Tyson Foods (TSN) 12 Nov 242024 Q4 Earnings call transcript

Good morning, and welcome to the Tyson Foods Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mr. Sean Cornett. Please go ahead.

Good morning, and welcome to Tyson Foods' Fiscal Fourth Quarter 2024 Earnings Conference Call. President Officer, Executive some Kurt followed Q&A. Tyson's and Donnie prepared call, by Financial Chief Callaway, today's and Officer, Chief King; remarks On will provide

Pork are Group Bolton, Narin, Prepared Chief and President, Foods; President, Group Additionally, International Officer; Group President, Brady Morris, Growth Devin us Supply Chain Officer. today President, joining Melanie Beef, Poultry; and Wes and Chief Kyle McDonald's; Stewart, Cole, Global

available provided a our today's supplemental presentation, Tyson's be and may website on is webcast. in also which call, referenced via and have on link Relations Investor We the

statements During forward-looking our today's Act call, call the we will during the made provisions for make are These Reform forward-looking Private future. harbor XXXX. pursuant Litigation to regarding safe of the this provided expectations statements of Securities

unless our subject or historical on comments and risks, about refer disclaimers in not to well remarks We Forward-looking Slide beliefs materially events that that filings our current statements are all as to assumptions, information results additional risk X to relate noted. may from differ or actual our solely projections. Please an our statements statements to include that expectations, earnings forward-looking per forward-looking forward-looking otherwise to assumptions basis our results references performance as to and do could cause materially uncertainties from to actual margin our are which our These income for factors projections. reflecting periods. update obligation operating future assume cause note no concerning any SEC differ statements. Please adjusted operating share, on

refer to to their measures GAAP our these please release. of measures, reconciliation non-GAAP For earnings press corresponding

Donnie. turn I'll over the Now call to

fourth we fiscal thank joining everyone for quarter Performance was XXXX strong. us. and results. This reported morning, Sean, QX in to and you year Thanks, our

earnings led significant The and QX full were X improvement we've In built year profitability doubled per fact, the more in results past to both momentum operating to last and both year. quarters, the in XXXX. best share than adjusted income adjusted compared in

versus this fiscal increased XXX%. Prepared significant year, the more For challenges in strong performance AOI with in adjusted improvements $X.XX Foods of We're combined well-known year, while than with in and XXXX, billion, nearly Pork, Chicken, clearly our results pleased where a Beef. EPS doubled in turnaround of than offset $X.X more

note for thankful to that reflects momentum. and growing, AOI midpoint of guidance It's strength Foods to providing want point they the world-class builds more billion our $X beyond us a financial improving. prudent we're recognized is 'XX. our strengthened growth. for our which work capital disciplined as $X.X in and Our than increased was cash we investing billion more and this this drove significantly our result This strong contributed health increased in ended versus very came dividend to year performance AOI across last team allocation more the where CapEx cash Overall, profitable while management, at organization 'XX, on Chicken is midpoint, out food our XXXX important for make at expectations performance day strong driven by do in twice from by well. Free the the year. I'm company financial in fiscal still and the Each than than protein. I to every XXXX. of flow in members Prepared hard 'XX, for combined. and fiscal results fiscal At guidance that leader AOI

portfolio. the next multi-protein benefits of multichannel for outlook highlights year our Our

the remains focus the same our Our fundamentals. on strategy and continued business reflects

highly drive we shareholders. future, fiscal ability Our and I to XXXX in delivered positive for in XXXX. remain controlling long-term want expect and benefits our our optimistic the in has confident priority I to controllables that clearly to I'm that continue on emphasize value about

for all results and remaining and headwinds FY nearly solid Prepared expand costs start-up to guidance midpoint constant has a Green as Overall base starting profitability. the segment highlights, as stable our and Bowling continue X% year broadline our with plant year-over-year, at move presence and performance Foods, which a environment. AOI came fiscal been the in was the of categories. year. challenging since quarter X%, broaden segment customer driver consumer the new 'XX, volume of AOI best expected, to our we in 'XX year just with overcoming Let's grew we of our and distribution grew

most the high Moving guidance to AOI results came chicken. our range. recent end above in of

While from the plant results quarter improved fundamentals to in focus and again, the our year. we've significant performance hatch business turnaround that strong 'XX in best 'XX, and efficiencies by as of in a livability QX also operations benefited contributed the past lower full on we year-over-year and It's AOI the grain live the stronger costs, where which fiscal from chicken was evidenced built X year AOI our clear years. to fundamentally the for

driving we year as to continue profitability intentions. decline Obviously, While versus rebuilding both are no year. compressed results cattle challenging current quarter were full QX, remains better last signs cycle for for clear herd spreads see than sustained in and the the the there in Beef anticipated of

We things we it. on control through can the focused as manage remain will we

million fiscal Turning herd demand spreads to year-over-year health Improved 'XX. increase pork. and for drove highlighting in $XXX solid a AOI

this on results we expect controlling focus for to our has the solid mentioned, controllables fiscal XXXX, produced continue. and I As

have priorities that on map enablers building strategic foundation. this are XXXX our road for our and beyond. This and success, drive We we X for is

for old our enterprise gets excellence of out priorities Operational Let's style. look at never goes or XXXX.

a our standards. modernizing us, enterprise and to of operations unlocking element For performance driving operational in by excellence gaining is our key scale and controllable savings

we've our this impact benefits guidance noticeable with for 'XX, embedded in in our Prepared for a and the across the this Foods. business, of XXXX, approach in results seen You've

our our and we service value iconic As proteins. we in on are brands to our to customers up are core building consumers,

the and in behind Hillshire protein brands X Farm. Jimmy have of We top Tyson, XX Dean

channels. new by penetration expand household for better While have our serving our and with opportunities we consumers innovation healthy, categories brands occasions, are to meal

will decision-making our goals investing analytics strategic the by in predictive our is of capabilities, outcomes. ways intelligence achieve digital big and utilizing One for data, artificial and we better

mix delivery modernized improved enables across of engagement digital is and operations yield and priority as and our insights. customer data Our consumer and we've drive important many

We optimizes an unlocks accelerating management our in and capital. Capital for planning, the allocation is with fuel working that that end-to-end strategy demand important exception priority platform-driven supply digitalization becoming are an enterprise. strategic

in made flow. plan focus Curt As capital we a we shortly, working elaborate on with as will 'XX, continued managing 'XX, on and CapEx cash management be our free strides in tremendous disciplined cash to just and drive to in

member our winning foundation history to our of culture. strong on the on Importantly, team of delivery and focused we development as are our build planned

in and outlined, to starting With Foods with waste, segment complexity priorities with move our Foods. significant standards, to the level let's There for these to increased an priorities of drive operating by reducing strategic Increasing improve eliminating profitability next opportunity levels. Prepared service discipline. performing continuing throughput yield by Prepared year to and is

as to our data products focus and Our analytics innovation. core and on grow as drive drives disciplined insight preferences investment consumer support well into

further recently occasions. still Jimmy brands appeal one launched opportunities As market example, spicier a foods convenience, Honey which leveraging the to our innovations an success we mentioned to morning to leaning previously is rates. Dean customer We and of adjacent the SKUs platform, sandwich. expand breakfast towards strongest in and success is capture capture these other quality take Spicy Chicken grill into room and trends biscuits, We're To eating top-performing of distribution. strong of but has adoption restaurant its expand our our there opportunities repeat and

and the excellence maintain efficiencies and our XXXX. demonstration plant improve There no of of Moving the we We and clear to chicken in disciplined operational benefits is 'XX. to a chicken. and sustain in in S&OP operations process live fiscal plan drove

stable our commitment more demand we create strategic efficiently and can our on strategy long-term to category by customers beneficial products As relationships, stable a while operate win-win customers. mutually and the running all much the a ensure servicing heart in of you've and for collaborations, is partnerships support reducing generating seen, live with fostering are lies accurate of growing plan these our predictable and when we our demand better focused with operations results. At inventory, customers, our well our more more

Next, holds chicken our and build chicken food I position value-added and in how upon branded value through want Tyson retail brand value-added can service. #X to we both touch portfolio. the across investments in

we've been new and branded area Tyson the also excited October Over products. We're made always and portfolio enhance campaign cooked maximize broadly, to will quality advertising revitalized high to year, capital and coincides The significant market to ROI investments expand is the past in expand our deploy titan. More continue our to a where fully of we launch presence returns. high-quality, which debut convenient innovative our and reflects generates with excitement. our new packaging, focus our rollout of on portfolio packaging consumer relentless Tyson's

now For year exploring our new example, solidifies positioning but Danville ramp-up scale in accelerated financial our the strengthens also facility are only our Danville our next This competitive operation. this we performance, industry. of the approach not and

As know, the is cattle by our business you of the dynamics challenged beef cycle. current

when consumer to Our with we is best-in-class we operation believe time, turns so aspect production are beyond relationship strengthening our and a fully align to that where 'XX of build meet well the every cycle distribution are we At and focus from for same to the FY customer suppliers key and to it we continue prepared as operations procurement, will. our demand.

enhancing structure to and a new tight with expanded management continue of to and yields We're increased variety consumers' of add cost flavors In while mix assortment meeting forms. convenience available addition, demand we spend improve beef value. efficiencies preseason our an with for in and

completed improved for products mix to Across focus which pork make our is by good of to to having also operational needs. condition, controllables on and beef, execution improve better beef capacity us a progress We to of expect increased We with our our better improve and partner controlling products in 'XX. of strengthening their leader and key year. The mix solid on business leveraging remaining deliver portfolio our improvement and operational better utilization yield. Like while progress the up want and right our to incremental a the to and a are network XXXX. performance the the better plants. capture customers We're to made been optimization flow, and the our cash business, pork 'XX fiscal partnership decisions in meet initiative offering by we to in expanding scaling customers. use in market sustainable in valued be drive team a and our to our fiscal drive We right mix capabilities we drive allow us benefits we has expected time allowed on our data marinated this make of the seasoned value-added at

our of Curt the momentum strategy, demonstrated over want financials the current more acknowledging review the to Prepared hand are in through and results cycle. to the things share our also in I businesses managing to value-added I of Foods beef execution challenges the positive our by Chicken, we Before of from and detail, while

businesses and portion over value-added should expect drive time, As a our earnings grow profitability of larger profile. we a more stable our

of Foods growth to profitability X/X. to fiscal overall as has 'XX, X-year Looking increased AOI 'XX, fiscal share to its over delivered in $XXX 'XX at X/X of million, from Prepared we average compared and the from

at Additionally, fiscal nearly Curt. guidance, million the call of I'll expecting 'XX $XXX midpoint the that, earnings. With over increase we're our to turn in also

X.X% Donnie $X.X of of year the of in was as both over doubling adjusted partially driver beef operating 'XX. XXX%. profitability more grew 'XX. Chicken million, growth year, primary quarter and were year, adjusted year-over-year Thanks, with led sales full sales for quarterly mentioned, of of and billion, up this chicken in in $X.XX than declines best pork, the X.X% nearly offsetting by EPS quarter offset the Danny. all the and X year, in of the the of improvement QX $X.XX Total for and year-over-year fiscal margin the and company the results were the and Significant Prepared the full while Foods chicken. adjusted for contributions from pork income X.X%, versus strongest QX increase than $XXX more largest beef. past doubled QX for were And drivers quarters. Full performance and AOI Beef EPS net

lower Now total fiscal growth 'XX. retail Prepared Foods, let's results of make retail QX. and declined that QX It's progress review in QX X.X% continue our versus worth to revenue in segment noting both last outside driven by volume for volume. we In year,

and and X unfavorable As the reduced increased noticeably mix. past performance lower material These costs as start-up QX we reducing benefiting the inefficient contributed efficiencies costs, year from year-over-year, we drivers support years, overcoming in spending expected, cost. also focused in on best operational AOI raw full MAP to AOI have

Moving last recorded legal a increased to X.X%, chicken. Sales in year. the QX inclusive accrual quarter of in contingency

better approximately we costs, X% it million. AOI. improved execution and to declined continue year, modestly as in increased of and demand. Lower versus and fiscal $XXX 'XX, $XXX pricing supply year-over-year, of volume growth AOI last operational to efficiencies versus QX million pass-through drove While grew input net the align

For leading AOI the billion, chicken to $X.X year, AOI the by fiscal performance 'XX. improved nearly since strongest

In primarily to carcass X.X% due higher beef, volume, by in throughput. revenue higher up and average the weights was quarter, year-over-year head driven

While primarily decreased, as revenue AOI compressed increased, expected. reflecting spreads

AOI Moving to X.X% operational benefiting credit $XX partially offset million drop pork. lower increased on revenue year-over-year, increased QX from by volume. driven decreased pricing execution. items, improved by

$XXX improved spreads. For the highlighting increased full year, million, AOI

position. financial Shifting to our

Our remains commitment to disciplined capital allocation constant.

operations investment-grade from credit capital in increased business $XXX invest Full and Our to profitability financial and million, all cash our by while driven shareholders, nearly year cash return priorities to flow maintaining improved rating. working management. are the maintain strength,

Operating $X.X contributions lower This year, which year-over-year. over CapEx, from deployment, flow and cash more than disciplined at cash free was billion Fiscal than continuing 'XX by profitable roughly improved increase our by $X.X the billion came billion driven while higher invest was for equal just cash for of growth. our more operating double capital in reflecting flows CapEx. $X.X to flow

Free total our billion of nearly dividend. Xx more was cash flow than $X.X

release, cash cash year, as of our dividend flow in the to dividend As in primary XXth committed the We our earnings remain you consecutive our raised shareholders. we reflecting generation. returning our way to saw for confidence

liquidity XXXX notes our senior after year the $X.XX for we repaying of ended billion. in August $X billion with Additionally,

net progress, EBITDA. year leverage fiscal or adjusted declined of X.Xx. continue to focus turns This long-term good at Net to at but we full X.X versus where returning sequentially, ending is fiscal exited Xx the again We've target leverage of a on to improvement below 'XX. net our debt made

controlling apply Our controllables plan for our improve to was our to the strength. fiscal financial 'XX approach

clearly As and deploying over-delivered leverage to plan net flow, you remain we've performance, can that shareholder long-term see cash committed maximize to in our and free on resources value.

fiscal anticipate guidance for Now sales our X%. at flat 'XX. let's be down to look We to dollars

Beef and We Foods expect Chicken volume be in by offset Pork to and volumes. Prepared growth lower

roughly rate to be our XX% XX% interest $X.X we out million billion Prepared and However, approximately expected expense to $X.X company AOI driven between is the XX%. total and at to key Chicken. Rounding Foods by anticipate and growth billion, and midpoint, reflecting items, be between $XXX P&L tax be

tight As on controls and between we're spending Donnie and to $X.X mentioned, to be maintain billion CapEx going $X billion this year.

flow of range cash for our dividend. cash AOI, a are there outcomes million, While we expect which exceed $XXX our annual to approximately is expected free new

the AOI company with to total Foods. Prepared by breakdown segment, of Moving starting

our improvements anticipate a segment in don't in Prepared for growth still you fiscal consumer AOI in Foods changes are that we we 'XX. focusing see significant our While to behavior, in on operational material by control, saw as pathway priorities

by the be to billion, AOI midpoint, expect a at $X.X We driven growth double-digit $XXX of initiatives. in these million representing range to

and In in operational the we improvements place chicken, fiscal we on build 'XX. plan put to in sustain

a value-added benefits be campaign. highlighted new these AOI our portfolio, the of single-digit highlighting $X.X billion anticipate to at range to master marketing reinvesting by midpoint. $X and our brand of portion in are billion, relaunch into We high We growth the chicken

range our Now reflected market and the herd on uncertainties of year-over-year expect similar meaningful profitability $XXX These which segment, midpoint. a level we AOI for to dynamics are million, including pacing where for loss intentions. of in remain, Beef of 'XX, where at rebuild of reflect million fiscal timing to $XXX the a our outcomes

also midpoint, $XXX of $XXX benefits the 'XX expect by range of AOI initiatives our tighter operational million. similar spreads. offset with million in may be the in a to level In we At ongoing as Pork, in profitability of 'XX,

made international in in Our increase AOI. leading operations business strides improving in 'XX, a notable fiscal to

make expect We 'XX. to further fiscal progress in

strength. operations year coming multi-protein our range solid the on growth The for of progress and benefit and outlook the middle our our multichannel continued financial of Our highlights reflects earnings portfolio.

Now wrap I'll pass up. things Donnie back to to

proud unwavering P&L members. team's thank take executing in our and our results. XXXX direct accomplishments our like We Thanks, of team opportunity fiscal in a balance of discipline drove this are Kurt. I'm strategic significant priorities. I'd an sheet. time our our improvements our to result again of These on each

and essential has our focus Your commitment been success. to

we have I'm to ahead, but improvement, about room come. for still what's Looking optimistic

X and striving excellence. with We to have on Tyson, a up I'm continue brands solid in and foundation X confident progress making building proteins 'XX, team, our as we will core value our iconic operate fiscal to

strong proven a I'd a of decades business. our Kyle Q&A, Kyle welcome Foods move and like Prepared new Before to experience, more are as understanding with President with leader is we industry to operational of Group of X than deep our expertise

delivering for and transition. our continued seamless pipeline experience including consumers to next and quarter. you of early responsibilities shortly XXXX, as to the to will Chief innovation initiatives been for President future. recall, appointment will progress and agreed Growth company's as the for bring our business. Thank our move momentum Officer you us has as I after, like pivotal role to in Melanie marketing Melanie today, my his As as most Group with on digital to remains Her and to especially Tyson growth to to continued history. efforts we Growth Boldin forward Foods. I'd new additional We're momentum Prepared updating Chief strategy, Kyle's growth extend portfolio. in as came for a your creating fiscal 'XX Her and leadership you Officer on take the look in breakthrough plan Foods ensure enablement confident be time the gratitude we central the robust growth forward deliver

call Q&A to the Sean instruction. back turn I'll Now for

Donnie. Thanks,

and to the provide Q&A and non-GAAP apply measures please instructions. Please following Q&A. move cautions both Operator, remarks statements that questions. forward-looking now our recall our to prepared will the your We on

[Operator Ben Barclays. comes Instructions] of Our question first Theurer from

Donnie, on a of congrats of finish good first 'XX, fiscal all.

obviously, I came lines, the and better than full do in year the along mean, even very So feel you -- QX, strong little bit expected. you was a

You're nice still calling 'XX. into looking for growth some

your for more of would a us year? bit maybe question. 'XX. a Donnie, puts first confidence That within the outlook So what into growth my next maybe you little help bit and takes gives detail, unpack be And in little

you, And and everyone. Ben, good morning, Sure. thank

and with start saying with pleased me we are QX year Let of full just XXXX. how the

than International to where and significant Chicken, our momentum to see with portfolio a leverage more Beef. In net enterprise We saw strengthen. dividend flow are the and continues and results. why In cash reduction cash multi-protein Xx continue FY 'XX, generation We of is our should priorities QX, Pork deliver in continue headwinds benefits substantial to offsetting Prepare, ratio be confident, the of this X.Xx. to free we those

excellence on focus waste. and are efficiencies eliminating operational gaining operations Our by delivering best-in-class

Our occasions. consumer is customer and the to strengthen brands us on iconic new to innovation reach the focus allowing deliver and for expand our

Our insights tools operational data to improve and on and and drive to analytics us focus big and digital AI actions. allows ultimate decision-making use data, consumer

improving Our by CapEx and capital. cash working managing focus is capital flow on allocation

development plan. our Our focus and for member culture, foundational delivering on team is our

Chicken to Foods valuable to driven expect AOI deliver a Foods Prepared XX% Chicken. Prepared of 'XX, each and mix. approximately We XX% 'XX fiscal more and FY a is AOI shift at by growth of midpoint in Approximately year significant our our in

best 'XX operational year Now performance have best double-digit market since driving little FY full AOI segments, expect results. fiscal performance since was year We'd enter growth Chicken, of Prepared color at each AOI to and midpoint. In the full year In the profitability Foods, improvements there. tailwinds XXXX, a XXXX. AOI

midpoint. In similar drove expect growth have 'XX single-digit AOI at AOI and performance better we'd in FY year-over-year to midpoint the profitability improved expect profitability We significant Pork, at spreads high increase, AOI similar international, compression block, expect nice at continues, taken adjustments. driven catalyst nice a tight spread XQ the profitability but midpoint. In a would onetime beef, by the performance 'XX. In with improvement

In AOI at FY We of range improve. AOI $X.X 'XX XX% FY on expect execution improve total, be growth midpoint as continue performance to $X.X expect to a capacity and we'd to billion billion. to 'XX utilization

and from takeaways as think QX X we XX%. key about Now

value-added. we of two, continue Number branded in mix in shift our increase every and value-added. protein healthy clear Number a protein will winner protein part diet core household to will is We penetration to food. three, is branded from and

We invested improve the will we all we that create on our with And will and value. in -- capital number shareholder do. execute number we returns excellence five, will four,

the just in adder In terms X of year. of here, for terms volume

in down to be tight We Prepared should on to or Chicken. slightly, and of of would network be because expect the optimization, be we increases expect volume call some based volume down Foods slightly in

So mix. With of that's call back the you. the turn to that, turn I'll the the breakdown question

right. months If the X That complete chicken, a just quick very like XX on we expectations maybe guide. and bit time. a stretching is back this really was kind go here. All One little of in

AOI than up for then You maybe of were 'XX. billion FY more and million be out chicken kind looking for in $XXX to it $X to in turned

So the this you last couple beyond as outlook think over you scenarios that quarters current performed we And about the billion $X.X are obviously chicken that end? maybe of conditions now, upside how and potential call it, do take you think even at can market potentially higher the what would over? of, much months carry how the and of

at ad we so for high back doing billion, ago. even -- billion But a we're the for midpoint. We're the certainly, of better same Ben, X, is innovation, have business years the about X ago, which our from than and $X.X something investing say business $X we $XXX that I campaign would in at had guidance really million. product single-digit the to time, range new a order a on the fundamentally year growth with chicken different just is and

Wes, that, with to it do you add So want

that so up little I'd will the Yes. you little answer to specifically bit. a thank question Ben, clear 'XX. like just your me And for let around And a give it background you question.

matching in up It operational team strategy supply $X.X as in billion demand. great executed and then was grow we we over and so 'XX. our effort a And improvement plants across our live

most QX people strongest know. that don't part we in here's history. But the so delivered And our

also stage the side, for the consumers. winning working the with While were we revenue and on side we were resetting cost

the it, better #X flavor, mentioned like basic capitalizing and We protein in then for spermshopper-shop upgraded exceeded point call for on you packaging, what flavor. Donnie fun. Donnie our And quality form it's you upgraded better the form expectations. We've trees on so is brand and then referenced a And I do-over our advertising and our exceeds that based experimental innovation and it campaign testing decision retail content. both new expectations. we of where value campaign. experimental resonates which with Not in as it a added. over meets And our got We share resonates importantly, consumer did our younger what's our creating time. core big but exciting about of with complete the I that that shopper, to is my demand But pipeline and in just food shopper. sustainability the

do something the about we because more impressive make positioned business. And an comment to sustainable one a into into not me so And team. 'XX. successful, have stronger on We're change and commercial leadership 'XX have about step calls that's business well we've a let going beyond and a talked and big

in has greatly go -- Our our and been speed improvement to increased. go-to-market

in highly and get products in to them to seen my I've only commerce the career understand growth new across but create business strongest any of consumer team segment. pipeline so quickly. And are R&D a that We've got needs, unmet to not products functioning

around we've number. the and improvement, better so with, yes, the me faster XXX year, we So right? good team XXXX surprised of the good perform with to analytics think say transition and continue intensity to speed we'll volume question X%. inflation, me good offsetting we million got a looks driving XXXX and anticipated. We XXXX and hey, your ] I fully is then Overarching that while planned than And let me And value-added. up did last what performance [ start of good our looks insight a balance, than plan let change that, my better little by improvement how outlook We've good more last with got around and soft cooked We've mix mix our as very fundamentals. we've got stable. was team. a encouraged year, got spend appear into I'm $XXX And like. markets

adjustment we've So mix improve profitability. that started already to

value-added got so all, cost hitting in 'XX. strong with intensity of in we all got We've go-to-market, And a a structure. lot better

And companies, than market based so feel more outlook, about. I current we're on most understanding our guidance insulated good

think Now exports, the ongoing be cost we would impact and global the seem weather to supply realistic we're feed any more what's of macroeconomic industry frequent about patterns impact to potential, and demand, feedstocks. also total

so we what And our more is very good any feel we past. on than that accurate the based in guidance time know,

Our next Heather Jones Heather question comes Jones Research. of from

Congratulations follow-up on a as have as question in the some fold you made is lot complexes. operations to changes you today I -- all have first a quarter. my far -- the guide, your Ben's where on -- was chicken I of

much of market Tyson is as growth for that as overall So How cost more wondering your far that it us I was far as that far as And productivity? you're things how just the if you give could control assuming as segment. is a savings, little as specificity more much year-on-year dynamics.

number that you this not controllable? talked good of we'll some XXXX. around in excellence. of performing. will. And 'XX. those We're of mindset you of to do off touch ago, the we you those Those why for think out Wes, the of specifics here things -- mindset, keep as as But continuous if a style. going in the Sure. same And I will business start tell on just Wes, us, don't about are many I continuous a improvement things. gifts moment that operational a on Chicken is giving, that's a

Yes.

simple. think it keep in effort to I fairly an

million, markets baseline, XXXX continuous to do materially with where the nothing opportunities we have a use as step that a made have you there. from We If are right? over know change improvement of $XXX

bake to another has I'm that do million So to going $XXX with markets. in nothing

major values, $XXX step $XXX corn fundamental those meat that are made million improvements year. regardless we've or worth change between values a And so of and million a

much helpful. just of my than expected higher in feed are come new longer things due there those weight is And 'XX. have to then And to in specifically, on production super feed, production additives, beef. year. That's likely would continue this time follow-up anyone And just has

So this that chicken highest been narrow, price given price that is ever. whereas retail supply had beef gap the between was has gap and haven't we pretty the expected, hole in wholesale the in narrows X years, it's

And from just there all bad that of on been at at the that retailers, are people start as love you so supply thoughts not I extent more what as just Chicken your hearing retailers is promoting 'XX. wondering Beef has thought, given that. possibility

Heather. Appreciate the question. It's Brady.

it product, as more signals good was just demand, important we've we and perspective, that out bit price set a to look a beef First dissect gets really it little perspective, which to own in when beef interesting and it's stage. cutout kind demand we it of well. up from go 'XX point just of all, as our just as of think sit seen from wholesale versus well. increase when we relative XX, a and business where we than little X%, well, And choice the the by by saw prime And really at I kind we more a

the we've in the And board grinds. a seen the loin, kind rib increase significant really, price so across of on and but on flattish prices the

with some complex every know lean we've beef. deployed. the been in opportunities and going retailer we X of between we is there, steady And lean the so to that grind, strategies have the in because buy chicken that demand different on consumer on seen pork. where a several And has perspective, single seen stay products have beef, and I'm we've is been the substitute we substitution demand clear for it's increased seen the price continue trim, well. From as complex to with an really beef a sure and on really not seen But round

And opportunity so ribbon to on promotional loin retailers complex certainly higher, that taking some work in those drive are general. to that baskets market

that I So overarching really and with beef is demand relative expect higher guess sentiment continue even the to just to good 'XX. into prices these

so of I Heather, was again. this question. Wes side on focused is your And cost the

as I think go well as big on a into I side XXXX. have should the unlock revenue we mentioned

through in in new know, both plant food So fully Virginia efforts sold -- as our X is retail great that from Danville, actually out. lines and you opened earlier service. we Those plant cooked

change I our fully plan. that I'm we're also that excited -- change the announce mix is economics to in that lines. And next already on referenced to into cooked baked fully earlier, starting the so And a X work 'XX

The Ken next from of JPMorgan. question Goldman comes

to I'll some wanted offset you get signals is supply on terms of just for stay chicken. And though, from operating chick year of supply? And getting to wanted terms but expect. trying pretty there, industry the the you it dollar coming would income both with in the partial the of in of possible know I help higher all a thank mix changes you increase next to potential there's Curt, that I to here, rein guidance your what's and we changes for we're that in a ask, but mixed a permanent your in coming curious, for extent. the not chicken some just sense some placements what's to just great I'm have seen in potentially parade months? higher

Thanks, Ken.

and to tell you I all in question. start But you just to detail, it we Wes. into answer have mentioned. want million million things more And we me contemplated if that would our those guidance to Let I'll $X that out go give that $X.X

we're the guidance we've that given. with So comfortable

of shifting Chicken, the X for thing but in in this for not think only add other for I'll us, that chicken I today. businesses, to mix just terms how specifically is

this we're to of at do X%. look that is plant the don't then projected that. volume, and the it is positive Danville, at looking 'XX, we're that outsized you what see up Virginia the branded or for filling is plant, If growth you Thus, another up business about while positive value-added in

this of doing core shipping working, So is commodity or Tyson value-added we're more for many which part been now. has into the in what history decades

And in do what perspective. of And market so is we'll conditions, a my a we're little of different trying company we're that's aware we operate be and more Yes, that the of to that. but terms do.

challenge We quick. strong record in livability. I think If see and for poultry could, hatch real continued and I excess, my share industry's the it's demand reflecting plus the I'll perspective

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either I think we're way. well to positioned win

follow-up. I if And quick ask could just a

the new You have House. administration White a coming in

of on downside. question I uncertainty, regulations, is the drivers this upside downside in this just open both Or direction, say? leave just possible early is analyze it I'll of labor think even to ended. both way and at and lot might terms But what upside maybe to time? be it too tariffs some in

no new will lot operated will with we've this a any you I in would remind XX we successfully I accordingly. over environment. that all businesses, working to business assess but Like and look control, plan point, We that incoming the there's for at -- this years, the know the matter party don't policies Well, administration. forward

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Ken. that, at it leave I'll So

Pooran The Stephens comes from next Sharma Inc. question of

for lower But kind little to rebuilding seen end year? understand her Congratulations kind at herd your kind on think in head or me, gain going were even retention number in dynamics? I slaughter potential And for help retention which, wanted looking and myself we fundamentally, outlook bit the for lower, if more plants next are going beef Or potential, of of the about me your beef operating is that your just flattish. clarity more of retention, retention? haven't the income to on of strong for for margins. Does to have hoping understand the guidance I midpoint [indiscernible] beef understanding going at quarter. outlook. signs yet. your see you factor of specifically, to range you of see help to would just just put My on compression looking just more a was

Sure.

a start guiding me $XXX with Let off guidance, that. of million. And to to in the of loss loss million a of $XXX we're terms

let XXXX earlier, based all and of XX. on some as retention our similar you dairy inflows So of this and there's of the supply -- it But to But other into a to I for flip -- There's I'll not be things. happen heavier There's mentioned as the finer retention. give the half challenge seeing that. some to number details of continues. also the influx weight of we're will modeling him cattle. influx the and some meaningful Brady

Don. Sure. Thanks,

think understand I control. some can of relative to important the the in it's what made also to team, 'XX. And proud improvements I'm Tyson of we

visibility these of that really in 'XX, some through so business into unique, the lower record some well, shape saw costs dynamic inflation outlook provide referenced we the some terms versus prices, of these very meaningful one as gone is numbers history. every we've the this record and can where and head But as in of when is we one how beef our to really and is of that plants cutout you some well control. This cycles have 'XX in operating to And we've our all interesting. and approximately in most And are seen lower pieces decade. different environments outlook count weights is

outcomes of So are and our meaningful. we've decisions help analyze business business than to layered before. data better a we platforms important better amount have make and drive on that significant us ever that really

really earlier I seen history understand need high our has a really that from cutout we've in provides continue so the than the And importance business really, we good yields and in good well. to demand ever mentioned And greater demand. values of to cut-out now that perspective, that, it as

their the initiatives continue And additional platforms year-over-year Chubbs and trim or seen record for go mentioned and to well, important. different area improvements into convert I move case. as and and for provide to there's improve have continue and come of products. on we and innovate prices so well. Grind it's well meaningful start navigate lean efficiency lean static made the Really future. And back continually in lastly, or forward potentially the trim. to up How just as very, I patties different high to more them we've our as is good us help that to very a lower reiterate convenience proud to marinated grind see material team meet then we we opportunity we absolutely to go to help to will purchase customers Donnie beef our to want just the solutions harvest that whether to some seen are or the in want mentioned retention for wherever consumer initiatives the move is that and area. demand great and and we've of progress, want numbers through provide with us, season they a

Great.

the plants you've have my you your network. that over of guess you've of maybe shift how to you kind optimize of to If kind done, remind many you it. do just for see Now I to second question, wanted work the us work I work then all appreciate And further just being done closed? could done.

benefits really are from kind of guys You operational excellence. seeing

want about the get future. in So just sense kind a how you're thinking to of for it

every won't Sure. Great began, we with or Chicken, with And simply end-to-end. I International Tyson how will operations tell be many have controllables controlling question. we executing in Beef, We if as Pork, across you to And want I start. about We hit today but business. location, the start the it's on Foods. specific Prepared, best-in-class I care don't a excellence. function then talked

So let's start with that.

the We profitability number win? And competitive we ability tell asset. accordingly things. We scale that also must challenge an consider based is best And consider would to at all I a we have painful everywhere consider make and be Can demonstrated things are you, the a asset what ourselves make. but what decision. of an we capital future the it So asset, of -- on particular we look marketplace. look how decisions of the long-term in consider And network, think find. a then always look these it we at to as I we of make And we the we the on the when to spent age consider funnel, to the asset. run decisions be then challenging, through we these

next comes from Thomas Our Citi. of question Palmer

and the of I Thanks Anything hoping for was cost drivers see quantifiable productivity, Foods. expectations? And like about to I on is maybe maybe Foods, in outlook that this there question. XX% where It then Prepared Prepared context later in improvement wondered factor. the expected to on kind items? starting a more outsized a then thinking is we operating about of a expected would just mix might you expect in see first specific growth in and little volume of sounds for period kind the inflation quarter? for Or other year get your growth? the profit

'XX, And doing benefits and that. midpoint, innovation. it a expecting that what category and we the 'XX 'XX before XX% said upside beyond. remind we're to is in we're you and already seeing Prepared we out in meaningful of 'XX, continuing we'll literally a we've within are is to XXXX, beyond, 'XX. our business. We'll what I've in do are in drive did -- the We're and it question, waste and since growth 'XX. this call with from there new continue Great thank 'XX see reminder, saw to and lever was at our Foods. We it that. continuing sits impact and is that every connect We where of momentum relative foods to customer but best consumer proteins about business. inside with pulling prepared talked would to Yes. from year in our you What for we I that I've on calls that XXXX. had food,

thank me let who color Prepared us little the to you Now more leads Naren, outstanding Foods business, to Kyle, give for relative our introduce Kyle a Melanie And question. XXXX. now

Thomas, and Donnie, Yes. for thanks, question. Thanks, the

with and did. multiyear look at entering beginning business were our strategy focused our of the operating we that's we on I discipline, 'XX, As what exactly

I'd thanking start of in Donnie that in to mentioned, X members the -- X improvements along with were contribution years the the their really best pillars. performance team we and key by recognized in performance As all that for expectations. I line for our drivers guess

performance is levels commercial some Our improved from you we're delivering throughput, execution down We our tangible operational experienced look significant XXX yield points year-over-year, perspective, over a results. service sales XX%. When in improvements wins. distressed sizable delivering

our on across We consumers. distribution TDPs and customers business, increases items our gaining our core core over to add continue see that value proven XXX have to to

innovation to leverage to continue then data on efficiency momentum the promotional we continue on share to distribution see digital Griddle to of and cakes perspective And rates. the chicken growth. repeat backs long-term increased an Dean and we our from relative to biscuit, in We launch our drive continue our realize of trial items those Jimmy high and

carry as unchanged. is that X over and wrap Those of into step profitability remain change call 'XX, I this in XXX% controllable year so drivers strategy. of think And of would out up, key the that the be I we which improvements. will multiyear momentum on would built Thomas, just I

assets on at and focused eliminating performance reducing laser-focused items focus every waste. perspective, our We'll that our We'll launching from on our mentioned be be initiatives to standard. every to the to on to complexity distribution and I growth focused continue core continue an on we on day. operational line will pipeline. And on are We from innovation robust continue running standard

into And this to to multiyear I carry 'XX, that execute so continue 'XX strategy. we from in that gained -- as we again, expect momentum

Curt. on well. might of it your I question, around of is of that Kyle you Part this I just the Tom, as cadence add top kind materialize. see think, might was

bit year. efficiencies would balanced Different throughout gain the to little I really more seasonality, historical little a be it might Kyle continue of norms, relative year to our what was the think where operational be of is more about of speaking the which this we year. a across kind than a

next Sandler. Lavery comes The Piper Michael of from question

and it. gave thoughts X% you how we've on follow around seen to you think on that that chicken back I would in thinking I how to USDA X More in? supply. to to I -- up growth. for to X%. the wanted data come reconciling love just factoring up expect I I about just you're know and supply some hatched, you you cite the that Do chick about expectations just come points? [indiscernible] recently, those do guess closer guess

hatch These glad and be and challenges the livability. place plants. on to industry's that. making took I'd it continued increased physically processing the to Michael, take aren't Yes, excess both

big between a makes that [indiscernible] It's difference. influenza [indiscernible] a environment been tougher much so grow-out And virus.

you'll that's per The being that's through to disconnect think driving the increase only head. go actually and as I bird weight see offset so actually that driving continue And in XXXX. -- we through bird higher X.X% the weights

And on I start-up help helpful. Foods. plant remember just know how to Can costs. us the That's Okay. quantify lapping Prepared you're you back just that?

million. Start-up question, that Yes. Thanks certainly as around with lower year-over-year perspective be Michael. first a 'XX what would for depreciation overhead you remind costs are or we But the half realized we somewhere lapping in I an FY well. was would from $XX --

Our comes BMO. next of Andrew from question Strelzik

understanding wanted of environment. to on. really about. things assumption our go the the that number first listed that My operational in been to that optimistic more talking the a segment cushion sound you to back and that would some improvements one, now you But working a been lot there could I certainly internally against you're that do market of on have whole Beef was My you've

Or was I a think environment? said underlying what framework for maybe the to you give relative that of of if the move in how similar could can could needle to quantify margin impact much just just curious that kind kind So you you how chicken? business

Yes. Andrew. Thanks for question, the

relative market the uncontrollable business these of spreads. business, XX% relative Just we the is really at somewhat to how look to

as that and when well. the $X-plus we we on business the from a at amount on we about perspective, some of certainly so cut-outs in that It's provides But weighting. how obviously outsized forward improve amount the to labor resources have continue And you move yield. forward deploy push opportunity talk of meaningful to

that so right harvest forward sure towards assets for X we minimize cycle. win this the forward a make great to to utilization bottom We the losses as relative throughout the to cycle, in is continue have side want to opportunity world-class. say that And our there move us challenging really to we march and the of this just we of I'll

Okay. you seems other be over right. -- a of little getting whether time we returning to closer the year start are are several on CapEx that that to about shareholders how you maybe Or investments a the when next broadly direction first maybe or this thinking loosen not bit to more can next years? to target be coming other question headed -- it front? cash kind to is strings the it's All my you're I deployment is flow generation, I the know I'm capital pretty That's if leverage quite guess, has cash just business curious and this year. I the on disciplined still if and been And just levels helpful. in guess down. a yet, will

we've exceed and shareholders, $XXX financial cash allocation to leverage target year. the comment morning priorities note, for year, very investing build and drove capital million. But our scenario our X.Xx dividend had and but of $X.X would Thanks relative still as and annual at did dividend range in for to the comment, And investment-grade in billion very $X.X free below also to very and constant we Xx. But expected guidance And billion about guidance from increase in in to to And our disciplined And well. that credit billion we flow CapEx strength announced in question, between cash the of X.Xx of be make leverage our we a a but committed said. in CapEx. our or the relative range our we've business returning from I proud the XXXX. we'll have the to provided accomplishments would a certainly across also $X we XXXX, approach and invest that you obviously, appreciate deployment invest as down at made, cash this our stay did did stay around we in long-term we net rating next

maybe the X comment make from I question sure if first could to answered just add morning. Andrew, additional So the this just takeaway

on the to the capital right of spend and to points already continue one return But we now that will We have our return capital is money improve invested. shareholders. focal to

lot of And so there's in upside a that.

also this a priority that's think so of as mix. whole the you about And in terms

like our concludes for I to back King Donnie turn Mr. session. to This conference question-and-answer remarks. would the closing over

with interest continued we in your for again speaking Tyson you Thanks soon. look forward and Foods, to

presentation. The conference Thank you has today's attending now concluded. for

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