On Thursday, Beyond Meat reported higher-than-expected fourth-quarter sales despite slumping consumer demand and lower product prices. Its stock price rose to 0.23% to $17.14 per share on February 23. Also, it is anticipated to go up by 14.35% to $19.60 apiece in the upcoming session.
The earnings per share of Beyond Meat increased to -$1.05, beating the analysts’ -$1.18 estimates. It is higher than the previous -$1.60 reading. On the other hand, its revenue was $79.9 million, exceeding the $75.92 million forecast. However, it is lower compared to the former $82.50 million data.
Likewise, the California-based company’s net loss hit $66.90 in Q4 or $1.05 a share. It beat analysts’ $1.18 per share loss estimates.
Furthermore, experts said that savings and lower costs for raw ingredients should contribute to solving problems for Beyond Meat. This includes the expensive value of its products relative to animal-based meat. For instance, Walmart sold the firm’s burger at $9.68 a pound while lean ground beef was $5.86 per pound.
According to analysts, US sales of fresh meat substitutes dropped by 11.00% in 2022, reversing the 11.00% growth witnessed in 2021. In addition, they said that high prices of fresh plant-based meats such as patties and sausages were one of the causes of a demand slowdown last year. This came after consumers tackled overall grocery inflation.
McDonald’s and Beyond Meat Paired for New Product
McDonald’s collaborated with Beyond Meat in releasing their new plant-based product, the McPlant Nuggets. It marks the second product that both food businesses teamed up with. Besides, they launched their first partnership product, the McPlant Burger, in 2021.
Recently, the fast-food giant announced that the selling of their new plant-based nuggets would be in 1,400 chains in Germany.
Also, countries like the US and Europe have begun to have a higher demand for meatless goods. Other companies, such as Dunkin Donuts and Burger King, already provide consumers with vegan options.
Furthermore, Beyond Meat and Impossible Burger continue to improve since their products are found in nearly every American grocery store.
