Maple Leaf re-formulates fake meat

Article Excerpt

MAPLE LEAF FOODS INC. $26 is still a hold. The company (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 123.7 million; Market cap: $3.2 billion; Price-to-sales ratio: 0.7; Dividend yield: 3.1%; TSINetwork Rating: Average; www.mapleleaffoods.com) sells fresh and prepared meats under the Maple Leaf and Schneider labels. In the past few years, Maple Leaf has acquired firms that make plant-based hamburgers, hot dogs and other protein products under its Lightlife and Field Roast brands. However, sales of those new products have failed to meet the company’s expectations. Maple Leaf now aims to re-formulate its meat-free products under a new alliance with California-based The Better Meat Co. That firm makes plant-based ingredients with higher protein and iron levels. At the same time, Maple Leaf is cutting costs, which should let its meatless division break even by the end of 2023. The company probably earned just $0.19 a share in 2022, but earnings could reach $1.46 a share in 2023. The stock trades at 17.8 times…