TSN - Tyson Foods, Inc.
| Previous Close | 91.66 |
| Open | 90.36 |
| Bid | 90.23 x 800 |
| Ask | 91.17 x 1100 |
| Day's Range | 89.48 - 90.75 |
| 52 Week Range | 49.77 - 91.73 |
| Volume | 2,241,456 |
| Avg. Volume | 2,858,241 |
| Market Cap | 32.796B |
| Beta (3Y Monthly) | 0.54 |
| PE Ratio (TTM) | 15.05 |
| EPS (TTM) | 5.97 |
| Earnings Date | Nov 11, 2019 - Nov 15, 2019 |
| Forward Dividend & Yield | 1.50 (1.64%) |
| Ex-Dividend Date | 2019-08-29 |
| 1y Target Est | 90.69 |
- Market Realist
Which Consumer Stocks Are Outperforming?
Most consumer stocks are outperforming broader markets this year. Investors are flocking to consumer stocks amid fears about an economic downturn.
- Bloomberg
For Business, Veganism Is the New Vaping
(Bloomberg Opinion) -- Big food is salivating over fake meat after the blockbuster initial public offering of Beyond Meat Inc., the leading plant-based protein brand, in May. Traditional producers have rushed into the booming market for meat substitutes, which threaten to take a slice of their business. Tyson Foods Inc. was an early investor in Beyond Meat, but sold its stake before the company’s trading debut and announced its own line of faux meat. Other U.S. companies, such as Smithfield Foods Inc., are introducing alternative protein products. European giants are getting in on the act too, with Nestle SA snapping up California-based Sweet Earth two years ago and Unilever NV buying The Vegetarian Butcher last year.It’s a familiar playbook. The big drinks companies have bought craft brewers. Major cosmetics houses are blending more artisan scents into perfumes. But there’s one segment where the similarities – and potential pitfalls -- are striking: tobacco, which is trying to woo smokers with the products they describe as lower risk, such as electronic cigarettes. Just as the tobacco industry has turned to vaping products to cope with high taxes and declining rates of smoking, big food sees a growing market for meat substitutes as people eat less animal protein and governments slap taxes on their other unhealthy products (and even consider levies on red meat). But traditional food manufacturers eager for vegan profits may struggle with some of the same obstacles tobacco has faced with vaping: adoption and regulation.Just look at Japan. It’s the most developed nation for devices that heat, rather than burn, tobacco, accounting for about 25% of the market. While tech-savvy early adopters were quick to switch to the new devices, older generations were slower to follow suit.Meat substitutes could see a similar trajectory. Analysts at Barclays Plc point out that men drive demand for meat. Convincing them –particularly older generations to switch -- will be crucial. Plant protein substitutes also tend to be more expensive. The premium will need to be whittled away for consumption to be widespread.While there’s no suggestion that fake meat products cause harm in any way – as has been alleged in some cases with vaping – not everyone agrees that they are healthier than animal protein. Chipotle Mexican Grill Inc. said it would not be stocking meat alternatives because they are too processed for the burrito chain. Beyond Meat has hit back at the claims, saying that its products and facilities are more transparent than those in the meat industry. More importantly, faux meat manufacturers will need to keep innovating – and investing – to grow, just as tobacco companies have had to come up with ways to make electronic cigarettes more satisfying for smokers to encourage them to switch. Plant-based protein producers will need to stay one step ahead of the competition with new ingredients, akin to how the market for milk substitutes expanded from soy to embrace soaring demand for nut and oat drinks. Beyond Meat and Nestle’s Sweet Earth use peas for their meatless dishes; Unilever’s The Vegetarian Butcher uses lupine beans to give some meals a fatty, nutty flavor. The possibilities are endless.Yet with innovation comes the risk of alienating consumers and inviting regulation. The magic ingredient at Impossible Foods Inc. – the other big independent plant-based protein maker – is heme, which gives its burgers a bloody meat-like taste. The ingredient is genetically engineered. The U.S. Food and Drug Administration recently found heme to be safe as a color additive, paving the way for sales in supermarkets. But using a genetically-engineered ingredient could turn off the very ethical, health-customers Impossible wants to attract.As big food courts vegans, it will confront pickier consumers than smokers-turned-vapers. Already some are worried about Burger King cooking the Impossible Whopper on the same grill as meat burgers, unless the customer asks for it to be prepared separately.A bigger danger would be if any plant products were found to contain animal traces. Impossible recently partnered with meat processor OSI Group to add more manufacturing capacity and ease supply constraints. It has dedicated capacity at OSI’s facilities, and the production line is not shared with animal-derived products. But it’s a risky move, and one that traditional meat producers going vegan will also have to manage.Like big tobacco, food manufacturers are already confronting challenges to the way they label products. States including Arkansas and Mississippi have banned companies from using the word “burgers” or “dogs” to describe plant-based alternatives. That’s a regulatory breeze compared the crackdown on vaping. In June, San Francisco became the first U.S. city to ban the sale of electronic cigarettes. But it’s still a headwind in what is a nascent industry. While the path of big tobacco highlights some of the challenges facing plant-based protein, there’s one more appetizing similarity. Last year, Altria Group Inc., which owns Philip Morris, took a 35% stake in Juul Labs Inc., the U.S. market-share leader in electronic cigarettes, valuing the company at $38 billion. Beyond Meat is now valued at a staggering $9 billion, almost a third of what food giant Tyson is worth. Such lofty valuations reflect long-term consumer trends. But as the tobacco industry has learned from its foray into alternatives, big food producers shouldn’t assume fake meat is an easy recipe for success. To contact the author of this story: Andrea Felsted at afelsted@bloomberg.netTo contact the editor responsible for this story: Stephanie Baker at stebaker@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- Barrons.com
There Is Turmoil in Agriculture. Here’s What Investors Need to Know.
The agriculture sector has been whipsawed by government agencies, trade policy, disease, weather and currencies. It is hard to be a farmer. That volatility isn’t great for investors, either.
- Yahoo Finance
Beyond Meat stock has finally earned the endorsement of a single bullish analyst
Beyond Meat is the hottest IPO of this year, and JPMorgan is bullish on the stock once again.
- GlobeNewswire
Tyson Foods to Webcast Barclays Conference Presentation
SPRINGDALE, Ark., Aug. 19, 2019 -- Tyson Foods, Inc. (NYSE: TSN) will webcast its presentation at the Barclays Global Consumer Staples Conference on Wed., Sept.4, at 8:15 a.m..
- Bloomberg
Livestock Markets Jolted by Tyson Beef Plant Fire
(Bloomberg) -- A fire at a major U.S. beef processing plant earlier this month is upending American livestock markets, slamming cattle prices while benefiting meatpacking companies.The Tyson Foods Inc. plant in Holcomb, Kansas, had the capacity to slaughter 6,000 head a day of cattle -- or about 5% of U.S. beef production capacity -- before it was destroyed on Aug. 9. The facility’s shutdown has created a livestock glut, dragging down futures to the lowest in almost three years. That’s giving meatpackers such Cargill Inc., JBS SA and Marfrig Global Foods SA access to cheap supply just as demand from retail shops booms.With the Labor Day holiday -- one of the most-popular days in the U.S. for grilling beef -- coming up on Sept. 2, retailers are engaging in bidding wars to secure packaged meat for store promotions they’ve already committed to. Even Tyson Foods could benefit, with bigger profits at other plants offsetting losses from the fire.Beef-packer margins rose to $378.25 per animal on Monday, an all-time high in HedgersEdge data. That’s more than double the levels reported just a week ago. Wholesale prices surged to $2.3869 a pound Friday, the highest in two years. Meanwhile, cattle prices on cash markets crashed to $1.0865 a pound on Friday, the lowest for this time of year in nearly a decade.“These guys are making more money than they ever have,” said Gary Morrison, vice president at commodity researcher Urner Barry, referring to meatpackers. “The retailers got really scared, and they were out there bidding whatever they could.”Consumers may not see an immediate increase in steak and burger prices at grocery stores because advertisements and promotions are usually planned six weeks out, according to Morrison.Costlier BeefBut higher prices are in the offing, he said, adding that it could take three to six months to rebuild the Tyson plant. If the weather is favorable to grilling on Labor Day, retailers might have to replenish supplies “at a good clip,” meaning higher prices could arrive after the holiday.Beef prices were already set to gain due to African swine fever spreading in China and decimating its hog herd, given it will be used to substitute for missing pork along with chicken.To contact the reporter on this story: Lydia Mulvany in Chicago at lmulvany2@bloomberg.netTo contact the editors responsible for this story: James Attwood at jattwood3@bloomberg.net, Pratish NarayananFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Reuters
Tyson Foods slaughterhouse fire ignites U.S. beef prices
Margins for U.S. beef processors climbed to a record high on Friday as the closure of a Tyson Foods Inc slaughterhouse due to a damaging fire last week fueled concerns about a shortage of hamburger meat and steaks. The indefinite shutdown sent meat buyers for restaurants, food service companies and grocery chains scrambling for beef, traders said, because the sprawling facility in Holcomb, Kansas, killed about 6,000 cattle a day, or 5% of the total U.S. slaughter. The fire accentuated already high margins in the U.S. beef industry.
- Reuters
Tyson recalls nearly 40,000 pounds of Weaver chicken patties
The U.S. Department of Agriculture on Thursday classified the recall as Class 1, the strictest form of recall where use of the product may cause serious health consequences or death. There were no reports of injuries or illnesses associated with the affected product, Tyson said.
- GlobeNewswire
Tyson Foods Appoints New Prepared Foods Leader
SPRINGDALE, Ark., Aug. 12, 2019 -- Tyson Foods, Inc. (NYSE: TSN) has named Chief Marketing Officer Noelle O’Mara to lead its growing prepared foods business. O’Mara’s new role.
- Reuters
UPDATE 2-Tyson to rebuild plant after fire, assures weekly pay for full-time workers
U.S. meat processor Tyson Foods Inc said on Monday it will rebuild a Kansas beef plant after a fire heavily damaged the facility last week and that full-time, active employees would be paid weekly until production resumes. Tyson's stock price recovered from an early drop and was trading near unchanged around midday, after setting a record high on Friday. The stock has climbed more than 60% this year, partly on strong demand for beef, the largest segment of Tyson's business by sales.
- Benzinga
Tyson Foods Says It Will Rebuild Kansas Beef Plant, Pay Workers After Fire
“This is a difficult time for our team members and their families, and we want to ensure they’re taken care of,” Steve Stouffer, group president of Tyson Fresh Meats, said in a statement. Tyson Foods shares were trading down by 1.28% at $87.24 at the time of publication Monday.
- MarketWatch
Tyson Foods to pay workers while it rebuilds Kansas plant damaged by fire
Tyson Foods Inc. said Monday that it will tell its full-time workers that they will continue to receive their wages as the meat producer rebuilds a Holcomb, Kan. beef plant that was damaged by fire on August 9. In fiscal 2018, Tyson paid $269 million in wages in Kansas. The plant will be shut indefinitely, but will be rebuilt in the same location. Employees may have to work on projects, including clean up, during the rebuilding process. "We're taking steps to move production to alternative sites," said Steve Stouffer, group president of Tyson Fresh Meats, in a statement. "Tyson Foods has built in some redundancy to handle situations like these and we will use other plants within our network to help keep our supply chain full." Tyson stock is up 65.5% for the year to date while the S&P 500 index has gained 16.4% over the period.
- GlobeNewswire
Tyson Foods to Rebuild Kansas Beef Plant and Pay Workers Following Fire
A fire partly destroyed the Tyson Foods beef plant in Holcomb, Kansas on Friday, August 9. “This is a difficult time for our team members and their families, and we want to ensure they’re taken care of,” said Steve Stouffer, group president of Tyson Fresh Meats. Stouffer said the team members may be called on to work during this time to help with clean-up and other projects, but regardless of the hours worked, all full-time active employees are guaranteed pay.
- TheStreet.com
Tyson to Rebuild Kansas Site After Fire, Pay Full-Time Staff Till Output Resumes
The Holcomb plant, one of Tyson's six in the state, employs 3,800 people. No injuries from the fire were reported.
- Investing.com
Stocks - Tesla, Tyson Foods Fall in Premarket; Barrick Gold Rises
Investing.com - Stocks in focus in premarket trading on Monday:
- Motley Fool
Buffett's $122 Billion, Tyson's All-Time High, and Altria Group 2029
Lots of stocks going down, but Tyson wasn't one of them.
- Reuters
Over 3,800 workers at Tyson Foods beef plant in Kansas out of work after fire
Tyson Foods spokesman Worth Sparkman said the plant would remain closed indefinitely and there were no details yet on the cause of the fire and or the extent of the damage. Independent trader Dan Norcini said the cattle market could respond negatively to news of the fire, but the impact would depend on how long the plant stays closed. Tyson said in a statement that it would meet with workers in shifts at the facility on Monday to answer their questions.
- GuruFocus.com
Tyson Foods Inc (TSN) EVP & Chief Customer Officer Scott Rouse Sold $1.4 million of Shares
EVP & Chief Customer Officer of Tyson Foods Inc (30-Year Financial, Insider Trades) Scott Rouse (insider trades) sold 16,294 shares of TSN on 08/07/2019 at an average price of $86.45 a share. Continue reading...
- GlobeNewswire
Tyson Foods, Inc. Announces Quarterly Dividend
SPRINGDALE, Ark., Aug. 09, 2019 -- The Board of Directors of Tyson Foods, Inc. (NYSE: TSN), at a meeting on August 8, 2019, declared a quarterly dividend of $0.375 per share on.
- InvestorPlace
7 Stocks to Buy to Ride the Vegan Wave
[Editor's note: This article was originally published in October 2018. It has been revised to reflect current market trends.] The IPO success of Beyond Meat (NASDAQ:BYND) has me revisiting the world of plant-based foods and exploring how investors can take advantage of the move to meatless alternatives. Today, the global plant-based meat market is estimated to be $12.1 billion. It's expected to grow to $27.9 billion by 2025, a compound annual growth rate of 15%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhile many companies have focused on vegetarian and vegan markets in the past, it's clear that most food companies are now going after the "flexitarian" consumer: the person who still eats meat, but is opting for meatless alternatives regularly. Today, 32% of Americans identify themselves as flexitarian.As a result of this change in consumer tastes, companies have invested a total of $16 billion in plant-based meat, egg and dairy products. The "vegan wave" is now the flexitarian wave. * 10 Internet Stocks Getting Hammered Regardless of what you want to call it, these seven companies are taking advantage of the move to meatless alternatives. And some of these stocks to buy might even make you a lot of money in the long run. Vegan Stocks to Buy: Beyond Meat (BYND)Source: Shutterstock By now, the Beyond Meat story is known by most investors, so I'll keep the IPO details to a minimum.The California plant-based food company went public on May 1 at $25 a share, selling 9.6 million of its stock for net proceeds of $219 million, not including the underwriters' over-allotment. The company's shareholders didn't sell any of their shares in the IPO. However, on Aug. 2, it did file a final prospectus that will see Beyond Meat sell 250,000 shares to the public along with some of its pre-IPO shareholders, selling 3 million shares of BYND stock.As I write this, BYND stock is trading at $164, 556% higher than its IPO price, but 32% lower than its 52-week high of $239.71, which it hit in late June. IPO investors and pre-IPO investors are sitting on nice unrealized gains at the moment. The company has wisely waived the 180-day lock-up period for its main investors so that they can cash out a portion of their shares while they're up almost six-fold. It will also use the $56.5 million it raises from the sale of 250,000 shares to increase its production capacity to meet demand. A fundamental capital allocation principle is to sell your stock when it is expensive and repurchase it when it's cheap. While Beyond Meat's Q2 2019 net loss was $9.4 million, it did generate an operating profit of $2.2 million in the second quarter, a considerable improvement from the $7.3 million loss a year ago. Oh, and it's hard to forget revenues increased by 267% in the quarter to $67.3 million. As someone who buys their burgers quite frequently, it's not hard to see why. Tyson Foods (TSN)Source: Shutterstock A lot has happened since I last wrote about Tyson Foods (NYSE:TSN) and its foray into meatless alternatives. Some of it good, some of it bad. In 2016, Tyson made a 5% investment in Beyond Meat, the company behind the burger that has taken Canada and the U.S. by storm. It upped its stake at the end of 2017 as part of a $55 million investment round by the California-based company."We got attacked when we signed a deal with Tyson. People said I personally have blood on my hands," said Beyond Meat CEO Ethan Brown at the time. "Tyson took a big risk, too. I mean Hayes didn't get any love letters when he backed us. But I'd much rather try to get things done than throw stones, and the people at Tyson know how to move the needle."Unfortunately, for Tyson shareholders, the company didn't make it to the ball, selling its shares in April for an undisclosed amount, after Tyson CEO Noel White decided the company would create its own plant-based protein line. Tyson's brand is called Raised & Rooted. It will compete with Beyond Meat. However, while its chicken nugget product will be meatless, its burger will contain Angus beef as well as pea protein isolate. According to TSN's chief marketing officer, "While most Americans still choose meat as their primary source of protein, interest in plant and blended proteins is growing significantly". * 7 Winning High-Yield Dividend Stocks With Payouts Over 5% The fact is, 70% of the people who eat Beyond Meat burgers are meat-eaters. Sustainable foods are the wave of the future. Kellogg (K)Source: Shutterstock When most people think of Kellogg (NYSE:K), the first thing that likely comes to mind is cereal: Special K, Frosted Flakes, Mini-Wheats, etc. However, it has owned a vegetarian food brand called MorningStar Farms since acquiring the business in 1999. The company sells over 90 million pounds of faux meat (burgers, chicken, sausage, etc.) every year, with a third from fake burgers and the remaining two-thirds from its other products. Estimates suggest that MorningStar generates $450 million in annual revenue, about double the amount Beyond Meat sells in a year. Beyond Meat is valued at 64 times sales. If MorningStar Farms were given the same valuation, it would be worth $29 billion to Kellogg, about 50% more than the company's current market cap. It is clear that Kellogg is aware of MorningStar Farm's potential"When we [Kellogg] have spoken to people, we've seen that the desire to eat plant-based alternatives has increased in the last four years by 45%, and 53% of the Canadians we speak to are already eating meat alternatives," Kellogg Canada's VP of Marketing Christine Jakovcic recently stated. The big question is whether its management is smart enough to take advantage of the popularity of meatless products. Amazon (AMZN)Source: Shutterstock It has been a whirlwind 23 months since Amazon (NASDAQ:AMZN) stunned the world buying Whole Foods for $13.7 billion.Prognosticators of all types came out of the woodwork predicting the many changes Jeff Bezos would implement at the healthy foods grocery-store chain.One of the more sensible changes is expanding Whole Foods' delivery network. Whole Foods now provides two-hour delivery in 90 cities across the U.S.Not surprisingly, the predicted drop in prices at Whole Foods, has yet to materialize."While deeper promotional pricing on key items, incremental savings … and increased convenience for Prime Members in the first year under Amazon ownership have caught our eye as consumers, the reality is that Whole Foods pricing on a broad basket has remained largely unchanged," stated a report from Gordon Haskett Research Advisors.According to the report, $400 spent on a basket of food at Whole Foods in October 2017, now costs $398.50, producing a whopping $1.50 in savings. * 7 SPDR ETFs and What They Tell Us About the Market If you're an Amazon investor, this is excellent news because the money to pay for a $15 minimum wage has to come from somewhere. Con Agra (CAG)Source: Shutterstock In my previous article about the move to plant-based foods, I discussed Hain Celestial (NASDAQ:HAIN), one of the earliest adopters of meatless and vegan alternatives. One of its companies is Yves Veggie Cuisine, founded by Canadian food entrepreneur Yves Potvin in 1985. Potvin used $5,000 of his own money, $10,000 from family and $25,000 in small-business loans to get it up-and-running. Potvin sold Yves to Hain in 2001.Potvin's next move was to create Gardein in 2003, a maker of meatless alternatives, including veggie burgers and chicken sliders, the founder's favorite Gardein product. Potvin sold Gardein in 2014 to Pinnacle Foods, now a subsidiary of ConAgra Brands (NYSE:CAG), for $154 million. ConAgra likely acquired Pinnacle Foods, in part, to take advantage of the flexitarian movement."That means the opportunity here could be in the range of $30 billion just in the U.S.," CEO Sean Connolly said recently. "And you know, there's even more opportunity internationally."If you are a CAG shareholder, Gardein is a big reason to hang on to your stock. Restaurant Brands International (QSR)Source: Shutterstock While most investors in the U.S. are familiar with Restaurant Brands International (NYSE:QSR) because of its Burger King restaurants, up here in Canada, where I live, Tim Hortons is an iconic name that RBI is trying to grow with Canadians and coffee lovers in other parts of the world, including the U.S.To compete with other fast-casual names, Tim Hortons has introduced and continues to test plant-based alternatives. In the past month, Tim Hortons has launched a Beyond Meat burger in Canada, Beyond Meat vegetarian sausage patties, and is experimenting with plant-based eggs. Early indications suggest the plant-based eggs, which are made by San Francisco food company Just, are getting rave reviews. According to a Just spokesperson, "Canada is one of the most requested markets for JUST and we're excited to be able to offer our product at select Tim Hortons locations for this market test." * 10 Internet Stocks Getting Hammered I haven't been a fan of QSR stock -- it has a lot of debt -- but if it continues to innovate in this growing area of the restaurant and food industries, I might just have to change my tune. Impossible FoodsSource: Shutterstock In the previous slide, I discussed some of the initiatives Restaurant Brands International were doing for its Tim Hortons brand in Canada. I mentioned that the company also owns Burger King. Well, Burger King announced Aug. 1 that it is testing the Impossible Whopper, a plant-based version of its top-selling burger, for one month across all 7,200 stores in the U.S.Impossible Foods make the Impossible Whopper, the same people behind the plant-based burger that's available at all Wahlburger locations across the U.S. Burger King first tested the Impossible Whopper in 59 stores in the St. Louis area. The stores that sold this burger saw foot traffic increase by a whopping 18.5%. However, because the burger contains soy leghemoglobin, it isn't considered to be vegan.In May, Impossible Foods raised $300 million to bring its total funds raised to $750 million since its inception in 2011. Although the company is expected to go public at some point in 2020, it's not in a rush to do an IPO. Like Beyond Meat, it has a who's who list of investors, including Serena Williams, Bill Gates, Jay-Z and many others. The latest fundraise valued Impossible Foods at $2 billion. At the time of this writing, Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Internet Stocks Getting Hammered * 6 Big Growth ETFs to Buy For the Second Half of 2019 * 5 Cheap Stocks to Buy Now That the Fed Cut Rates The post 7 Stocks to Buy to Ride the Vegan Wave appeared first on InvestorPlace.
- GlobeNewswire
New Facility to Boost Tyson Foods’ Automation and Robotics Efforts
Tyson Foods, Inc. (TSN) has created a new, state-of-the-art facility designed to help the company develop more automation and robotics for its food production plants. The Tyson Manufacturing Automation Center (TMAC) officially opened in downtown Springdale today. The center provides space for the development of new manufacturing solutions and collaboration with the company’s information technology team and equipment suppliers.
- ABC News Videos
Tyson recalls more than 39,000 pounds of chicken
Tyson issued a voluntary recall of its Weaver brand frozen chicken patties over concerns they may be contaminated with "extraneous materials."
