Once the darling of the plant-based boom, Beyond Meat Inc (NASDAQ:BYND) has gone from market disruptor to market casualty.
At its 2019 peak, the company was valued at over $13 billion. Today, after a 44% plunge in its share price, it is worth barely $88 million.
The latest sell-off came after the debt-laden group confirmed that nearly all its creditors had agreed to a debt-for-equity swap that will massively dilute existing shareholders.
The restructuring, designed to reduce leverage, could see noteholders control around 88% of the company’s stock once the conversion is complete.
Beyond Meat’s fall has been dramatic. Its shares have collapsed more than 99% from pandemic highs, when fast-food chains such as McDonald’s and KFC raced to serve its burgers.
But enthusiasm for faux meat has faded fast as consumers balk at high prices and heavily processed ingredients.
Quarterly sales are now down 20% year-on-year to $75 million, and analysts have turned cold on the stock, with no buy ratings and an average price target of just $2.57.
Once a symbol of the meat-free future, Beyond Meat now looks more like a warning on the perils of overcooked hype.