Why Beyond Meat (BYND) Stock Is Down Today

What Happened?

Shares of plant-based protein company Beyond Meat (NASDAQ:BYND) fell 7.5% in the afternoon session after the company reported a wider third-quarter loss and provided a weak sales forecast for the upcoming quarter, signaling ongoing demand issues. 

For the quarter, revenue fell 13.3% to $70.2 million, driven by a 10.3% drop in the volume of products sold. The company's net loss swelled, largely due to a significant non-cash impairment charge on some of its assets. Looking ahead, Beyond Meat projected fourth-quarter revenue to be between $60 million and $65 million, a figure below what Wall Street had expected. This weak outlook reflected persistent challenges, including sluggish overall demand for its products and inflation pushing consumers toward less expensive food options.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Beyond Meat? Access our full analysis report here.

What Is The Market Telling Us

Beyond Meat’s shares are extremely volatile and have had 65 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 5 days ago when the stock gained 11.1% on the news that the stock rebounded from a sell-off earlier in the week that was caused by a delay in its third-quarter earnings report. The plant-based meat company’s stock had previously plummeted after it abruptly announced it was rescheduling its earnings report. Compounding the negative sentiment was the company's preliminary third-quarter guidance, which confirmed stagnant revenue of $68 to $73 million, a drop from $81.01 million in the prior-year period. However, some positive news emerged as Beyond Meat announced a new partnership with Hard Rock Cafe, allowing diners to swap any burger for a plant-based patty. The rebound suggested some investors may have been buying the stock at a lower price following the sharp decline.

Beyond Meat is down 67.7% since the beginning of the year, and at $1.25 per share, it is trading 76.5% below its 52-week high of $5.30 from November 2024. Investors who bought $1,000 worth of Beyond Meat’s shares 5 years ago would now be looking at an investment worth $9.73.

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