Chicken Drives Increased Sales at Tyson Foods, but Beef Struggles Continue

The company expects operating losses of $400 million to $600 million in its beef segment for fiscal year 2026 due to tight cattle supplies.

Tyson Foods’ Beef Meatloaf for sale at a grocery store in Encinitas, Calif., on May 29, 2014. Mike Blake/Reuters

Tyson Foods, headquartered in Springdale, Arkansas, reported sales of $13.86 billion in its most recent fiscal quarter, a nearly 5 percent increase from the previous year, with chicken powering protein sales at the nation’s largest meat producer.

Full-year sales for the fiscal year ended Sept. 28 were up by 3.3 percent to $54.4 billion, Tyson Foods reported. Quarterly adjusted operating income from the company’s chicken segment was $457 million, up by 28 percent from $356 million for the same quarter in 2024. However, a number of factors impacting the beef industry led to quarterly losses of $94 million in that segment.

For its fiscal year, Tyson Foods has lost $426 million in adjusted operating income in its beef division, while chicken sales have led to nearly $1.5 billion in revenue.

During an earnings call with analysts, Donnie King, Tyson Foods’ president and CEO, said the company’s chicken segment benefited from reduced feed costs and stronger operational execution, but a number of challenging factors created market headwinds in the beef segment.

“Cattle supplies are at record lows due to drought, potential herd rebuilding, and the impact of new world screwworm in Mexico,” King said. “Despite these challenges, we’re prioritizing efficiency, reducing costs and introducing innovative products. This positions us to emerge stronger in beef when market conditions improve.”

The new world screwworm outbreak was first reported in November 2024. The U.S. Department of Agriculture (USDA) immediately closed the border to live cattle but reopened it in February before changing course a few months later in May.

Beef prices have risen throughout the year. According to the Bureau of Labor Statistics, the average cost for a pound of fresh beef in September was $6.32, up by 12 percent from a year earlier.

With cattle inventories expected to remain tight throughout 2026—the USDA predicts domestic production will decline 2 percent—Tyson Foods forecasts operating losses between $400 million and $600 million for its beef segment for fiscal year 2026.

However, increased consumer demand for chicken and a 1 percent increase in domestic production are expected to bring adjusted operating income of $1.25 billion to $1.5 billion in that segment, Tyson Foods said.

“Chicken is an affordable, high-quality protein, and our innovative value-added offerings position us uniquely to serve both retail and food service customers amid high beef prices,” King told analysts. “While we are not satisfied with our current beef results, our diversified business model continues to build resilience and drive profitability across the company.”

Tyson Foods also reported adjusted operating income of $181 million from pork and $913 million from its packaged foods division, which includes brands such as Aidells, Ball Park, Hillshire Farms, and  Jimmy Dean.

Despite the challenges in the beef industry, Tyson Foods delivered adjusted earnings per share of $1.15 for the quarter ended Sept. 27, a 25 percent jump from last year and topping analyst expectations of $0.87, which helped send the company’s stock upward in early-morning trading. Tyson Foods’ share price closed up 2.3 percent at $53.90.