Tyson Foods Stock

Tyson Foods, Inc. and its subsidiaries (Tyson Foods) operate as a food company worldwide.

The company has a broad portfolio of products and brands, including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp and State Fair.

The company operates a fully vertically-integrated chicken production process with the majority of the company's production in recent years certified as no antibiotics ever (sometimes referred to as 'NAE'); however, during the year ended September 30, 2023 (fiscal 2023), the company began transitioning the majority of the company's production to no antibiotics important to human medicine (sometimes referred to as 'NAIHM'). The company's integrated operations consist of breeding stock, contract farmers, feed production, processing, further-processing, marketing and transportation of chicken and related specialty products, including animal and pet food ingredients. Through the company's wholly-owned subsidiary, Cobb-Vantress, the company is one of the leading poultry breeding stock suppliers in the world.

The company also processes live fed cattle and hogs and fabricate dressed beef and pork carcasses into primal and sub-primal meat cuts, case-ready beef and pork and fully-cooked meats. In addition, the company derives value from specialty products, such as hides and variety meats sold to further processors and others.

The company produces a wide range of fresh, value-added, frozen and refrigerated food products. The company's products are marketed and sold primarily by the company's sales staff to grocery retailers, grocery wholesalers, meat distributors, warehouse club stores, military commissaries, industrial food processing companies, chain restaurants or their distributors, live markets, international export companies and domestic distributors who serve restaurants, foodservice operations, such as plant and school cafeterias, convenience stores, hospitals and other vendors. Additionally, sales to the military and a portion of sales to international markets are made through independent brokers and trading companies.

As part of the company's commitment to innovation and growth, the company has a subsidiary focused on investing in companies developing breakthrough technologies, business models and products to sustainably feed a growing world population. Tyson New Ventures, LLC is used to broaden the company's exposure to innovative, new forms of protein and ways of sustainably producing food to complement the company's continuing investments in innovation in the company's core Beef, Pork, Chicken and Prepared Foods businesses.

Segments

The company operates in four reportable segments: Beef, Pork, Chicken, and Prepared Foods. International/Other primarily includes the company's foreign operations in Australia, China, Malaysia, Mexico, the Netherlands, South Korea, Thailand and the Kingdom of Saudi Arabia.

Beef

Beef includes the company's operations related to processing live fed cattle and fabricating dressed beef carcasses into primal and sub-primal meat cuts and case-ready products. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such as schools, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes sales from specialty products, such as hides and variety meats, as well as logistics operations to move products through the supply chain.

Pork

Pork includes the company's operations related to processing live market hogs and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments, such as schools, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes the company's live swine group, related specialty product processing activities and logistics operations to move products through the supply chain.

Chicken

Chicken includes the company's domestic operations related to raising and processing live chickens into, and purchasing raw materials for fresh, frozen and value-added chicken products, as well as sales from specialty products. The company's value-added chicken products primarily include breaded chicken strips, nuggets, patties and other ready-to-fix or fully cooked chicken parts. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments, such as schools, convenience stores, healthcare facilities, the military and other food processors, as well as to international export markets. This segment also includes logistics operations to move products through the company's domestic supply chain and the global operations of the company's chicken breeding stock subsidiary.

Prepared Foods

Prepared Foods includes the company's operations related to manufacturing and marketing frozen and refrigerated food products and logistics operations to move products through the supply chain. This segment includes brands, such as Jimmy Dean, Hillshire Farm, Ball Park, Wright, State Fair, as well as artisanal brands Aidells and Gallo Salame. Products primarily include ready-to-eat sandwiches, sandwich components, such as flame-grilled hamburgers and Philly steaks, pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, flour and corn tortilla products, appetizers, snacks, prepared meals, ethnic foods, side dishes, meat dishes, breadsticks and processed meats. Products are marketed domestically to food retailers, foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments, such as schools, convenience stores, healthcare facilities, the military and other food processors, as well as to international export markets.

Customers

Walmart Inc. accounted for 18.6% of the company's fiscal 2023 consolidated sales.

Foreign Operations

The company sold products in approximately 140 countries and regions in fiscal 2023. Major sales markets include Australia, Canada, Central America, Chile, China, the European Union, the United Kingdom, Japan, Mexico, Malaysia, the Middle East, Singapore, South Korea, Taiwan, and Thailand. The company has the following foreign operations:

Cobb-Vantress, a chicken breeding stock subsidiary, has business interests in Argentina, Brazil, China, Colombia, the Dominican Republic, India, the Netherlands, New Zealand, Peru, the Philippines, Spain, Turkey, and the United Kingdom.

Tyson Asia-Pacific consists of vertically-integrated chicken production operations in Thailand, multi-protein further-processing operations in Malaysia, a beef production operation in Australia, a producer and distributor of value-added and cooked chicken and beef products in the Kingdom of Saudi Arabia, and joint venture interests in two non-consolidated poultry businesses in Malaysia and one in the Kingdom of Saudi Arabia.

Tyson China-Korea, with locations in China and South Korea, consists of vertically-integrated chicken production operations, multi-protein further-processing operations, and a joint venture interest in a non-consolidated chicken processing business. Tyson China also sells beef, pork, and chicken products imported from Tyson production facilities in the United States and other global operations.

Tyson Europe sells chicken products throughout the United Kingdom and Europe produced from the company's other global operations and co-packer arrangements and has a chicken further processing operation in the Netherlands.

Vibra Agroindustrial S.A., a joint venture in Brazil in which the company has a minority interest, is a vertically-integrated chicken processing business.

Holding Agro Industrial S.A., a joint venture in Argentina and Uruguay in which the company has a minority interest, is a vertically-integrated chicken processing business.

Godrej Tyson Foods, a joint venture in India in which the company has a minority interest, is primarily a chicken processing business.

Tyson Mexico Trading Company, a Mexican subsidiary, sells chicken and prepared foods products primarily from the company's U.S. operations and co-packer arrangements.

The company continues to evaluate growth opportunities in foreign locations.

Environmental Regulation

In addition to the company's own internal Food Safety and Quality Assurance oversight and review, the company's beef, pork, chicken, and prepared foods products are subject to inspection, primarily by the United States Department of Agriculture (USDA) and the United States Food and Drug Administration ('FDA'). The company also participates in the USDA's Hazard Analysis and Critical Control Points ('HACCP') program or FDA's Hazard Analysis and Risk-Based Prevention Controls ('HARPC') program as applicable and are subject to the Sanitation Standard Operating Procedures and the Public Health Security and Bioterrorism Preparedness and Response Act of 2002.

Marketing and Distribution

The company builds the Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp and State Fair brands while supporting strong regional and emerging brands primarily through distinctive brand and product advertising, promotion and public relations efforts focused toward key consumer targets with specific needs.

Research and Development

The company's research and development costs totaled $114 million in fiscal 2023.

History

Tyson Foods, Inc. was founded in 1935 by John W. Tyson. The company was incorporated in 1947.