By Liz Moyer
Investing.com -- Tyson Foods Inc (NYSE:TSN) stock is getting hit on Monday after the meat producer reported lower than expected profit because people are buying less meat.
It’s not the only food company to experience that trend, however. Inflation has cut into earnings at competitors including Conagra Foods Inc (NYSE:CAG). Meat sales are slowing and consumers, who are trying to balance rising food costs with other household expenses, are trading higher-priced items for lower-cost fare.
Shares of Tyson were down more than 9% on Monday, while Conagra was down just 0.7%. Tyson is down 7% for the year, while Conagra is up 0.8%.
Tyson noted a projection by the Agriculture Department that 2022 domestic production of beef, chicken, pork and turkey should be flat to fiscal 2021.
Tyson’s revenue did beat expectations, largely because its inflation-induced price increases made up for some of the drop-off in sales volume. The owner of brands such as Hillshire Farm and Ballpark franks said beef sales rose 1% but chicken sales jumped 25%.
Hormel Foods Corporation (NYSE:HRL), which owns brands including Applegate and Dinty Moore, is scheduled to report earnings Sept. 1. Its shares were flat on Monday.
While people trade down to less expensive foods, it’s not necessarily benefiting fake meat maker Beyond Meat Inc (NASDAQ:BYND), which slashed its revenue outlook because of inflation and greater competition. It’s also cutting its workforce amid a slowdown. But its shares were up 2.7% for the day. They are still down 38% so far this year