Analysts have lowered their price target for Beyond Meat from $2.00 to $0.80 per share. They cite ongoing financial pressures, a significant increase in share count following convertible note exchanges, and persisting operational challenges.
Analyst Commentary
Analyst reactions to Beyond Meat’s recent performance and outlook have largely reflected persistent concerns over the company’s trajectory. While management has implemented cost-reduction strategies, the prevailing focus from analysts remains on ongoing risks and hurdles facing the business.
Bearish Takeaways- Bearish analysts cite substantial shareholder dilution, noting a significant increase in share count following convertible note exchanges. This change weighs on per-share valuation.
- Ongoing financial and operational challenges persist, with analysts highlighting sales declines, pressured gross margins, and EBITDA performance falling below expectations.
- Competition in the plant-based protein category continues to intensify, raising doubts about Beyond Meat’s ability to stabilize or grow top-line results in the near term.
- Despite management’s actions to reduce costs, such as discontinuing underperforming products and executing layoffs, analysts remain skeptical that these moves will offset negative volume trends and rising input costs.
What's in the News
- Beyond Meat launched updated Beyond Burger and Beyond Beef products made with avocado oil. These products are certified by the Clean Label Project and are now available at Erewhon stores (Product-Related Announcements).
- The company expanded its partnership with Walmart to offer a new Beyond Burger 6-Pack and other products at over 2,000 stores nationwide (Client Announcements).
- A special shareholders meeting is scheduled for November 19, 2025, to vote on amending the charter to increase authorized shares of common stock from 500 million to 3 billion (Special/Extraordinary Shareholders Meeting; Changes in Company Bylaws/Rules).
- Beyond Meat is involved in ongoing legal proceedings with a former manufacturer. An interim arbitration award was recently issued in the company's favor (Lawsuits & Legal Issues).
- The company implemented workforce reductions affecting 6% of its staff in North America as part of broader cost-saving initiatives (Discontinued Operations/Downsizings).
Valuation Changes
- Fair Value Estimate: Lowered slightly from $2.33 to $2.23 per share. This reflects increased near-term risks and dilution.
- Discount Rate: Decreased meaningfully from 12.32% to approximately 7.59%. This suggests reduced required return assumptions or perceived risk.
- Revenue Growth: Remains unchanged at roughly -11.95%. This indicates continued expectations of annual sales contraction.
- Net Profit Margin: Trimmed slightly from 6.08% to 5.96%. This signals slightly lower projected profitability.
- Future Price-to-Earnings (P/E) Ratio: Lowered from 16.80x to 14.40x. This reflects a moderation in anticipated valuation multiples.
Have other thoughts on Beyond Meat?
Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.
Create NarrativeDisclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.