Beyond Meat, Inc. (BYND.US), a plant-based meat concept stock, has once again become a focal point in the meme stock arena after releasing preliminary Q3 results last week. Following a 23.06% plunge on Friday, the stock fell another 5% in pre-market trading on Monday.

The company projected Q3 revenue of approximately $70 million, slightly above analyst expectations and in line with prior guidance. However, this represents a 13% year-over-year decline, highlighting persistent weakness in demand for its plant-based products. Beyond Meat also expects gross margins between 10% and 11%, including a $1.7 million expense related to suspending most of its operations in China. Operating expenses are forecasted between $41 million and $43 million, with around $2 million in non-recurring costs, including legal fees, retention plan expenses, and lease termination fees.

BTIG analyst Peter Saleh noted that persistently low gross margins and high operating expenses continue to stifle profitability. In a recent report, he stated, "We maintain a neutral stance as we see no signs of sales recovery, no progress toward sustainable financial health, and potentially worse cash burn than last year. Additionally, the recent convertible debt financing has led to significant equity dilution, reflecting the company’s challenging funding environment."

Saleh and his team hold a neutral view on Beyond Meat: while the brand enjoys strong recognition and growing consumer acceptance of plant-based protein, declining sales, weak category demand in the U.S., deteriorating financials, and potential capital needs offset these advantages. Saleh cautioned, "Despite recent restaurant partnerships, few products have secured permanent menu spots. Given restaurants’ reluctance to commit to large-scale or sustained plant-based meat offerings, we believe a sales rebound may take longer than expected."

Due to weak sales growth prospects, rising competition, cash burn concerns, and uncertainty around additional financing, BTIG maintains a "Neutral" rating on the stock.