Beyond Meat posted a larger-than-expected third-quarter loss and released a fourth-quarter revenue forecast that fell short of Wall Street estimates, signaling that demand for its plant-based products remains weak. The stock fell 8% in the after-hours trading on November 10, after rising more than 1.300% in three days at the end of October, in a sudden speculative rally reminiscent of the "meme stock" season.
The company, once a symbol of the plant-based revolution, continues to suffer from slowing consumption, penalized by an inflationary environment that is pushing consumers toward less expensive and less processed products. Also weighing on this is the recent resurgence in the United States of movements like "Make America Healthy Again," which are pushing for a return to more natural and less processed diets. "The challenges facing the category and a still-weak demand environment continue to impact our performance," stated CEO Ethan Brown, emphasizing that the company is working on "new and significant cost cuts."
Beyond Meat expects fourth-quarter sales of $60 million to $65 million, compared to the $70 million estimated by LSEG analysts. Revenue for the quarter ended December 31, 2019, fell 13,3% to $70,2 million, in line with expectations but slightly above consensus estimates. The group posted a net loss of $110,7 million, compared to $26,6 million a year ago, largely due to asset write-downs and the suspension of operations in China decided earlier this year. Adjusted loss per share was 47 cents.
Since the beginning of 2025, Beyond Meat shares have lost approximately two-thirds of their value, partly due to investor skepticism following the debt-for-equity swap executed in September to avoid a possible short-term default. With declining retail demand and growing competitive pressure, the California-based company's future appears to hinge on its ability to rapidly restructure and revive the protein alternatives market, currently undergoing a deep rethink.
