Beyond Meat, Inc. (BYND) shares plummeted 6.63% in intraday trading, as rumors of a potential bankruptcy filing circulated despite the company's vehement denial. The plant-based meat pioneer has been grappling with falling sales and a challenging market environment, leading to speculation about its financial stability.

The stock's sharp decline comes in the wake of reports suggesting that Beyond Meat was considering filing for Chapter 11 bankruptcy protection. However, the company swiftly responded to these claims, stating on social media, "Recent media stories suggesting that Beyond Meat filed for bankruptcy are unequivocally false. We have not filed nor are we planning to file for bankruptcy."

Despite the company's denial, investors appear to be concerned about Beyond Meat's financial health. The firm has been facing significant headwinds, with Q2 2025 revenue dropping 20% year-over-year and its stock price sitting at a fraction of its IPO value from six years ago. In response to these challenges, Beyond Meat recently announced a new round of layoffs and appointed John Boken, a corporate restructuring expert, as its interim chief transformation officer. The company aims to become EBITDA-positive within the second half of 2026 and is exploring strategies to address its $1.1 billion debt due in 2027, including a recent $100 million debt financing facility.