The Stanly News and Press (Albemarle, NC)

Features

February 4, 2013

Tyson says consumers may be shifting to chicken from beef

CHICAGO — Tyson Foods Inc., the largest U.S. meat processor, said Friday that consumers may be shifting toward buying chicken and away from red meat after the price of beef rose at a faster pace.

Consumers feeling the pressure from increases in payroll taxes and gasoline prices are "eating different meat" rather than less of it, Chief Executive Officer Donnie Smith said during a conference call with analysts Friday.

"What we're beginning to think is that with all of these pressures on consumers today, maybe we are now seeing a legitimate shift from red meat proteins into chicken," he said.

Beef prices have risen for several years as higher feed costs and the recent U.S. drought reduced the cattle herd. Smith's comments may show that the move away from beef, which has been predicted for years, is perhaps finally happening, JPMorgan Chase said in a note.

Sales climbed 0.9 percent to $8.4 billion, trailing the $8.61 billion average of 12 estimates. Full-year revenue will be about $35 billion, compared with the $34.6 billion average of 13 estimates.

Domestic protein production will fall by about 1 percent in Tyson's current fiscal year as drought conditions cut grain supplies, the company forecast. Cattle supplies may decline 2 percent to 3 percent.

Tyson said it will pay about $600 million more for chicken feed in the period. It predicted chicken and hog supplies will be little changed.

 While the beef unit accounted for 40 percent of Tyson's sales in the last financial year, it contributed 17 percent of operating profit, data compiled by Bloomberg show. Chicken made up 34 percent of revenue and 35 percent of operating income. Tyson also processes pork.

The company is working on expanding its range of processed chicken products and items for convenience stores, Smith said on a separate call with reporters.

Tyson may look at smaller so-called bolt-on acquisitions, Smith said on the media call. When asked to comment on whether Tyson is interested in purchasing Hillshire Brands Co., Smith said no. Asked to clarify if Smith meant he had no comment or no interest, he said "a little bit of both."

 

1
Text Only
Features
  • dog-sunglasses.jpg Do animals have a sense of humor?

    Right now, in a high-security research lab at Northwestern University's Falk Center for Molecular Therapeutics, scientists are tickling rats. Their goal? To develop a pharmaceutical-grade happiness pill. But their efforts might also produce some of the best evidence yet that humor isn't something experienced exclusively by human beings.

    March 29, 2014 1 Photo

  • 20140317-AMX-DESIGN-FOOD178.jpg Fun and beautiful maps of the world made from signature regional foods

    Food stylist Caitlin Levin and photographer Henry Hargreaves have collaborated on a series of food-based country maps composed of signature national ingredients.

    March 19, 2014 3 Photos

  • AvengerExt.jpg Avenger an American value

    If you’re someone who appreciates the golden age of domestic sedans — those big, comfortable, heavy-feeling cars with a uniquely American sense of style — this one ought to pique your interest.

    March 7, 2014 2 Photos

  • Screen shot 2014-02-27 at 4.27.26 PM.png The glitz, the glamour and the movies: 3 apps for Oscar weekend

    With the Oscars approaching, this is a weekend for movies. Download these apps, then watch a few movies, create your own and settle in for the awards show.

    March 1, 2014 1 Photo

  • 20140218-AMX-DESIGN-HOTEL182.jpg The rise of the hotel bakery

    One of the key trends in hotel design in recent years has been a sharp focus on creating a hotel lobby that is a destination, not just a pass-through.

    February 18, 2014 1 Photo

  • How the U.S. government spends millions to get people to eat more pizza

    WASHINGTON - It all adds up to a lot of calories: On an average day, the report notes, pizza provides 6 percent of the total caloric intake for American children and 4 percent for American adults.

    February 18, 2014

  • Mazda3Int.jpg Redesigned Mazda3 among best new small cars

    Mazda must be dabbling in black magic.
    How else can you explain the fact that this relatively small Japanese company is doing what no one else in the car industry seems to have figured out? They’re building cars that get amazing gas mileage and are exhilarating to drive at the same time.

    February 18, 2014 1 Photo

  • SoulExt.jpg Soul is still stylin’

    Starting under $15,000, the Soul has always pegged its success on buyers who want a trendy, contemporary, eye-catching car without spending a ton of cash. And now that an all-new Soul is out for 2014, it shows that Kia is doubling down on this recipe of combining funky looks and an affordable price.

    February 17, 2014 2 Photos

  • 01.jpg US News names its 'Best Cars for the Money'

    WASHINGTON - U.S. News & World Report Wednesday announced its annual Best Cars for the Money list on its Best Cars website.

    February 13, 2014 1 Photo

  • You're doing it wrong: how to make better ramen

    NEW YORK — The finer points of instant ramen preparation may be up for debate, but the noodle cakes and flavor packets bequeathed to the world by Momofuku Ando are un-mess-up-able.

    February 10, 2014

House Ads
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Featured Comment
Twitter Updates
Seasonal Content
Poll

Will you participate in March Madness?

Yes I watch the games and complete a bracket.
Yes I complete a bracket.
No
     View Results