Beyond Meat, Inc. (BYND) shares are soaring during Tuesday's trading session, surging by an impressive 29.83%. This remarkable rally comes after the plant-based meat alternative company provided a better-than-anticipated revenue forecast for its third quarter.

According to the company's projections, Beyond Meat expects to report approximately $70 million in revenue for Q3, slightly surpassing analyst expectations. While this figure still represents a 13% year-over-year decline, it appears to have boosted investor confidence in the struggling "meme stock." The company also anticipates gross margins between 10% and 11% for the quarter, which includes a $1.7 million expense related to scaling back operations in China.

Despite the positive market reaction, analysts remain cautious about Beyond Meat's long-term prospects. BTIG analyst Peter Saleh maintains a neutral stance, citing persistently low gross margins and elevated operating expenses as ongoing challenges to profitability. Saleh also pointed out that there are "no signs of sales recovery" and "minimal progress toward sustainable financial health." The recent surge in stock price comes against a backdrop of financial struggles, including a recent convertible debt financing that led to significant equity dilution, highlighting the company's challenging funding environment.