Jim Cramer -- Tyson CEO Smith's Retirement Concerns Investors

Corrects to note Donnie Smith is remaining with the company as a consultant after he retires as CEO.

Shares of Tyson Foods (TSN) are dropping down more than 16% Monday after the company missed on earnings and revenue expectations, provided earnings estimates for 2017 that fell short of estimates.

As if that wasn't enough, the company also announced CEO Donnie Smith will retire at the end of the year. 

That's a lot to take in, and investors are nervous, even though Smith will remain with the company as a consultant, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment. 

Many investors thought Tyson overpaid when it bought Hillshire Brands in 2014, Cramer said. However, Tyson proved that it wasn't just a commodity food provider but a proprietary food producer, Cramer noted. 

Smith was such an important factor in the company's transition that led to its success that his retirement is a major concern for investors, he added. It doesn't help that food companies like Tyson are falling out of favor. Investors are plowing their capital into cyclical stocks tied to the current rotation rally, Cramer concluded. 

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

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