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Tyson Foods (TSN) Boosts Portfolio With Hillshire Farm SNACKED!

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Tyson Foods, Inc. (TSN - Free Report) is committed toward expanding its portfolio via product introductions and innovation. The company is taking another step in this direction, with the introduction of Hillshire Farm SNACKED!, which is likely to strengthen its snacking portfolio. This pre-packaged snacking item, prepared only for kids with quality ingredients, will be another option for parents looking for versatile, on-the-go snack packs.

Tyson Foods’ protein-packed Hillshire Farm SNACKED! suits well amid the growing demand for kids’ snacks. The product is a portable, convenient and tasty snack, which goes well with kids and parents’ fast-moving lifestyle. To top it, the protein-packed product is in tandem with the requirement for trusted ingredients. Clearly, Hillshire Farm SNACKED! is set to solidify Tyson Foods’ snacking portfolio and help the company meet the rising demand for kids’ pre-packed snacks.

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Tyson Foods Focused on Strengthening Protein-Packed Portfolio

Tyson Foods boasts a rich portfolio of protein-packed brands that are growing rapidly across the globe. Additionally, the company has undertaken the divesture of non-protein businesses (such as Sara Lee Frozen Bakery, Kettle and Van’s), in a bid to focus more on the growing protein-packed food arena. Apart from this, the company has been steadily expanding its fresh prepared foods offering, owing to consumers’ rising demand for natural fresh meat offerings without any added hormones or antibiotics.

Tyson Foods has also been venturing into alternative sources for meat and protein products, evident from its investment in Memphis Meats. In this regard, the company’s nationwide launch of Raised & Rooted, that includes three new products, bodes well amid the rising demand for plant-based protein options. In June 2021, Tyson Foods announced that it is rolling out a range of plant-based products in chosen retail markets and digital platforms in the Asia Pacific under the First Pride brand. The introduction of plant-based alternatives in the region brings Tyson Foods closer to its objective of building an impressive portfolio of plant protein brands. In January 2021, the company launched alternative protein offerings under the Jimmy Dean Label.

All said, Tyson Foods has been focused on higher protein production to cater to the rising demand for protein-packed food. For fiscal 2021, the United States Department of Agriculture (USDA) expects domestic protein production (chicken, beef, pork and turkey) to be up less than 1% compared with the fiscal 2020 levels. For the Beef segment, the USDA projects domestic production to increase nearly 3% year over year in fiscal 2021. The company estimates its Beef segment to deliver a better performance in fiscal 2021 compared with the fiscal 2020 levels. Also, management forecasts better results from its operations in the International/Other segment.

Considering the continued strength in the company’s Beef segment and the ongoing inflationary pressures being somewhat countered by pricing actions, management raised the fiscal 2021 sales guidance, in its last earnings release. Management now anticipates sales in the bracket of $46-$47 billion for fiscal 2021. Earlier, the company had projected the metric in the bracket of $44-$46 billion.

We believe that the above-mentioned product introduction is likely to add another lead to Tyson Foods’ portfolio growth story. Shares of the Zacks Rank #3 (Hold) company have rallied 3.3% in the past six months against the industry’s decline of 3.5%.

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Sanderson Farms sports a Zacks Rank #1 (Strong Buy), at present, and its bottom line outpaced the Zacks Consensus Estimate by a wide margin in the preceding four quarters, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

Pilgrim’s Pride (PPC - Free Report) , carries a Zacks Rank #2 (Buy) at present, and its bottom line outpaced the Zacks Consensus Estimate by almost 34% in the preceding four quarters, on average.

Sysco Corporation (SYY - Free Report) , currently carrying a Zacks Rank #2, has a trailing four-quarter earnings surprise of 13.3%, on average.


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