Beyond Meat(US:BYND) The Motley Fool·2025-12-10 02:03Core Viewpoint - Beyond Meat is facing significant financial challenges, leading to a recommendation to sell the stock due to its deteriorating performance and cash burn issues [1][12]. Financial Performance - In Q3, Beyond Meat reported a 13% year-over-year decline in sales, with gross profit margin dropping from 17.7% to 10.3% [4]. - The company incurred an operating loss of $112.3 million, resulting in a net loss of $110.7 million, equating to a loss of $1.44 per share, which is three times larger than the previous year's loss [4]. Cash Flow and Liquidity - Beyond Meat consumed $107.4 million in cash during the first three quarters of the year, burning cash 44% faster than the previous year [5]. - The company is projected to end 2025 with an annual cash burn of $144 million, while it had approximately $131 million in cash and cash equivalents at the end of Q3 [5][6]. Capital Raising Efforts - To address its financial situation, Beyond Meat raised approximately $148.7 million by selling 58.9 million shares of new stock [8]. - The company converted most of its $1.2 billion in convertible debt into equity, issuing 317.8 million additional shares, which significantly increased the total shares outstanding from 76.7 million to approximately 453.6 million [9][10]. Shareholder Impact - The conversion of debt into equity has alleviated immediate insolvency risks but has resulted in an 83% dilution of existing shareholders' ownership stakes [11]. - Despite these measures, Beyond Meat has not addressed its underlying profitability issues, leading to skepticism about its future financial viability [12].