Analysts have sharply reduced their price target on Beyond Meat, lowering it from $2.00 to $0.80. They cite ongoing financial and operational challenges, including increased shareholder dilution and persistent category headwinds.
Analyst Commentary
Recent analyst revisions highlight a divided outlook on Beyond Meat's future prospects. Professional assessments focus on the company's persistent challenges as well as operational adjustments that may impact valuation and growth trajectory.
Bullish Takeaways- Some analysts acknowledge management's efforts in cost optimization, noting the discontinuation of lower-performing products and various rounds of layoffs as proactive measures.
- Reduction in debt principal by 83% following recent convertible note transactions may improve Beyond Meat's balance sheet strength in the near term.
- Ongoing strategies to streamline operations could support the possibility of stabilizing financial performance over time if successful in execution.
- Shareholder dilution remains a major concern, with a 413% increase in share count significantly reducing valuation per share and weighing on future returns.
- Declining revenue and volumes, coupled with persistent input cost pressures, are driving margins lower and placing financial pressure on the company.
- Market headwinds, including increased competition and changing consumer perceptions regarding product health attributes, are posing challenges to growth.
- Lack of confidence in existing strategies means there is skepticism about Beyond Meat's ability to stabilize or grow its top-line performance moving forward.
What's in the News
- Beyond Meat provided earnings guidance for the fourth quarter of 2025, projecting net revenues between $60 million and $65 million (Key Developments).
- The company reported a loss from impairment of long-lived assets totaling $77.4 million for the third quarter ended September 27, 2025 (Key Developments).
- Beyond Meat announced delays in filing its next 10-Q with the SEC and missed the required deadline (Key Developments).
- The company launched the latest Beyond Burger (Beyond IV) at all Hard Rock Cafe North America locations and a new Beyond Beef 2-Pack at Canadian retailers (Key Developments).
- Legal proceedings continue with a former co-manufacturer, with an interim arbitration award finding Beyond Meat had valid grounds to terminate the agreement. Final resolution is pending (Key Developments).
Valuation Changes
- Fair Value Estimate remained stable at $2.23, with no material changes in the latest analysis.
- Discount Rate increased from 7.59% to 8.50%, reflecting higher perceived risk in the company's outlook.
- Revenue Growth projection shifted from negative 0.12% to positive 1.69%, indicating improved expectations for top-line expansion.
- Net Profit Margin forecast edged up slightly from 5.96% to 6.04% for future periods.
- Future P/E ratio estimate rose marginally from 14.40x to 14.47x, suggesting relatively stable expectations for earnings valuation.
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.