Tyson Ramps Up Chicken Production, Expands Georgia Unit - Analyst Blog
Tyson Foods Inc.’s (TSN) chicken segment has been experiencing a surge in demand backed by a general shift among health conscious consumers from red meat to low-calorie chicken and processed chicken food items.
To tap this growing demand, Tyson is expanding its poultry facilities and improving its operating efficiency. As part of this strategy, the company has recently announced an expansion plan valued at more than $110 million for its Georgia poultry plant.
Per the expansion plan, Tyson will expand the plant by approximately 100,000 square feet apart from adding new and improved machines to improve efficiency creating more than 500 jobs in the process. Work has already begun on the project and is scheduled to be completed by mid-2015. The Georgia Department of Economic Development has agreed to help the meat processing company with its expansion plans.
The Georgia plant, bought in 1995, currently employs about 700 people and caters to foodservice customers, including restaurant chains.
Besides expansion, Tyson’s continuous product innovations and strong momentum in most of its business segments has been driving sales and helped it to post positive earnings surprises for the past few quarters.
Tyson Foods is scheduled to report its first-quarter fiscal 2015 on Jan 30. It currently has a Zacks Rank #2 (Buy) and an Earnings ESP of +2.78%, which makes us confident of a positive earnings beat for first-quarter fiscal 2015.
Other Stocks to Consider
Other stocks in the sector worth considering include Pilgrim’s Pride Corp. (PPC) with a Zacks Rank #1 (Strong Buy). Other stocks in the Food - Miscellaneous sector worth considering include Supervalu Inc. (SVU) and Diamond Foods Inc. (DMND). While Supervalu sports a Zacks Rank #1, Diamond Foods carries a Zacks Rank #2.
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