雅虎香港財經 Beyond Meat Q4 earnings beat estimates, sending shares up 15% in after-market trading
Beyond Meat (BYND) reported fiscal fourth-quarter and full year 2022 earnings results that slightly beat Wall Street estimates Thursday, sending shares higher, up more than 15% in after-market trading.
The plant-based protein giant posted a year-over-year decline of 20.6% in revenue in the fourth-quarter as it lapses its tests from last year with fast food giants like KFC and McDonald's. Full-year 2022 revenue saw a decrease of 9.8% to $418.9 million. However, CEO Ethan Brown said the brand is "making solid progress" in its "transition to a sustainable growth model, one that emphasizes the achievement of cash flow positive operations within the second half of 2023."
Here's what Beyond Meat reported, compared to Wall Street estimates, per Bloomberg consensus estimates:
Revenue: $79.9 million versus $75.7 million expected
Adjusted earnings per share: -$1.05 versus -$1.18 expected
Beyond Meat is focused on its three primary pillars, Brown said, including driving margin recovery and operating expense reduction, bringing inventory levels down while generating cash flow, and placing a "greater emphasis on near-term retail and foodservice growth drivers while also supporting strategic key long-term partners and opportunities.”
At the end of October, Beyond Meat announced plans to reduce expenses and target cash flow operations within the second half of 2023, which coincided with the announcement of a 19% cut in its workforce.
In the release, Brown said the fourth-quarter results "clearly demonstrate delivery" of the plan it set out last fall, "including solid sequential progress on margin recovery and operating expense reduction, and continued inventory drawdown."
Standouts of the fourth quarter, per the release, include industry notoriety received from innovations like Beyond Steak, in addition to the launch of plant-based McPlant Nuggets in Germany earlier this week. That offering is part of it three-year partnership with McDonald's (MCD), which is now days away from its two-year anniversary. Back in September of 2021, McDonald's announced its plan to test its first-ever plant-based burger, the McPlant.
In the release, there was no mention of the status of its partnership with KFC (YUM), Beyond Chicken.
As far as retailers, right now, Beyond Meat is offered at Kroger (KR), Walmart (WMT), Publix Super Markets, Costco (COST), Whole Foods (AMZN) and Target (TGT).
For the full year 2023 outlook, the company expects net revenue to be between a range of $375 million to $415 million, a decrease of 10% to 1% compared to 2022. Gross margin is expected to be in the low-double digit range. It expects to incur $250 million in operating expenses, "weighted slightly more towards the first half of the year."
The company did note "unforeseen impacts" that could impact the company's results including "near-term uncertainty related to macroeconomic issues," such as inflation and rising interest rates, "demand in the plant-based meat category, increasing concerns about the likelihood of a recession, increased competition, supply chain disruptions, challenges related to labor availability and, to a lesser extent, COVID-19 and its potential impact on consumer behavior and demand levels, among other things."
This comes as demand for plant-based meat overall is lower, as customers trade-down for cheaper protein options amid inflation.
Brown said he remains focused becoming cash flow positive operations within the second half of 2023 and on the long-term outlook for the brand as it "navigate(s) current conditions."
He said, "We remain intently focused on positioning Beyond Meat to capture the vast opportunity to be a major protein provider in the $1.4 trillion meat industry."
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Brooke DiPalma is a reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.
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