Beyond Meat Shares Surge Despite Weak Earnings and Outlook

Beyond Meat Shares Surge Despite Weak Earnings and Outlook

Beyond Meat (BYND), the maker of plant-based meat alternatives, saw its shares soar more than 70% in after-hours trading on Tuesday, despite reporting a disappointing fourth quarter and a bleak outlook for 2024. The company posted a net loss of $66.9 million, or $1.05 per share, on revenue of $79.9 million, which declined 20.6% from a year ago. Analysts had expected a loss of 89 cents per share on revenue of $66.7 million, according to FactSet.


The company also issued a lower-than-expected guidance for the first quarter and the full year of 2024, citing the ongoing impact of the Covid-19 pandemic on its foodservice business, as well as increased competition and higher costs. The company expects revenue of $70 million to $75 million for the first quarter, and $315 million to $345 million for the full year, while analysts had projected revenue of $89 million and $344.4 million, respectively.


However, investors seemed to overlook the weak results and focus on the company’s plans to improve its operations and products, as well as its partnerships with major food chains. The company announced that it will take steps to reduce its operating expenses and cash use, as well as to optimize its production footprint and pricing strategy. The company also said that it will launch a “core platform renovation” that will deliver better taste and health benefits to its products.

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Additionally, the company highlighted its recent innovations and collaborations, such as the Beyond Steak, which won awards for its taste and nutritional profile, and the McPlant Nuggets, which were co-developed with McDonald’s and launched in Germany. The company also said that it will continue to pursue strategic opportunities in the $1.4 trillion meat industry, and to play a leadership role in the transition to plant-based meats.

Beyond Meat shares closed at $7.52 on Tuesday, but jumped to $13.01 in extended trading. The stock has been under pressure since hitting a record high of $239.71 in July 2019, as the company faced challenges in expanding its distribution, growing its margins, and fending off rivals. The stock hit a record low of $5.58 in October 2020, but has since recovered some of its losses. The company has a market capitalization of about $1.2 billion.

Delmos Research


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