Reuters – Tyson Foods cannot increase prices for chicken and prepared foods fast enough to keep pace with rising costs for raw materials like grain, chief executive Donnie King said Aug. 9, after the company reported higher-than-expected quarterly earnings.
The meat company lifted its 2021 revenue forecast due to strong beef demand as sales of steaks and burgers from U.S. restaurants and hotels recovered following the easing of COVID-19 restrictions. U.S. beef exports are also robust.
But costs are also increasing, a potential drag on future earnings.
Tyson has increased prices for restaurant customers to offset inflation and plans to raise retail prices on Sept. 5, King said on a conference call with analysts. More increases are planned, he said.
“Costs are hitting us faster than we can get pricing at this point,” King said.