Why Beyond Meat stock is up about 600% in 3 days
Beyond Meat ( BYND ) is having another meme-stock moment, even though the fundamentals of its business aren’t as sizzling as a plant-based burger coming off the grill.
Shares of the struggling fake meat maker have gained nearly 600% in the last three trading sessions. The gains look set to continue Wednesday, with shares rising as much as 133% in premarket trading.
During this time, the company’s stock page was among the most active pages on the Yahoo Finance platform (also see the Yahoo Finance community insight table below).
There appear to be two catalysts behind the surge.
First: On Tuesday, Beyond Meat said its “Beyond Burger 6-pack” and Beyond Chicken Pieces will be available in 2,000 Walmart (WMT) stores across the US.
Second: Stock on Monday added Roundhill Meme Stock ETF (MEME).
The trading activity comes at a turbulent time for the high-flying company, which was once valued at $14 billion after its 2019 IPO (it’s worth $1.4 billion today).
Last week, Beyond Meat announced a debt swap agreement to reduce $800 million in debt. The company will receive $202.5 million in debt maturing in 2030 in exchange for debt maturing in 2027. It will issue up to 326 million shares to bondholders, diluting existing shareholders.
Second quarter sales fell 19.6% from the prior year to $75 million due to a decline in volume. The company was once again hit by a perfect storm: weak demand at retail outlets and weak demand at fast food restaurants. Beyond Meat’s operating loss was $34.9 million.
The company chose to lay off 6 percent of its workforce. Following poor results, there will be two rounds of layoffs in 2024.
Jefferies analyst Kaumil Gajrawala said, “Stabilizing the portfolio and increasing operating leverage are key drivers of achieving positive EBITDA in the second half of 2026. The company is downsizing to survive; cutting costs, rethinking its strategy and trying to rebuild distribution. Innovation into protein, fiber and forward-looking labels/offerings slipping. The balance sheet needs work. Progress will be evaluated quarterly,” said Jefferies analyst Kaumil Gajrawala.
Brian Sozzi He is the Editor-in-Chief of Yahoo Finance and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, instagramAnd LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
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