Tyson Navigates Supply Headwinds, Leans on Innovation for Growth

TL;DR

**Tyson's diversified protein portfolio and innovation pipeline are strong, but watch out for cattle supply constraints and its heavy reliance on Walmart.**

AI Summary

Tyson Foods, Inc. (TSN) reported a robust fiscal year ended September 27, 2025, with consolidated sales significantly influenced by Walmart Inc., which accounted for approximately 18.7% of total sales. The company operates across four key segments: Beef, Pork, Chicken, and Prepared Foods, with International/Other encompassing foreign operations in China, Malaysia, Mexico, South Korea, Thailand, and Saudi Arabia. A critical business change is the U.S. cattle market experiencing limited supply of market-ready cattle, creating uncertainty regarding herd rebuild timing, which directly impacts the Beef segment's raw material costs. The Chicken segment's major production costs, primarily corn and soybean meal for feed, represented roughly 53% of the cost of growing a live chicken domestically in fiscal 2025. Strategic outlook includes continued investment in innovation through Tyson New Ventures, LLC, focusing on breakthrough technologies, new protein forms, and improvements in animal welfare and sustainability. The company also maintains a strong commitment to research and development at its Discovery Center and Manufacturing Automation Center in Springdale, Arkansas, to drive new product innovation and operational efficiencies.

Why It Matters

Tyson's performance and strategic direction have significant implications for investors, as its ability to manage raw material costs, particularly in the Beef and Chicken segments, directly impacts profitability. For employees, the company's focus on automation and new technologies, as evidenced by the Manufacturing Automation Center, suggests evolving skill requirements and potential shifts in workforce needs. Customers and the broader market will see continued innovation in food products and potentially more sustainable practices, influencing consumer choices and competitive dynamics within the protein industry. The reliance on Walmart for 18.7% of consolidated sales highlights a concentration risk that could affect market stability if that relationship changes, impacting the entire food supply chain.

Risk Assessment

Risk Level: medium — The risk level is medium due to the U.S. cattle market's limited supply of market-ready cattle and uncertainty regarding herd rebuild timing, which could impact the Beef segment's profitability. Additionally, Walmart Inc. accounted for approximately 18.7% of fiscal 2025 consolidated sales, representing a significant customer concentration risk that could materially impact operations if sales to this customer are discontinued.

Analyst Insight

Investors should monitor Tyson's strategies for mitigating raw material cost volatility in its Beef and Chicken segments, particularly the timing of the cattle herd rebuild. Diversification efforts and the success of Tyson New Ventures, LLC, in new protein forms will be key indicators of future growth, warranting close attention.

Revenue Breakdown

Key Numbers

• $17.4B — Aggregate market value of Class A Common Stock held by non-affiliates (as of March 29, 2025)
• 18.7% — Percentage of fiscal 2025 consolidated sales from Walmart Inc. (highlights customer concentration risk)
• 133,000 — Approximate number of employees (as of September 27, 2025)
• 53% — Percentage of domestic live chicken growing cost from corn, soybean meal, and other feed ingredients (in fiscal 2025, indicating significant raw material exposure)
• 283,045,085 — Outstanding shares of Class A Common Stock (as of October 25, 2025)
• 70,009,005 — Outstanding shares of Class B Common Stock (as of October 25, 2025)
• 1935 — Year Tyson Foods was founded (by John W. Tyson)
• 140 — Number of countries and regions where products were sold (in fiscal 2025, indicating global reach)
• 40,000 — Square feet of USDA and FDA pilot plant space (at the Discovery Center in Springdale, Arkansas)

Key Players & Entities

• Tyson Foods, Inc. (company) — registrant
• Walmart Inc. (company) — major customer, accounted for 18.7% of fiscal 2025 consolidated sales
• John W. Tyson (person) — founder of Tyson Foods in 1935
• Cobb-Vantress (company) — wholly-owned subsidiary, leading poultry breeding stock supplier
• Tyson New Ventures, LLC (company) — subsidiary focused on investing in breakthrough food industry technologies
• Springdale, Arkansas (location) — headquarters of Tyson Foods and location of Discovery Center and Manufacturing Automation Center
• New York Stock Exchange (regulator) — exchange where Class A Common Stock (TSN) is registered
• United States Department of Agriculture (regulator) — regulates pilot plant space at Discovery Center
• United States Food and Drug Administration (regulator) — regulates pilot plant space at Discovery Center
• Sarbanes-Oxley Act (regulator) — governs internal control reporting

FAQ

Risk Factors

• Customer Concentration [medium — market]: Walmart Inc. accounted for approximately 18.7% of total consolidated sales in fiscal 2025, highlighting a significant reliance on a single major customer.
• Raw Material Cost Volatility [high — market]: The cost of live cattle and hogs, and feed ingredients like corn and soybean meal, are key factors influencing profitability. For instance, feed ingredients represented 53% of domestic live chicken growing costs in fiscal 2025.
• U.S. Cattle Supply Uncertainty [high — market]: The U.S. cattle market is experiencing limited supply of market-ready cattle, creating uncertainty regarding herd rebuild timing and directly impacting the Beef segment's raw material costs.
• Labor Availability [medium — operational]: The ability to maintain and grow relationships with customers and introduce new products is influenced by the availability of approximately 133,000 employees ('team members') to operate production facilities.
• Supply Chain and Logistics [medium — operational]: The company's ability to deliver products globally (140 countries and regions in fiscal 2025) depends on efficient operations and transportation, with potential disruptions impacting sales.
• Market Prices for Products [medium — financial]: Fluctuations in market prices for beef, pork, and chicken directly impact the company's revenue and profitability.

Industry Context

Tyson Foods operates in the highly competitive protein industry, facing dynamics influenced by consumer demand, raw material costs, and global supply chain complexities. Key competitors include other major meat processors and emerging alternative protein providers. Trends such as increased focus on sustainability, animal welfare, and innovative protein sources are shaping the industry landscape.

Regulatory Implications

The food industry is subject to stringent regulations from bodies like the USDA and FDA concerning food safety, labeling, and production standards. Tyson Foods must ensure compliance with these regulations across its diverse product lines and international operations to avoid penalties and maintain consumer trust.

What Investors Should Do

1. Monitor U.S. cattle supply dynamics.
2. Assess impact of customer concentration.
3. Evaluate feed ingredient cost trends.
4. Track innovation investments.

Key Dates

• 1935-01-01: Tyson Foods was founded — Marks the origin of the company, which has grown under four generations of family leadership.
• 2025-03-29: Aggregate market value of Class A Common Stock held by non-affiliates — Indicates the market's valuation of the company's publicly traded shares as of this date.
• 2025-09-27: Fiscal year end — The reporting period for the consolidated sales and employee count data provided.
• 2025-10-25: Outstanding shares of Class A Common Stock — Provides the total number of Class A shares outstanding as of this date.
• 2025-10-25: Outstanding shares of Class B Common Stock — Provides the total number of Class B shares outstanding as of this date.

Glossary

Vertically-integrated

A business model where a company controls multiple stages of its production process, from raw materials to finished goods. (Tyson Foods operates a fully vertically-integrated chicken production process, controlling breeding stock, feed production, processing, and marketing.)

Live markets

Refers to markets where live animals (like cattle and hogs) are bought and sold before processing. (Tyson Foods sells products to live markets, indicating a direct channel for sourcing or selling live animals.)

Primal and sub-primal meat cuts

Large sections of meat cut from the carcass (primal) and smaller sections cut from the primal cuts (sub-primal). (Tyson Foods fabricates dressed beef and pork carcasses into these cuts for further processing or sale.)

Case-ready beef and pork

Meat products that are cut, trimmed, and packaged at the processing plant, ready for direct sale to consumers at the retail level. (Tyson Foods produces case-ready beef and pork, indicating a focus on value-added products for retailers.)

Tyson New Ventures, LLC

A subsidiary focused on investing in breakthrough technologies, new protein forms, and improvements in animal welfare and sustainability. (Represents the company's strategic outlook and investment in innovation and future growth areas.)

Cobb-Vantress

A wholly-owned subsidiary of Tyson Foods that is a leading supplier of poultry breeding stock. (Highlights Tyson's control over a critical input for its chicken production, emphasizing its integrated model.)

Year-Over-Year Comparison

The provided text focuses on the fiscal year ended September 27, 2025, and does not contain comparative data from the previous fiscal year. Therefore, a direct comparison of revenue growth, margin changes, or new risks versus the prior filing cannot be made based on this information.

Key Financial Figures

• $0.10 — the registrant's Class A Common Stock, $0.10 par value ("Class A stock"), and Class

Filing Documents

• tsn-20250927.htm (10-K) — 3213KB
• tsn2025q4exh108.htm (EX-10.8) — 70KB
• tsn2025q410-kexx21.htm (EX-21) — 74KB
• tsn2025q410-kexhx23.htm (EX-23) — 2KB
• tsn2025q4exh-311.htm (EX-31.1) — 8KB
• tsn2025q4exh-312.htm (EX-31.2) — 8KB
• tsn2025q4exh-321.htm (EX-32.1) — 5KB
• tsn2025q4exh-322.htm (EX-32.2) — 4KB
• tsn-20250927_g1.jpg (GRAPHIC) — 134KB
• tsn-20250927_g2.jpg (GRAPHIC) — 124KB
• 0000100493-25-000095.txt ( ) — 20165KB
• tsn-20250927.xsd (EX-101.SCH) — 90KB
• tsn-20250927_cal.xml (EX-101.CAL) — 108KB
• tsn-20250927_def.xml (EX-101.DEF) — 904KB
• tsn-20250927_lab.xml (EX-101.LAB) — 1263KB
• tsn-20250927_pre.xml (EX-101.PRE) — 1145KB
• tsn-20250927_htm.xml (XML) — 3608KB

Risk Factors

Item 1A. Risk Factors 9

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 17

Cybersecurity Disclosure

Item 1C. Cybersecurity Disclosure 17

Properties

Item 2. Properties 19

Legal Proceedings

Item 3. Legal Proceedings 20

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 20 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 22

Selected Financial Data

Item 6. Selected Financial Data 23

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 42

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 44

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 91

Controls and Procedures

Item 9A. Controls and Procedures 91

Other Information

Item 9B. Other Information 92

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 92 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 92

Executive Compensation

Item 11. Executive Compensation 93

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 93

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 93

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 93 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 93

Form 10-K Summary

Item 16. Form 10-K Summary 101 2 PART I

BUSINESS

ITEM 1. BUSINESS GENERAL Tyson Foods, Inc. and its subsidiaries (collectively, the "Company," "we," "us," "our," "Tyson Foods" or "Tyson") (NYSE: TSN) is a world-class food company and recognized leader in protein. Founded in 1935 by John W. Tyson, it has grown under four generations of family leadership. The Company is unified by this purpose: Tyson Foods. We Feed the World Like Family and has a broad portfolio of iconic products and brands including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, State Fair, Aidells and ibp. Tyson Foods is dedicated to bringing high-quality food to every table in the world, safely, and affordably, now and for future generations. Headquartered in Springdale, Arkansas, the Company had approximately 133,000 employees ("team members") on September 27, 2025. Through its Core Values, Tyson Foods strives to operate with integrity, create value for its shareholders, customers, communities and team members, be faith-friendly and inclusive, provide a safe work environment and serve as a steward of the animals, land and environment entrusted to it. Some of the key factors influencing our business are customer demand for our products; the ability to maintain and grow relationships with customers and introduce new and innovative products to the marketplace; accessibility of international markets; market prices for our products; the cost and availability of live cattle and hogs, raw materials and feed ingredients; availability of team members to operate our production facilities; and operating efficiencies of our facilities. We operate a fully vertically-integrated chicken production process. Our integrated operations consist of breeding stock, contract farmers, feed production, processing, further-processing, marketing and transportation of chicken and related specialty products, including animal and pet food ingredients. Through our wholly-owned subsidiary, Cobb-Vantress, we are one of the leading poultry breeding stock suppliers in

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