Tyson Foods Issues $500M Senior Notes at 4.95%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy TSN?
Source: seekingalpha
- Senior Notes Issuance: Tyson Foods has agreed to sell $500 million of senior notes at a 4.95% interest rate, expected to close on February 20, 2026, which will provide liquidity to support future growth initiatives.
- Debt Repayment Strategy: The net proceeds from this offering will be used for general corporate purposes, including the retirement of outstanding 4.00% notes, which is expected to alleviate the company's debt burden and improve its financial position.
- Flexible Fund Utilization: Pending application of the proceeds, Tyson Foods may invest in bank deposits, certificates of deposit, or other interest-bearing securities, providing additional financial flexibility to navigate market fluctuations.
- Operating Income Target: Tyson Foods has outlined an adjusted operating income target of $2.1 billion to $2.3 billion for 2026, demonstrating the company's strategic planning and financial resilience in the face of market challenges.
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Analyst Views on TSN
Wall Street analysts forecast TSN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSN is 65.20 USD with a low forecast of 58.00 USD and a high forecast of 75.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
2 Buy
4 Hold
0 Sell
Moderate Buy
Current: 65.400
Low
58.00
Averages
65.20
High
75.00
Current: 65.400
Low
58.00
Averages
65.20
High
75.00
About TSN
Tyson Foods, Inc. is a food company. The Company has a portfolio of iconic products and brands, including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, State Fair, Aidells and ibp. Its segments include Beef, Pork, Chicken and Prepared Foods. The Beef segment includes operations related to processing live-fed cattle and fabricating dressed beef carcasses into primal and sub-primal meat cuts and case-ready products. Its Pork segment includes operations related to processing live market hogs and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. The Chicken segment includes domestic operations related to raising and processing live chickens into, and purchasing raw materials for fresh, frozen and value-added chicken products and sales from specialty products. The Prepared Foods segment includes operations related to manufacturing and marketing frozen and refrigerated food products and logistics operations to move products through the supply chain.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
TYSON FOODS SUBMITS FINAL TERM SHEET FOR UP TO $500 MILLION SENIOR NOTES OFFERING - SEC FILING
- Offering Details: Tyson Foods has filed a final term sheet for the offering of up to $500 million in senior notes.
- Purpose of Filing: The filing is part of a SEC registration process, indicating the company's intent to raise capital through these notes.
See More
Tyson Foods Issues $500M Senior Notes at 4.95%
- Senior Notes Issuance: Tyson Foods has agreed to sell $500 million of senior notes at a 4.95% interest rate, expected to close on February 20, 2026, which will provide liquidity to support future growth initiatives.
- Debt Repayment Strategy: The net proceeds from this offering will be used for general corporate purposes, including the retirement of outstanding 4.00% notes, which is expected to alleviate the company's debt burden and improve its financial position.
- Flexible Fund Utilization: Pending application of the proceeds, Tyson Foods may invest in bank deposits, certificates of deposit, or other interest-bearing securities, providing additional financial flexibility to navigate market fluctuations.
- Operating Income Target: Tyson Foods has outlined an adjusted operating income target of $2.1 billion to $2.3 billion for 2026, demonstrating the company's strategic planning and financial resilience in the face of market challenges.
See More
MarketBeat Weekly Recap – February 2 to February 6
Market Volatility: Stocks experienced volatility as investors reacted to concerns about AI spending and its impact on the tech sector, leading to a sell-off earlier in the week, but buyers began to find value in oversold stocks.
Earnings Reports: As of January 30, 33% of S&P 500 companies reported earnings, with 75% exceeding earnings per share estimates, indicating a positive trend despite being below the five-year average.
Stock Performance Examples: Companies like AMD and Tyson Foods saw varied stock reactions post-earnings, with AMD's stock dropping despite solid earnings, while Tyson's stock rose after better-than-expected results.
Investment Opportunities: Analysts highlighted several stocks with strong fundamentals that could help investors navigate the volatile market, emphasizing the importance of long-term growth potential amidst short-term fluctuations.
See More
US Beef Industry Faces New Challenges from Screwworm Outbreak
- Parasite Threat: The resurgence of New World screwworm in Mexican states bordering Texas poses a significant risk to the already tight U.S. beef supply, potentially driving prices higher amid long-term drought and tariff pressures.
- Economic Loss Estimates: Economists project that an outbreak affecting millions of Texas cattle could result in hundreds of millions of dollars in producer income losses and generate up to $1.8 billion in broader economic losses in Texas, severely impacting agriculture and the beef supply chain.
- Price Forecast Adjustments: Prior to the parasite's emergence, Evercore ISI indicated that steak and hamburger prices would remain elevated, with CattleFax projecting a 15% increase in hamburger prices in the first half of 2026 and a 5% to 15% rise in steak prices.
- Market Pressure Intensification: U.S. beef producers are already grappling with shrinking herds and rising prices, and any disease-related animal losses or border closures would further tighten supplies, leading to increased margin pressure and demand issues.
See More
Tyson Foods Declares $0.51 Quarterly Dividend, Yield at 3.14%
- Quarterly Dividend Announcement: Tyson Foods has declared a quarterly dividend of $0.51 per share, consistent with previous payouts, indicating the company's ongoing ability to maintain stable cash flow, which is likely to attract more income-focused investors.
- Dividend Yield: The forward yield of 3.14% reflects the company's attractiveness in the current market environment, potentially increasing investor interest in its stock.
- Dividend Payment Timeline: The dividend is payable on June 15, with a record date of June 1 and an ex-dividend date also set for June 1, ensuring shareholders receive their earnings in a timely manner.
- Future Outlook: Tyson Foods has set an adjusted operating income target of $2.1 billion to $2.3 billion for 2026, indicating a positive growth outlook despite market challenges, which may bolster investor confidence in the company's strategic direction.
See More
Tyson Foods Declares Quarterly Dividend
- Quarterly Dividend Announcement: On February 4, 2026, Tyson Foods' Board of Directors declared a quarterly dividend of $0.51 per share for Class A common stock and $0.459 for Class B, reflecting the company's robust cash flow and profitability, which enhances investor confidence.
- Payment Schedule: The dividends will be payable on June 15, 2026, to shareholders of record as of June 1, 2026, ensuring predictable returns for investors and further solidifying the company's relationship with its shareholders.
- Company Background: Founded in 1935, Tyson Foods has grown into a leading global protein food company with approximately 133,000 team members, showcasing its significant influence and market position in the food industry.
- Brand Portfolio Strength: With a diverse range of well-known brands such as Tyson, Jimmy Dean, and Hillshire Farm, the company's extensive product lineup not only meets varied consumer demands but also provides strong support for future growth.
See More
TYSON FOODS SUBMITS FINAL TERM SHEET FOR UP TO $500 MILLION SENIOR NOTES OFFERING - SEC FILING
- Offering Details: Tyson Foods has filed a final term sheet for the offering of up to $500 million in senior notes.
- Purpose of Filing: The filing is part of a SEC registration process, indicating the company's intent to raise capital through these notes.
See More
Tyson Foods Issues $500M Senior Notes at 4.95%
- Senior Notes Issuance: Tyson Foods has agreed to sell $500 million of senior notes at a 4.95% interest rate, expected to close on February 20, 2026, which will provide liquidity to support future growth initiatives.
- Debt Repayment Strategy: The net proceeds from this offering will be used for general corporate purposes, including the retirement of outstanding 4.00% notes, which is expected to alleviate the company's debt burden and improve its financial position.
- Flexible Fund Utilization: Pending application of the proceeds, Tyson Foods may invest in bank deposits, certificates of deposit, or other interest-bearing securities, providing additional financial flexibility to navigate market fluctuations.
- Operating Income Target: Tyson Foods has outlined an adjusted operating income target of $2.1 billion to $2.3 billion for 2026, demonstrating the company's strategic planning and financial resilience in the face of market challenges.
See More
MarketBeat Weekly Recap – February 2 to February 6
Market Volatility: Stocks experienced volatility as investors reacted to concerns about AI spending and its impact on the tech sector, leading to a sell-off earlier in the week, but buyers began to find value in oversold stocks.
Earnings Reports: As of January 30, 33% of S&P 500 companies reported earnings, with 75% exceeding earnings per share estimates, indicating a positive trend despite being below the five-year average.
Stock Performance Examples: Companies like AMD and Tyson Foods saw varied stock reactions post-earnings, with AMD's stock dropping despite solid earnings, while Tyson's stock rose after better-than-expected results.
Investment Opportunities: Analysts highlighted several stocks with strong fundamentals that could help investors navigate the volatile market, emphasizing the importance of long-term growth potential amidst short-term fluctuations.
See More
US Beef Industry Faces New Challenges from Screwworm Outbreak
- Parasite Threat: The resurgence of New World screwworm in Mexican states bordering Texas poses a significant risk to the already tight U.S. beef supply, potentially driving prices higher amid long-term drought and tariff pressures.
- Economic Loss Estimates: Economists project that an outbreak affecting millions of Texas cattle could result in hundreds of millions of dollars in producer income losses and generate up to $1.8 billion in broader economic losses in Texas, severely impacting agriculture and the beef supply chain.
- Price Forecast Adjustments: Prior to the parasite's emergence, Evercore ISI indicated that steak and hamburger prices would remain elevated, with CattleFax projecting a 15% increase in hamburger prices in the first half of 2026 and a 5% to 15% rise in steak prices.
- Market Pressure Intensification: U.S. beef producers are already grappling with shrinking herds and rising prices, and any disease-related animal losses or border closures would further tighten supplies, leading to increased margin pressure and demand issues.
See More
Tyson Foods Declares $0.51 Quarterly Dividend, Yield at 3.14%
- Quarterly Dividend Announcement: Tyson Foods has declared a quarterly dividend of $0.51 per share, consistent with previous payouts, indicating the company's ongoing ability to maintain stable cash flow, which is likely to attract more income-focused investors.
- Dividend Yield: The forward yield of 3.14% reflects the company's attractiveness in the current market environment, potentially increasing investor interest in its stock.
- Dividend Payment Timeline: The dividend is payable on June 15, with a record date of June 1 and an ex-dividend date also set for June 1, ensuring shareholders receive their earnings in a timely manner.
- Future Outlook: Tyson Foods has set an adjusted operating income target of $2.1 billion to $2.3 billion for 2026, indicating a positive growth outlook despite market challenges, which may bolster investor confidence in the company's strategic direction.
See More
Tyson Foods Declares Quarterly Dividend
- Quarterly Dividend Announcement: On February 4, 2026, Tyson Foods' Board of Directors declared a quarterly dividend of $0.51 per share for Class A common stock and $0.459 for Class B, reflecting the company's robust cash flow and profitability, which enhances investor confidence.
- Payment Schedule: The dividends will be payable on June 15, 2026, to shareholders of record as of June 1, 2026, ensuring predictable returns for investors and further solidifying the company's relationship with its shareholders.
- Company Background: Founded in 1935, Tyson Foods has grown into a leading global protein food company with approximately 133,000 team members, showcasing its significant influence and market position in the food industry.
- Brand Portfolio Strength: With a diverse range of well-known brands such as Tyson, Jimmy Dean, and Hillshire Farm, the company's extensive product lineup not only meets varied consumer demands but also provides strong support for future growth.
See More
