(Reuters) – Shares in Beyond Meat (NASDAQ) fell 28% on Thursday and are on track for opening below the initial public offer price. Investors were worried about the rising cost of vegan meatmaker Beyond Meat’s increased competition.

The first quarter saw an increase in cash operations to $165million, up from $31 million last year. This was due to the fact that the pioneering plant-based meat company diversified its products and provided steeper discounts to maintain its market share.

J.P. Morgan’s Ken Goldman stated that Beyond Meat may have a poor cost structure and may run out of cash by next year.

“We are worried that management may not be in tune with the current reality.”

Ethan Brown, the Chief Executive Officer sought to address these concerns on Wednesday.

He stated that he wouldn’t accept this quarter’s cash consumption as a basis for assuming that there’s no cash left. However, he added that the company had taken “several steps” to cut expenses.

Beyond Meat’s shares trade at $18.80 prior to the bell on Thursday. This is much less than the $25 IPO price for 2019. The company’s market capitalization has fallen to $1.66 Billion, from an earlier peak of around $14 Billion.

On Thursday, at least five brokerages reduced their target price for the stock, raising concern about the company’s ability to make a profit, particularly as they expect cost pressures to continue due to rising inflation.

Cowen analysts asserted that plant-based meat isn’t a fad. Beyond Meat is a noble mission, but we still believe that a profit inflection could be many quarters, or years, away.