Past Meat shares soar 80% as firm tops quarterly income estimates, plans ‘steep’ value cuts in 2024

Beyond Meat on Tuesday topped market expectations for fourth-quarter income on resilient demand for its fake meat patties in key markets exterior the US, and mentioned it could ramp up its pricing actions in 2024.

The corporate’s shares, which fell 27.7% in 2023, jumped about 84% in prolonged commerce on Tuesday as CEO Ethan Brown additionally mentioned Past Meat would “steeply reduce” working expense and money use within the yr.

About 40% of the corporate’s shares had been quick on the finish of January, as per LSEG information.

To counter weak demand in the US, Past Meat, which provides its plant-based meat patties to quick meals chains reminiscent of McDonald’s and Yum! Brands, has lowered costs and resorted to greater reductions.

Fake meat is pricier than conventional meat — an element that has discouraged budget-conscious shoppers within the U.S. from choosing the previous in latest occasions.

The corporate has additionally been in a position to maintain demand for plant-based meat in its worldwide markets, significantly Europe.

Price-cut measures, together with job cuts taken final yr, have additionally helped scale back the burden on margins from sluggish demand in the US.

Volumes rose 8% within the quarter ended Dec 31, in comparison with a 3.5% improve within the third quarter.

Internet income for the fourth quarter fell 7.8% to $73.7 million, however topped analysts’ common estimate of $66.7 million, as per LSEG information.

Nonetheless, the corporate’s full-year web income forecast within the vary of $315 million to $345 million was largely under market expectations of $343.8 million.

It reported a bigger-than-expected lack of 92 cents per share for the fourth quarter, in contrast with expectations of 88 cents.