Should You Buy Beyond Meat (BYND) Stock Before May 6?

Beyond Meat (NASDAQ: BYND), a producer of plant-based meat products, has lost about 96% of its value since its IPO nearly seven years ago. Let's see why its stock collapsed -- and if it's worth buying as a contrarian play ahead of its first quarter earnings report on May 6.

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What happened to Beyond Meat?

Back in 2019, Beyond Meat's revenue surged 239% as restaurants, retailers, and consumers eagerly tried out its products. But in 2020, that novelty wore off, the pandemic drove restaurants and retailers to rein in their spending, and cost-conscious consumers shifted back toward cheaper animal meat products.

It expected its growth to accelerate again after the pandemic ended, but many of its customers didn't return. At the same time, aggressive competitors like Tyson and Impossible Foods fragmented the shrinking market.

Beyond Meat's revenue rose 14% in 2021, but dropped 10% in 2022, 18% in 2023, 5% in 2024, and 16% in 2025. Instead of recovering from the pandemic, it struggled as the market's interest in plant-based meat waned, it lost its pricing power, and inflation drove up its costs. A failed joint venture with PepsiCo (NASDAQ: PEP) to sell plant-based jerky exacerbated that slowdown.

The company liquidated its inventory with markdowns to offset that pressure, but that destructive strategy reduced its gross margin from 33.5% in 2019 to 2.8% in 2025. It posted its first net profit in 2025, but that was driven by a one-time accounting gain from a debt restructuring rather than any improvements to its core business, which remains operationally unprofitable.

Are there any compelling reasons to buy Beyond Meat?

For 2026, analysts expect Beyond Meat's revenue to decline another 9% to $249 million as it posts a net loss of $163 million. With a market cap of $456 million, it still trades at 1.8 times this year's sales and can't be considered a deep value play. It's also increased its share count by 695% since its IPO, and that dilution will likely continue for the foreseeable future.

On the bright side, its insiders bought nearly ten times as many shares as they sold over the past 12 months. More than 30% of its shares were also still being shorted as of April 15. That warming insider sentiment and elevated short interest might set it up for a short squeeze on any better-than-expected news on May 6, but I'm not optimistic that it will happen.

Instead, I think it will be another typical quarter for Beyond Meat, with declining revenue, steep losses, and murky turnaround plans. It will probably focus on cutting costs and reducing its debt, but those strategies will make it even smaller when it needs to find fresh ways to grow again. Therefore, it won't become a contrarian play until a few more green shoots appear.

Leo Sun 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.