Yup, the product is fine, but there's a reason all the other brands in the freezer aisle aren't raising hundreds of millions of dollars at 100x multiples. Burgers don't scale like smartphone apps.
Here's a comparison - Tyson Foods, best known for their frozen meat, had a revenue of $54.44 billion last year. Their current market cap is $21.77 billion.
Beyond Meat reported an annual revenue of $87.9 million in their 2018 S-1, and post-IPO reached a peak market cap of $14.1 billion.
See the issue with these numbers?
- nickff 8mo agoI think that 'real product' (as opposed to software) companies would actually benefit more from raising capital from equity instead of 'bootstrapping', because of the taxes on retained earnings, which have a disproportionate impact on capital-intensive business. That said, I agree that the P/E multiple on Impossible and Beyond were best described by the descriptors in their respective names...
- bsjshshsb 8mo agoI was having trouble understanding the issue then I realized 87.9 MILLion with an M. Ok I see lol.
- Ekaros 8mo agoI feel like AI and "tech" has normalised billions way too much. So even as millions are really a lot we don't even think about those anymore... Crazy crazy world.