We recently published 10 Stocks on Jim Cramer’s Radar. Tyson Foods Inc. (NYSE:TSN) is one of the stocks on Jim Cramer’s radar.
Tyson Foods Inc. (NYSE:TSN) is one of the largest packaged food companies in America. Its shares are flat year-to-date, with media reports pinning the blame on several factors. These include a demand by President Trump that the firm be investigated for price fixing and the firm paying $85 million in October to consumers after a lawsuit involving similar allegations. On a more positive note, S&P changed its outlook for Tyson Foods Inc. (NYSE:TSN) to Positive and Stable and affirmed a BBB credit rating. The agency commented that the meat company had accelerated its debt reduction process and increased its profitability by benefiting from chicken. Chicken has become an important market in the US as beef prices touch record highs due to herd problems. Tyson Foods Inc. (NYSE:TSN)’s BBB rating and a Stable outlook were also reiterated by Fitch in December. Fitch remarked that the firm could face as much as $500 million of beef losses in its fiscal year 2026. Cramer discussed the impact of beef on Tyson Foods Inc. (NYSE:TSN) and discussed the initiatives the firm is taking to navigate through a tough market:
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“We talked about the growth in economy, the GDP. But there is inflation, and one of the areas that has the worst inflation is beef. And that has to do with the way we get cattle, which it takes a long time. The herd is incredibly low, lowest in 50 years. And so today we have a small Nebraska town reeling from the exit of the meat packing giant, Tyson. They can’t make money, they can’t make money in this. And unless the President just says, listen, we’re going to waive all the tariffs, they’ve done some. Cattle just is going to stay high, it’s up 21% for the year, it’s up 7% for the month! So you’ve got the staple of America, beef, costing far more than it used to, and it’s rippling through. Tyson is doing everything it can this year to try to make it so that they make more money. Where they’re rationalizing the workforce. But a lot of people are going to get laid off. And I think I would keep in mind that I still think the admininstration has to recognize that when you go to the supermarket, there are parts of it that are just like a no fly zone. And the beef section, even in Costco, it’s just devastating. . .”
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Disclosure: None. This article is originally published at Insider Monkey.
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