The outcome of the recent presidential and congressional elections in the United States could have a meaningful impact on a diversified agrifood company like Tyson Foods.
But when asked about them during a quarterly earnings call on November 12, the message and the tone of Tyson Foods CEO Donnie King’s response appeared to signal indifference.
Once the people elected on November 5 are sworn into office, the U.S. will see a former president return to the Oval Office, the presidency flipping from being affiliated with the Democratic Party to the Republican Party, and control of the U.S. Senate switching from Democrats to Republicans.
During the earnings call, JP Morgan analyst Ken Goldman pointed out that a new administration will be coming into the White House, and indicated that there could be “a lot of uncertainty, maybe both on the upside and the downside,” specifically mentioning potential changes regarding regulations and trade tariffs.
“Is it possible to even analyze what might be some upside and downside drivers at this time, or is it just way too early to say,” Goldman asked King.
While King did say, “We look forward to working with the incoming administration,” his response indicated that regardless of whether he had confidence in future presidential administration and members of Congress, he had full confidence in the entire Tyson Foods team.
“There’s a lot we don’t know at this point, but I would remind you that we’ve successfully operated this business for … 90 years, no matter the party in control, the environment,” said King.
“Like all businesses, we’ll assess any new policies and plan accordingly. We’re going to control what we can control in this environment. I’ll leave it at that.”
Tyson Foods, according to its website, was founded in 1935. That was when Franklin D. Roosevelt was president, and in his first term at that.
Since that time, the United States has had 14 presidents, the majority of which have served more than one term.
And when you bear in mind that new members of the House of Representatives are elected every two years, and key cabinet members like the secretary of agriculture often don’t remain on board through an entire presidency, adapting to changes in the federal government is par for the course for Tyson Foods.
With that in mind, it is understandable that King would feel the way he does.
