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Recently, a brand that we all know and love since early in our lives has seemingly been faced with continuous headwinds—from the trade war with China to the recent global uncertainty due to COVID-19. Despite these hurdles, Tyson (NYSE:TSN) has delivered growth in the last six quarters. This can be a sign that its changes to management beginning in late 2018 continues to deliver on their focus on growth.
Their shift in focus to growth and innovation has been highlighted by their continued fixation on sustainability and the tapping of Dean Banks, a traditionally non-agriculture/food guy who sat on the board, to lead the main lines of business. Although the tenure of the current management team remains short, but their diverse backgrounds and performance over the past few quarters have given me confidence in their vision and delivery.
If the management team can continue to meet their goals and mitigate risk through their focus on sustainability, the exploding demand of meat and meat alternatives from various markets will boost Tyson's top and bottom lines. This will allow a strong company to grow their market value and continue to return equity to shareholders through dividend growth and share buybacks.
Volatility Masks Tyson's Strong Current Position
Demand for Tyson products remains strong. Tyson has several products: beef, pork, prepared foods, and chicken (in order of Operating Income for Q1 2020). These products then further subdivide into various forms of distribution like food retailers, food distributors, restaurants, hotels, schools, military, and international export amongst others.
Demand has
