Beyond Meat beats Q4 forecasts despite flagging sales

Feb 23, 2023, 2:47 PM | Updated: Feb 24, 2023, 3:01 am
FILE - Packages of Beyond Meat's Beyond Burgers and Beyond Sausage, are shown in this photo, in New...

FILE - Packages of Beyond Meat's Beyond Burgers and Beyond Sausage, are shown in this photo, in New York, on April 29, 2021. Beyond Meat reports their financial earnings on Thursday, Feb. 23, 2023. (AP Photo/Richard Drew, File)

(AP Photo/Richard Drew, File)

Beyond Meat on Thursday reported better-than-expected fourth quarter sales despite flagging consumer demand and lower prices.

The plant-based meat maker said its revenue fell 21% to $80 million in the October-December period. Still, that beat Wall Street’s expectations. Analysts polled by FactSet were forecasting revenue of $75.8 million.

Beyond Meat’s shares jumped 14% in after-hours trading.

The El Segundo, California-based maker of plant-based burgers, sausages, nuggets and other products said its sales volumes continued to decline despite price cuts in the U.S. and Europe. The strong dollar also hurt profits from abroad, the company said.

Beyond Meat’s net loss narrowed to $66.9 million for the quarter, or $1.05 per share. That also beat Wall Street’s forecast of a $1.18 per-share loss.

Beyond Meat President and CEO Ethan Brown said the company is seeing progress in its drive to cut costs and manufacturing complexity. Beyond Meat cut 200 jobs __ or 19% of its workforce __ in October and has narrowed its North American contract manufacturers from eight to three. It also reduced inventory.

Those savings __ along with easing costs for raw ingredients __ should help Beyond Meat tackle one of its most persistent problems: the high cost of its products relative to animal-based meat. On Thursday, Walmart was advertising Beyond Meat burgers at $9.68 per pound; lean ground beef was $5.86 per pound.

High prices were one the reasons for a broader slowdown in demand for fresh plant-based meats like burger patties and sausages last year, as shoppers confronted overall inflation at the grocery. U.S. sales of fresh meat alternatives fell 11% in 2022, wiping out the 11% gain they had seen in 2021, according to NielsenIQ.

Brown said the “drummed-up misperception” that plant-based meats are over-processed and unhealthy has also hurt sales, and the company intends to do more marketing and outreach to consumers about the health benefits of a plant-based diet, including lower cholesterol.

Brown also said Beyond Meat plans new products with improved taste this year. The company got a boost this month when McDonald’s introduced plant-based McNuggets in Germany. The McNuggets are the second product McDonald’s has co-produced with Beyond Meat; it also sells a McPlant burger in several European markets.

“This category will win over time on three things. It will win around taste. It will win around a proper understanding of the health benefits that our products provide. And on price,” Brown told investors during a conference call Thursday.

Beyond Meat said it expects net revenue in the range of $375 million to $415 million this year, which would be lower than the $418 million in reported in 2022.

The company said grocery price inflation and concerns about a recession could hurt sales in the first half, but it should see some improvement as the year progresses.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Haitian migrant Gerson Solay, 28, carries his daughter, Bianca, as he and his family cross into Can...
Associated Press

US, Canada to end loophole that allows asylum-seekers to move between countries

President Joe Biden and Canadian Prime Minister Justin Trudeau on Friday announced a plan to close a loophole to an immigration agreement.
3 days ago
Expert skateboarder Di'Orr Greenwood, an artist born and raised in the Navajo Nation in Arizona and...
Associated Press

Indigenous skateboard art featured on new stamps unveiled at Phoenix skate park

The Postal Service unveiled the “Art of the Skateboard" stamps at a Phoenix skate park, featuring designs from Indigenous artists.
3 days ago
(Facebook Photo/City of San Luis, Arizona)...
Associated Press

San Luis authorities receive complaints about 911 calls going across border

Authorities in San Luis say they are receiving more complaints about 911 calls mistakenly going across the border.
9 days ago
(Pexels Photo)...
Associated Press

Daylight saving time begins in most of US this weekend

No time change is observed in Hawaii, most of Arizona, Puerto Rico, the U.S. Virgin Islands, American Samoa, Guam and the Northern Marianas.
17 days ago
Mexican army soldiers prepare a search mission for four U.S. citizens kidnapped by gunmen in Matamo...
Associated Press

How the 4 abducted Americans in Mexico were located

The anonymous tip that led Mexican authorities to a remote shack where four abducted Americans were held described armed men and blindfolds.
17 days ago
Tom Brundy points to a newly built irrigation canal on one of the fields at his farm Tuesday, Feb. ...
Associated Press

Southwest farmers reluctant to idle farmland to save water

There is a growing sense that fallowing will have to be part of the solution to the increasingly desperate drought in the West.
24 days ago

Sponsored Articles

(Desert Institute for Spine Care in Arizona Photo)...
Desert Institute for Spine Care in Arizona

5 common causes for chronic neck pain

Neck pain can debilitate one’s daily routine, yet 80% of people experience it in their lives and 20%-50% deal with it annually.
Fiesta Bowl Foundation

Celebrate 50 years of Vrbo Fiesta Bowl Parade magic!

Since its first production in the early 1970s, the Vrbo Fiesta Bowl Parade presented by Lerner & Rowe has been a staple of Valley traditions, bringing family fun and excitement to downtown Phoenix.
(Desert Institute for Spine Care photo)...

Why DISC is world renowned for back and neck pain treatments

Fifty percent of Americans and 90% of people at least 50 years old have some level of degenerative disc disease.
Beyond Meat beats Q4 forecasts despite flagging sales