Beyond Meat’s Stock Is Beyond Reality: Shares Surge 1,100% in Just Days!

Beyond Meat’s stock ripped higher in a meme-driven short squeeze, but falling sales, cash burn, and dilution mean the rally may not reflect improving fundamentals.

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beyond meat burger with cheese

Source: Beyond Meat

Key Points

  • Meme-fuelled rally amid 80% short interest drove 1,100% intraday surge, short squeeze dynamics, not fundamentals.
  • Bull case: bigger plant-based market and new Walmart distribution offer upside if demand rebounds.
  • Bear case: revenues shrinking, negative free cash flow, and dilution risks make it a high-risk speculative play.

That’s no typo. Shares of Beyond Meat (NASDAQ:BYND) surged this week by up to around 1,100% after a meme stock frenzy. The company has become one of the most heavily shorted stocks on the market, with short interest estimated at about 80% of its float at writing. So let’s look at what happened, and whether this has made Beyond Meat stock a buy, or a beware.

What happened

The recent surge in Beyond Meat stock made the company ripe for a short squeeze, with retail traders picking up on the ticker, fuelling the buying momentum. Amid the frenzy, Beyond Meat stock made a few announcements that could have fuelled the attention, so let’s take a look.

The company announced a major distribution expansion with Walmart. Its “Beyond Burger 6-pack” and “Beyond Chicken Pieces” will be available in 2,000 stores across the United States. This certainly does give the meme stock a catalyst to help stoke the fire of retail traders.

Furthermore, the stock hit extreme lows recently. This made the percentage gain incredibly dramatic for retail investors. As mentioned, the stock may trade around $3.30 at writing, but it surged as high as $8.50, creating an increase of 1,100% before coming back down. That kind of move grabs attention, further fuelling momentum. Yet the question is now: Is the meme stock still a buy?

Bull side

The global plant-based meat market is expected to grow strongly over the next decade. One forecast puts the U.S. market going from about US$3 billion in 2024 to US$15.1 billion by 2033. And that’s just in the U.S. If Beyond Meat can secure even a modest share of that growth, there’s significant upside potential.

Beyond Meat is one of the earlier and more visible players in the plant-based meat space. That gives it a potentially durable advantage in terms of brand, distribution relationships, and product portfolio. For example, the company launched an expanded “Beyond Steak” line in 2025. If it can refresh its product mix successfully, it might capture more consumer interest.

Because much of the market is skeptical of Beyond Meat stock’s turnaround, the share price is very depressed compared to earlier highs, even after the surge. In fact, recent movement shows how volatile the upside can be. If you buy at a low basis and things improve significantly, the returns could be significant.

Bear side

Beyond Meat stock’s core business has been shrinking for more than two years. In its latest quarterly report, revenue fell about 9% year-over-year, marking another decline after multiple disappointing quarters. Consumers who tried plant-based meat early on haven’t stuck around. Even more troubling is that Beyond Meat’s U.S. retail volumes have been slipping, not growing. Unless the stock can reignite real consumer demand, sales will likely keep trending down despite flashy marketing or distribution expansions.

Furthermore, Beyond Meat stock isn’t just struggling with sales but also burning cash. The company continues to post quarterly net losses, and free cash flow remains deeply negative. To raise money, Beyond Meat turned to debt and equity offerings. In late 2025, it announced a convertible debt exchange to manage its balance sheet. Every time it raises new capital or issues shares, existing investors face dilution.

Also, Beyond Meat went public, and it looked like the first mover in a booming new market. Today, that market looks more crowded and less profitable. Major players have cut into Beyond Meat’s shelf space. And now, with the recent meme stock rally and nothing else behind it, investors are likely not going to dive into a risky stock after such a surge.

Bottom line

Beyond Meat stock is one of those stocks that looks exciting on the surface, but under the hood, it faces serious challenges. Even after the recent meme-stock rally, many analysts warn that the company’s problems are structural, not temporary. So before trying to get in on the next trend, make sure to consider your own risk tolerance. And for Beyond Meat stock, that tolerance better be high.

Fool contributor Amy Legate-Wolfe has positions in Walmart. The Motley Fool recommends Walmart. The Motley Fool has a disclosure policy.

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