On Monday, Tyson Foods Inc. (TSN.N) lowered its full-year sales projection, indicating that price rises and strong inflation prevent customers from buying its goods.
The Jimmy Dean sausage producer missed second-quarter revenue projections and slumped 5% in premarket trade.
Due to drought and supply chain difficulties, U.S. meatpackers have raised prices to protect margins from rising animal feed, labor, freight, and commodity prices.
Combined with U.S. recessionary anxieties, that has driven budget-conscious customers to choose cheaper meat over more expensive meat.
Tyson forecasts fiscal 2023 sales of $53 billion to $54 billion, down from $55 billion to $57 billion.
Refinitiv data shows that Springdale, Arkansas-based meatpacker’s net sales were $13.13 billion in the quarter that ended April 1, compared to analysts’ average forecast of $13.62 billion.
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