Beyond Meat Stock Jumps 36% on Meme Momentum, Ignores Weak Fundamentals

Beyond Meat (BYND) shares closed up 36.48% at $1.34 on Monday, according to Benzinga Pro data. The surge hit heavy volume with no fresh company news, as traders piled into the stock amid GameStop buzz on social media. Yahoo Finance pegged the gain at 36.5%, which continued with 16% premarket gains Tuesday, even as broader indexes like the S&P 500 fell 0.6%.

That pop came after the stock dipped below $1 earlier, risking Nasdaq delisting if it lingers there 30 trading days. It rallied from $0.52 to $7.69 in a week last October on Walmart news and short-squeeze bets, per Yahoo Finance. But shares sit 73% lower over the past year.

Fundamentals Show Steep Decline

Q3 revenue dropped 13.3% year-over-year to $70.2 million, TS2 Tech reports, citing SEC filings. Net loss ballooned to $110.7 million from $26.6 million a year earlier, or $1.44 per share versus $0.41. A $77.4 million impairment charge hit operating expenses after an October warning delayed earnings.

Gross profit margin: 10.3%
Cash and equivalents: $131.1 million
Long-term debt: $1.2 billion
Q4 revenue guidance: $60-65 million, missing Wall Street’s $70 million estimate

U.S. retail and foodservice sales fell double digits, with only modest international foodservice growth. Beyond Meat halted China operations and faces soft U.S. demand. An October debt-for-equity swap cut over $800 million in debt but issued up to 326 million new shares, sparking dilution fears and a 50%+ drop in some sessions.

Legal Hits Add Pressure

A federal jury hit Beyond Meat with a $38.9 million trademark verdict against Vegadelphia Foods on November 24—$23.5 million in damages plus $15.4 million in profit disgorgement—over similar ad slogans like “Great Taste, Plant-Based.” The company plans to appeal, per its 8-K filing detailed by TS2 Tech. Securities-fraud probes from firms like Bleichmar Fonti & Auld followed the impairment disclosure and stock drop.

Meme Plays Versus Reality

Short interest stays high, fueling speculation, Benzinga notes, with Benzinga Edge giving it a low momentum score of 2.31 across time frames. Bullish options bets persist near $1, but Yahoo Finance warns of bankruptcy risk from cash burn unless margins improve. Short-term rallies look possible from meme traders, yet long-term survival hinges on better demand and debt control.