Tyson Foods Inc. reported stronger-than-expected earnings for the third quarter, with adjusted earnings of $2.70 per share topping expectations by $1.08. But the company says it cannot increase prices for chicken and prepared foods fast enough to keep pace with rising raw material prices. In the last quarter, Tyson hiked average pork prices by 39.3%, beef prices by 11.6% and chicken prices by 15.6%. Sales volume increased despite the price rises.
In a conference call with analysts, CEO Donnie King said Tyson has increases prices for restaurant customers in response to inflation and the company plans to hike retail prices on Sept. 5, with more increases planned. “Costs are hitting us faster than we can get pricing at this point,” King said, describing inflation as “unprecedented and accelerating.”
Tyson increased its total sales forecast for fiscal year 2021 to $46 billion to $47 billion, which is up from its previous forecast for $44 billion to $46 billion in sales.