Dive Brief:
- Tyson Foods, Inc. reported Q2 earnings, which included a 53% jump in adjusted operating income and a 10.5% increase in sales, though sales did miss analysts' estimates. Analysts forecast $0.72 EPS, though the company reached $0.75 excluding items.
- Adjusted operating margins increased for several of Tyson's segments, including 11.7% for chicken, 8.4% for record prepared foods, and 8.2% for pork.
- These earnings come as the bird flu continues to threaten much of the U.S., and Tyson's stock has felt the effects of this.
Dive Insight:
Tyson cites its merger with Hillshire Brands as a driving factor for growth. Tyson entered a bidding war last summer with Pilgrim's Pride for Hillshire, which Tyson won. This acquisition prompted Hillshire to abandon its possible attempt to acquire Pinnacle Foods, as Tyson could not complete it if the Hillshire-Pinnacle deal went through.
Donnie Smith, president and CEO of Tyson Foods, said in a press release, "By producing innovative, protein-centric foods, we are uniquely positioned to meet consumers' needs for all meal occasions and all day parts, at home and away from home."