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Beyond Meat products are stored in refrigerated cases inside a grocery store in Mount Prospect, Illinois, on Saturday, February 19, 2022.
CNN
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Beyond Meat shares soared in after-hours trading on Tuesday after the company pledged in its fourth quarter financial report to cut costs and move to a “leaner operating structure.”
The troubled plant-based meat company is partnering with McDonald’s and KFC owner Yum! Brands have faced declining demand and rising costs for their products in recent years. But on Tuesday, the company announced a turnaround plan.
“Our 2024 plans include taking steps to significantly reduce operating expenses and cash usage,” Beyond Meat CEO Ethan Brown said in a statement. Stated.
Beyond Meat’s overall net revenue fell 7.8% year over year to $73.7 million, beating Wall Street expectations for the quarter, according to FactSet.
Beyond Meat’s stock price soared following the news. The company’s shares have fallen more than 60% over the past year, but were up more than 70% in after-hours trading Tuesday.
On a conference call with Beyond Meat investors on Tuesday, Mr. Brown outlined a series of initiatives aimed at right-sizing the struggling company.
Brown said the company will cut at least $70 million from Beyond Meat’s operating budget in 2024. As part of its cuts, Beyond Meat said it will “strengthen” its focus, reduce some of its product offerings and discontinue the Beyond Meat jerky product line.
Brown said discontinuing production will allow the company to redirect resources to other products “that we believe have more profitable growth potential.”
Beyond Meat has not said whether it may cut jobs as part of its cost-cutting measures.
Brown also dismissed concerns about the healthfulness of Beyond Meat’s plant-based meat alternatives, saying the company is “proud of the health benefits achieved through our current products.”
Still, the company touted that it plans to roll out a new version of the product, Beyond IV, in 2024 that it claims offers “superior health benefits and taste.”
Beyond’s products have been criticized for their relatively high prices. Brown announced that the company has conducted an “extensive pricing analysis” and is prepared to implement price changes for its products.
“We believe these fundamental changes, along with the plans we are implementing this year to strengthen our balance sheet, will strengthen our business in the near term as we pursue our vision to become the global protein company of the future. ,” the company said. statement.
The company also announced full-year 2023 results on Tuesday, reporting an annual net loss of $338.1 million.
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