Shares of Beyond Meat, Inc. (BYND) plummeted by over 10% on November 7, 2024, as investors reacted negatively to the company's third-quarter earnings report and subsequent announcements. Despite reporting better-than-expected revenue growth of 7.6% year-over-year and substantial improvements in gross margins, the stock tumbled due to concerns over weaker demand outlook and plans for an equity raise.

The company lowered its full-year revenue guidance to a range of $320 million to $330 million, down from the previous estimate of $320 million to $340 million. This revision was attributed to soft demand for its plant-based meat products, as reflected in a 7.1% decline in the volume of products sold. While revenue growth was driven by pricing actions and reduced trade discounts, the decline in volume indicates that consumer interest in Beyond Meat's offerings may be waning.

Furthermore, Beyond Meat announced plans to raise additional capital through an at-the-market equity offering program. This move, aimed at bolstering the company's balance sheet and restructuring its substantial debt burden of $1.1 billion, raised concerns among investors about potential dilution for existing shareholders. The equity offering could lead to an increase in the number of outstanding shares, effectively reducing the value of each share and weighing on the stock price.