Tyson Plunges as Food Giant Sees Inflation Eroding Demand

Tyson Foods Inc. shares plunged the most since August after the company said persistent inflation has eroded consumers’ appetite for the branded and ready-to-eat offerings accounting for most of the company’s profits.

High inflation and low saving rates have prompted consumers to prioritize essential staples over discretionary categories, Melanie Boulden, who oversees Tyson’s Prepared Foods business, said in a conference call with analysts. The executive said the business that produces sausages and snacks under brands such as Wright and Jimmy Dean is likely to deliver less profits in the second half of the current fiscal year than in the first.