Beyond Meat's 5-Year Unprofitability and $1.2B Debt Push Analysts to Downgrade

Beyond Meat (BYND) shares fell sharply following a disappointing third-quarter earnings report, with Mizuho Securities slashing its price target to $1 amid widening losses and declining sales. The plant-based meat producer reported a non-GAAP loss of $0.47 per share, missing estimates by $0.04, while revenue declined 13.3% year-over-year to $70.2 million, though it narrowly beat expectations. The stock dropped 8% in after-hours trading, extending a year-long slump that has seen it fall 78.8%.

The company's struggles were underscored by a $77.4 million non-cash impairment charge related to long-lived assets and a $42 million cash burn during the quarter. Gross margin contracted to 10.3% from 17.7% in the prior year, driven by higher trade discounts, price cuts, and operational challenges in China. U.S. retail and foodservice sales declined sharply, with the former falling 18.4% to $28.5 million and the latter dropping 27.3% to $10.5 million. International segments showed mixed results, with foodservice revenues rising 2.3% but retail sales slipping 4.6%.

Analysts have turned bearish, with Mizuho maintaining an "Underperform" rating and TD Cowen reducing its price target to $0.80. JPMorgan and Argus also joined the negative chorus, with the latter downgrading to "sell" in September. Beyond Meat's fourth-quarter revenue guidance of $60–$65 million, below the $70.33 million consensus, signaled another double-digit decline. CEO Ethan Brown highlighted progress in deleveraging through a debt exchange and at-the-market offerings but acknowledged "category headwinds" persist.

The company's balance sheet remains strained, with $1.2 billion in outstanding debt and $131.1 million in cash as of September 2025. Shareholders faced further dilution after the firm raised $148.7 million via its at-the-market program, issuing over 59 million shares. Despite cost-cutting efforts and strategic initiatives, Beyond Meat has yet to post a profitable quarter since its 2019 IPO.