©Reuters. FILE PHOTO: Products from Beyond Meat Inc, the vegan burger maker, are on sale at a market in Encinitas, California, U.S., June 5, 2019. REUTERS/file Photo
(Reuters) – Beyond Meat on Tuesday beat market expectations for fourth-quarter revenue amid resilient demand for its fake meat patties in key markets outside the United States, and said it would step up its actions on prices in 2024.
The company’s shares jumped 37% in extended trading as CEO Ethan Brown also said Beyond Meat (NASDAQ:) will “dramatically reduce” operating expenses and cash burn throughout the year.
To counter weak demand in the United States, Beyond Meat, which supplies its plant-based meat patties to fast food chains such as McDonald’s (NYSE:) and Yum! Brands (NYSE:), has lowered prices and resorted to deeper discounts.
Fake meat is more expensive than conventional meat, a factor that has recently discouraged budget-conscious US consumers from opting for the former.
The company has also been able to support demand for plant-based meat in its international markets, particularly in Europe.
Cost-cutting measures, including job cuts taken last year, have also helped reduce the burden on margins resulting from sluggish demand in the United States.
Volumes increased 8% in the quarter ended Dec. 31, compared to a 3.5% increase in the third quarter.
Net revenue for the fourth quarter fell 7.8% to $73.7 million, but beat analysts’ average estimate of $66.7 million, according to LSEG data.