(Reuters) -U.S. meatpacker Tyson Foods Inc on Monday forecast full-year sales above Wall Street estimates, signaling steady demand for its higher-priced chicken and beef despite decades-high levels of inflation.
Packaged food makers like Tyson Foods have so far witnessed very little pushback from consumers on price increases, which were undertaken due to rising costs.
However, analysts have raised concerns that surging inflation and rising interest rates could impact demand for premium steaks as consumers look for more affordable options.
Sales volume at the company’s chicken business, the largest after beef, increased 1.1% in the fourth quarter, even as Tyson raised prices by an average 18.2%.
The company’s sales rose to $13.74 billion, from $12.81 billion, beating analysts’ average estimate of $13.50 billion, according to IBES data from Refinitiv.
The Springdale, Arkansas-based company also projected full-year 2023 sales between $55 billion and $57 billion, compared with analysts’ expectation of $53.60 billion, according to IBES data from Refinitiv.
(Reporting by Ananya Mariam Rajesh in Bengaluru and Tom Polansek in Chicago; editing by Uttaresh.V)
