Beyond Meat, Inc. (BYND) witnessed a significant after-hours stock plunge of over 7% on November 6, 2024, despite reporting better-than-expected financial results for the third quarter of 2024. The plant-based meat company reported a 7.6% year-over-year increase in revenue to $81 million, marking its first quarter of revenue growth since early 2022. Additionally, gross margins improved substantially to 17.7%, compared to a negative 9.6% in the year-ago quarter, while operating expenses were reduced to their lowest level in four years at $45.2 million.

The revenue growth was driven by a 15.8% increase in net revenue per pound, primarily due to pricing actions and reduced trade discounts across various channels. However, this was partially offset by a 7.1% decline in the volume of products sold, reflecting weaker demand as cost-conscious consumers switched to cheaper alternatives amidst economic challenges.

Beyond Meat's improved gross margins were aided by lower costs, the benefits of network consolidation initiatives, and more efficient inventory management. These factors, combined with the reduced operating expenses, contributed to a narrower adjusted EBITDA loss of $19.8 million, compared to a loss of $57.5 million in the year-ago quarter. The company's efforts towards profitability were further evident in the decreased net loss of $26.6 million, down from $70.5 million in the previous year's third quarter.