Tyson Foods, Inc. (TSN) Bundle
A Brief History of Tyson Foods, Inc.
Tyson Foods, Inc. (NYSE: TSN), established in 1931, has evolved into one of the world's largest food companies and a recognized leader in protein production. The company operates in various segments, including Beef, Pork, Chicken, and Prepared Foods, and has a significant presence in both domestic and international markets.
Company Overview as of 2024
As of June 29, 2024, Tyson Foods reported total sales of $39.744 billion for the first nine months of fiscal 2024, compared to $39.533 billion for the same period in the previous year. The breakdown of sales by segment is as follows:
| Segment | Sales (in millions) | Change |
|---|---|---|
| Beef | $15,218 | +$922 |
| Pork | $4,465 | +$191 |
| Chicken | $12,174 | -$731 |
| Prepared Foods | $7,379 | +$36 |
| International/Other | $1,744 | -$135 |
| Total | $39,744 | +$211 |
Financial Performance
In the third quarter of fiscal 2024, Tyson Foods reported net income attributable to the company of $191 million, or $0.54 per diluted share, a significant recovery from a net loss of $417 million, or $(1.18) per diluted share, in the same quarter of 2023. For the first nine months, the net income was $443 million, compared to a loss of $198 million in the prior year.
Segment Results
The operating income results for each segment for the first nine months of fiscal 2024 were as follows:
| Segment | Operating Income (Loss) (in millions) |
|---|---|
| Beef | $(310) |
| Pork | $(24) |
| Chicken | $579 |
| Prepared Foods | $676 |
| International/Other | $(37) |
| Total | $884 |
Cash Flow and Investments
During the first nine months of fiscal 2024, Tyson Foods generated $1.973 billion in cash from operating activities, an increase from $1.429 billion in the prior year. The cash flows from investing activities were $(854) million, primarily due to $884 million spent on property, plant, and equipment.
Debt and Liquidity
As of June 29, 2024, Tyson Foods had total current debt of $1.320 billion and total liquidity of $4.832 billion, including cash and cash equivalents of $2.569 billion. The company’s revolving credit facility had an available borrowing capacity of $2.250 billion.
Recent Developments
In March 2024, Tyson Foods issued senior unsecured notes with an aggregate principal amount of $1.5 billion, consisting of $600 million due March 2029 and $900 million due March 2034. The proceeds were used to repay existing debt and to support ongoing operations.
Outlook
Tyson Foods anticipates continued growth driven by operational efficiencies and strategic investments in high-demand protein categories. The company aims to enhance its market position through innovation and expansion in both domestic and international markets.
A Who Owns Tyson Foods, Inc. (TSN)
Ownership Structure
As of 2024, Tyson Foods, Inc. (TSN) has a dual-class share structure comprising Class A and Class B shares. Class A shares provide one vote per share, while Class B shares provide ten votes per share. This structure allows the founding family to maintain control over the company.
Major Shareholders
The following table outlines the major shareholders of Tyson Foods, Inc. as of 2024:
| Shareholder | Ownership Type | Ownership Percentage | Voting Power |
|---|---|---|---|
| Tyson Family | Class B Common Stock | Approximately 70% | Majority Voting Control |
| Institutional Investors | Class A Common Stock | Approximately 25% | Minority Voting Control |
| Retail Investors | Class A Common Stock | Approximately 5% | Minority Voting Control |
Institutional Ownership
As of 2024, institutional ownership in Tyson Foods is significant, with several large asset management firms holding substantial positions. The following table illustrates the largest institutional shareholders:
| Institution | Shares Held (in millions) | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 24.1 | 8.4% |
| BlackRock, Inc. | 22.2 | 7.7% |
| State Street Corporation | 15.9 | 5.6% |
| FMR LLC (Fidelity) | 10.5 | 3.7% |
| Invesco Ltd. | 9.8 | 3.4% |
Recent Transactions and Changes in Ownership
In recent months, Tyson Foods has seen various transactions affecting its ownership structure:
- In March 2024, Tyson Foods issued $1.5 billion in senior notes, which may influence institutional holdings in the future.
- Stock repurchases have occurred, with 0.2 million shares repurchased in the most recent quarter, totaling $13 million.
Executive Ownership
Executive ownership also plays a role in Tyson's governance. The following table shows the share ownership of key executives:
| Executive | Title | Shares Owned (in millions) | Percentage of Total Shares |
|---|---|---|---|
| Donnie Smith | Former CEO | 1.2 | 0.4% |
| Noel White | CEO | 0.8 | 0.3% |
| John Tyson | Chairman | 1.5 | 0.5% |
Conclusion
The ownership structure of Tyson Foods, Inc. is characterized by significant control held by the Tyson family through Class B shares, while institutional investors hold a substantial portion of Class A shares. This dual-class structure provides the family with a strong influence over the company's strategic direction.
Tyson Foods, Inc. (TSN) Mission Statement
Current Mission Statement
Tyson Foods, Inc. is committed to providing consumers with high-quality protein products while operating with a focus on sustainability and responsible sourcing. The company aims to innovate and expand its offerings to meet the evolving needs of its customers while delivering value to shareholders.
Strategic Goals
As of 2024, Tyson Foods has outlined several strategic goals to enhance its market position and operational efficiency:
- Increase operational efficiencies across all segments.
- Expand the branded portfolio through innovation in new product categories.
- Grow international market presence with value-added food offerings.
- Commit to sustainable practices in sourcing and production.
Financial Overview
For the fiscal year ending June 29, 2024, Tyson Foods reported the following key financial metrics:
| Financial Metric | Q3 FY 2024 | Q3 FY 2023 | 9 Months FY 2024 | 9 Months FY 2023 |
|---|---|---|---|---|
| Net Income (Loss) (in millions) | $196 | ($435) | $458 | ($206) |
| Sales (in millions) | $13,353 | $13,140 | $39,744 | $39,533 |
| Cost of Sales (in millions) | $12,475 | $12,463 | $37,177 | $37,361 |
| Gross Profit (in millions) | $878 | $677 | $2,567 | $2,172 |
| Operating Income (Loss) (in millions) | $341 | ($350) | $884 | $68 |
Segment Performance
Tyson Foods operates in four primary segments: Beef, Pork, Chicken, and Prepared Foods. Below is a summary of sales and operating income for these segments:
| Segment | Sales (in millions) Q3 FY 2024 | Sales (in millions) Q3 FY 2023 | Operating Income (Loss) (in millions) Q3 FY 2024 | Operating Income (Loss) (in millions) Q3 FY 2023 |
|---|---|---|---|---|
| Beef | $5,241 | $4,956 | ($69) | $66 |
| Pork | $1,462 | $1,324 | ($62) | ($74) |
| Chicken | $4,076 | $4,212 | $244 | ($314) |
| Prepared Foods | $2,432 | $2,383 | $203 | $206 |
Market Environment and Challenges
The U.S. protein market is currently facing various challenges including fluctuating input costs and changes in consumer preferences. Tyson Foods is adapting by focusing on:
- Managing input costs effectively, particularly in the Chicken segment.
- Responding to increased demand for premium and value-added products.
- Addressing supply chain disruptions and managing international market risks.
Commitment to Sustainability
Tyson Foods is dedicated to sustainability through initiatives aimed at reducing environmental impact and improving animal welfare. The company has set ambitious goals to:
- Reduce greenhouse gas emissions across its supply chain.
- Enhance water conservation efforts in its operations.
- Implement sustainable sourcing practices for all raw materials.
Conclusion of Financial Data
Tyson Foods continues to enhance its operational framework and align its mission with market demands while focusing on profitability and sustainability.
How Tyson Foods, Inc. (TSN) Works
Company Overview
Tyson Foods, Inc. operates primarily in the protein sector, focusing on beef, pork, chicken, and prepared foods. As of June 29, 2024, the company reported total sales of $13.4 billion for the third quarter, marking an increase compared to the previous year.
Financial Performance
In fiscal 2024, Tyson Foods experienced various shifts across its segments. The following table summarizes the sales and operating income for the three and nine months ended June 29, 2024, compared to the same periods in 2023.
| Segment | Sales (in millions) | Operating Income (Loss) (in millions) |
|---|---|---|
| Beef | $5,241 | ($69) |
| Pork | $1,462 | ($62) |
| Chicken | $4,076 | $244 |
| Prepared Foods | $2,432 | $203 |
| International/Other | $582 | $25 |
| Total | $13,353 | $341 |
Segment Analysis
Tyson Foods operates through four primary segments: Beef, Pork, Chicken, and Prepared Foods. The following details highlight the performance of each segment for the first nine months of fiscal 2024.
| Segment | Sales (in millions) | Operating Income (Loss) (in millions) |
|---|---|---|
| Beef | $15,218 | ($310) |
| Pork | $4,465 | ($24) |
| Chicken | $12,174 | $579 |
| Prepared Foods | $7,379 | $676 |
| International/Other | $1,744 | ($37) |
| Total | $39,744 | $884 |
Cost of Sales and Gross Profit
The cost of sales for the third quarter of fiscal 2024 was reported at $12,475 million, with a gross profit of $878 million. The cost of sales as a percentage of sales was 93.4%, down from 94.8% in the same quarter of the previous year.
Liquidity and Capital Resources
As of June 29, 2024, Tyson Foods maintained a liquidity position of $4.8 billion, with current debt totaling $1.3 billion. The company expects capital expenditures between $1.2 billion and $1.3 billion for fiscal 2024, focusing on production growth and safety improvements.
Market Environment
The overall market for Tyson Foods remains competitive, with fluctuations in supply and demand affecting pricing and margins. The company is currently facing increased cattle costs and a limited supply of market-ready cattle, impacting its Beef segment performance.
Taxation and Net Income
For the third quarter of fiscal 2024, the effective tax rate was 22.9%, with net income attributable to Tyson Foods amounting to $191 million, or $0.54 per diluted share. In comparison, the company reported a net loss of $417 million in the same quarter of the previous year.
Conclusion
Tyson Foods continues to navigate a complex operational landscape, adapting to market demands and managing its financial performance across various segments. The company remains focused on enhancing operational efficiencies and optimizing its product offerings.
How Tyson Foods, Inc. (TSN) Makes Money
Revenue Segmentation
Tyson Foods operates through four primary segments: Beef, Pork, Chicken, and Prepared Foods. As of the third quarter of fiscal 2024, the revenue breakdown is as follows:
| Segment | Sales (in millions) | Operating Income (Loss) (in millions) |
|---|---|---|
| Beef | $5,241 | ($69) |
| Pork | $1,462 | ($62) |
| Chicken | $4,076 | $244 |
| Prepared Foods | $2,432 | $203 |
| International/Other | $582 | $25 |
| Total | $13,353 | $341 |
Cost of Sales
For the third quarter of fiscal 2024, Tyson Foods reported a cost of sales of $12,475 million, resulting in a gross profit of $878 million. The cost of sales as a percentage of sales was 93.4%.
Segment Performance Analysis
The performance of each segment during the third quarter of fiscal 2024 compared to the same period in fiscal 2023 is highlighted below:
| Segment | Sales Change (in millions) | Operating Income Change (in millions) |
|---|---|---|
| Beef | $285 | ($135) |
| Pork | $138 | $12 |
| Chicken | ($136) | $558 |
| Prepared Foods | $49 | ($3) |
| International/Other | ($51) | $259 |
Operational Highlights
Tyson Foods' operational performance saw a significant increase in operating income to $341 million in the third quarter of fiscal 2024 from a loss of $350 million in the prior year. This improvement was primarily attributed to:
- Improved operational efficiencies in the Chicken segment.
- Higher pork margins and better performance in live hog operations.
- Lower average sales prices in the Chicken segment due to decreased feed ingredient costs.
Legal and Restructuring Charges
During the third quarter of fiscal 2024, Tyson Foods incurred the following charges:
- $101 million related to legal contingency accruals.
- $41 million in plant closure charges.
- Costs related to a production facility fire in the Netherlands of $3 million.
Market Environment and Strategic Outlook
The market for Tyson Foods has been influenced by various factors, including:
- Increased demand for beef and pork, despite limited supply of market-ready cattle.
- Reduced feed ingredient costs positively impacting the Chicken segment.
- International market fluctuations due to geopolitical events affecting supply chains.
Financial Position
As of June 29, 2024, Tyson Foods reported a liquidity of $4.8 billion with a current debt of $1.3 billion. The company plans to repay this debt with proceeds from a $1.5 billion senior notes issuance in March 2024.
Net Income Analysis
Tyson Foods reported net income attributable to Tyson of $191 million for the third quarter of fiscal 2024, compared to a loss of $417 million in the same period of the previous year, showcasing a significant recovery in profitability.
| Measure | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (Loss) (in millions) | $191 | ($417) |
| Net Income (Loss) per Diluted Share | $0.54 | ($1.18) |
Conclusion on Revenue Generation
Tyson Foods continues to leverage its diverse product offerings across multiple segments to generate revenue while navigating market challenges and operational restructuring.
Tyson Foods, Inc. (TSN) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support