Donnie King: Hey, John, if I might — if I might add one thing to that, and you referenced some of the larger projects being behind us, I think it’s important to remind everyone that in ’22, we began to have an outsized capital expense. All of that was in service to making sure we had the capacity necessary to grow our branded portfolio, the value-added chicken, and prepared foods as well. And we’ve got those Danville, Virginia, we have Bowling Green, Kentucky, and Caryville coming online, plus a number of operations coming online outside the United States.
Andrew Strelzik: Okay, great. That’s super helpful. And then a second question, I guess, is maybe, if you think about your footprint today, your capacity utilization across your business, and you’ve been very, very consistent in terms of saying that you’re looking for all the opportunities that are out there and those types of things across the business. So you found some more in chicken that you’ve talked about. But I guess I’m just curious if you could characterize how you think about your footprint today and how you’re evaluating those opportunities. If there’s anything beyond chicken that you think might make sense at some point, or maybe not, since we haven’t seen that yet, but just curious, as you continue to go down that path? Thank you.
Donnie King: Sure. And as we’ve said a number of times, and we’ll continue to say this, we are evaluating everything, leaving no stone unturned. If you go back and look at what we’ve announced thus far, the six chicken plants, and then most recently, the two value-added case-ready plants in our beef and pork business, those are typical of what we’re looking for. But these are typically older, less efficient, certainly not modern that require a lot of capital expenditure to try to either expand or make efficient. So, we’re choosing to move that capacity to another plant. We’re not wanting to give up any volume or share, and we’re doing that very well. But the other thing that may not be as quite as apparent is because of the efficiency play in all of our core plants, it has enabled us to run lines at rate.
It’s allowed us to get the labor and yield and throughput on those lines that we need. But that’s also been an unlock in our ability to take away some redundant capacity.
Andrew Strelzik: Great. Thanks. I’ll pass the line.
Operator: Our next question comes from Ken Goldman from JP Morgan. Please go ahead with your question.
Ken Goldman: Hi. Thank you. I wanted to ask first, Tyson in the past has gone back and forth a little bit about providing longer term margin ranges by segment. Now that you’re providing EBIT dollars by segment, and I would mirror, I think, Adam’s thoughts about appreciating that. Is it possible that at some point in the future, you might consider going back to giving us some kind of longer-term EBIT ranges instead of margin ranges? Or is the goal to kind know, hey, let’s see where the business goes, and then maybe that’ll be considered? Or is that just kind of off the table at all? I know there’s some people that just are always curious what your longer term outlook is at this point, you know, even though visibility is not great right now?
John R. Tyson: Hey, Ken, this is John. And we appreciate the question. I think today we’re not backing off of the long-term guidance, that we’ve got out there, but we’re really focused on ‘24. And so, I think the time in the future when is appropriate and reflective of our high confidence on where things are, we will we will give revisions if we deem that to be appropriate or reflective of our outlook, but today we’re really just talking about ‘24 and Q4 ‘23.
Ken Goldman: And then just as a quick follow-up. And thank you for that. It was mentioned that you’re still, if I can paraphrase maybe kind of reviewing all of your options for your pork business, I was just curious, if there’s any further insights you might be able to provide about what those options are and kind of where you are in that progress. Thank you.
Donnie King: Thanks. I’ll throw out a couple things and then I’ll let Brady step on-top of that. If you look-back in ‘23 supply-demand imbalance, there is a little of that occurring in port as we as we move into ‘24. We talked a lot about controlling the controllable, but here’s what I would tell you about that. The team that we’ve got in-place today in our Pork business is a world-class team delivering best-in class resorts, couldn’t be prouder of the work that they’ve done. But they’re also working across the lines with — as it relates to Prepared Foods and trying to unlock new opportunity. We obviously have more Prepared Foods capacity coming online. Some of the Tyson pork raw-material will be in support of that. But we’re looking at each footprint in terms of Capital requirements, how efficient, what it would take to make it modern and upscale it, but then we’re looking at network and how to do that. But with that Brady, anything you would add to that.
Brady Stewart: Thanks, Donnie. As Donnie indicated, we’ve seen improvement and John certainly in his opening remarks, talked about the improvement sequentially quarter-over-quarter and year-over-year in our Pork business. Again, that’s driven by two things, one is we did see some moderate improvements relative to the spread and we did see a significant improvement relative to us controlling our controllables. Again, that is a focus on making sure our assets, operating as efficiently as possible. Really focused on our mix and ensuring that we have world-class yields coming out of our assets as well. So when we talk about ‘24, again, we’re looking at better than $100 million of improvements year-over-year relative to ’23. We’re excited about the team that we have.
They continue to really use data and analytics and ID all of the opportunities in the business, they’ve developed the right strategies for the future. And most importantly, they’ve executed on continuous improvement in mix efficiency and yields.
Operator: Our next question comes from Peter Galbo from Bank of America. Please go ahead with your question.
Peter Galbo: Hey, guys. Good morning. Thanks for taking the questions. I wanted to unpack a little bit on Prepared Foods and the guidance for the year. Donnie, just given your commentary and some of your competitors, it seems like there is a step-up in the [map] (ph) spending and some of the promotion and maybe the category — some of the retail categories are getting more competitive. I just — I was hoping maybe you could unpack that in the current environment and then kind of reconcile, again, the guidance for the year, typically, you would see a stronger profit contribution from Prepared in the first half versus the second half of the year, and maybe this year, it seems like it might be a bit different. So anything you can do more to get more detail there.
Donnie King: Thank you. Let me say — make a couple of comments, and I’ll turn it over to Melanie. Let me start off by welcoming Melanie Boulden who is our Chief Growth Officer, and she has taken over responsibility for our Prepared Foods and she’s on our first call today representing prepared foods. And Melanie, welcome. And let me just lay a little foundation, and I’ll let Melanie close the deal. Prepared Foods is a key growth pillar for our future. Our brands continue to perform well, even last year, even in fiscal ’23 when we were challenged. We have advantaged brands in advantaged categories. So we like that. But I’ll let Melanie talk to you about some of the upside to even Prepared Foods today.
