Beyond Meat (NASDAQ:BYND) witnessed a remarkable surge in its stock on Tuesday following the release of better-than-expected fourth-quarter revenue and the anticipation surrounding a new, healthier burger aimed at revitalizing U.S. sales.
The plant-based meat producer saw its stock skyrocket by over 78% in after-market trading.
Although the El Segundo, California-based company reported an 8% decline in revenue for the October-December period, amounting to $73.7 million, it surpassed Wall Street estimates, which projected revenue at $66.7 million, according to analysts polled by FactSet.
Beyond Meat also offered an optimistic outlook for improving margins in the coming year, attributing it to significant restructuring efforts. Last year, the company streamlined its operations by reducing staff, discontinuing certain products such as its slow-selling plant-based jerky, and consolidating its production. Beyond Meat’s President and CEO, Ethan Brown highlighted the company’s transition from relying on 13 external manufacturing locations in North America to just one.
Brown expressed confidence in the company’s adjustments, stating during a conference call with investors, “I think we right-sized the business for the size of the current opportunity and the growth that we want to create ahead.”
Despite a 23.5% decline in U.S. sales during the quarter, Beyond Meat remains optimistic about its prospects. The company plans to introduce a revamped version of its flagship Beyond Burger, boasting reduced sodium and saturated fat content, along with increased protein. Scheduled for rollout in U.S. stores next month, the new burger, along with Beyond Beef grounds, aims to address previous criticisms regarding the healthiness and processing of its products.
Beyond Meat reported a notable 28.5% increase in international sales during the fourth quarter, driven by stronger performances in both the grocery and restaurant sectors. Sales in Europe saw significant growth, buoyed by the inclusion of Beyond’s McPlant burger on McDonald’s menus, although Beyond products are not available in McDonald’s outlets in the U.S.
Despite these positive developments, Beyond Meat’s net loss more than doubled to $155.1 million for the fourth quarter, translating to $2.40 per share. Adjusted for one-time expenses, such as restructuring costs, the company reported a loss of 92 cents per share, which was slightly higher than the forecasted 89-cent loss, according to FactSet.
Looking ahead, Beyond Meat anticipates full-year revenue in the range of $315 million to $345 million in 2024, while analysts project revenue at $344.4 million, according to FactSet. This follows a decline in full-year revenue to $343 million in 2023. The company also expects its gross margin to range in the mid-to high-teens for the full year 2024, a significant improvement from the negative margin reported in 2023.
Featured Image: Megapixl
Author Faith Yakubu 
