Tyson Foods closing four chicken plants as sales suffer
Why it matters: With about 142,000 employees worldwide as of October, Tyson is the one of the world's largest meat processors.
Driving the news: The maker of Jimmy Dean, Hillshire Farm and Ball Park meat brands announced Monday that it will close facilities in North Little Rock, Arkansas; Corydon, Indiana; Dexter, Missouri; and Noel, Missouri.
- The move "demonstrates our commitment to bold action and operational excellence as we drive performance, including lower costs and improving capacity utilization," Tyson said in a statement.
The big question: How many workers are affected?
- Spokesman Derek Burleson declined to disclose the amount.
Context: Tyson on Monday posted a 3% sales decline in its most recent quarter, compared with a year earlier.
- Chicken sales rose by 2.8%, but average chicken prices declined by 5.5% as food inflation eases.
- For the same period, the company posted a $314 million operating loss on chicken products.
The impact: Tyson's stock was down 8% Monday morning.
The bottom line: Yet another COVID-era success story has come back to earth. The high-flying sales and prices that Tyson enjoyed earlier in the pandemic have waned.