Why Is Wall Street So Bearish on Beyond Meat Stock? There's 1 Key Reason.
Key Points
Beyond Meat continues to report net losses and declining revenues.
It recently announced an expanded partnership with Walmart.
Management is actively working to reduce costs.
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Beyond Meat (NASDAQ: BYND) stock enjoyed a steep surge earlier this year, fueled by retail investor enthusiasm and social media interest. But as we approach the end of 2025, it's down 68% year to date and down 99.5% from its all-time high. Rounded off, that would be 100%, of course, but the company is still drawing breath and hanging on.
At this point, there are only seven Wall Street analysts covering Beyond Meat, and most of them expect the stock to keep going lower over the next 12 to 18 months. Here's why.
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Image source: Beyond Meat.
The demand just isn't there
Beyond Meat demonstrated some serious growth when it first became a public company, but demand for its offerings has dried up. The company has employed a number of actions to boost interest in its plant-based meat alternatives, but while the foods still have some fans, it appears the trend was a fad that has faded.
Things have been going from bad to worse for Beyond Meat. Revenue declined 13% year over year in the third quarter, on top of previous declines, and gross margin dropped from 17.7% to 10.3%. Its net loss was $110 million.
There have been some bright spots this year, such as the news in October that the company had expanded its deal with Walmart. That was one of the catalysts for the increase in retail investor interest. Beyond Meat generated $291 million in trailing 12-month revenue, which indicates that there are plenty of shoppers who are still buying its products.
The company is taking on debt as management works on reducing costs to keep the operation afloat. Assuming it can successfully adjust its cost structure, it's possible that it will be able to keep operating from a point of strength. However, without growing demand for its meat alternatives, the business may not offer much to investors over the long term.
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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.
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