(Reuters) – This Monday (10) forecast annual revenue above analysts’ estimates, betting on demand for chicken products to offset weaknesses in its beef business, causing its shares to rise as much as 5.7% in early trading.
Consumers, especially those from low-income households, are increasingly cooking at home amid persistent inflation and trade policy uncertainty, which is helping demand for packaged foods.
Sales of the company’s chicken products have remained resilient, due to demand for this relatively cheap protein source and falling prices due to oversupply in the market.
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“Chicken continues to carry Tyson’s portfolio, while beef remains a drag,” said Consumer Edge analyst Alex Jarombek.
Tyson Foods expects fiscal 2026 revenue to rise between 2% and 4%, well above analyst expectations of 2.3% growth, according to data compiled by LSEG.
Falling herd in the US
However, the size of the domestic cattle herd has fallen to its lowest level in nearly 75 years due to prolonged droughts, increasing costs for packers and driving beef prices to record levels.
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“The beef segment remains our only weak point,” said Chief Executive Donnie King, adding that cattle supplies are expected to remain tight through 2026.
COO Devin Cole added that Tyson “may be seeing the early stages of heifer retention.”
On Friday, US President Donald Trump accused meatpackers of raising US beef prices through manipulation and ordered a Justice Department investigation.
A White House official said last month that the U.S. could quadruple low-tariff beef imports from Argentina to lower prices.
Tyson Foods’ net sales rose 2.2% to $13.86 billion in the fourth quarter, below analysts’ average estimate of $13.97 billion.
Adjusted earnings per share of $1.15 beat expectations of 83 cents.
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Sales volumes at Tyson’s chicken unit increased 3.8%. Beef segment volumes fell 8.4%, although sales increased 4.3% as prices rose 17%.
