Pilgrim's Pride misses third-quarter profit forecasts as chicken supply outpaces demand
Revenue of $4.65B was just under the $4.68B analysts expected, and the company says a 2.2% rise in US chicken supply outpaced demand growth.
Pilgrim's Pride earned $0.49 a share in the third quarter, $0.07 below expectations, and blames a market with more chicken than buyers. Revenue was $4.65B against $4.68B expected.
The company puts the shortfall partly on supply. It says US chicken supply rose 2.2%, faster than demand. "While consumers maintained their interest in chicken across retail and foodservice, the market experienced a significant increase in supply," said Fabio Sandri, President and CEO.
The main offset management points to is prepared foods, where volumes rose more than 15%. The company expects to close its pending purchase of Walkers Deli & Sausage in early 2027, subject to regulatory approval. Walkers is a premium pork business, so the deal does not change how much Pilgrim's earns from fresh chicken prices. Those prices remain tied to how much chicken the industry produces.
A new prepared foods plant in Walker County, Georgia, remains on track to be commissioned in the second half of 2027.
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