© Reuters. FILE PHOTO: Merchandise from Past Meat Inc, the vegan burger maker, are proven on the market at a market in Encinitas, California, U.S., June 5, 2019. REUTERS/File Photograph
(Reuters) -Past Meat on Tuesday topped market expectations for fourth-quarter income on resilient demand for its fake meat patties in key markets outdoors the US, and mentioned it will ramp up its pricing actions in 2024.
The corporate’s shares jumped 37% in prolonged commerce as CEO Ethan Brown additionally mentioned Past Meat (NASDAQ:) would “steeply scale back” working expense and money use within the yr.
To counter weak demand in the US, Past Meat, which provides its plant-based meat patties to quick meals chains equivalent to McDonald’s (NYSE:) and Yum! Manufacturers (NYSE:), has lowered costs and resorted to increased reductions.
Fake meat is pricier than conventional meat — an element that has discouraged budget-conscious customers within the U.S. from choosing the previous in current occasions.
The corporate has additionally been in a position to maintain demand for plant-based meat in its worldwide markets, notably Europe.
Price-cut measures, together with job cuts taken final yr, have additionally helped scale back the burden on margins from sluggish demand in the US.
Volumes rose 8% within the quarter ended Dec 31, in comparison with a 3.5% improve within the third quarter.
Web income for the fourth quarter fell 7.8% to $73.7 million, however topped analysts’ common estimate of $66.7 million, as per LSEG knowledge.