Fake meat sales continue to slow

Article Excerpt

MAPLE LEAF FOODS INC. $31 is still a hold. The company (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 123.9 million; Market cap: $3.8 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.3%; TSINetwork Rating: Average; www.mapleleaffoods.com) has expanded beyond its traditional fresh and processed meat businesses in the past few years. Under that plan, the company has acquired firms that make plant-based hamburgers, hot dogs and other protein products under the Lightlife and Field Roast brands. Maple Leaf expected annual sales of plant protein products would rise to $3 billion by 2029. However, sales at this business continue to decline: down 6.6% in the third quarter of 2021, to $48.0 million from $51.4 million a year earlier. That’s was equal to 4% of Maple Leaf’s total sales. As a result, Maple Leaf is now re-assessing this business. While a sale or spinoff is possible, it’s more likely the company will narrow its focus to its most profitable plant-based products. Maple Leaf Foods is a hold. …