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Tyson Foods' (TSN) Latest Move to Fuel International Expansion
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Tyson Foods, Inc. (TSN - Free Report) remains focused on undertaking efforts to cater to the rising demand for protein-packed food. The company announced its strategic partnership with Tanmiah Food Company (Tanmiah) — a leading Middle East provider of fresh and processed poultry, other processed meat products, animal feed and health products. Per the agreement, Tyson Foods will acquire a 15% equity stake in Tanmiah subsidiary Agriculture Development Company (ADC) and a 60% equity stake in Supreme Foods Processing Company.
We note that ADC is a completely integrated poultry company that produces broiler chickens while operating hatcheries and feed mills. ADC sells fresh poultry to retailers and food service customers under the Tanmiah brand. Supreme Foods makes value-added and cooked chicken as well as beef products. Its products are distributed in the Middle East, including Kuwait, Saudi Arabia, Bahrain and UAE, among others. Moreover, Tyson Foods and Tanmiah will invest in expanding the processing capacities of Supreme Foods.
The aforementioned acquisitions will allow Tyson Foods to access poultry supplies across Saudi Arabia to cater to the rising protein demand in the Middle East and other markets. Further, the partnership will also enable growth across the Halal food market. The latest move is in tandem Tyson Foods’ efforts to expand into international markets as part of its strategic growth plan.
Image Source: Zacks Investment Research
Regarding expansions, Tyson Foods anticipates opening seven fully-cooked plants outside the U.S. in the coming two years. Out of these, six plants are envisioned to open in Asia and one in Europe. The plan bodes well amid a spike in protein consumption worldwide. We note that total Tyson Foods sales from international business and exports contributed 14% to total fiscal 2021 sales.
What Else Should You Know?
Tyson Foods is focused on higher protein production to cater to the rising demand for protein-packed food. It boasts a rich portfolio of protein-packed brands, multiplying globally. The company’s diverse protein portfolio, omnichannel capabilities, solid brands and value-added products contributed to the upside in the second quarter of fiscal 2022. Tyson Foods’ retail core business lines, including well-known brands like Tyson, Jimmy Dean, Hillshire Farm and Ball Park, delivered solid share performance.TSN has been steadily expanding its fresh prepared foods offerings, owing to consumers’ rising demand for natural fresh meat offerings without added hormones or antibiotics. Another area of focus for Tyson Foods has been its e-commerce business, as consumers are shifting to online shopping. Management is constantly looking for ways to improve cost structure, alongside achieving operational improvements and customer service.
Tyson Foods’ latest investments in Saudi Arabia accelerate its strategy of expanding value-added capacity across International business. The Zacks Rank #3 (Hold) company’s stock has increased 17.9% in the past year against the industry’s 2.8% decline.
Sysco, which markets and distributes various food and related products, sports a Zacks Rank #1 (Strong Buy). SYY has a trailing four-quarter earnings surprise of 9.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sysco’s current financial year sales and earnings per share (EPS) suggests growth of 32.5% and 124.3%, respectively, from the year-ago reported number.
United Natural Foods distributes natural, organic, specialty, produce and conventional grocery and non-food products. UNFI currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for UNFI’s current financial year sales and EPS suggests 7.2% and 3.6% growth, respectively, from the year-ago period’s reported figures. United Natural Foods has a trailing four-quarter earnings surprise of 29.9%, on average.
Campbell Soup, which manufactures and markets food and beverage products, currently carries a Zacks Rank #2 (Buy). Campbell Soup has a trailing four-quarter earnings surprise of 10.8%, on average.
The Zacks Consensus Estimate for CPB’s current financialyear sales suggests growth of 0.5% from the year-ago reported figure.
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Tyson Foods' (TSN) Latest Move to Fuel International Expansion
Tyson Foods, Inc. (TSN - Free Report) remains focused on undertaking efforts to cater to the rising demand for protein-packed food. The company announced its strategic partnership with Tanmiah Food Company (Tanmiah) — a leading Middle East provider of fresh and processed poultry, other processed meat products, animal feed and health products. Per the agreement, Tyson Foods will acquire a 15% equity stake in Tanmiah subsidiary Agriculture Development Company (ADC) and a 60% equity stake in Supreme Foods Processing Company.
We note that ADC is a completely integrated poultry company that produces broiler chickens while operating hatcheries and feed mills. ADC sells fresh poultry to retailers and food service customers under the Tanmiah brand. Supreme Foods makes value-added and cooked chicken as well as beef products. Its products are distributed in the Middle East, including Kuwait, Saudi Arabia, Bahrain and UAE, among others. Moreover, Tyson Foods and Tanmiah will invest in expanding the processing capacities of Supreme Foods.
The aforementioned acquisitions will allow Tyson Foods to access poultry supplies across Saudi Arabia to cater to the rising protein demand in the Middle East and other markets. Further, the partnership will also enable growth across the Halal food market. The latest move is in tandem Tyson Foods’ efforts to expand into international markets as part of its strategic growth plan.
Image Source: Zacks Investment Research
Regarding expansions, Tyson Foods anticipates opening seven fully-cooked plants outside the U.S. in the coming two years. Out of these, six plants are envisioned to open in Asia and one in Europe. The plan bodes well amid a spike in protein consumption worldwide. We note that total Tyson Foods sales from international business and exports contributed 14% to total fiscal 2021 sales.
What Else Should You Know?
Tyson Foods is focused on higher protein production to cater to the rising demand for protein-packed food. It boasts a rich portfolio of protein-packed brands, multiplying globally. The company’s diverse protein portfolio, omnichannel capabilities, solid brands and value-added products contributed to the upside in the second quarter of fiscal 2022. Tyson Foods’ retail core business lines, including well-known brands like Tyson, Jimmy Dean, Hillshire Farm and Ball Park, delivered solid share performance.TSN has been steadily expanding its fresh prepared foods offerings, owing to consumers’ rising demand for natural fresh meat offerings without added hormones or antibiotics. Another area of focus for Tyson Foods has been its e-commerce business, as consumers are shifting to online shopping. Management is constantly looking for ways to improve cost structure, alongside achieving operational improvements and customer service.
Tyson Foods’ latest investments in Saudi Arabia accelerate its strategy of expanding value-added capacity across International business. The Zacks Rank #3 (Hold) company’s stock has increased 17.9% in the past year against the industry’s 2.8% decline.
3 Hot Food Bets
Some better-ranked stocks are Sysco Corporation (SYY - Free Report) , United Natural Foods (UNFI - Free Report) and Campbell Soup (CPB - Free Report) .
Sysco, which markets and distributes various food and related products, sports a Zacks Rank #1 (Strong Buy). SYY has a trailing four-quarter earnings surprise of 9.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Sysco’s current financial year sales and earnings per share (EPS) suggests growth of 32.5% and 124.3%, respectively, from the year-ago reported number.
United Natural Foods distributes natural, organic, specialty, produce and conventional grocery and non-food products. UNFI currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for UNFI’s current financial year sales and EPS suggests 7.2% and 3.6% growth, respectively, from the year-ago period’s reported figures. United Natural Foods has a trailing four-quarter earnings surprise of 29.9%, on average.
Campbell Soup, which manufactures and markets food and beverage products, currently carries a Zacks Rank #2 (Buy). Campbell Soup has a trailing four-quarter earnings surprise of 10.8%, on average.
The Zacks Consensus Estimate for CPB’s current financialyear sales suggests growth of 0.5% from the year-ago reported figure.