Tyson Foods (TSN) is not too worried about President Trump’s newest tariffs.
CEO Donnie King told Yahoo Finance the company does not expect to “see significant impact” and planned for tariffs within its annual adjusted operating income forecast.
The meat supplier raised the forecast by $100 million to a range of $1.9 billion to $2.3 billion, up from a prior $1.8 billion to $2.2 billion.
“We’ve planned for tariffs, for immigration and any market dynamics, and have baked that into our guidance for the balance of the year,” King told Yahoo Finance over the phone.
Read more: The latest news and updates as Trump’s tariff deadline approaches
He added, “Our teams have engaged in contingency planning to minimize disruptions or impacts to the supply chain for some time … There’ll be short-term disruptions, but it will equilibrate.”
For example, Tyson Foods sends roughly 10% of every hog it processes to Mexico. It may need to do some shuffling if Mexico goes through with retaliatory tariffs. Currently, a 25% tariff on Canada is expected to go into effect on Tuesday, while a similar tariff on Mexico is on pause for a month.
“We would probably then just ship that product … where the void is, and so it’ll move around. It’ll change destinations, but net [a neutral impact],” he explained.
Other agricultural goods could hit shoppers’ wallets, including items like avocados and tomatoes.
Proposed tariffs on Mexico, Canada, and China would cause an average tax increase of more than $800 this year on US households, per estimates from TaxFoundation.org quoted by Telsey Advisory Group’s Joe Feldman.
Tyson Foods is one of Yahoo Finance’s top trending tickers Monday after it topped earnings expectations and raised its annual sales forecast due to strong demand for chicken and beef.
King called it “the best quarter performance in more than two years,” posting the third consecutive quarter of growth in sales, adjusted operating income, and adjusted earnings per share.
In the first quarter, net sales jumped 2.3% from a year ago to $13.6 billion, alongside earnings per share of $1.14.
King attributed the strong quarter to strategic pillars it set in place to “fortify the foundation” and grow its “branded value-added businesses” like chicken nuggets and prepared foods.
Another strong part of the report, the food service business, is back to growing volume as demand for protein among Americans increases. That includes broad line distribution, including to companies like Sysco (SYY), and quick-service restaurants such as Wendy’s (WEN), Burger King (QSR), and McDonald’s (MCD).
