Pilgrim's Pride misses third-quarter profit estimates
Management blames part of the shortfall on rising chicken supply and says growth in prepared foods offset some of it.
Published
Pilgrim's Pride reported third-quarter earnings of $0.49 per share, $0.07 below expectations. Revenue was $4.65 billion, against $4.68 billion expected.
The company attributes part of the shortfall to supply. It says US chicken supply rose 2.2%, outpacing demand growth. Fabio Sandri, the company's president and chief executive, said consumers kept their interest in chicken across retail and foodservice, but that "the market experienced a significant increase in supply."
Management points to prepared foods as the main offset, with volumes up more than 15%.
Pilgrim's expects its pending acquisition of Walkers Deli & Sausage to close in early 2027, subject to regulatory approval. Walkers Deli & Sausage is a premium pork business, so the deal does not change the company's exposure to fresh chicken pricing. The company's new prepared foods facility in Walker County, Georgia, remains on track for commissioning in the second half of 2027.
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