Why Beyond Meat Stock Dropped 17% in December

Shares of Beyond Meat (NASDAQ: BYND) stock dropped 17% in December, according to data provided by S&P Global Market Intelligence. Investors continue to lose hope in a rebound, and it made some announcements related to stock dilution and debt that did not enthuse the market.

What happened in December

Beyond Meat's sales have been declining for years at this point, and it's losing money quickly. In the 2025 fiscal third quarter (ended Sept. 27), sales declined another 13.3% year over year, and the company produced a $110 million net loss. It ended the quarter with $131 million in cash and $1.2 billion in debt, and it reported a $98 million operating cash flow loss.

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It's in a precarious situation right now, and although the market has been disappointed in it for a while, things got a bit worse in December. First, it announced a prospectus for "Common Stock, Preferred Stock, Debt securities, Warrants, Purchase Contracts, and Units," and said that it "may offer and sell the securities identified above from time to time in one or more offerings." Although this doesn't seem to imply that it's going to dilute its shares immediately, the market wasn't too thrilled with the news.

The day after the prospectus came out, the company filed another update with the Securities and Exchange Commission (SEC) to amend certain loan agreements with a lender called Unprocessed Foods. It had issued warrants to the company last May, and it adjusted the strike price from $3.26 to $1.95.

Beyond Meat needs the cash it would get from Unprocessed Foods exercising these warrants. However, given that Beyond Meat's stock price sits at $0.91 as of this writing, making it a penny stock, it's about as unlikely as it gets that it will happen any time soon.

Is Beyond Meat beyond hope?

Beyond Meat has $290 million in trailing 12-month revenue and a large fan base. It recently expanded its partnership with Walmart (NASDAQ: WMT), which got it some short-term meme-stock status when it announced the deal in October. https://investors.beyondmeat.com/news-releases/news-release-details/beyond-meatr-expands-distribution-walmart These are positive business developments, but not enough to boost interest from new consumers and revitalize sales. The stock rise ended pretty quickly, and Beyond Meat stock is trading near all-time lows.

There is reason to be hopeful, but investors should steer clear of Beyond Meat stock in its current state.

Jennifer Saibil has positions in Walmart. The Motley Fool has positions in and recommends Beyond Meat and Walmart. The Motley Fool has a disclosure policy.