The largest U.S. meat supplier, Tyson Foods, announced a $97M loss in the second quarter of 2023 compared to a net income of $829M in the same period last year, which led to a 16% decline in stock prices. Due to consumers opting for less expensive alternatives, Tyson's beef unit, which made up over 40% of its total sales last year, had lower sales than in the previous year. - Due to increased prices from ranchers lowering their herds because of the drought, Tyson's beef unit had its quarterly adjusted operating income fall to $8M from $638M.
- The collapse of chicken prices at the end of last year as supply increased throughout the industry caused Tyson's chicken business to move from a $198M profit to a $258M loss.
- From forecasts in February of between $55B and $57B, Tyson revised its sales outlook for 2023 to between $53B and $54B.
- Last month, the meat company announced that it would eliminate 15% of its senior leadership jobs and 10% of its corporate responsibilities to reduce costs throughout the organization.
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