STORY: Shares of Tyson Foods fell as much as nine percent in Monday morning trading after it warned that consumers are being more cautious about their spending because of higher prices.

The largest U.S. meat company by sales posted a quarterly profit that topped expectations, but said net sales fell slightly and it projected they would remain flat in its fiscal 2024.

One analyst told Reuters the current quarter is typically the strongest from a seasonal perspective, so the outlook was viewed as a disappointment.

Tyson has shuttered six chicken plants in four states since the start of last year, laid off corporate employees and announced plans to close a pork plant, in an attempt to rein in costs.

The meatpacker has been attempting to turn around its chicken unit for years but struggled with excess supply in 2023.

The segment's sales were down 8.3% in the quarter as prices fell 2.1%.

However, Tyson boosted its estimate for total adjusted operating income for its fiscal year.