Beyond Meat shares blast higher after company posts smaller loss
Investors see progress from Beyond Meat's cost-cutting measures
Shares of Beyond Meat surged as much as 33% Friday after the plant-based protein maker reported a smaller loss in the fourth quarter compared to a year earlier, indicating the company's cost-cutting efforts are working.
The faux-meat firm, which slashed 200 jobs last quarter as part of a plan to reach positive cash flow within the second half of 2023, showed Thursday it is making progress toward that aim.
Beyond Meat's stock saw a boost Friday after the company reported progress toward profitability with its cost-cutting measures. (Associated Press / AP Images)
Beyond Meat posted a $66.9 million net loss for the last three months of 2022, or $1.05 per share, down from $80.4 million the same quarter a year prior. Analysts had expected a steeper loss of $1.18 per share.
The company expects to trim operating expenses by 22% this year, following a 9% rise in 2022.
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"We are making solid progress in our transition to a sustainable growth model, one that emphasizes the achievement of cash flow positive operations within the second half of 2023," Beyond Meat president and CEO Ethan Brown said in a statement accompanying the results.
Ethan Brown CEO of Beyond Meat talks during the Unlocking the Future of Protein Speaker Series at the Wellness Your Way Festival at the Colorado Convention Center on August 17, 2019 in Denver, Colorado. Shares of Beyond Meat jumped Friday on the heel (Tom Cooper/Getty Images for Wellness Your Way Festival / Getty Images)
He added, "Our fourth quarter results clearly demonstrate delivery against our strategy and plan, including solid sequential progress on margin recovery and operating expense reduction, and continued inventory drawdown."
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Still, Beyond Meat has been hammered by rising costs and waning demand for vegan meat alternatives. The company's net revenue tumbled 21% to $79.9 million in the fourth quarter from a year earlier, but was able to beat Wall Street's expectations for the first time since June 2021. Analysts had expected revenue of $75.7 million.
The company also offered an upbeat full-year revenue forecast of $375 million to $415 million for this year.
Beyond Meat products, including breakfast sausage, steak, chicken tenders, and beef crumbles, share freezer space with Gardein plant-based food in a grocery store on November 21, 2022 in Miami, Florida. Beyond Meat's stock saw a boost on Friday after (Joe Raedle/Getty Images / Getty Images)
"While the outlook for 2023 is encouraging, it is worth noting the company has had to lower its guidance several times over the past few years," said Arun Sundaram, senior equity analyst at CFRA Research.
Sundaram added, "Nonetheless, investors may be optimistic that 2022 marked the low point for the company."
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Beyond Meat
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BYND | BEYOND MEAT INC. | 5.04 | -0.10 | -2.04% |
Reuters contributed to this report.
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