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Here's Why Tyson Foods Stock Dropped 14.7% in March

By Maxx Chatsko - Apr 9, 2020 at 8:29AM

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The food producer is an essential business, but it hasn't been spared by COVID-19.

What happened

Shares of Tyson Foods (TSN -0.94%) tumbled nearly 15% last month, according to data provided by S&P Global Market Intelligence. That left the stock trading near five-year lows. The S&P 500 didn't fare much better in March, dropping 12.5% on the abrupt uncertainty forced onto investors by the coronavirus pandemic.

The biggest concern for the food producer is the health and safety of frontline workers. According to an update in early April, the coronavirus pandemic has arrived on the doorstep of Tyson Foods. The stock price takes a backseat to human experiences, but the latest information suggests 2020 could be a challenging year for the dividend stock

Declining red lines on a chalkboard.

Image source: Getty Images.

So what

On April 6, Tyson Foods issued an update on its efforts to address COVID-19. The company has increased sanitizing and cleaning of common areas at its facilities, created new outdoor break rooms, and is taking the temperature of employees upon arrival. Those efforts have slowed production.

Tyson has also suspended operations at a pork plant in Iowa after more than two dozen workers tested positive for COVID-19. The pork supply originally scheduled to arrive at the plant has been redirected to other locations. 

Now what

To the company's credit, Tyson Foods will donate at least $13 million to support communities affected by COVID-19 and give nearly $60 million in bonuses to frontline workers. Those are uplifting moves at a difficult time for many. 

Investors can expect a more in-depth update when the food producer reports fiscal second-quarter 2020 operating results on May 4. 

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