Beyond Meat Stock Drop Looks Sharp, But How Deep Can It Go?
Beyond Meat (BYND) stock is down 14.9% in 5 trading days. The recent slide reflects renewed concerns around waning demand in its core retail and foodservice segments, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Beyond Meat stands today.
- Size: Beyond Meat is a $87 Mil company with $291 Mil in revenue currently trading at $1.14.
- Fundamentals: Last 12 month revenue growth of -10.2% and operating margin of -56.4%.
- Liquidity: Has Debt to Equity ratio of 9.15 and Cash to Assets ratio of 0.2
- Valuation: Beyond Meat stock is currently trading at P/E multiple of -0.4 and P/EBIT multiple of -0.6
These metrics point to a Very Weak operational performance, alongside Very Low valuation – making the stock Unattractive. For details, see Buy or Sell BYND Stock
That brings us to the key consideration for investors worried about this fall: how resilient is BYND stock if markets turn south? This is where our downturn resilience framework comes in. Suppose BYND stock falls another 20-30% to $1 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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- Down 38% Since 2023, How Will Beyond Meat Stock Trend Post Q4 Results?
- Can Beyond Meat Stock Rebound After A 46% Drop This Year?
2022 Inflation Shock
- BYND stock fell 97.0% from a high of $192.08 on 27 January 2021 to $5.68 on 26 October 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $10.69 on 29 February 2024 , and currently trades at $1.14
| BYND | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -97.0% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- BYND stock fell 58.2% from a high of $129.18 on 21 January 2020 to $54.02 on 18 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 8 May 2020
| BYND | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -58.2% | -33.9% |
| Time to Full Recovery | 51 days | 148 days |
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