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Higher meat prices drive Tyson Foods Q4 earnings beat

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Yahoo Finance's Julie Hyman and Brian Sozzi break down Tyson Foods beating expectations for the fourth quarter as prices for pork, beef, and other meats rise.

Video Transcript

JULIE HYMAN: But first, we've got-- we do have a few earnings reports to talk about today. Tyson Foods is where I want to start it. Tyson an interesting one here because, as we talk about the inflation environment, this is one that really has been front and center, for a couple of reasons. Obviously, it's input costs have been going up. It's been raising prices. And it has been desperately searching for workers and raising wages as a result of that. I'm seeing earnings here that beat estimates, sales beating estimates is here-- as well.

Soz, what really stands out to me here, I was looking at the different proteins, right-- beef, pork, chicken, prepared foods. In every one of those categories, the volume is down and the prices-- the average prices are rising. So they are obviously making up for lower sell-through by raising those prices. Their beef average prices-- you're going to love this, this is right in your wheelhouse-- beef average prices up 32.7%. Pork average prices, 38%. Chicken average prices, 18.7%. They don't have turkey listed on here, alas, but you get the idea.

BRIAN SOZZI: What, Julie, they don't own Bell & Evans? I thought they were-- I was looking for the turkey line in this report. No, it is interesting. And to your point, that is a great observation here. You are seeing those volumes down, citing labor challenges there. Ongoing labor challenges, I should say. Tyson has been dealing with these challenges really since the pandemic started.

But on beef, their beef operating profit margins for that segment, 22.9% versus 10.9% last year. So you're seeing the benefits. Even though lower volume, they're able to push through price increases and offset a lot of the inflation they are seeing and expand those margins, at least in the beef segment. Chicken was down year over year.