20517a56f166a9d0cadfaa602275b51c5fa44b1c7e0824df834b53b17a90a2d7

| Segment/Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 |
|-----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Beef ($ million) | **5,261**  **[0000100493-24-000118_tsn2024q4exh-991.htm:1]**  | **5,241**  **[0000100493-24-000103_tsn-20240629.htm:50]**  | **4,954**  **[0000100493-24-000068_tsn2024q2exh-991.htm:1]**  | **5,023**  **[0000100493-24-000014_tsn-20231230.htm:38]**  | **5,029**  **[0000100493-23-000104_tsn2023q4exh-991.htm:1]**  | **4,956**  **[0000100493-23-000089_tsn-20230701.htm:26]**  | **4,617**  **[0000100493-23-000066_tsn2023q2exh-991.htm:1]**  | **4,723**  **[0000100493-23-000025_tsn-20221231.htm:38]**  |
| Pork ($ million) | **1,438**  **[0000100493-24-000118_tsn2024q4exh-991.htm:1]**  | **1,462**  **[0000100493-24-000103_tsn-20240629.htm:50]**  | **1,486**  **[0000100493-24-000068_tsn2024q2exh-991.htm:1]**  | **1,517**  **[0000100493-24-000014_tsn-20231230.htm:38]**  | **1,494**  **[0000100493-23-000104_tsn2023q4exh-991.htm:1]**  | **1,324**  **[0000100493-23-000089_tsn-20230701.htm:26]**  | **1,421**  **[0000100493-23-000066_tsn2023q2exh-991.htm:1]**  | **1,529**  **[0000100493-23-000025_tsn-20221231.htm:38]**  |
| Chicken ($ million) | **4,251**  **[0000100493-24-000118_tsn2024q4exh-991.htm:1]**  | **4,076**  **[0000100493-24-000103_tsn-20240629.htm:50]**  | **4,065**  **[0000100493-24-000068_tsn2024q2exh-991.htm:1]**  | **4,033**  **[0000100493-24-000014_tsn-20231230.htm:38]**  | **4,155**  **[0000100493-23-000104_tsn2023q4exh-991.htm:1]**  | **4,212**  **[0000100493-23-000089_tsn-20230701.htm:26]**  | **4,430**  **[0000100493-23-000066_tsn2023q2exh-991.htm:1]**  | **4,263**  **[0000100493-23-000025_tsn-20221231.htm:38]**  |
| Prepared Foods ($ million) | **2,472**  **[0000100493-24-000118_tsn2024q4exh-991.htm:1]**  | **2,432**  **[0000100493-24-000103_tsn-20240629.htm:50]**  | **2,404**  **[0000100493-24-000068_tsn2024q2exh-991.htm:1]**  | **2,543**  **[0000100493-24-000014_tsn-20231230.htm:38]**  | **2,502**  **[0000100493-23-000104_tsn2023q4exh-991.htm:1]**  | **2,383**  **[0000100493-23-000089_tsn-20230701.htm:26]**  | **2,422**  **[0000100493-23-000066_tsn2023q2exh-991.htm:1]**  | **2,538**  **[0000100493-23-000025_tsn-20221231.htm:38]**  |
| International/Other ($ million) | **609**  **[0000100493-24-000118_tsn2024q4exh-991.htm:1]**  | **582**  **[0000100493-24-000103_tsn-20240629.htm:50]**  | **580**  **[0000100493-24-000068_tsn2024q2exh-991.htm:1]**  | **582**  **[0000100493-24-000014_tsn-20231230.htm:38]**  | **636**  **[0000100493-23-000104_tsn2023q4exh-991.htm:1]**  | **633**  **[0000100493-23-000089_tsn-20230701.htm:26]**  | **634**  **[0000100493-23-000066_tsn2023q2exh-991.htm:1]**  | **612**  **[0000100493-23-000025_tsn-20221231.htm:38]**  |

5cd5a2646f3176eb4a6c48f7296c05c66039db8214aae6fe7c9ea9939e6a66bb

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

af091dbfd3f3472e5571860538ab2cc1447d5f626b9dbb26385610f019bd85b8

Live Cattle Costs

Hog Costs

Effect of Change in Corn

Effect of Change in Soybean Meal

392220f789fe249e5b4c5263969bbed22fa22036506144b3492671acf09fbb03

| Metric (Million USD)                  | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|---------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Live Cattle Costs                     | $530 **[0000100493-23-000025_tsn-20221231.htm:36]** | $835 **[0000100493-23-000067_tsn-20230401.htm:43]** | $1,445 **[0000100493-23-000089_tsn-20230701.htm:46]** | N/A     | $575 **[0000100493-24-000014_tsn-20231230.htm:37]** | $325 **[0000100493-24-000069_tsn-20240330.htm:48]** | $1,140 **[0000100493-24-000103_tsn-20240629.htm:47]** | N/A     |
| Hog Costs                             | -$55 **[0000100493-23-000025_tsn-20221231.htm:36]** | $30 **[0000100493-23-000067_tsn-20230401.htm:42]**  | $185 **[0000100493-23-000089_tsn-20230701.htm:45]**  | N/A     | $105 **[0000100493-24-000014_tsn-20231230.htm:37]** | $75 **[0000100493-24-000069_tsn-20240330.htm:47]**  | -$110 **[0000100493-24-000103_tsn-20240629.htm:46]** | N/A     |
| Effect of Change in Corn              | $32 **[0000100493-23-000025_tsn-20221231.htm:47]** | $39 **[0000100493-23-000067_tsn-20230401.htm:56]** | $32 **[0000100493-23-000089_tsn-20230701.htm:63]** | $23 **[0000100493-23-000105_tsn-20230930.htm:82]** | $28 **[0000100493-24-000014_tsn-20231230.htm:47]** | $35 **[0000100493-24-000069_tsn-20240330.htm:60]** | $20 **[0000100493-24-000103_tsn-20240629.htm:60]** | $11 **[0000100493-24-000119_tsn-20240928.htm:77]** |
| Effect of Change in Soybean Meal      | $21 **[0000100493-23-000025_tsn-20221231.htm:47]** | $29 **[0000100493-23-000067_tsn-20230401.htm:56]** | $27 **[0000100493-23-000089_tsn-20230701.htm:63]** | $22 **[0000100493-23-000105_tsn-20230930.htm:82]** | $16 **[0000100493-24-000014_tsn-20231230.htm:47]** | $15 **[0000100493-24-000069_tsn-20240330.htm:60]** | $11 **[0000100493-24-000103_tsn-20240629.htm:60]** | $16 **[0000100493-24-000119_tsn-20240928.htm:77]** |

9c927458e152803f6a284cdbb61fce9ee67750f59d99fbf0c594ffd58d297562

39c01c6f23b79402fe11290e98e152fdc06a014edbfc43ef61082efe42509d07

141c376c05d9918cb5108d6972faa154438dbb3621781bc732833ca3301f1418

Tyson Foods, Inc. (TSN) is one of the world's largest food companies, recognized as a leader in protein production, operating in four main segments: Beef, Pork, Chicken, and Prepared Foods. The company processes and markets a variety of meat products, including beef, pork, and chicken, as well as frozen and refrigerated prepared foods, to domestic and international markets **[0000100493-24-000119_tsn-20240928.htm:4]** **[0000100493-24-000119_tsn-20240928.htm:127]**. Tyson Foods' product lines feature well-known brands such as Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp®, and State Fair® **[0000100493-24-000069_tsn-20240330.htm:43]** **[0000100493-24-000119_tsn-20240928.htm:4]**. In fiscal 2024, Tyson Foods reported total sales of $53.309 billion, with Walmart Inc. being its largest customer, accounting for 18.4% of consolidated sales **[0000100493-24-000119_tsn-20240928.htm:127]**.

1. **Beef** - Processes live fed cattle into meat cuts and case-ready products for various markets.
2. **Chicken** - Involves raising and processing chickens into fresh, frozen, and value-added products.
3. **Prepared Foods** - Manufactures and markets frozen and refrigerated food products.
4. **Pork** - Processes live market hogs into meat cuts for distribution.

58abe4b9421c074beecb90416444ba563b00b5c3d5bef2bbccf63c4a2b7e9743

1. Given the ongoing challenges in your Beef segment due to compressed spreads and a lack of herd rebuilding, what specific strategies are you implementing to navigate the current cattle cycle, and how confident are you in your ability to stabilize profitability in this area?

2. Despite highlighting operational improvements in your Chicken and Prepared Foods segments, how do you plan to sustain these efficiencies amid potential market volatility and rising input costs, and what measures are in place to mitigate these risks?

3. With your focus on disciplined capital allocation and managing CapEx, how are you balancing investments in growth initiatives like expanding your fully cooked portfolio and digital capabilities with the need to reduce leverage and return cash to shareholders?

4. Considering the network optimization initiatives and plant closures you've executed, do you anticipate further consolidation or restructuring within your operations, and how might this impact your capacity to meet customer demand and maintain service levels?

5. You’ve emphasized the use of big data, predictive analytics, and AI for operational excellence and consumer insights; can you provide specific examples of how these technologies have materially improved your performance, and what challenges have you encountered in their implementation?

49aa8febe8838018c9df6fccdb553b3219fcead499e3f16599a76c524d94884f

Sales Volume Change for Beef segment (percentage)

Average Sales Price Change for Beef segment (percentage)

Sales Volume Change for Pork segment (percentage)

Average Sales Price Change for Pork segment (percentage)

Sales Volume Change for Chicken segment (percentage)

Average Sales Price Change for Chicken segment (percentage)

Sales Volume Change for Prepared Foods segment (percentage)

Average Sales Price Change for Prepared Foods segment (percentage)

Effect of 10% change in fair value for Live Cattle derivative positions (millions)

Effect of 10% change in fair value for Lean Hogs derivative positions (millions)

Effect of 10% change in fair value for Corn derivative positions (millions)

Effect of 10% change in fair value for Soybean Meal derivative positions (millions)

5508367fbda94a5366d52a9adcc8374505dd15865b899ea90459bee892859652

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from Debt [USD, Millions]

Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

ba51b95c28122f88ac34c3b2021f494ed1db27676539bf7fb62a8ba9aee43737

### Q4 2024 Earnings Call
- **Issued Period:** Q4 2024
- **Guided Period:** FY 2025
- **Guidance:**
  1. **Adjusted Operating Income (AOI):** $1.8 billion to $2.2 billion
  2. **Prepared Foods AOI:** $900 million to $1.1 billion
  3. **Chicken AOI:** $1 billion to $1.2 billion
  4. **Beef AOI:** Loss of $400 million to $200 million
  5. **Pork AOI:** $100 million to $200 million
  6. **Interest Expense:** $380 million
  7. **Tax Rate:** 24% to 25%
  8. **Capital Expenditures (CapEx):** $1 billion to $1.2 billion
  9. **Free Cash Flow:** Exceed $700 million
  10. **Sales:** Flat to down 1%  **[TSN_3407825_1]** **[TSN_3407825_9]** **[TSN_3407825_7]** **[TSN_3407825_6]** .

### Q3 2024 Earnings Call
- **Issued Period:** Q3 2024
- **Guided Period:** FY 2024
- **Guidance:**
  1. **Overall Sales Guidance:** Roughly flat year-over-year
  2. **Total Company AOI:** $1.6 billion to $1.8 billion
  3. **Chicken Segment AOI:** $850 million to $950 million
  4. **Prepared Foods Segment AOI:** $850 million to $950 million
  5. **Beef Segment AOI:** Loss of $400 million to $300 million
  6. **Pork Segment AOI:** $100 million to $200 million
  7. **Capital Expenditures (CapEx):** $1.2 billion to $1.3 billion  **[TSN_3396417_5]** .

### Q2 2024 Earnings Call
- **Issued Period:** Q2 2024
- **Guided Period:** FY 2024
- **Guidance:**
  1. **Overall Sales Guidance:** Roughly flat year-over-year
  2. **Operating Income (OI):** $1.4 billion to $1.8 billion
  3. **Chicken AOI:** $700 million to $900 million
  4. **Prepared Foods AOI:** $850 million to $950 million
  5. **Beef AOI:** Loss of $400 million to $100 million
  6. **Pork AOI:** $50 million to $150 million
  7. **Interest Expense:** $400 million
  8. **Tax Rate:** 24%
  9. **Capital Expenditures (CapEx):** $1.2 billion to $1.4 billion
  10. **Free Cash Flow:** Confident in fully funding the dividend  **[TSN_3386604_5]** .

### Q1 2024 Earnings Call
- **Issued Period:** Q1 2024
- **Guided Period:** FY 2024
- **Guidance:**
  1. **Total Company AOI:** $1 billion to $1.5 billion
  2. **Prepared Foods AOI:** $800 million to $1 billion
  3. **Chicken AOI:** $500 million to $700 million
  4. **Beef AOI:** Loss of $400 million to breakeven
  5. **Pork AOI:** Breakeven to $100 million
  6. **Interest Expense:** $400 million
  7. **Tax Rate:** 23% to 24%
  8. **Capital Expenditures (CapEx):** $1 billion to $1.5 billion
  9. **Sales Guidance:** Roughly flat year-over-year
  10. **Net Leverage:** Aim to return net leverage to at or below 2x net debt to EBITDA  **[TSN_3371872_5]** **[TSN_3371872_6]** .

3f34f3705a7ec43d3851e56be96781ed11a8ce7a94016fea5b0a265662953134

| Name               | Position                                           | Start Date         | Short Bio                                                                                                                                                                                                 |
|--------------------|----------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| John H. Tyson      | Chairman of the Board of Directors                 | 1984               | John H. Tyson has been a member of the Board of Directors since **1984** and has served as Chairman since **1998**. He was CEO from **2000 until 2006**  **[0000100493-23-000136_tsn-20231221.htm:20]** **[0000100493-24-000119_tsn-20240928.htm:39]** .                                           |
| Lori Bondar        | Senior Vice President and Chief Accounting Officer | December 2023      | Lori Bondar was appointed as Senior Vice President and Chief Accounting Officer in **December 2023**. She joined Tyson Foods in **September 2023**  **[0000100493-24-000119_tsn-20240928.htm:39]** .                                                   |
| Melanie Boulden    | Chief Growth Officer                               | February 2023      | Melanie Boulden was appointed as Chief Growth Officer in **February 2023**. She also served as Group President, Prepared Foods from September 2023 to September 2024  **[0000100493-24-000119_tsn-20240928.htm:39]** **[0000100493-23-000105_tsn-20230930.htm:43]** .                              |
| Curt Calaway       | Chief Financial Officer                            | August 29, 2024    | Curt Calaway became CFO on **August 29, 2024**, after serving as interim CFO since **June 2024**. He has been with Tyson Foods since **2006**  **[0000100493-24-000119_tsn-20240928.htm:39]** **[0000100493-24-000106_exhibit991-cfopressrelease.htm:0]** **[0000100493-24-000106_tsn-20240829.htm:1]** .                                                 |
| Devin Cole         | President, International & Global McDonald's       | July 2024          | Devin Cole was appointed as President, International & Global McDonald's in **July 2024**. He has a long history with Tyson Foods, having worked there from **1995 to 2014**  **[0000100493-24-000119_tsn-20240928.htm:39]** .                         |
| Adam Deckinger     | General Counsel and Secretary                      | January 2023       | Adam Deckinger was appointed as General Counsel and Secretary in **January 2023**. He joined Tyson Foods in **April 2018**  **[0000100493-23-000105_tsn-20230930.htm:43]** .                                                                          |
| Jacqueline Hanson  | Chief People Officer                               | January 2024       | Jacqueline Hanson was appointed as Chief People Officer in **January 2024**. She was previously the HR Senior Vice President for Poultry, Cobb, McDonald's, and International  **[0000100493-24-000119_tsn-20240928.htm:40]** **[0000100493-24-000119_tsn-20240928.htm:39]** .                    |
| Donnie King        | President and Chief Executive Officer              | June 2021          | Donnie King has served as President and CEO since **June 2021**. He has held various senior leadership roles within the company since joining in 1984  **[0000100493-23-000105_tsn-20230930.htm:43]** **[0000100493-23-000136_tsn-20231221.htm:23]** **[0000100493-24-000119_tsn-20240928.htm:40]** .                                          |
| Wes Morris         | Group President, Poultry                           | January 2023       | Wes Morris was appointed as Group President, Poultry in **January 2023**. He was previously a consultant to the company starting in October 2020  **[0000100493-24-000119_tsn-20240928.htm:40]** **[0000100493-23-000105_tsn-20230930.htm:43]** .                                                  |
| Kyle Narron        | Group President, Prepared Foods                    | October 2024       | Kyle Narron was appointed as Group President, Prepared Foods in **October 2024**. He was previously Senior Vice President of Pork and Prepared Foods  **[0000100493-24-000119_tsn-20240928.htm:40]** **[0000100493-24-000119_tsn-20240928.htm:39]** .                                             |
| Brady Stewart      | Group President, Beef, Pork and Chief Supply Chain Officer | August 2023 | Brady Stewart was appointed as Group President, Beef, Pork and Chief Supply Chain Officer in **August 2023**. He joined as Group President, Fresh Meats in January 2023  **[0000100493-24-000119_tsn-20240928.htm:40]** **[0000100493-23-000105_tsn-20230930.htm:44]** .                          |
| John R. Tyson      | Executive Vice President                           | N/A                | John R. Tyson is the Executive Vice President. He was previously the Executive Vice President and CFO from October 2022 to June 2024  **[0000100493-24-000119_tsn-20240928.htm:40]** **[0000100493-23-000105_tsn-20230930.htm:44]** .                                                             |
| Maria N. Martinez  | Board of Directors Member                          | June 14, 2024      | Maria N. Martinez serves as a Director on the Board of Directors. Her initial statement of beneficial ownership of securities was filed on **June 14, 2024**  **[0000100493-24-000085_xslF345X02/wk-form3_1718372931.xml:0]** .                                         |

f5a2c331f5bebfba883a45188611b871504468ca4fcff23aae90860aee720c25

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | **February 7, 2003**  **[0000100493-24-000119_tsn-20240928.htm:43]**  |
| End Date/Duration        | **No fixed termination date**  **[0000100493-24-000119_tsn-20240928.htm:43]**  |
| Total Additional Amount  | **110 million shares**  **[0000100493-24-000119_tsn-20240928.htm:43]**  |
| Remaining Authorization  | **7.3 million shares**  **[0000100493-24-000119_tsn-20240928.htm:105]**  |
| Details                  | Shares are repurchased based on factors like working capital needs, market conditions, and regulatory requirements. Purchases also fund obligations under equity compensation plans.  **[0000100493-23-000089_tsn-20230701.htm:15]** **[0000100493-23-000105_tsn-20230930.htm:109]** **[0000100493-24-000119_tsn-20240928.htm:105]** **[0000100493-22-000097_tsn-20221001.htm:108]** **[0000100493-23-000067_tsn-20230401.htm:12]**  |

ebf9f0efd2f7241529cc4152fe14e51d8d11526f4f76bcaba13e9053e518e7d6

Foreign Sales

- Export Sales from US

Total Revenue

fea37fc8db0089cd2ef9eae294d353c4bef299b0133e33eca9e9c4fe27c5bd36

**Annual guidance for FY 2025:**
- **Adjusted Operating Income (AOI)**: $1.8 billion to $2.2 billion  **[TSN_3407825_1]** **[TSN_3407825_9]** **[TSN_3407825_7]** **[TSN_3407825_6]**  (raised from $1.6 billion to $1.8 billion  **[TSN_3396417_5]** )  
- **Prepared Foods AOI**: $900 million to $1.1 billion  **[TSN_3407825_1]** **[TSN_3407825_9]** **[TSN_3407825_7]** **[TSN_3407825_6]**  (raised from $850 million to $950 million  **[TSN_3396417_5]** )  
- **Chicken AOI**: $1 billion to $1.2 billion  **[TSN_3407825_1]** **[TSN_3407825_9]** **[TSN_3407825_7]** **[TSN_3407825_6]**  (raised from $850 million to $950 million  **[TSN_3396417_5]** )  
- **Beef AOI**: Loss of $400 million to $200 million  **[TSN_3407825_1]** **[TSN_3407825_9]** **[TSN_3407825_7]** **[TSN_3407825_6]**  (raised from a loss of $400 million to $300 million  **[TSN_3396417_5]** )  
- **Pork AOI**: $100 million to $200 million  **[TSN_3407825_1]** **[TSN_3407825_9]** **[TSN_3407825_7]** **[TSN_3407825_6]**  (no change from prior guidance  **[TSN_3396417_5]** )  
- **Capital Expenditures (CapEx)**: $1 billion to $1.2 billion  **[TSN_3407825_1]** **[TSN_3407825_9]** **[TSN_3407825_7]** **[TSN_3407825_6]**  (lowered from $1.2 billion to $1.3 billion  **[TSN_3396417_5]** )  
- **Sales**: Flat to down 1%  **[TSN_3407825_1]** **[TSN_3407825_9]** **[TSN_3407825_7]** **[TSN_3407825_6]**  (lowered from roughly flat year-over-year  **[TSN_3396417_5]** )  
- **Free Cash Flow**: Exceed $700 million  **[TSN_3407825_1]** **[TSN_3407825_9]** **[TSN_3407825_7]** **[TSN_3407825_6]**  (no prior guidance)  
- **Interest Expense**: $380 million  **[TSN_3407825_1]** **[TSN_3407825_9]** **[TSN_3407825_7]** **[TSN_3407825_6]**  (no prior guidance)  
- **Tax Rate**: 24% to 25%  **[TSN_3407825_1]** **[TSN_3407825_9]** **[TSN_3407825_7]** **[TSN_3407825_6]**  (no prior guidance)  

6f481ab8db8b02b9d1efd02e216521ae1c5c9804fba45d27d300e2e433463597

| Name                        | Start Date | End Date | Reason for Change |
|-----------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP  | 2009  **[0000100493-24-000119_tsn-20240928.htm:146]**  | Present  | Current auditor   |

4f7855a4a11ea93bc063c9b8e338b7003a4d174aad1fdb4ba116fbbe45a87bef

4d70f89669b18cc87907c197fc369c6b3b945afd126ef497b89a0c28cb269e99

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $13,565 million (+2% YoY)  **[0000100493-24-000119_tsn-20240928.htm:80]** **[0000100493-23-000105_tsn-20230930.htm:85]**   
- Beef: $5,261 million (+5% YoY)  **[0000100493-24-000119_tsn-20240928.htm:129]** **[0000100493-23-000105_tsn-20230930.htm:58]**   
- Pork: $1,438 million (−4% YoY)  **[0000100493-24-000119_tsn-20240928.htm:129]** **[0000100493-23-000105_tsn-20230930.htm:58]**   
- Chicken: $4,251 million (+2% YoY)  **[0000100493-24-000119_tsn-20240928.htm:129]** **[0000100493-23-000105_tsn-20230930.htm:58]**   
- Prepared Foods: $2,472 million (−1% YoY)  **[0000100493-24-000119_tsn-20240928.htm:129]** **[0000100493-23-000105_tsn-20230930.htm:58]**   
- **Operating Income (EBIT): $525 million (from −$463 million YoY)**  **[0000100493-24-000119_tsn-20240928.htm:80]** **[0000100493-23-000105_tsn-20230930.htm:85]**   
- **Net Income: $357 million (from −$433 million YoY)**  **[0000100493-24-000119_tsn-20240928.htm:80]** **[0000100493-23-000105_tsn-20230930.htm:85]**   
- **Basic EPS: $1.03 (from −$1.32 YoY)**  **[0000100493-24-000119_tsn-20240928.htm:80]** **[0000100493-23-000105_tsn-20230930.htm:112]**   

e4b299d200942d49a46cc38d72aeae8ec8bdd7296e335d6256ad21aa79c5ddb9

64cac1802d26fcbab754a2a08cc67efdfa054192dc069b9749660126eec9713f

1. **Chicken Business Outlook**  
   **Q:** What's driving the increased Chicken outlook?  
   **A:** Tyson's Chicken segment has shown significant improvement, with more than half of the **$325 million year-over-year increase** coming from execution improvements like optimizing the footprint and network.  **[TSN_3386604_11]**  They have focused on controlling the controllables, matching supply and demand, and improving live operational performance.  **[TSN_3386604_11]**  Grains have moderated, and demand is strong, positioning Chicken well for the back half of the year.  **[TSN_3386604_24]** 

2. **Beef Segment Outlook**  
   **Q:** Can Beef make money through the cattle cycle?  
   **A:** Despite uncertainties about heifer retention, Tyson is implementing strategies to navigate the cattle cycle.  **[TSN_3386604_14]**  They have not seen meaningful heifer retention begin  **[TSN_3386604_14]** , but are focusing on operational excellence, efficiency within assets, and mix management to improve profitability.  **[TSN_3386604_14]**  There is plenty of runway ahead to continue improvements even as supply dynamics shift.  **[TSN_3386604_14]** 

3. **Prepared Foods Second Half Guidance**  
   **Q:** Why is Prepared Foods' profit expected to be lower in H2?  
   **A:** Prepared Foods delivered **$500 million** in adjusted operating income in the first half.  **[TSN_3386604_7]**  Historically, the second half is lower than the first, and this year they expect the same, guiding to **$400 million** for H2.  **[TSN_3386604_7]**  Higher commodity costs in Q3 are expected, leading to an even split between Q3 and Q4.  **[TSN_3386604_7]** 

4. **Consumer Demand and Behavior**  
   **Q:** How is consumer pressure affecting demand?  
   **A:** Consumers, especially lower-income households, are under pressure due to roughly **20% cumulative inflation** over the last three years.  **[TSN_3386604_8]**  This has led to cautious, price-sensitive behavior, with shifts from fine dining to quick-service restaurants and even to more meals at home.  **[TSN_3386604_8]**  Tyson is advantaged as they serve both in-home and away-from-home consumers.  **[TSN_3386604_8]** 

5. **Operational Improvements**  
   **Q:** How much cost reduction is still attainable in Chicken?  
   **A:** Tyson has made significant progress in Chicken, focusing on live performance, operational execution, and matching supply and demand.  **[TSN_3386604_13]**  While they've improved, they believe there's still much work to do and expect to deliver best-in-class results over time.  **[TSN_3386604_13]** 

6. **Capital Expenditure Outlook**  
   **Q:** How will CapEx be managed given better profits?  
   **A:** Tyson plans to return to a normalized level of capital spending, focusing on investments in the Prepared Foods portfolio and parts of the Chicken portfolio where there's growth opportunity.  **[TSN_3386604_23]**  They are not turning CapEx on and off based on profitability outlook but determining needs for the business.  **[TSN_3386604_23]** 

7. **Pork Supply Outlook**  
   **Q:** Is hog supply improving profitability and increasing?  
   **A:** Lower feed costs have moved pork production back to profitability, benefiting producers.  **[TSN_3386604_13]**  Genetic improvements are leading to more pigs per litter, and with improved herd health, the industry is seeing ample supply.  **[TSN_3386604_13]** 

8. **International Profitability**  
   **Q:** How will International margins improve?  
   **A:** Tyson has built **12 processing plants** globally over the last two years.  **[TSN_3386604_25]**  They are focusing on operational efficiencies, improving conversion costs, and delivering a more profitable mix of products.  **[TSN_3386604_25]**  These actions are beginning to improve gross margins and operating income delivery.  **[TSN_3386604_25]** 

9. **Chicken Volume Decline**  
   **Q:** Will Chicken production declines continue?  
   **A:** The volume decline in Chicken is due to challenging comparisons with last year, which is not a good comparator as volumes were overstated.  **[TSN_3386604_15]**  Current volumes are in line with expectations, and Tyson is well-positioned in supply-demand balance with strong growth plans moving forward.  **[TSN_3386604_15]** 

10. **Network Rationalization**  
    **Q:** Are further network changes in Chicken expected?  
    **A:** Tyson anticipates recovering nearly all of the volume from network moves made in Chicken.  **[TSN_3386604_24]**  They have headroom in their current footprint and expect to grow with demand in more profitable parts of the business.  **[TSN_3386604_24]** 

11. **Leverage and Balance Sheet**  
    **Q:** What's the expected leverage by fiscal year-end?  
    **A:** Tyson is trending towards lower leverage and aims for **2x or below** as the long-term target.  **[TSN_3386604_21]**  They are confident in their trajectory.  **[TSN_3386604_21]** 

12. **Beef Demand and Margins**  
    **Q:** How are Beef margins tracking without promotional activity?  
    **A:** Beef demand has been challenged due to lack of promotional activity.  **[TSN_3386604_17]**  While Pork and Chicken are seeing future activity, Beef has not received much, impacting margins.  **[TSN_3386604_17]**  Tyson continues to monitor and focus on controllables.  **[TSN_3386604_17]** 

13. **Cold Weather Impact on Chicken**  
    **Q:** Did cold weather affect Chicken volumes?  
    **A:** The impacts of cold weather were anticipated and not significant enough to disproportionately impact earnings.  **[TSN_3386604_20]**  Tyson typically plans for some weather-related disruptions in the quarter.  **[TSN_3386604_20]** 

14. **Start-up Costs in Prepared Foods**  
    **Q:** When will start-up costs stop being a headwind?  
    **A:** Most start-up costs have been incurred in Q2, with a little possibly carrying over into Q3.  **[TSN_3386604_21]**  The majority of these costs are behind them.  **[TSN_3386604_21]** 

15. **CapEx Priorities**  
    **Q:** Where will CapEx be focused moving forward?  
    **A:** CapEx will focus on investing in the Prepared Foods portfolio and components of the Chicken portfolio with growth opportunities.  **[TSN_3386604_23]**  They are returning to a normalized level of spend based on business needs.  **[TSN_3386604_23]** 

4301fede2c0599f209c22ef2546edaf08236caa6a99d61fbca0f0f518052c97b

c967dd2cc551ae372cc6a630d80aec0a4a063313dee01715a2dc6b199274f5bd

| Year  | Amount Due [Millions] | Debt Type                | Interest Rate [%] | % of Total Debt                                                                 |
|-------|------------------------|--------------------------|-------------------|---------------------------------------------------------------------------------|
| 2026  | 750                   | Term Loan Facility       | N/A               | 7.6% = (750 / 9,806) * 100 **[0000100493-25-000007_tsn-20241228.htm:10]** **[0000100493-25-000007_tsn-20241228.htm:19]**                                     |
| 2028  | 750                   | Term Loan Facility       | N/A               | 7.6% = (750 / 9,806) * 100 **[0000100493-25-000007_tsn-20241228.htm:10]** **[0000100493-25-000007_tsn-20241228.htm:19]**                                     |
| 2029  | 600                   | 5.40% Senior Unsecured Notes | 5.40             | 6.1% = (600 / 9,806) * 100 **[0000100493-25-000007_tsn-20241228.htm:10]** **[0000100493-25-000007_tsn-20241228.htm:19]**                                     |
| 2034  | 900                   | 5.70% Senior Unsecured Notes | 5.70             | 9.2% = (900 / 9,806) * 100 **[0000100493-25-000007_tsn-20241228.htm:10]** **[0000100493-25-000007_tsn-20241228.htm:19]**                                     |

f1acfab38d8ea05b792fb9746966004490b049e200883a91018e6fcca573fe1f

- **Continued losses in the Beef segment are expected, with guidance indicating a loss of $400 million to $200 million in fiscal 2025, reflecting ongoing challenges in the cattle cycle with no signs of herd rebuilding.**  **[TSN_3407825_15]**
- **Overall volume is expected to decrease slightly in fiscal 2025 due to tight cattle supply and network optimization, which may limit revenue growth.**  **[TSN_3407825_10]**
- **The company's reliance on operational improvements in the Chicken and Prepared Foods segments to drive profitability may not fully offset the headwinds in Beef, posing a risk to achieving projected AOI growth of 10% at midpoint.**  **[TSN_3407825_10]** **[TSN_3407825_18]**

651d35d9032ed781279f2f03250af9924e162d9b310f2cc7b601c068092edfcd

- Despite improvements, **chicken segment margins remain at the lower end of the typical range**, partly because the company passes on savings from lower grain costs to customers, limiting margin expansion.  **[TSN_3396417_11]**
- The **beef segment is facing volatility and spread tightening** due to elevated cattle costs, which may negatively impact profitability.  **[TSN_3396417_7]**
- There are concerns about the **sustainability of improvements in the chicken segment**, as industry issues like birds not making it to the plant due to industry exits and high wages could pose future challenges.  **[TSN_3396417_13]**

80811f7c0c5a284c8445d284bc537a7c0ac3df4f06941b6a93d133a900e3c651

- **Tyson Foods anticipates seasonally weaker performance in its Pork and Prepared Foods segments, potentially leading to a weaker Q3 compared to Q4.**  **[TSN_3386604_7]** **[TSN_3386604_13]**
- **Continued uncertainties in the cattle cycle and compressed spreads are expected to pressure the Beef segment's margins.**  **[TSN_3386604_2]** **[TSN_3386604_16]** **[TSN_3386604_17]** **[TSN_3386604_13]**
- **Uncertainties remain regarding consumer strength and behavior, which could negatively impact revenue and profitability in upcoming quarters.**  **[TSN_3386604_7]** **[TSN_3386604_13]**

285f6b2bc45c1380c02bc37a5b455b25f686b908f5a1f16680d81c8c925ad038

1. **Chicken Segment Outlook**  
   **Q:** What's driving growth and potential upside in Chicken for FY'25?  
   **A:** Management highlighted that the Chicken business is fundamentally different and better than a year ago, achieving over **$1 billion** in AOI for FY'24, exceeding prior expectations of up to **$700 million**.  **[TSN_3407825_10]** **[TSN_3407825_11]**  They expect AOI between **$1 billion to $1.2 billion** in FY'25, a high single-digit growth at midpoint.  **[TSN_3407825_10]**  This growth is driven by over **$500 million** in operational improvements, with an additional **$185 million** planned, independent of market conditions.  **[TSN_3407825_11]** **[TSN_3407825_12]**  They are investing around **$100 million** to drive a mix shift towards value-added products, leveraging upgrades in quality, packaging, and a new advertising campaign.  **[TSN_3407825_10]** **[TSN_3407825_11]** **[TSN_3407825_13]** 

2. **Prepared Foods Performance**  
   **Q:** What are the drivers for Prepared Foods growth in FY'25?  
   **A:** The company reported the best Prepared Foods performance since 2018 and expects over **10%** AOI growth in FY'25, driven entirely by controllable improvements.  **[TSN_3407825_9]** **[TSN_3407825_18]**  Key drivers include operational efficiencies with significant improvements in yield and throughput, a **26%** reduction in distressed sales, and service levels improved over **170 points** year-over-year.  **[TSN_3407825_18]**  They're focusing on core business distribution gains and leveraging a robust innovation pipeline, carrying momentum from '24 into '25.  **[TSN_3407825_18]** 

3. **Beef Segment Challenges**  
   **Q:** How is Tyson addressing challenges in the Beef segment?  
   **A:** Tyson is guiding to a loss of **$400 million to $200 million** in Beef for FY'25 due to continued challenges from tight cattle supply.  **[TSN_3407825_15]** **[TSN_3407825_16]**  They are implementing operational improvements to cushion against market pressures, focusing on efficiencies in plants, yields, and utilization of their six harvest assets.  **[TSN_3407825_16]** **[TSN_3407825_21]**  They aim to minimize losses during this cycle and position for future growth.  **[TSN_3407825_16]** **[TSN_3407825_21]** 

4. **Operational Improvements Across Segments**  
   **Q:** Can you quantify operational improvements across segments?  
   **A:** In Chicken, Tyson achieved over **$500 million** in operational improvements in FY'24 and plans an additional **$185 million** in FY'25, independent of markets.  **[TSN_3407825_11]** **[TSN_3407825_12]**  In Prepared Foods, they realized significant gains in yield and throughput, reduced distressed sales by **26%**, and improved service levels over **170 points** year-over-year.  **[TSN_3407825_18]**  In Beef, they improved operating costs year-over-year and are leveraging data analytics to drive efficiencies and yield improvements.  **[TSN_3407825_16]** **[TSN_3407825_21]** 

5. **Capital Allocation and Leverage**  
   **Q:** How is Tyson approaching capital allocation and leverage targets?  
   **A:** Tyson reduced net leverage from **4.1x to 2.6x** in FY'24 and plans to invest **$1 billion to $1.2 billion** in CapEx for FY'25.  **[TSN_3407825_22]**  Free cash flow is expected to exceed the annual dividend, estimated at around **$700 million**.  **[TSN_3407825_22]**  They remain committed to an investment-grade credit rating and a long-term target leverage of at or below **2x**  **[TSN_3407825_22]** , and focus on improving returns on invested capital.  **[TSN_3407825_22]** 

6. **Impact of Higher Chicken Supply**  
   **Q:** Will increased chicken supply affect Tyson's outlook?  
   **A:** Management acknowledges increased egg sets and chick placements but notes that industry challenges in hatch and livability mean excess chicks aren't reaching processing plants.  **[TSN_3407825_14]** **[TSN_3407825_19]**  They have accounted for potential supply increases in their guidance and believe supply and demand are fairly balanced.  **[TSN_3407825_14]** **[TSN_3407825_19]**  Tyson is more insulated due to its focus on strategic customers and value-added products.  **[TSN_3407825_14]** 

7. **Shift from Chicken to Beef Promotions**  
   **Q:** Are retailers shifting promotions from Chicken to Beef?  
   **A:** Despite higher beef prices, demand remains strong, and retailers are employing various strategies, including promoting beef cuts to drive market baskets higher.  **[TSN_3407825_12]** **[TSN_3407825_15]**  Tyson expects beef demand to continue into '25 and is leveraging this through convenience products and innovation.  **[TSN_3407825_12]** **[TSN_3407825_15]** 

8. **Network Optimization and Plant Closures**  
   **Q:** Are there further plant closures or network changes planned?  
   **A:** Tyson evaluates assets based on age, profitability, scale, competitiveness, and future capital requirements.  **[TSN_3407825_17]**  While they have made decisions to optimize their network, including plant closures, they are focused on controlling what they can and executing with excellence.  **[TSN_3407825_17]** 

9. **Prepared Foods Start-up Costs**  
   **Q:** How are start-up costs affecting Prepared Foods profitability?  
   **A:** Start-up costs in FY'24 were around **$20 million**.  **[TSN_3407825_20]**  The company expects to lap these costs in FY'25 but also notes lower depreciation in the first half due to overhead.  **[TSN_3407825_20]** 

10. **Impact of New Administration**  
    **Q:** How might a new administration affect Tyson?  
    **A:** Management stated they have successfully operated for over **90 years**, regardless of political changes, and will focus on controlling what they can control.  **[TSN_3407825_15]** 

11. **Capital Deployment and Cash Flow Generation**  
    **Q:** How is Tyson planning future capital deployment?  
    **A:** Tyson plans to continue investing in the business and returning cash to shareholders, with CapEx between **$1 billion to $1.2 billion** in FY'25.  **[TSN_3407825_22]**  They emphasize improving returns on invested capital and maintaining financial strength.  **[TSN_3407825_22]** 

12. **Further Improvements in Beef Segment**  
    **Q:** Can operational improvements lessen Beef segment losses?  
    **A:** While acknowledging that **85%** of the Beef business is influenced by uncontrollable market spreads, Tyson is implementing efficiencies to minimize losses and position for future success.  **[TSN_3407825_21]** 

13. **Prepared Foods Cadence**  
    **Q:** How will Prepared Foods growth unfold across FY'25?  
    **A:** Management expects a more balanced performance across the year, differing from historical seasonality, due to ongoing operational efficiencies.  **[TSN_3407825_18]** 

14. **Expansion of Fully Cooked Lines**  
    **Q:** Is Tyson expanding fully cooked production lines?  
    **A:** After successfully selling out five fully cooked lines in Danville, Virginia, Tyson is working on adding the next five lines to support growth in value-added products.  **[TSN_3407825_13]** 

77f292df2f2ea2cbcb943aabc431389b8b4b81c64442e8cc2c9c1b86f2bbff82

- **Tyson Foods' Chicken segment achieved a third consecutive quarter of over $100 million in adjusted operating income improvement**, driven by operational enhancements and better forecast accuracy, leading to less working capital usage.  **[TSN_3371872_7]** **[TSN_3371872_9]**
- **Prepared Foods segment showed strong performance**, with volume growth driven by customer expansion, particularly in the foodservice channel, and successful new product innovations like the **Jimmy Dean Maple Griddle**.  **[TSN_3371872_7]** **[TSN_3371872_20]**
- **Pork segment improved operational efficiencies**, leading to increased profitability, with more potential for further improvements identified across the supply chain from procurement to customer delivery.  **[TSN_3371872_15]**

0ff15f2f024a7bf359b4a58699440d8a4ad41f7d532ed5128c5c10ef62cf8456

1. **Chicken Profitability Outlook**  
   **Q:** What's driving chicken profitability and outlook?  
   **A:** Tyson's Chicken segment saw significant profit improvements, with the third consecutive quarter of over **$100 million of AOI improvement**.  **[TSN_3371872_7]** **[TSN_3371872_9]** **[TSN_3371872_13]**  Operational excellence and cost reductions are key drivers, including plant closures and live performance improvements.  **[TSN_3371872_9]** **[TSN_3371872_13]** **[TSN_3371872_21]**  While markets are volatile, Tyson is cautiously optimistic about fiscal 2024 but remains aware of uncertainties in protein markets and consumer sentiment.  **[TSN_3371872_9]** **[TSN_3371872_13]** 

2. **Consumer Demand & Elasticity**  
   **Q:** How is changing consumer behavior impacting chicken and prepared foods?  
   **A:** Tyson sees elasticities returning to pre-COVID levels in Prepared Foods, balancing price and volume growth to maximize branded portfolio value.  **[TSN_3371872_10]** **[TSN_3371872_22]**  They acknowledge consumer financial uncertainty due to elevated inflation and focus on revenue growth management.  **[TSN_3371872_10]** **[TSN_3371872_22]**  In Chicken, there is strong demand for dark meat and wings, and a slight shift towards foodservice.  **[TSN_3371872_10]** **[TSN_3371872_11]** **[TSN_3371872_13]** 

3. **CapEx Budget Tightening**  
   **Q:** Is there room to reduce the CapEx budget further in fiscal 2024?  
   **A:** Tyson aims to reduce CapEx spending, with potential to tighten the budget slightly more this year.  **[TSN_3371872_14]**  Despite a promising start, they are committed to lowering spend to the midpoint of their range or below in fiscal 2024 and next year, striving to be free cash flow positive while supporting the dividend.  **[TSN_3371872_14]** **[TSN_3371872_23]** 

4. **Beef Segment Outlook**  
   **Q:** What's the outlook for the beef segment amid cattle supply issues?  
   **A:** Tyson doesn't see significant heifer retention yet, and the data doesn't indicate herd rebuilding is taking place.  **[TSN_3371872_8]**  They expect high cattle supplies for the balance of '24 and beyond, managing volatility and spread tightening.  **[TSN_3371872_8]**  Tyson focuses on operational excellence, efficiency, and yield to navigate the cattle cycle.  **[TSN_3371872_15]** 

5. **Pork Margins Outlook**  
   **Q:** How are pork margins expected to evolve through the year?  
   **A:** Tyson had strong Q1 performance due to lower hog costs and improved spreads.  **[TSN_3371872_15]**  While Q1 is seasonally strong, they expect typical seasonality with some weakening later but see continued improvement through operational efficiencies and better decision-making.  **[TSN_3371872_15]** 

6. **Prepared Foods Competition**  
   **Q:** Are you facing increased competition in Prepared Foods affecting price gaps?  
   **A:** Tyson acknowledges intense competition, including from branded players and private labels.  **[TSN_3371872_11]**  They focus on driving consumption through high ROI merchandising, increasing marketing investment, strong innovation, and enhancing price pack architecture to maximize distribution.  **[TSN_3371872_11]** **[TSN_3371872_22]** 

7. **Export Demand for Chicken**  
   **Q:** How is export demand for chicken, particularly leg quarters?  
   **A:** Despite disruptions due to avian influenza, domestic frozen leg quarter inventory is at record lows, and demand is robust at attractive prices.  **[TSN_3371872_12]** **[TSN_3371872_16]**  Tyson notes that demand seems sufficient to clear inventory levels.  **[TSN_3371872_12]** 

8. **Feed Costs Impact**  
   **Q:** How are lower feed costs affecting fiscal '24 and '25?  
   **A:** Tyson's exposure to feed costs is moderate, with benefits expected in the back half of the year.  **[TSN_3371872_18]**  They have diverse commodity risk management and some pricing mechanisms where grains flow through pricing.  **[TSN_3371872_18]** 

9. **Prepared Foods New Wins**  
   **Q:** Which products are driving new customer wins in Prepared Foods?  
   **A:** Tyson is regaining share in foodservice, making great strides in customer expansion.  **[TSN_3371872_19]**  On the retail side, they're seeing strong growth behind core business lines and innovation, including success with products like **Jimmy Dean Maple Griddle sandwiches**, with extensions planned.  **[TSN_3371872_20]** 

10. **Chicken Segment Margins Long-Term**  
    **Q:** Are chicken segment margins structurally higher long-term?  
    **A:** Tyson believes operational improvements and strategic actions position them to perform as a best-in-class chicken company from a margin standpoint.  **[TSN_3371872_21]**  They've refocused growth to be demand-backed in favorable subcategories and improved live performance, aiming for sustained higher margins.  **[TSN_3371872_21]** 

11. **Promotional Activity in Prepared Foods**  
    **Q:** How is promotional activity affecting Prepared Foods margins?  
    **A:** Tyson sees continued intense promotional activity.  **[TSN_3371872_22]**  They're focusing on high ROI merchandising initiatives, increasing marketing investment, strong innovation, and enhancing price pack architecture to address competitive pricing and maintain margins.  **[TSN_3371872_22]** **[TSN_3371872_24]** 

12. **Leverage and Operating Income Outlook**  
    **Q:** Do you expect leverage to continue decreasing despite weather impacts?  
    **A:** Tyson projects leverage to continue decreasing over the fiscal year, ending in a better net leverage position than last year.  **[TSN_3371872_23]**  They focus on efficient working capital, improved EBITDA, and reduced CapEx to achieve around a **2x net leverage ratio**.  **[TSN_3371872_23]** 

13. **Prepared Foods Mix Shift**  
    **Q:** Will shifting to foodservice in Prepared Foods pressure margins?  
    **A:** The mix shift into foodservice helps utilize capacity and reduces overhead drag, as they had excess capacity during the pandemic.  **[TSN_3371872_24]**  While acknowledging mix impacts, Tyson is focused on operational efficiencies to drive strong bottom line and maintain margins.  **[TSN_3371872_24]** 

14. **Williams Sausage Volume Impact**  
    **Q:** What is the volume contribution from Williams Sausage acquisition?  
    **A:** Tyson acknowledged the acquisition contributed to volume growth in Prepared Foods but did not break out specifics.  **[TSN_3371872_17]** 

15. **Exports for Beef, Chicken, and Pork**  
    **Q:** What are the dynamics in export markets for beef, chicken, and pork?  
    **A:** Beef exports face challenges due to high domestic prices and competition from countries in the Southern Hemisphere, leading to decreased export opportunities.  **[TSN_3371872_16]**  Chicken exports have been disrupted due to avian influenza, but domestic demand is strong with low inventories and attractive prices.  **[TSN_3371872_16]** **[TSN_3371872_12]** 

0bee4e2ed6505a1024230491b08eec3a461d2b3bdd8c1da60001a8ffbfb46e7c

- **Significant operational improvements** in the Chicken segment led to a **$325 million year-over-year increase in AOI**, with **more than half** of this improvement coming from execution rather than market conditions  **[TSN_3386604_18]** ,.  **[TSN_3386604_11]**
- The company is **reducing leverage**, with a long-term target of **2x net debt to EBITDA**, indicating **solid financial strength** and better positioning to capture opportunities.  **[TSN_3386604_21]**
- **Pork segment shows strong potential**, with **good improvements** in the first half, ample supply ahead, and **plenty of runway to continue to improve** profitability.  **[TSN_3386604_12]**

5f78d46728c1af3ce23a1d18b5b7a6a69fecaf3a21935b3bfd85a747812729ef

- **Tyson Foods' Chicken segment reported the best adjusted operating income since fiscal year 2016**, with significant improvements in operational performance, including the best capacity utilization since 2018 and best livability since 2020, indicating sustainable growth prospects.  **[TSN_3396417_7]** **[TSN_3396417_13]** **[TSN_3396417_16]**
- **The company raised its guidance midpoint by $100 million**, reflecting stronger-than-anticipated performance, particularly in the Chicken segment, and a continued focus on controlling controllables and operational excellence across all segments.  **[TSN_3396417_7]** **[TSN_3396417_16]**
- **Tyson Foods has strong liquidity, ending Q3 with $4.8 billion**, enabling it to effectively manage upcoming debt maturities and strengthen its financial position.  **[TSN_3396417_20]**

c02335b45ee6b453fc2a8c3c4a07c96c6473fd18a5b404f0741a65dc9bdbc246

- **Tyson Foods anticipates a seasonally weaker Q2, exacerbated by severe winter weather impacting operations across all segments, including Chicken.**  **[TSN_3371872_9]**
- **Increasing competition in the Prepared Foods segment from both branded players and private labels in a challenging consumer environment may pressure margins and market share.**  **[TSN_3371872_11]**
- **The Beef segment faces ongoing challenges due to tight cattle supply and spread compression, with management stating they are "managing beef through the volatility and spread tightening of the cycle."**  **[TSN_3371872_7]**

a26bd1ab01523842ce43a05d74c2c19b07c28ee60c6388dfdc79bb0166922d6f

1. **Sustainability of Chicken Improvements**  
   **Q:** Are recent chicken profitability improvements sustainable?  
   **A:** Wes Morris believes the improvements are sustainable due to a focus on fundamentals, including better hatch rates, which increased **360 basis points to nearly 83%**  **[TSN_3396417_13]** , and improved livability, which increased **50 basis points to 93.71%**, even in a tough environment.  **[TSN_3396417_13]**  The team is executing faster than expected, with capacity utilization improving and room to grow  **[TSN_3396417_9]** **[TSN_3396417_16]** .

2. **Beef Segment Outlook**  
   **Q:** What's the outlook for beef amid herd rebuilding delays?  
   **A:** Brady Stewart notes that forecasting the beef cycle is challenging due to drought and no clear signs of herd rebuilding  **[TSN_3396417_10]** **[TSN_3396417_12]** **[TSN_3396417_14]** . Tyson is focused on what it can control, such as decreasing costs and improving operational efficiencies.  **[TSN_3396417_10]**  They have made significant investments in beef operations and are prepared to manage through the cycle.  **[TSN_3396417_14]**  Donnie King adds that strength in chicken, prepared foods, and pork is offsetting beef challenges  **[TSN_3396417_10]** **[TSN_3396417_14]** .

3. **Impact of Grain Prices**  
   **Q:** How are grain prices affecting chicken margins?  
   **A:** Grain costs have decreased, resulting in a gross benefit of **$305 million**.  **[TSN_3396417_9]**  Tyson passes some grain cost savings to customers due to various pricing models.  **[TSN_3396417_11]**  Despite potential grain price fluctuations, the focus remains on fundamentals and sustainable performance  **[TSN_3396417_11]** **[TSN_3396417_21]** .

4. **Guidance for Q4 and Fiscal 2025**  
   **Q:** What's the outlook for Q4 and fiscal 2025?  
   **A:** Donnie King states it's too early for detailed fiscal 2025 guidance but is optimistic about continued momentum in chicken, prepared foods, and pork, offsetting beef challenges  **[TSN_3396417_12]** **[TSN_3396417_14]** **[TSN_3396417_19]** . The company has raised its guidance midpoint by **$100 million** due to stronger-than-expected Q3 performance.  **[TSN_3396417_16]**  They expect a strong Q4 in Prepared Foods with reduced costs and operational improvements.  **[TSN_3396417_23]** 

5. **Prepared Foods Promotions**  
   **Q:** What's happening with promotions in Prepared Foods?  
   **A:** Melanie Boulden explains that Prepared Foods delivered both volume and sales growth in Q3.  **[TSN_3396417_15]**  There is a disciplined approach to pricing and promotions, adjusting strategies as the consumer landscape evolves.  **[TSN_3396417_15]**  Despite consumers' price sensitivity, protein remains an essential staple with lower elasticity, leading to continued prioritization by consumers.  **[TSN_3396417_15]** 

6. **Debt Maturity and Liquidity**  
   **Q:** How will Tyson handle the upcoming bond maturity?  
   **A:** Curt Calaway states Tyson has **$4.8 billion** in liquidity, partially from a bond offering earlier this year, and will pay off the **$1.25 billion** bond maturity this month.  **[TSN_3396417_20]** 

7. **International Business Strategy**  
   **Q:** What's the strategy for international growth?  
   **A:** Devin Cole expresses confidence in delivering growth and results in the international segment by focusing on operational excellence, team quality, and leveraging assets around the world  **[TSN_3396417_17]** **[TSN_3396417_18]** . The company has invested heavily in assets in China and Southeast Asia but faces macroeconomic and geopolitical headwinds.  **[TSN_3396417_17]** 

8. **SG&A Cost Control**  
   **Q:** What's driving lower SG&A expenses?  
   **A:** Brady Stewart mentions Tyson has a disciplined focus on cost control in SG&A spending, with some variability due to performance-based compensation.  **[TSN_3396417_24]** 

9. **Collaboration Improvements**  
   **Q:** How has collaboration improved within Tyson?  
   **A:** Donnie King emphasizes the "One Team, One Tyson" approach, leading to a united team behind their mission, resulting in improved execution and results.  **[TSN_3396417_22]** 

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- **Strong operational improvements and profitability growth in the Chicken segment**, delivering the strongest Q4 in history and expecting high single-digit profitability growth in FY'25, driven by a focus on innovation, quality upgrades, and a robust pipeline of new products.  **[TSN_3407825_10]** **[TSN_3407825_9]**
- **Prepared Foods segment achieving its best performance in six years**, with significant operational efficiencies, increased distribution, successful new product launches, and double-digit profitability growth expected in FY'25.  **[TSN_3407825_18]** **[TSN_3407825_9]**
- **Significant reduction in leverage and strong free cash flow generation**, with net leverage reduced from **4.1x to 2.6x**, free cash flow exceeding the annual dividend of about **$700 million**, commitment to investment-grade credit rating, and focus on improving returns on invested capital.  **[TSN_3407825_22]** **[TSN_3407825_9]**

e74d41b5054f5734767c2525620fdd9e2e6ef4dc1307b1f8c1997ef753b4671e

Tyson Foods Inc (TSN)

Financials