Reuter’s reports that Tyson Foods cannot increase prices for chicken and prepared foods fast enough to keep pace with rising costs for raw materials like grain. Chief Executive Donnie King said so on Monday, after the company reported higher-than-expected quarterly earnings. Inflation raises Tyson’s prices
The meat company lifted its 2021 revenue forecast due to strong beef demand as sales of steaks and burgers from US restaurants and hotels recovered following the easing of Covid-19 restrictions. US beef exports are also robust. Inflation raises Tyson’s prices
Tyson has increased prices for restaurant customers to offset inflation, King said on a conference call with analysts. More increases are planned, he said.
“Costs are hitting us faster than we can get pricing at this point,” King said.
“We’ve seen unprecedented and accelerating inflation, and we’re trying to catch up with that,” King told reporters.
Tyson increased its average price for pork by 39.3 per cent in the last quarter, while it raised beef and chicken prices 11.6 per cent and 15.6 per cent respectively. Sales volumes also increased.
Total quarterly sales climbed to $12.48 billion from $10.02 billion a year earlier, topping analysts’ estimates for $11.49 billion. Net income attributable to Tyson increased to $2.05 per share from $1.44 a year earlier.