The funds control about 5% of the retailer, the Wall Street Journal reported.
They are preparing an effort to replace all 12 members of Bed Bath and Beyond's board, according to the report, which cited people familiar with the matter.
Shares of Bed Bath & Beyond rose 17 cents to $13.87 during the regular session Monday.
The report identified the funds as Legion Partners Asset Management LLC, Macellum Advisors GP LLC and Ancora Advisors LLC.
Bed Bath & Beyond's revenue is expected to fall 10.2% to $3.3 billion when it reports its latest quarterly results on on Apr. 10, based on a FactSet survey of 19 analysts. The company is expected to report earnings of $1.12 a share.
In the same period a year ago the company posted earnings of $1.48 a share on sales of $3.7 billion.
The stock has fallen 13.13% since the company last reported earnings on Jan. 9.