Tyson's Lack of Moat Leaves Commodity Volatility the Main Determinant of Profitability

No-moat Tyson primarily sells raw beef, pork, and chicken, although it has increased its exposure to prepared foods. Despite the scale it has amassed (with a sales base around $53 billion), meat is a commodity that carries little to no brand or pricing power, exposing sellers to volatility in both costs and revenue. Tyson's strategy to sell three meats is intended to offer diversification. But diversification has its costs, and the headwinds of any one meat have weighed on companywide results at times. Additionally, we think there's limited revenue or cost synergies across different proteins.