Is Beyond Meat’s ‘Meme’ Moment Over? Stock Plunges After-Hours As $81M Charge, Shrinking Sales Dent Sentiment

• Beyond Meat’s revenue declined by more than 13% and net loss widened due to weak sales, lower pricing, and an impairment charge.
• The company’s stock declined 9% in after-hours trading.
• Beyond Meat management will host an analyst call at 5 pm ET on Tuesday. 

Beyond Meat, Inc.’s shares tumbled 9% in after-hours trading on Monday after the company’s quarterly report revealed a sharp drop in sales, a widening loss, and a significant impairment charge. 

With its fourth-quarter revenue forecast also falling short of Wall Street expectations, the report highlighted the fading demand for Beyond Meat’s plant-based products. The results carry added significance, coming on the heels of a meme-fueled frenzy that sent the stock soaring by 1,350% in just three days in late October and earned it a spot in the Roundhill Meme Stock ETF (MEME).

Retail’s View

On Stocktwits, the retail sentiment for BYND was ‘bearish’ of late Monday, unchanged from the previous day, with ‘low’ message volume.

Some users recommended holding the stock. “Don’t panic. This report doesn’t define Beyond Meat or mean the company is doomed. They’re in a stage of restructuring and growth, with new products and contracts that will show up in Q4. There’s no point in selling at a loss,” a user said.

A few others said they were waiting for additional details on the company’s earnings call, scheduled for 5 pm ET on Tuesday. Notably, the company withdrew its 2025 forecast in May, citing uncertainty, and hasn’t reinstated it.

“$BYND this whole release is weird. I feel like they have something saved for tomorrow,” said a user, suggesting that some significant information was purposefully held back for the analyst call.

As of the last close, the BYND stock has declined 64.4% year to date and trades near an all-time low.

Results and Outlook

In the third quarter, Beyond Meat’s revenue fell 13.3% to $70.2 million, coming in slightly higher than analysts' expectation of $69.8 million from Koyfin. The decrease was primarily driven by a 10% decline in product volume sold and a 3.5% decline in revenue per pound.

“The decrease in volume of products sold was primarily driven by weak category demand, reduced points of distribution in the U.S. retail channel, and lower sales of burger products to Quick Service Restaurant customers in the international foodservice channel,” the company outlines in its press release. 

“The decrease in net revenue per pound was primarily driven by higher trade discounts, changes in product sales mix, and price decreases of certain of our products, partially offset by favorable changes in foreign currency exchange rates.”

Notably, revenue from the U.S. declined 21% in the quarter, while international sales decreased 1%. Net losses ballooned to $110.7 million from $26.6 million a year earlier, pinched by $81.2 million in non-cash impairment charges for certain company assets, the closure of its business in China, and other expenses.

For the fourth quarter, the company expects revenue of $60 million to $65 million. That’s below the $70.03 million analyst estimate from LSEG/Reuters.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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