In this file:
· Tyson Foods Acquires Original Philly Holdings
· Consumers' quest for protein, fresh food boosts Tyson's sales: CEO
· Tyson Foods' sales benefit from strong consumer demand for protein
· Tyson shares top one-year high as low feed costs boost margins
weighs sites for $320 million chicken plant after Kansas town objects
· Tyson's Big M&A Moves Have Transformed It Into a 'Fantastic Food Business'
Tyson Foods Acquires Original Philly Holdings
Source: Tyson Foods, Inc.
via Globe Newswire - November 13, 2017
SPRINGDALE, Ark., Nov. 13, 2017 (GLOBE NEWSWIRE) -- Tyson Foods, Inc. (NYSE:TSN) has completed the acquisition of Philadelphia-based Original Philly Holdings, Inc., one of the nation’s leading producers of raw and fully-cooked Philly-style sandwich steak and cheesesteak appetizer products.
“Original Philly Holdings is a natural, strategic fit with our Prepared Foods Business,” said Tyson Foods Prepared Foods Group President Sally Grimes. “The Original Philly brand and portfolio of products are highly regarded in the foodservice industry and have a growing list of customer relationships with chain and convenience store operators."
Original Philly Holdings consists of two business units: Original Philly Cheesesteak Company, which manufactures raw Philly Style sandwich steak products, and Philadelphia Pre-Cooked Steak Company, which manufactures fully-cooked Philly-style sandwich steak products. Its customers include foodservice, retail and convenience store providers. The company, which employs approximately 250 people, operates two plants in Philadelphia, Pa.
“We look forward to combining our commercial and operational resources with Original Philly Holdings’ capabilities to offer new solutions to customers and consumers, expand distribution, and continue the growth and legacy of the business,” Grimes said.
“We’re excited to be part of the Tyson Foods family, which will allow us to build on the legacy of our business,” said John Karamatsoukas, president and CEO of Original Philly Holdings. “Tyson Foods is a leader in the food industry and has a strong reputation for successfully acquiring and growing family-owned businesses like ours. With deep appreciation for our customers, employees, and vendors’ contributions to Original Philly’s success, I remain confident that Tyson Foods will honor and operate the business in a manner consistent with the values we embrace.”
Integration teams from Tyson Foods and Original Philly have been formed and the company will remain focused on maintaining high quality customer service during the transition.
About Tyson Foods, Inc.
Tyson Foods Inc. (NYSE:TSN) is one of the world’s largest food companies and a recognized leader in protein. Founded in 1935 by John W. Tyson and grown under three generations of family leadership, the company has a broad portfolio of products and brands like Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State Fair®. Tyson Foods innovates continually to make protein more sustainable, tailor food for everywhere it’s available and raise the world’s expectations for how much good food can do. Headquartered in Springdale, Arkansas, the company has 114,000 team members. Through its Core Values, Tyson Foods strives to operate with integrity, create value for its shareholders, customers, communities and team members and serve as a steward of the animals, land and environment entrusted to it. Visit www.tysonfoods.com.
About Original Philly Holdings, Inc.
Original Philly Cheesesteak Co., originally known as Roxborough Meat Co., was founded in 1981 in a converted garage in Philadelphia’s Roxborough section. The Company started producing portion controlled Philly Style sliced steaks for sale to local and regional foodservice operators. Original Philly experienced 36 years of year-over-year growth as Philly cheesesteaks increasingly became standard global menu fare. In 1991, Philadelphia Pre-Cooked Steak Co. was founded to serve a rapidly growing customer base that was looking for convenient heat-and-serve fully cooked Philly steaks. Original Philly Cheesesteak Co. and Philadelphia Pre-Cooked Steak Co. merged in early 2017 under Original Philly Holdings, Inc. For more information visit: www.phillycheesesteak.com.
Caroline Ahn, email@example.com. 312-614-6047
Consumers' quest for protein, fresh food boosts Tyson's sales: CEO
Tyson, whose brands include Jimmy Dean, Hillshire Farms and Ball Park hot dogs, posts fourth quarter revenue that increased 10.8 percent from last year.
Prepared foods sales surged 23 percent, pork and beef both grew about 10 percent and chicken rose 8 percent.
CEO Tom Hayes attributes the growth to Americans' desire to eat protein-rich food.
Angelica LaVito, CNBC
Nov 13, 2017
Consumers want protein and fresh food, and that's boosting Tyson Foods' sales.
The meat producer, whose brands include Jimmy Dean, Hillshire Farms and Ball Park hot dogs, posted fourth quarter revenue of $10.15 billion, a 10.8 percent increase from last year. Prepared foods sales surged 23 percent, pork and beef grew about 10 percent and chicken rose 8 percent, the company said Monday.
CEO Tom Hayes attributes the growth to Americans' desire to eat protein-rich food coupled with their shopping habits that are pulling them away from the center of the grocery store where shelf-stable food is located.
"Important is the fact that we are a protein company, but also the parts of the store where (consumers are) shopping is changing, and they're going to the perimeter of the store where we play, and that's been a great, great tailwind for us," Hayes told CNBC's "Power Lunch."
Tyson is focused on growing domestically, which includes innovating and brand building, Hayes said. Yet exports represent about 10 percent of the business, he said, with Mexico and China proving to be strong markets...
Tyson Foods' sales benefit from strong consumer demand for protein
Christopher Doering, FoodDive
Nov. 13, 2017
· Tyson Foods said net income was $394 million in the fourth quarter, up from $391 million in the same period in 2016. Sales during the quarter were $10.2 billion, an increase of nearly $1 billion, which includes its purchase of AdvancePierre Foods earlier this year, according to its most recent earnings report. Analysts had forecast $9.89 billion in revenue, according to Reuters.
· The meat processor forecast sales in its 2018 fiscal year to rise about 7% to approximately $41 billion, which excludes revenue from the Sara Lee Frozen Bakery, Kettle and Van’s businesses it is in the process of selling. The expected increase is attributed to sales of AdvancePierre brands of $1.2 billion, an increase in sales volume in its legacy businesses, and higher prices — predominantly in chicken.
· “The fourth quarter was a strong finish to another record year,” Tom Hayes, Tyson Foods’ president and chief executive officer, said in a statement. “Fiscal 2017 was a year of great change and, despite some challenges, our team remained focused on the long term by keeping consumer relevance, customer growth and shareholder value creation at the forefront."
Tyson Foods finished off the year with its business benefiting from low feed costs and strong consumer demand for protein. During the fourth quarter, Tyson Foods said sales rose in all four of its major units — beef, pork, chicken and prepared food units. Sales in its chicken operations rose 10.6% due to increased demand and incremental volume growth from the AdvancePierre acquisition. In pork, sales surged 9.1% behind strong consumption and increased exports.
“Our plan is to grow our business year after year through differentiated capabilities, deliver ongoing financial fitness through continuous improvement and sustain our company as we sustainably feed the world with the fastest growing portfolio of protein-packed brands,” Hayes said in a statement.
As shoppers look for ways to increase their protein consumption, companies such as Tyson are ideally positioned...
Tyson shares top one-year high as low feed costs boost margins
Tom Polansek & Theopolis Waters, Reuters
November 13, 2017
(Reuters) - Tyson Foods Inc (TSN.N) shares climbed to their highest level in more than a year on Monday as the No. 1 U.S. meat processor said low prices for livestock feed will help boost results again next year.
Tyson, the maker of Ball Park hot dogs and Jimmy Dean sausages, reported higher earnings and revenue than analysts expected for the quarter ended Sept. 30, sending shares up 1.4 percent in afternoon trading.
The company’s feed costs fell $65 million in the quarter as net income attributable to Tyson rose by $3 million to $394 million. For fiscal 2017, feed costs dropped by $80 million after four years of bumper harvests lowered prices.
Profits have also soared this year for other chicken processors. Pilgrim’s Pride Co (PPC.O) last week reported quarterly income attributable to the company more than doubled.
Feed costs should stay flat in 2018, Tyson Chief Executive Tom Hayes said, because this year’s corn and soybean harvests will again be at or near record levels.
“Certainly feed remains a huge component,” he told reporters on a conference call. “We are always looking at corn and soy.”
Tyson’s poultry business benefits most from cheap feed because grain accounts for more than half the cost of growing a chicken. The company also processes hogs and cattle.
JPMorgan said Tyson reduced its estimate for 2018 feed costs by about $100 million...
Tyson weighs sites for $320 million chicken plant after Kansas town objects
Tom Polansek & Theopolis Waters, Reuters
November 13, 2017
CHICAGO (Reuters) - Tyson Foods Inc (TSN.N) is weighing new sites for a $320 million chicken slaughterhouse after opposition from residents of a small Kansas town picked for the project, the chief executive said on Monday.
The project planned for Tonganoxie, Kansas, would have been Tyson’s first new plant since the 1990s and included a chicken hatchery and feed mill, according to the company.
Tyson said it would increase its overall production capacity by processing up to 1.25 million birds per week.
However, residents were concerned about its impact on the environment and other issues.
“We’ll be delayed slightly here,” Tyson CEO Tom Hayes told reporters about the plant, after the company reported better-than-expected earnings.
U.S. per capita consumption of chicken is expected to hit a record high this year, according to the National Chicken Council, a trade group that said about 170 million chickens are slaughtered each week for meat.
Chicken sales have increased as consumers seek more protein in their diets. Some view it as a healthier alternative to beef and pork.
Tyson decided to build a new slaughterhouse because it was buying more chicken than it wanted from other producers to meet demand, Hayes said...
Tyson's Big M&A Moves Have Transformed It Into a 'Fantastic Food Business'
Tyson's $7.7 billion deal for Hillshire seemed expensive at the time, but it has allowed Tyson to become a fantastic business.
By Bret Kenwell, TheStreet
Nov 13, 2017
Shares of Tyson Foods (TSN - Get Report) are rallying Monday, hitting new 52-week highs and approaching new all-time highs after reporting "fantastic" earnings, TheStreet's Jim Cramer said on CNBC's "Stop Trading" segment.
Cramer had his doubts when Tyson announced its $7.7 billion acquisition of Hillshire Brands. The deal closed roughly three years ago and was done at a rather high valuation. However, management has proved to have superior vision for this deal, as Tyson Foods has created an incredible combination, he reasoned.
Tyson, which now consists of a number of different protein food brands, has kept itself out of the center aisles of the grocery story -- where sales are struggling and margins are tough. This is much better for business, as others like General Mills (GIS - Get Report) , Kellogg (K - Get Report) and Kraft Heinz (KHC - Get Report) struggle for growth.
The company is also making a larger push for natural and organic ingredients, he added, which will resonate well with certain shoppers. Tyson also remains a large supplier to McDonald's (MCD - Get Report) , though, he pointed out.
In all, management has built a "fantastic food business," reasoned Cramer, who also manages the Action Alerts PLUS charitable trust portfolio...
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