Market Daily

Market Daily

Tyson Foods joins a host of other businesses leaving Chicago to set up a new headquarters

Chicago set to lose Tyson Foods, Boeing, and others as they move to new headquarters
Chicago set to lose Tyson Foods, Boeing, and others as they move to new headquarters

Image source: Fox Business

Businesses with offices in Chicago have decided to move, and Tyson Foods is the latest company to join Boeing, Caterpillar, and Citadel.

The announcement

On Wednesday, the poultry producer announced it would unite its employees in Arkansas, the global headquarters of Tyson Foods.

As a result, three offices in downtown Chicago, Downers Grove, Illinois, and Dakota Dunes, South Dakota will be closed.

More than 1,000 employees will begin the move early next year, where they will work in three offices.

Tyson Foods CEO Donnie King released a statement stating:

“Bringing our talented corporate members and businesses together under one roof unlocks greater opportunities to share perspectives and ideas, while enabling us to act quickly to solve problems and provide the innovative products solutions that our customers deserve and value.”

Chicago crimes

Losing Tyson Foods would be another blow to the city of Chicago.

Chicago has already built a reputation for its crime, something McDonald’s CEO Chris Kempczinski has criticized.

The headquarters of the fast food chain is currently in Chicago.

Kempczinski recently claimed that crime is spreading to all corners of the city and revealed that people often ask him what is happening in the city.

Speaking to the Chicago Economic Club last month about the plight of the city, he said:

“We have violent crime that’s happening in our restaurants… we’re seeing homelessness issues in our restaurants.”

“We’re having drug overdoses that are happening in our restaurants.”

“So we see in our restaurants, every single day, what’s happening in society at large.”

Chris Kempczinski said recruiting people for the McDonald’s headquarters had been difficult.

“One of the things that I hear from our employees [is] … ‘I’m not sure it’s safe to come downtown.’”

McDonald’s said it would stay in Chicago.

However, other companies are more reticent about why they are leaving the city.

Tyson Foods stated that their decision had nothing to do with the crimes in Chicago.

Other companies in Chicago

Last May, Boeing announced its departure from Chicago for Washington, DC.

However, the company did not contribute to their decision to leave the city with its crimes.

Instead, analysts said the change was a sign that the company had lost the trade race to Airbus.

They suggested that Boeing primarily wanted to be seen as a defense and aerospace company.

Boeing has been based in Seattle for decades, from its inception in 1916 to 2001.

Caterpillar and Citadel also announced they would be leaving Chicago and moving to various locations outside of Illinois.

The construction company was based in Deerfield, a suburb of Chicago.

Tyson Foods

Like other businesses, Tyson Foods had a tough year due to inflation.

The company said demand for chicken is extremely strong, while the most expensive cuts of beef are weakening.

In the most recent quarter, the average selling price for broiler chickens by weight decreased while the average selling prices for beef and pork increased.

The price drop comes as consumers stock up on some premium cuts.

While consumer demand for meat has remained strong, consumers are switching meat types due to inflation.

Tyson Foods plans to launch new, more affordable options and add new, larger packaging for the budget-conscious consumer.

Meanwhile, the company’s shares are down around 25% this year.


Big companies keep leaving Chicago. What’s going on?

Opinions expressed by Market Daily contributors are their own.