Dallas, Texas 10/24/2013 (Financialstrend) – Tyson Foods, Inc. (NYSE:TSN) is S&P 500 tracked $10.1 billion market tracked company. The stock of this meat products wholesaler and retailer is struggling to retain its market value over the past 12 weeks. It has shed 3.11% over the past one week of trading. It has also managed to sink close to 2.4% over the past month. This down turn in its fortunes is caused due to the acute pressure it has faced due to the negative sentiments buffeting the meat industry in general over the past few weeks.
On October 16, the stock of Tyson Foods slipped by close to 4.6%. This was because news got out that Costco company’s chicken supplies were recalled from a San Francisco retail store. The recall of close to 14,000 units of dressed chicken product happened due to fears of them being infected with a disruptive strain of viral infection. This turns out to be the second time in the past 15 days that the retailer was forced to recall its products from the store shelves.
In the meat industry any such recall is generally assumed to be death knell for the producer and the distributor until the memory of the recall fades from public memory. Along with Tyson and Costco stock the entire galaxy of other poultry stocks also saw a big down turn in their market fortunes.
In the past one year Tyson foods has been through many such disruptions and downturn in the meet market. Earlier to this chicken debacle, it faced beef products being recalled due to the spread of food and mouth disease. In spite of these challenges, it has managed to post sales of $33 billion with net income coming in at $772 million. It has paid out dividend yield of 0.7% for the year and has a price target of $35.3 per share.