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Beyond Meat says it is making progress on improving its margins and lowering its inventory.
Photo:
Joe Raedle/Getty Images
Beyond Meat Inc.
shrunk its loss in the fourth quarter and saw its stock climb as the plant-based meat maker reported a 21% decline in revenue.
Revenue fell to $79.9 million in the last three months of 2022, from $100.7 million for the same period a year earlier. Analysts polled by FactSet expected $75.8 million.
Shares climbed 12% to $19.27 in after-hours trading. The stock has gained more than 39% since the beginning of the year.
As it cut jobs and costs, Beyond Meat narrowed its loss to $66.9 million, or $1.05 a share, from $80.4 million, or $1.27 a share, a year earlier. Analysts had forecast a steeper per-share loss of $1.18, according to FactSet.
The company reported a 17% drop in U.S. grocery sales and a 30% decline in sales to restaurants in the quarter. International revenue also plummeted by 20% from the same period a year earlier.
Still, Beyond Meat managed to reduce its expenses by nearly a third as part of a restructuring plan and said it is making progress on improving its margins and lowering its inventory.
“We are making solid progress in our transition to a sustainable growth model, one that emphasizes the achievement of cash flow positive operations within the second half of 2023,” President and Chief Executive
Ethan Brown
said.
For 2023, Beyond Meat said it is forecasting revenue to decline to between $375 million and $415 million, ahead of analysts’ expectations of $391.2 million for the year, according to FactSet. The company reported $418.9 million in revenue for 2022.
Beyond Meat said it continues to be pressured by growing competition, inflation and recession concerns.
Write to Sabela Ojea at sabela.ojea@wsj.com
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