Beyond Meat is Careening Toward Bankruptcy

Beyond Meat is the latest addition to the list of “zombie stocks” compiled by independent equity research firm New Constructs.

The research firm, which uses machine learning and natural language processing to parse corporate filings and model economic earnings, warns that Beyond Meat Inc. BYND, -0.30% has a high risk of declining to $0 a share.

“Beyond Meat must dramatically cut costs and lower its cash burn, or it will go bankrupt,” wrote New Constructs CEO David Trainer, in a note released on Tuesday. “Companies with heavy cash burn and little cash on hand are risky in any market, but especially now.”

Shares of Beyond Meat have fallen 47.8% in 2022 and 72.2% over the last 12 months, compared to declines of 13.2% and 6.4%, respectively, for the S&P 500 index SPX, +2.13%.