On Tuesday, Beyond Meat, Inc. (BYND.US), a recent "Meme stock," saw its shares rally sharply, gaining over 23% to $2.22 at the time of writing. This rebound follows a steep 23.06% drop last Friday.

The company projected third-quarter revenue of approximately $70 million, slightly exceeding analyst expectations and aligning with prior guidance. However, this forecast represents a 13% year-over-year decline, highlighting persistent weakness in demand for its plant-based products.

Beyond Meat also anticipates gross margins between 10% and 11% for the quarter, which includes a $1.7 million expense tied to scaling back most of its operations in China. Operating expenses are expected to range from $41 million to $43 million, with roughly $2 million in non-recurring costs, including legal fees, retention program expenses, and lease termination charges.

BTIG analyst Peter Saleh noted that persistently low gross margins and elevated operating expenses continue to undermine profitability. In a recent report, he stated, "We maintain a neutral stance as we see no signs of sales recovery, minimal progress toward sustainable financial health, and potentially worse cash burn than last year. The recent convertible debt financing, which led to significant equity dilution, further underscores the company’s challenging funding environment."