Beyond Meat (NASDAQ: BYND) was a Wall Street and Main Street darling a few years ago, as its plant-based meat alternative products sparked a food fad. At one point, it seemed like everyone wanted to try Beyond Meat. Like most fads, demand for plant-based meat alternatives faded. Now big retailers, like Walmart (NASDAQ: WMT) and Costco (NASDAQ: COST), appear to be relegating Beyond Meat to the frozen food aisle. It could be a good thing, mostly.
Beyond Meat’s sales skyrocketed after it held its initial public offering. But in 2022, the packaged food company hit an inflection point, as its sales began to fall. The once hot products it sold were no longer in demand, as customers tried them and clearly decided they preferred real meat.
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Wall Street has punished the stock, as the consumer staples start-up has continued to bleed red ink. However, the brand itself still has notable value, as it is basically “the face” of the broader plant-based meat alternative niche. So the push from the meat aisle to the frozen food aisle can be viewed in two ways.
The bad news for Beyond Meat is that it had its shot, and consumers voted with their wallets. While Beyond Meat didn’t catch on more broadly, some consumers still buy it. The move to the frozen food aisle allows those customers to continue buying Beyond Meat’s products. It will likely mean lower, but more reliable revenues for the food maker.
Frozen foods also have a longer shelf life. That means Beyond Meat doesn’t have to produce at the same volume, and retailers won’t have to throw away as much food due to spoilage. That is a win for both parties.
On that front, it is worth highlighting that Beyond Meat had to delay its fourth-quarter 2025 earnings release. The stated reason was that it required “additional time to complete a review and analysis related to its inventory balances, including amounts recorded for the provision of excess and obsolete inventory.” It appears that even Beyond Meat is throwing away unsold inventory.
The big question mark is whether Beyond Meat can leverage the shift into the frozen food aisle into sustainable profitability. So far, sustainably positive earnings have eluded the company.
Beyond Meat shifting to the frozen food aisle is an interesting development that could help stabilize the business. However, investors need to tread carefully with the money-losing start-up. Most investors should watch from the sidelines until Beyond Meat has proven that living in the frozen food aisle is actually good for its business.
