Beyond Meat Inc (NASDAQ:BYND) shares fell another 9% on Thursday to trade at about $1 after the plant-based food company and meme stock reported a third quarter earnings miss and issued weak sales guidance.
The company posted net revenues of $70.2 million for the third quarter of 2025, down 13.3% from the same period last year but ahead of estimates of $69 million.
Beyond Meat recorded a loss per share of $0.47, missing the Wall Street consensus of $0.43.
Gross profit fell to $7.2 million, representing a gross margin of 10.3%, compared with $14.3 million and a 17.7% margin in Q3 2024. The results were weighed down by $1.7 million in expenses related to the suspension of Beyond Meat’s operations in China.
Also sending shares lower was its weak revenue outlook for Q4, with Beyond Meat projecting revenue in the range of $60 million to $65 million, below estimates of about $70 million.
Jefferies analysts maintained a ‘Hold’ rating on Beyond Meat and $1.25 price target. They noted that while the Q3 sales decline of 13% reflected category headwinds in both retail and food service, a recent balance sheet restructuring provided much-needed liquidity.
The move involved swapping a large portion of convertible debt for shares and issuing additional stock, giving the company more runway to stabilize top-line growth and margins, though at the expense of equity dilution.
“Soft results were overshadowed by a recent debt restructuring, adding liquidity but at significant expense,” Jefferies wrote. “It won’t be easy given the industry’s backdrop, but stabilization will be viewed as a win.”
The firm adjusted its 2025 revenue forecast to $279 million, reflecting a 14.5% year-over-year decline, and sees 2026 sales largely flat as gains in retail distribution are offset by weakness in US food service.
Jefferies highlighted some operational improvements, including a 120-basis-point sequential gain in gross margin and modest reductions in operating expenses.
However, with consumer demand still soft and cost rationalization in progress, the pace of SG&A reductions has been slower than anticipated.
“The balance sheet restructuring allows management to focus more attention on shoring up the cost base. There is plenty of wood to chop,” they wrote. “From manufacturing investments to improve production to evaluating ingredients/packaging RFPs, everything is on the table to limit the cash burn. Progress will continue to be judged quarter by quarter.”