Tyson Foods Inc shares crashed on Monday, falling more than 14%, after the company announced that its CEO was surprisingly stepping down at the end of the year.
The nation’s biggest meat processor also forecast lower than expected profits for next year, leaving investors disappointed and nervous. The company anticipate a profit of $4.70 to $4.85 a share in the year ending September 2017, below analysts’ average estimate of $4.98.
CEO Donnie Smith, 56, has been revered by many on Wall Street as the company’s most successful leader. Shares of the company more than quadrupled since Smith took over seven years ago.
Tom Hayes, the company’s president, will succeed Smith. Hayes was previously chief supply chain officer for Hillshire Brands Co, before Tyson acquired it in 2014.
“The board’s decision to name Tom (Hayes) CEO at this time was based on both his track record and how his skills align with the company’s strategic direction and continuing evolution,” John Tyson, chairman of the board and the founder’s grandson, said in a statement.
Disclaimer: We have no position in Tyson Foods, Inc. (NYSE: TSN) and have not been compensated for this article.