Beyond Meat Faces Strategic and Market Challenges Amid Convertible Notes and Distribution Shifts

Alexia Burland Howard, an analyst from Bernstein, maintained the Hold rating on Beyond Meat (BYND – Research Report). The associated price target was lowered to $2.50.

Alexia Burland Howard’s rating is based on a combination of factors affecting Beyond Meat’s current market position. The company is facing challenges with its convertible notes due in 2027, and while there is an expected improvement in sequential sales, the shift of products to the frozen vegetarian aisle may not fully offset the lower traffic compared to the fresh meat section. This strategic move is intended to recover distribution at major retailers but may not be sufficient to drive significant top-line growth.
International sales are showing positive trends, yet the U.S. market is experiencing a downturn, attributed to a challenging macroeconomic environment. Despite efforts to reduce operating expenses and achieve EBITDA positivity by the end of 2026, the ability to regain consumer interest with the new Beyond 4.0 products remains uncertain in a price-sensitive market. Consequently, the price target has been adjusted downward, reflecting ongoing challenges in volume and distribution.

BYND’s price has also changed dramatically for the past six months – from $5.840 to $2.540, which is a -56.51% drop .