Beyond Meat Stock Is Getting Cooked After The Close: What's Going On?

Beyond Meat Inc BYND shares are crumbling in Wednesday’s after-hours session as investors digest a report suggesting the company’s liquidity position has weakened.

What Happened: According to a Wall Street Journal report published after the market close on Wednesday, Beyond Meat has reached out to a group of bondholders to start discussions about a potential restructuring of its balance sheet.

People familiar with the matter reportedly said the group of bondholders, which own some of Beyond Meat’s $1.1 billion of convertible notes, are working with law firm Akin Gump Strauss Hauer & Feld on the matter.

Beyond Meat stock has been stuck in a downtrend since the summer of 2021 as the company continues to burn through cash. The plant-based meat company had $173.5 million in cash and cash equivalents as of March 30.

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In Beyond Meat’s most recent earnings report, the company noted its operating environment continued to be affected by uncertainty related to macroeconomic issues including “ongoing, further weakened demand in the plant-based meat category.”

Beyond Meat is due to report earnings again in early August, although a date has not yet been confirmed by the company. According to estimates from Benzinga Pro, analysts are anticipating a loss of 51 cents per share on revenue of $87.808 million.

BYND Price Action: Beyond Meat shares were down 16.32% after hours at $6 at the time of publication, according to Benzinga Pro.

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Photo: Courtesy of Beyond Meat.