Business Analysis of Tyson Foods

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Tyson Foods

TYSON FOODS

Business Overview

Tyson Foods, Inc., together with its subsidiaries, operates as a food company worldwide. It operates through four segments: Chicken, Beef, Pork, and Prepared Foods. The company raises and processes chickens into fresh, frozen, and value-added chicken products; processes live fed cattle and live market hogs; and fabricates dressed beef and pork carcasses into primal and sub-primal meat cuts, as well as case ready beef and pork, and fully-cooked meats. It also supplies poultry breeding stock; sells allied products, such as hide and meats; and manufactures and markets frozen and refrigerated food products, including pepperoni, bacon, breakfast sausage, turkey, lunchmeat, hot dogs, pizza crusts and toppings, flour and corn tortilla products, desserts, appetizers, snacks, prepared meals, ethnic foods, soups, sauces, side dishes, meat dishes, breadsticks, and processed meats. Tyson Foods, Inc. offers its products primarily under the Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Van's, Sara Lee, Chef Pierre, Wright, Aidells, State Fair, Gallo Salame, and Golden Island brands. The company sells its products through its sales staff to grocery retailers, grocery wholesalers, meat distributors, warehouse club stores, military commissaries, industrial food processing companies, chain restaurants or their distributors, live markets, international export companies, and domestic distributors, as well as through independent brokers and trading companies. Tyson Foods, Inc. was founded in 1935 and is headquartered in Springdale, Arkansas.

Tyson Foods

Tyson Foods


R&P Rank: 73
Sector: Consumer Goods
Industry:Food Products
H.Q Location:Arkansas
Website: www.tysonfoods.com
Company Address:
2200 DON TYSON PARKWAY, SPRINGDALE AR 72762-6999
Ph:479-290-4000

Business Analysis of Tyson Foods

The Consumer Goods Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Tyson Foods compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Tyson Foods to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Tyson Foods with an interactive chart.

  1. Revenue Growth: Tyson Foods reported a revenue growth of -10.9% year-on-year during 2016. Food Products Industry grew at -5.4% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Tyson Foods spent 87.3% of its total revenues on COGS. Food Products industry average (COGS share of revenue) in the same period was 79.3%
  3. R&D share of Revenues: Tyson Foods R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Tyson Foods spent 5.1% of its total revenues on Sales, Marketing, and General Administration (SG&A). Food Products industry average SG&A spending in the same period was 11.6%
  5. Inventory share of Revenues: As a percentage of revenue, Tyson Foods spent 7.4% of its total revenues on Inventories. Food Products industry average Inventory spending in the same period was 10.7%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Tyson Foods invested 4.1% of its total revenues on Accounts Payable (A/P) Food Products industry average Accounts Payable investment in the same period was 12.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Tyson Foods invested 4.2% of its total revenues on Accounts Receivable (A/R). Food Products industry average Accounts Receivable investment in the same period was 7.5%
  8. PP&E share of Revenues: As a percentage of revenue, Tyson Foods invested 14.0% of its total revenues on Property, Plants, and Equipments (PP&E). Food Products industry average PPE investment in the same period was 18.6%
  9. Intangibles share of Revenues: As a percentage of revenue, Tyson Foods invested 31.9% of its total revenues on Intangibles. Food Products industry average Intangibles investment in the same period was 29.4%
  10. Net Margins: Tyson Foods Net Margins in the year 2016 were 4.8%. Food Products industry average Net Margins in the same period were 4.1%

Sector and Industry Association of Tyson Foods

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Tyson Foods is associated with Consumer Goods Sector and Food Products Industry.

Consumer Goods sector is comprised of the following industries: Beverages; Personal Goods; Food Products; Diversified Food; Household Goods & Home Construction; Food Distribution; Tobacco; Toys and Games. The definitions for each of the industries is as follows:

  • Beverages industry consists of: Brewing Companies - manufacturers of cider or malt products such as beer, ale and stout; Distillers and Vintners Companies - blenders and shippers of wine and spirits such as whisky, brandy, rum, gin or liqueurs; and Soft Drinks Companies - manufacturers, bottlers and distributors of nonalcoholic beverages, such as soda, fruit juices, tea, coffee and bottled water.
  • Personal Goods industry includes: Clothing & Accessories Companies - manufacturers and distributors of all types of clothing, jewellery, watches or textiles, sportswear, sunglasses, eyeglass frames, leather clothing and goods, and processors of hides and skins; Footwear Companies - manufacturers and distributors of shoes, boots, sandals, sneakers and other types of footwear; and Consumer Packaged Goods Companies - makers and distributors of cosmetics, toiletries and personal-care and hygiene products, including deodorants, soaps, toothpaste, perfumes, diapers, shampoos, razors and feminine hygiene products.
  • Food Products industry includes: Farming & Fishing companies - companies that grow crops or raise livestock, operate sherries or own non-tobacco plantation; Food Products Companies - food producers, including meatpacking, snacks, fruits, vegetables, dairy products and frozen seafood. It also includes producers of pet food and manufacturers of dietary supplements, vitamins and related items.
  • Diversified Food industry includes companies that offer a diverse portfolio of food products across agricultural, animal and dairy product categories.
  • Household Goods & Home Construction industry includes companies that offer: Durable Household Products - Manufacturers and distributors of domestic appliances, lighting, hand tools and power tools, hardware, cutlery, tableware, garden equipment, luggage, towels and linens; Nondurable Household Products - Producers and distributors of pens, paper goods, batteries, light bulbs, tissues, toilet paper and cleaning products such as soaps and polishes; Furnishings - Manufacturers and distributors of furniture, including chairs, tables, desks, carpeting, wallpaper and office furniture; Home Construction - constructors of residential homes, including manufacturers of mobile and prefabricated homes intended for use in one place.
  • Food Distribution industry includes companies that distribute food, beverage and consumer goods to restaurants, healthcare, educational facilities, lodging establishments; equipment and supplies for the foodservice and hospitality industries.
  • Tobacco industry includes Manufacturers and distributors of cigarettes, cigars and other tobacco products. It also includes tobacco plantations.
  • Toys and Games industry consists of manufacturers and distributors of toys and video/computer games, including such toys and games as playing cards, board games, stuffed animals and dolls.

Industry Ranking of Tyson Foods

With $36.9 billion revenues, Tyson Foods ranked number 3 of all the companies in the US Food Products industry. There were a total of 46 public companies in the US Food Products industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Food Products industry by revenues during 2016 were:

  1. Archer Daniels Midland ($62.3 billion)
  2. Bunge ($42.7 billion)
  3. Tyson Foods ($36.9 billion)
  4. Mondelez International ($25.9 billion)
  5. Leucadia National ($10.1 billion)
  6. Pilgrim's Pride ($7.9 billion)
  7. Dean Foods ($7.7 billion)
  8. Hershey ($7.4 billion)
  9. Ingredion ($5.7 billion)
  10. Herbalife ($4.5 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Tyson Foodsand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of tyson-foods

Archer Daniels Midland (ADM) Business Analysis – Analyze Historical Performance, Strategic...

Archer Daniels Midland Co with $62 billion revenues in the year 2016 was the number 1 Food Products company. Read this report to know the top competitors of Archer Daniels Midland and identify growth and cost optimization opportunities of Archer Daniels Midland

Bunge (BG) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Bunge Ltd with $43 billion revenues in the year 2016 was the number 2 Food Products company. Read this report to know the top competitors of Bunge and identify growth and cost optimization opportunities of Bunge

Mondelez International (MDLZ) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Mondelez International, Inc. with $26 billion revenues in the year 2016 was the number 4 Food Products company. Read this report to know the top competitors of Mondelez International and identify growth and cost optimization opportunities of Mondelez International

Leucadia National (LUK) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Leucadia National Corp with $10 billion revenues in the year 2016 was the number 5 Food Products company. Read this report to know the top competitors of Leucadia National and identify growth and cost optimization opportunities of Leucadia National

Pilgrim’s Pride (PPC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Pilgrim's Pride Corp with $8 billion revenues in the year 2016 was the number 6 Food Products company. Read this report to know the top competitors of Pilgrim's Pride and identify growth and cost optimization opportunities of Pilgrim's Pride

Dean Foods (DF) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Dean Foods Co with $8 billion revenues in the year 2016 was the number 7 Food Products company. Read this report to know the top competitors of Dean Foods and identify growth and cost optimization opportunities of Dean Foods

Revenues Analysis

Tyson Foods (TSN) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Tyson Foods Inc (TSN) from 2012 to 2016. Tyson Foods generated a total of $36.9 billion revenues during 2016. Tyson Foods reported a revenue growth of -10.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in September.

Tyson Foods (TSN) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Tyson Foods Inc (TSN) from 2002 to 2016. Tyson Foods generated a total of $36.9 billion revenues during 2016. Tyson Foods reported a revenue growth of -10.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in September.

Tyson Foods (TSN) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Tyson Foods Inc (TSN) revenue growth with Food Products industry growth during the last five years from 2012 to 2016. Tyson Foods reported a revenue growth of -10.9% year-over-year during 2016. The Food Products industry growth was -5.4% year-over-year during 2016. Tyson Foods growth was slower than the industry during 2016.