Breakfast Of Champions

Image source: Rolling Stones, Utix Grapix and F16-ISO100 - Shutterstock

What's going on?

Tyson Foods reported better-than-expected quarterly results on Monday, as the US meat producer pursues a utopia where everyone eats protein morning, noon, and night.

What does this mean?

Tyson’s honorable mission hit a road bump last quarter: the company sold 2% less of its meat products than the same time last year, mostly because it couldn’t get hold of the workers and supplies it needed. On the other hand, that slump was more than offset by an 18% average price hike, as well as by more efficient production lines that slashed costs. That helped overall profit come in 75% higher than the same time in 2021. And since the company is confident this trend will continue, it upped its full year revenue outlook too.

Why should I care?

Zooming in: The US has beef with Tyson.
Tyson’s results expose just how fast food prices are climbing, but this rising tide isn’t exactly lifting all boats: data shows that farmers’ share of the price of beef is at its lowest in decades. They blame that on the outsized influence of a few meatpackers on the industry, with companies like Tyson and Brazil’s JBS having been involved in chicken and pork price-fixing scandals in the past. And while those companies have been hit with fines worth hundreds of millions, they don’t seem to have learned their lesson: the US government’s now looking into their latest round of “price gouging”.

The bigger picture: Live life on the veg.
Bad news for Tyson: new analysis has shown that meat and plant-based alternatives now cost almost the same thing. That matters because consulting firm Kearney has previously said that the plant-based sector could grow exponentially if it can get its products prices on a par with meat prices. That might be why the sector is now projected to grow 15% a year to become a $13 billion industry by 2030.

Originally posted as part of the Finimize daily email.

The top 2 financial news stories in 3 minutes. Join over one million Finimizers

Read next

Growing Pains

Sign up to Finimize

Get the two most important global financial news stories each day. Sent at midnight UK time.

Get started with one email a day

The top financial news stories in 3 minutes.