The stock of Beyond Meat (BYND) is up 70% after the company announced an aggressive cost-cutting plan.
The company that makes artificial meat products, including hamburger patties, said it plans to “steeply reduce” its operating expenses in the year ahead.
To counter weak demand, Beyond Meat, which supplies its plant-based meat patties to restaurant chains such as McDonald’s (MCD), has lowered prices and discounted items.
The fake meat products made by Beyond Meat are more expensive than traditional meat, which has discouraged budget-conscious consumers. There are also questions about how healthy the artificial meat products are for people.
The new cost cutting measures were announced along with earnings that showed the company’s volumes rose 8% in the fourth quarter of 2023, up from 3.5% in the third quarter.
Revenue for the fourth quarter declined 8% to $73.7 million U.S., but topped analysts’ estimates of $66.7 million U.S.
The company reported a loss of $0.92 U.S. per share for Q4 2023, which was worse than a loss of $0.88 U.S. expected among analysts who cover the company.
Prior to today (Feb. 28), Beyond Meat’s stock had fallen 58% in the past year to trade at $7.52 U.S. per share.
