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"Tyson Boneless Chicken Breast Tenderloins"

Tyson Foods Reports Surprise Q2 Revenue Loss, Cuts Annual Forecast

May 8, 2023
Meat processor’s second quarter comes in well below expectations, and the company has adjusted its fiscal 2023 outlook as a result.

Meat processing giant Tyson Foods posted a surprise revenue loss, clobbered yet again by higher feed costs and market challenges in all three of its core proteins.

CEO Donnie King explained during a conference call that chicken feed costs were $145 million higher in the second quarter. Meanwhile, increased chicken supply dampened prices, lower global demand for pork hurt prices in that category, and beef sales volume and prices slipped as well. The company’s prepared foods business experienced flat sales volumes, but prices rose and Tyson reported market share gains in that segment.

Tyson has gone through 6-8 months of adjustments to try and cut costs, changing leadership atop its poultry division, laying off corporate workers and senior leadership, and closing two plants in Arkansas and Virginia as well. This after the company also announced the consolidation of its corporate operations to the Springdale, Ark., headquarters in October of last year.

Tyson adjusted its fiscal 2023 revenue forecast to $53 billion to $54 billion — off its previous forecast of $55 billion to $57 billion.

About the Author

Andy Hanacek | Senior Editor

Andy Hanacek has covered meat, poultry, bakery and snack foods as a B2B editor for nearly 20 years, and has toured hundreds of processing plants and food companies, sharing stories of innovation and technological advancement throughout the food supply chain. In 2018, he won a Folio:Eddie Award for his unique "From the Editor's Desk" video blogs, and he has brought home additional awards from Folio and ASBPE over the years. In addition, Hanacek led the Meat Industry Hall of Fame for several years and was vice president of communications for We R Food Safety, a food safety software and consulting company.

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