Meat+Poultry - December 2016 - 12

BUSINESS NOTES

TACO BELL'S GRANDE GROWTH STRATEGY
Taco Bell Corp. has announced plans to expand to 9,000
locations and create 100,000 new jobs by the end of 2022,
part of a larger initiative to reach $15 billion in global sales
by 2022. The brand already has grown well beyond $9
billion, up from $7 billion in 2011.
The Irvine, California-based subsidiary of Yum! Brands
Inc. currently operates 7,000 US restaurants and 250
restaurants overseas, employing more than 210,000.
"Our planned growth over the next six years is going to
help us reach $15 billion in global system sales by 2022,"
said Brian Niccol, CEO at Taco Bell. "With that comes the
need to attract and retain
"We understand that top talent so that we're
Taco Bell is a first job continuing to deliver
the best customer
for a lot of people."
experience possible."
To help achieve its
- FRANK TUCKER
goals, Taco Bell earlier
this month launched "Start with Us, Stay with Us," a
platform designed to encourage employees to leverage
the career-building and education programs Taco Bell is
offering. The company also has partnered with Roadtrip
Nation to highlight the stories and career paths of current
and former employees of Taco Bell.
"We understand that Taco Bell is a first job for a lot of
people," said Frank Tucker, chief people officer at Taco
Bell. "Whether they want to start with us for a year or
stay with us for life, we feel it's our responsibility to make
sure we're offering benefits and programs that create
innovators and leaders for our communities inside and out
of our restaurants."

MAPLE LEAF Q3 PROFIT JUMPS 70%
Net income at Maple Leaf Foods Inc. surged 70 percent in
the third quarter, lifted by lower operating costs, higher
prices and stronger sales volume.
For the three months ended Sept. 30, net income
for the period was C$31.83 million ($24.8 million), or 24
Canadian cents per share, compared with C$18.68 million,
or 18 Canadian cents per share, reported in the third
quarter of 2015.
Total sales for the third quarter were C$852.1 million
($636.8 million) compared with C$818.8 million in the
year-ago quarter.
"Our results in the quarter and for the year-to-date
demonstrate the consistent performance we expected
from our many years of strategic transformation," Michael
H. McCain, president and CEO, said in a statement.
"We are now focused on the next horizon for Maple
Leaf, supported by the pillars of our strategy including
leading in sustainability, driving innovation and growth,

12

MEAT+ POULTRY | 12.16 | www.meatpoultry.com

consistently reducing our costs and expanding our
geographic footprint."
On a segment basis, the Meat Products group, which
includes value-added prepared meals, lunch kits, snacks
and value-added pork and poultry products, reported a 4.1
percent increase in sales to C$848.1 million, or 2.8 percent
after adjusting for foreign currency exchange.

TYSON ANNOUNCES Q4 RESULTS, NEW CEO
This past month, Springdale, Arkansas-based Tyson Foods
Inc. reported higher profit in its fiscal fourth quarter
despite lower sales. The company also announced the
appointment of Tom Hayes to CEO, replacing Donnie
Smith on Dec. 31, 2016.
"Tom Hayes is a proven leader who has played an
important role in creating today's Tyson Foods and driving
growth across our company," said John Tyson, chairman
of the board.
Tyson's net income for the quarter of $391 million
exceeded the 2015 fourth quarter mark by 52 percent. The
company's adjusted quarterly earnings per share of $0.96
represents an increase of 16 percent over the same quarter
of 2015. For the year, Tyson reported record-high EPS of
$4.39, up 39 percent over fiscal 2015. Operating income
for the year topped $2.8 billion, an increase of 31 percent.
Sales for fiscal 2016 slid to $36.88 billion compared to
$41.37 billion. On a segment basis, sales were down for the
quarter and for the year. Chicken segment sales dropped
10 percent, to $2.81 billion vs. $3.02 billion during the
quarter. For the year, sales in the Chicken segment were
off 2.6 percent at $10.93 billion compared to $11.39 billion
in 2015. Pork segment sales for the quarter were $1.24
billion, a 6.8 percent decrease from the $1.31 billion posted
in 2015. For the year, Pork segment sales were $4.90
billion, down 2.5 percent from $5.23 billion in 2015. Beef
segment sales, hindered in part by an average price decline
of 15 percent, were $3.48 billion for the quarter, a 7.4
percent slip from the same quarter last year. Beef segment
sales lagged last year's $17.24 billion by 1.1 percent, at
$14.51 billion. The company's Prepared Foods segment
sales for the quarter were down 4.8 percent, at $1.84
billion vs. $2.01 billion. For the 2016 fiscal year, Prepared
Foods sales were $7.35 billion vs. $7.82 billion in 2015, a
drop of 2.9 percent.
Smith pointed out that there was plenty of good news in
the year. "Fiscal 2016 was our fourth consecutive year of
record results," Smith said. "We produced record earnings
per share, operating income and operating margin."
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Meat+Poultry - December 2016

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