Tyson Foods is building its financial plans around the assumption that inflation will remain elevated through 2027, CEO Donnie King said during a presentation at the BMO Capital Markets Global Farm to Market Conference on May 13.
"Inflation is real; it is persistent," King said. "We have it modeled into our '26, and as we even think about '27, based on what we know now, we don't see that going down in any kind of meaningful way."
King cited gasoline as one of the near-term pressures. Fuel prices have risen well over $1 per gallon in the third quarter, a shift he expects will influence where consumers shop and what products they choose.
Prepared Foods driving volume growth
Tyson's Prepared Foods segment, which houses brands like Hillshire Farm and Jimmy Dean, completed its second consecutive quarter of volume growth despite the inflationary backdrop. King credited an "end-to-end approach" to supply chain optimization and waste elimination across functions.
To maintain momentum, the company is shifting its consumer engagement strategy. Tyson has begun collecting first-party data to connect directly with consumers and understand their preferences more precisely.
Targeting younger consumers
A strategic gap prompted the shift: Tyson found it was over-indexing with older consumers while under-indexing with younger ones. Younger shoppers have different expectations for product qualities and attributes, King said.
The company has introduced new offerings aligned with younger consumer tastes, including a high-protein line of bowls, sandwiches and waffles under the Jimmy Dean brand in frozen retail sections. King described these launches as data-driven successes performing well in the marketplace.
Balancing affordability and cost control
Tyson's core challenge remains unchanged: keep products affordable for customers and consumers while absorbing cost pressures. The company is leaning on three levers to offset inflation: productivity improvements, pricing actions and promotional strategies.
King acknowledged the operating environment remains difficult for packaged goods and food companies, with inflation and consumer spending both under strain. Yet the company's strategy depends on controlling what it can while remaining responsive to shifting consumer demand and preferences.