A bellwether in the vegan food industry is getting a raw deal on Wall Street.
Beyond Meat — once worth $7.8billion — is now almost worthless after an attempt to tackle its debt got the thumbs down from investors.
The near collapse of Beyond isn’t just a blow for the company itself — it’s a clear symptom of the wider vegan food industry.
Analysts point out that the difficulties faced by the flagship plant-based meat sector highlight fundamental issues: a lack of consumer interest, steep prices, and products that often miss the mark on taste or convenience.
Following an announcement about a major strategy to exchange its existing debt for new loans and release a significant number of new shares, Beyond Meat’s stock price plummeted by 50% on Monday.
The move gives the plant-based meat maker more time to pay its bills — but it also means investors now own a smaller slice of the company.
This recent downturn represents the second significant decrease in just over two weeks. On September 28, the company’s stock value fell by 35% after the CEO sought additional funds from investors.
Together, these declines have largely diminished the company’s worth, now valued at a mere $79 million. Despite once being endorsed by celebrities like Kim Kardashian and Nicole Williams-English, the brand faces around $800 million in debt, posing a significant challenge to its survival.
Nicole Williams-English, a Canadian model and animal activist, became a spokesperson for Beyond Meat’s partnership with Carl R’s burgers
Beyond first reached grocery stores in 2013, promising the fresh taste of a burger without a butchered cow.
For $8 to $10, shoppers could grab a package of two meatless patties, branded with a green cow wearing a cape.
With a more light-hearted approach than rivals like No Evil or Simulate, Beyond quickly became the poster child of plant-based protein.
But the industry has been skewered. Customers’ appetites for fake meat were charred.
When Beyond Meat went public in 2019, it was celebrated as the next big thing in food innovation, with its stock experiencing a brief surge of more than 350% amid the plant-based boom.
Fast food giants like McDonald’s and Burger King experimented with Beyond patties and Impossible Whoppers, while Dunkin’ introduced a Beyond breakfast sandwich, leading investors to predict a future dominated by plant-based options.
But McDonald’s and Dunkin’ have since dropped their options after weak sales. Burger King still sells the plant-based Whopper.
‘Beyond Meat suffers from taste and texture issues, high prices, and perhaps an “ultra-processed food” image,’ Jerry Thomas, the CEO of Decision Analyst, told the Daily Mail. ‘The chances of the company surviving are meager.’
Beyond Meat’s CEO, Ethan Brown, said Monday’s debt move ‘marks a meaningful next step’ for the company’s cash crunch
Investors worries about Beyond’s ability to survive – the stock plummeted 50 percent minutes after the bell on Monday
Beyond billed itself as a company capable of providing a meat-like experience without the dead cow – but shoppers have been snapping up beef even though costs for cattle are at record highs this year
Investors are rushing away from Beyond’s stock because other companies have tried similar quick-solve ‘rescue plans’ when in debt, and failed.
For example, in 2023, Nikola, the EV freight truck startup, attempted to clear its debts by offering more stock.
But the plan backfired, with investors nervous that the company couldn’t pay back its debts. This year, Nikola permanently closed.
Analysts tell the Daily Mail they expect a similar fate for Beyond.
‘The problem for Beyond Meat is that the company is not living up to its own hype,’ Neil Saunders, managing director at GlobalData, told the Daily Mail.
‘There is a market for fake meat, but consumers are broadly skeptical of the category as it is not seen as particularly natural and is viewed as being highly processed.’
Beyond didn’t immediately respond to the Daily Mail’s request for comment.
