(Reuters) -Tyson Foods Inc trimmed its full-year revenue forecast on Monday, in a sign that price hikes and stubbornly high inflation are discouraging consumers from spending on its products.
Shares of the Jimmy Dean sausages maker fell 5% in premarket trading, as the company also missed second-quarter revenue estimates.
U.S. meatpackers have bumped up prices of their products to safeguard margins from spiraling costs of animal feed, labor, freight and commodity prices, aggravated due to lingering drought situation and supply chain issues.
That, coupled with mounting recessionary fears in the United States, has forced budget-conscious consumers to opt for more affordable and cheaper alternatives over pricier meat.
Tyson now expects fiscal 2023 sales between $53 billion and $54 billion, compared with its previous forecast of $55 billion to $57 billion.
The Springdale, Arkansas-based meatpacker’s net sales were $13.13 billion in the quarter ended April 1, compared with analysts’ average estimate of $13.62 billion, according to Refinitiv data.
(Reporting by Granth Vanaik in Bengaluru; Editing by Shilpi Majumdar)
