We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tyson Foods Restructures Organization to Boost Efficiency
Read MoreHide Full Article
Tyson Foods, Inc. (TSN - Free Report) recently announced that it is streamlining its organizational structure in order to maximize growth. This structure is designed across its Chicken, Pork, Beef and Prepared Foods segments to boost their efficiency by taking quick and convenient decisions.
Management also said that the segments will be managed by the group presidents in a more efficient manner. These presidents will look after the growth strategy, improve and execute the top-class officials in all the product groups as well as customer channels of the respective segment they cater. Also, they will directly report to Tom Hayes, Tyson Foods’ president and CEO. Additionally, Sally Grimes, Doug Ramsey and Noel White have been appointed to supervise Prepared Foods, Poultry, and Fresh Meats (Beef and Pork) & International, respectively.
The streamlining operation is in sync with the company’s growth strategy, announced in Feb 2017, where the company focused on growing its portfolio of protein-packed brands and invest in innovation. The company had also pointed that all its Tyson consumer brand products would contain chicken with No Antibiotics Ever (NAE).
Tyson Foods’ Strategies and Concerns
Tyson Foods remains on track to shape its robust portfolio of food products. The company has been making efforts to expand its protein-packed brands through solid innovation and brand-building efforts. The recent acquisition of AdvancePierre Foods will enable the buyer to flourish in the fastest growing portfolio of protein packed brands, and expand its fresh prepared foods offering for both out-of-home and in-home eating occasions. The company acquired all the outstanding shares of AdvancePierre Foods for approximately $4.2 billion. Going forward, it expects the transaction to generate cost synergies of approximately $200 million within three years.
The company’s strong position in chicken segment and, its efforts to innovate and offer nutritious products to health-conscious consumers, remain encouraging. Also, management is taking steps to make a sustainable food system by healthier food and relatables, and in turn, serve the best food to its customers worldwide.
However, Tyson Foods has been witnessing sluggishness at its Beef segment, mainly owing to higher domestic availability of fed cattle supplies and lower livestock costs. Additionally, higher investments in the prepared foods category as well as higher wages are increasing the expense burden of the company, thereby pressurizing margins.
This Zacks Rank #3 (Hold) stock increased 3.2% year to date, compared with its industry’s gain of 6.6%. Currently, the industry is placed at the top 4% of the Zacks classified industries (10 out of 256).
Calavo Growers has delivered an average positive earnings surprise of 4.7% in the last four quarters.
Limoneira has pulled off an average positive earnings surprise of 14.7% in the trailing four quarters.
Ollie's Bargain Outlet has a long-term earnings growth rate of 19% and came up with an average positive earnings surprise of 14.6% in the trailing four quarters.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Tyson Foods Restructures Organization to Boost Efficiency
Tyson Foods, Inc. (TSN - Free Report) recently announced that it is streamlining its organizational structure in order to maximize growth. This structure is designed across its Chicken, Pork, Beef and Prepared Foods segments to boost their efficiency by taking quick and convenient decisions.
Management also said that the segments will be managed by the group presidents in a more efficient manner. These presidents will look after the growth strategy, improve and execute the top-class officials in all the product groups as well as customer channels of the respective segment they cater. Also, they will directly report to Tom Hayes, Tyson Foods’ president and CEO. Additionally, Sally Grimes, Doug Ramsey and Noel White have been appointed to supervise Prepared Foods, Poultry, and Fresh Meats (Beef and Pork) & International, respectively.
The streamlining operation is in sync with the company’s growth strategy, announced in Feb 2017, where the company focused on growing its portfolio of protein-packed brands and invest in innovation. The company had also pointed that all its Tyson consumer brand products would contain chicken with No Antibiotics Ever (NAE).
Tyson Foods’ Strategies and Concerns
Tyson Foods remains on track to shape its robust portfolio of food products. The company has been making efforts to expand its protein-packed brands through solid innovation and brand-building efforts. The recent acquisition of AdvancePierre Foods will enable the buyer to flourish in the fastest growing portfolio of protein packed brands, and expand its fresh prepared foods offering for both out-of-home and in-home eating occasions. The company acquired all the outstanding shares of AdvancePierre Foods for approximately $4.2 billion. Going forward, it expects the transaction to generate cost synergies of approximately $200 million within three years.
The company’s strong position in chicken segment and, its efforts to innovate and offer nutritious products to health-conscious consumers, remain encouraging. Also, management is taking steps to make a sustainable food system by healthier food and relatables, and in turn, serve the best food to its customers worldwide.
However, Tyson Foods has been witnessing sluggishness at its Beef segment, mainly owing to higher domestic availability of fed cattle supplies and lower livestock costs. Additionally, higher investments in the prepared foods category as well as higher wages are increasing the expense burden of the company, thereby pressurizing margins.
This Zacks Rank #3 (Hold) stock increased 3.2% year to date, compared with its industry’s gain of 6.6%. Currently, the industry is placed at the top 4% of the Zacks classified industries (10 out of 256).
Key Picks
A few better-ranked stocks in the broader Consumer Staples sector are Calavo Growers, Inc. (CVGW - Free Report) , Limoneira Company (LMNR - Free Report) and Ollie's Bargain Outlet Holdings, Inc. (OLLI - Free Report) carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Calavo Growers has delivered an average positive earnings surprise of 4.7% in the last four quarters.
Limoneira has pulled off an average positive earnings surprise of 14.7% in the trailing four quarters.
Ollie's Bargain Outlet has a long-term earnings growth rate of 19% and came up with an average positive earnings surprise of 14.6% in the trailing four quarters.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>