Tyson Foods continues to add capacity across its expansive U.S. processing business with plans to invest $180 million in its Caseyville, Ill., prepared foods plant that makes Hillshire Farm deli meats and Jimmy Dean snack and breakfast products.
The Springdale-based meat giant said it will add 7 new production lines and 270,000 square feet of space to the plant and 400 new jobs, doubling the plant’s workforce. Tyson also is increasing automated warehousing and robotics technology with the expansion. Tyson broke ground on the project in August and construction is expected to be complete in late 2024.
Tyson’s prepared foods segment is managed by Stewart Glendinning, who was the company’s chief financial officer from February 2018 through September 2022. Glendinning told analysts during the company’s last earnings call he was excited about growing the business unit. When questioned about his experience, CEO Donnie King said Glendinning had previous experience running the international division of Molson Coors International as president and CEO of that business prior to joining Tyson Foods.
Tyson Foods’ prepared foods unit sales totaled $9.6 billion last year, accounting for 18% of the total sales. Tyson said the prepared foods segment processed 73 million pounds of products each week with its 34 U.S. facilities. The segment’s operating income totaled $746 million last year, down from $1.456 billion in fiscal 2021. The segment struggled amid sluggish recovery of the foodservice segment, and the sale of the company’s pet treats business in late 2021.
Tyson executives said the company looks for an adjusted operating margin of 8% to 10% in fiscal 2023 driven by volume growth, productivity and disciplined revenue management in its prepared foods segment.
Shares of Tyson Foods (NYSE: TSN) traded at $65.25 in the Wednesday (Jan. 11) morning session, up 33 cents. Shares have traded between $59.38 and $100.72 over the past 52 weeks. Tyson’s stock price is down 28% from a year ago.