TS

Tyson Foods, Inc. stock research

Dec 30, 2023

FY2024 Q1

Tyson Foods (TSN) Gross Margin — Quarter Ended Dec 30, 2023

Gross margin improved from the prior quarter but declined from the same quarter a year earlier. Revenue remained stable while cost of revenue decreased sequentially and increased year over year, directly driving the margin changes.

Gross margin takeaway

Quarter ended Dec 30, 2023 · FY2024 Q1

Gross margin improved from the prior quarter but declined from the same quarter a year earlier. Revenue remained stable while cost of revenue decreased sequentially and increased year over year, directly driving the margin changes.

  • The quarter-over-quarter gross margin improvement was driven by a lower cost of revenue relative to stable revenue. The year-over-year decline in gross margin was driven by a higher cost of revenue relative to stable revenue.
  • Compared to the prior quarter, gross profit increased and gross margin improved. Compared to the same quarter one year earlier, gross profit decreased and gross margin weakened.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

6.2%

Gross profit

$823.0M

Revenue

$13.3B

Cost of revenue

$12.5B

Quarter-over-quarter change

+2.7 pts

Year-over-year change

-1.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Apr 1, 2023$13.1B$527.0M$12.6B4.0%
Jul 1, 2023$13.1B$677.0M$12.5B5.2%
Sep 30, 2023$13.3B$459.0M$12.9B3.4%
Dec 30, 2023$13.3B$823.0M$12.5B6.2%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2023

+2.7 pts

Year-over-year change

Dec 31, 2022

-1.1 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The quarter-over-quarter gross margin improvement was driven by a lower cost of revenue relative to stable revenue. The year-over-year decline in gross margin was driven by a higher cost of revenue relative to stable revenue.

Compared to the prior quarter, gross profit increased and gross margin improved. Compared to the same quarter one year earlier, gross profit decreased and gross margin weakened.

Monitor cost of revenue trends, as changes in this metric directly affect gross margin.