🥩 Tyson Foods raises sales outlook for 2025 but faces threat of tariff hurdles 🚧

Tyson Foods $TSN, one of the largest meat producers in the U.S., announced an increase in its 2025 revenue estimate due to strong demand for beef and chicken. This positive outlook sent the stock higher in early trading by 2,3 % higher. 🔼

What helped the rise:
✅ Strong demand in the U.S. supports sales growth

✅ A rebound in restaurant traffic contributes to wholesale supply

✅ Cheap feed costs (corn, soybeans) play into Tyson's hands

📉 Risk factors: duty and limited cattle supply

However, the company is facing the potential impact of tariff measures imposed by President Donald Trump At Mexico, Canada and China.

25% tariffs on Canada and Mexico, 10% tariffs on China may lead to retaliatory measures that will reduce global demand for U.S. crops. This could make chicken feed cheaper but beef more expensive.

Mexico is the largest buyer of U.S. pork, and if tariffs significantly affect exports, Tyson will have to find new markets.

📊 Last quarter's key financials:

📈 Beef division sales: +6.2%

📈 Beef sales volume: +5.6%

📉 Farmers are not beginning to rebuild herds, signaling long-term pressure on beef prices

💰 Adjusted earnings per share: $1.14 (vs. expectations of $0.88) - beating estimates 🚀

🔮 Tyson Foods in 2025 - What to expect?

Raised operating profit guidance to $1.9-2.3 billion (up from the original USD 1.8-2.2 billion)

Revenue expected to remain flat or grow modestly by 1 % compared to the original forecast, which included a possible decline.

The limited number of heifers suggests that beef will be expensive for longer than originally expected.

What is your view on this company and the industry as a whole?