Tyson Foods, Inc. (TSN) reported Q4 earning this morning before the bell and all seems well in the land of processed foods.
The meat processing giant saw a 4% increase in quarterly sales and $258 million net income, an increase from $137 million the same time last year. Chicken had seen an increase in sales while some of their other products saw a decline in adjusted sales.
What is fueling the increased demand in chicken? The decrease in ingredient cost of chicken definitely helps Tyson’s case. They are expecting their operating margin in chicken to exceed 10% for fiscal 2016.
Tyson’s board has also declared a quarterly dividend increase to $0.15/share on their Class A common stock, and $0.135 for Class B, respectively.
With chicken on the rise, will we be seeing more chicken on Thanksgiving tables this year rather than the traditional turkey? I highly doubt it, but with more and more minimum wage works protesting for higher wages, maybe they will opt out for the cheaper substitute. I am sure the people over at Tyson wouldn’t mind a changing of the guard.
Tyson Foods, Inc (TSN) is currently up 2.84% in pre-market trading.
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