Beyond Meat Is Making the Right Move, But Is It Too Late?

Beyond Meat (NASDAQ: BYND) has a big problem. Investors are well aware of the problem, too, since the stock is now squarely in penny-stock territory. In fact, the company recently received a notice that it could be delisted because its share price is so low. That troubling notice comes as management attempts to make a big business shift.

Beyond Meat is struggling

When Beyond Meat held its initial public offering, investors were very excited about the concept of plant-based meat alternatives. The stock price rocketed higher on strong demand from consumers and restaurants. It seemed like everyone wanted to try Beyond Meat's products. After trying, however, many customers decided they preferred real meat.

Image source: Getty Images.

In fact, the company's sales have been in decline since peaking in 2022. Worse, Beyond Meat has never had a profitable year as a public business, so it has yet to prove that selling plant-based meat alternatives is a sustainable business. Clearly, Wall Street is voting with its feet, given the stock's decent into penny stock status, suggesting that it is a highly risky investment in the food space.

Management appears to understand the problem, and it is attempting to pivot.

Beyond Meat is heading in a new direction

In late 2025, the company introduced a protein drink as it announced plans to expand its focus from meat alternatives to a broader focus on protein. Protein is a hot trend in the food sector, thanks at least in part to the development of GLP-1 drugs. GLP-1 users need to consume extra protein to stave off muscle loss that comes along with the weight loss the drugs produce.

Beyond Meat is making a good decision here. And it has just signed up a partner that will distribute its drink more widely. At the same time, it is attempting to rebrand itself as the Beyond the Plant Protein Company. That doesn't hit quite as well as Beyond Meat, but it does highlight the new corporate direction.

The problem with the protein initiative is that Beyond Meat is simply following along with the crowd. Some of the world's largest consumer staples companies are already in the protein space in a very big way. Can Beyond Meat's new drink compete effectively with an established brand like Muscle Milk, owned by PepsiCo (NASDAQ: PEP)? And that's just one of the many companies vying for a leading position in the protein space.

Beyond Meat's business position is still weak

Most investors should probably avoid Beyond Meat until it proves its new business direction leads to an upturn in sales. Even then, the money-losing company is only appropriate for the most aggressive investors. Until the business is sustainably profitable, it will be operating from a position of weakness. Management is making the right move, but it looks like a last-ditch effort to save the company rather than a decision made from a position of strength.

Reuben Gregg Brewer has positions in PepsiCo. The Motley Fool has positions in and recommends Beyond Meat. The Motley Fool has a disclosure policy.