Why Tyson Foods Stock Is Jumping This Week
Shares of Tyson Foods (NYSE: TSN) are soaring 12.5% this week after the protein producer's fiscal third-quarter earnings handily beat Wall Street expectations. Yet amid rising sales and profits, Tyson is facing soaring inflation, like the rest of the country.
CEO Donnie King told analysts on Tyson's earnings conference call that costs were exceeding its ability to match them with price hikes. While the poultry, pork, and beef processor had already raised prices for its foodservice customers, and retailer customers will be seeing price hikes next month, "Costs are hitting us faster than we can get pricing at this point," he said.
Beef prices were up almost 12% in the quarter, chicken was up nearly 16%, and pork was up a whopping 39%.
Source Fool.com
