Is a Reverse Stock Split Coming for Beyond Meat?

Forget about profiting from the "future of food." Today, Beyond Meat (NASDAQ: BYND) is just fighting for survival. Seven years ago, the stock was trading for over $230 per share, as investors bet big that the rise of plant-based diets, for health and environmental reasons, would eventually make upstarts like Beyond Meat among the largest food stocks.

Now, Beyond Meat stock trades for less than a dollar per share, and for a very good reason. With losses per share exceeding its stock price, and the stock itself facing delisting risk yet again, sentiment for this name is deeply bearish.

Making matters worse, the most likely remedy for Beyond Meat's key near-term issue, a reverse stock-split, will ultimately do little to improve the underlying situation.

Image source: Getty Images.

Beyond Meat and its 99.7% plunge from all-time highs

So, how did Beyond Meat go from Wall Street growth darling to the bottom of the barrel? First, shortly after the stock reached its all-time high in 2019, shares began trading more choppily as insiders cashed in and concerns about competition rose.

Shares recovered during the pandemic era as high growth persisted and growth stocks were highly favored. However, starting in mid-2021, Beyond Meat shares began a move that would ultimately result in a 99.7% decline. For one, total revenue began to decline, falling from $464.7 million in 2021 to $326.4 million in 2024. Forecasts call for 2025 revenue of just $275.9 million.

At the same time, operating losses ballooned, leading to severe cash burn. Despite cost-cutting efforts, annual operating losses have remained in the nine-digit range. For years, Beyond Meat covered this cash burn by using proceeds from a $1.15 billion convertible note offering in 2021. However, in late 2025, Beyond Meat had to redeem them for a combination of new convertible notes and common stock, leading to an exponential increase in the share count.

Why a reverse stock split won't solve much

Immediately after the conversion news, Beyond Meat shares surged, as meme traders briefly piled back into the stock. Not long after that, shares entered freefall as more fundamentals-based investors bid the stock down amid heavy shareholder dilution.

This is why Beyond Meat shares are now trading below $1, under threat of delisting from the Nasdaq. Speaking of which, make no mistake. If Beyond Meat reverse-splits to maintain its major market listing, don't expect this to improve the company's fundamentals one iota.

Whether it's priced at $0.07 or $7 per share, issues such as high losses and declining sales remain unresolved. Not only that, if the stock reverse-splits back above $5 per share, it will once again be easy for bearish investors to short it. Until the fundamental issues improve, the stock is likely to remain in its current dilution death spiral.

Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Beyond Meat. The Motley Fool has a disclosure policy.