Beyond Meat Shares Face Mounting Pressure Amid Legal and Financial Woes

The stock of plant-based meat producer Beyond Meat continued its downward trajectory on Monday, shedding approximately 6.6% to close near $1.14. The company is grappling with a confluence of severe challenges, from a fresh securities probe and a costly legal judgment to disastrous quarterly earnings and the threat of significant shareholder dilution.

Beyond Meat's third-quarter 2025 results, released belatedly on November 10, painted a grim picture. Revenue came in at just $70.2 million, missing expectations, while the net loss ballooned to $110.7 million. This loss was heavily impacted by a substantial $77.4 million impairment charge for long-term assets.

This impairment is now at the heart of a new investigation. On December 8, the law firm Bleichmar Fonti & Auld LLP announced it is examining potential securities law violations. The probe focuses on whether the company improperly maintained inflated valuations of these assets before abruptly writing them down.

Legal Setback and Shareholder Dilution Fears

Compounding the crisis, a federal court in Massachusetts recently ordered Beyond Meat to pay $38.9 million in damages to Vegadelphia Foods. The court found intentional trademark infringement in the case. This penalty amounts to nearly 60% of the company's projected fourth-quarter revenue, which it forecasts will be between $60 and $65 million.

Should investors sell immediately? Or is it worth buying Beyond Meat?

Further unsettling investors was a shareholder vote on November 19 to increase the number of authorized common shares from 500 million to 3 billion—a sixfold expansion. This move follows a debt restructuring in October that already led to the issuance of approximately 317.8 million new shares, applying additional downward pressure on the stock price.

Analyst Sentiment and Forward Outlook

In response to the dismal quarterly report and ongoing headwinds, equity researchers have adjusted their outlooks. Firms including Mizuho and Barclays now see the stock hovering around the $1.00 level, a threshold the shares are currently testing. This valuation reflects deep concerns over potential further capital raises and persistent operational issues.

The company has stated its intention to appeal the Vegadelphia judgment. However, should the securities investigation evolve into a class-action lawsuit, Beyond Meat's stock is likely to remain under sustained pressure. The combination of falling demand, legal liabilities, and financial scrutiny presents a formidable obstacle to any near-term recovery for the alternative protein pioneer.