Tyson Foods cuts profit outlook as beef prices surge and cattle supplies tighten
Tyson Foods lowered its annual profit forecast, citing record‑high beef prices and a tight U.S. cattle supply. The company's beef segment posted an operating loss of $138 million in the third quarter, with volume down 15.9% and prices up 12.1%. Average retail beef price reached an all‑time high of $9.64 per pound in April, pressuring consumer demand and overall meat department sales.
The firm expects the beef segment to lose between $500 million and $650 million for the year and trimmed its full‑year revenue growth guidance to 2.5%‑3.5% from a prior 2%‑4% range. While chicken and pork sales remained strong, the beef shortfall dragged overall earnings. CEO Donnie King announced he will step down at fiscal year‑end, with board member Jeff Schomburger named as his successor. CFO Curt Calaway described the industry conditions as “challenged.”
The Trump administration recently lifted a ban on Mexican cattle imports, but Tyson officials said the move would only provide limited relief in 2027 and beyond, noting that feeder cattle require several months to enter the food supply. The company continues to focus on optimizing its plant network and controlling variables within its control.
Entities: Curt Calaway · Donnie King · Jeff Schomburger · Trump administration · Tyson Foods · U.S. Department of Agriculture
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 4 SOURCES] Tyson reported quarterly sales of $13.87 billion, below analysts’ estimate of $14.12 billion, and earnings per share of $0.99, beating the $0.98 estimate. (Reuters)
- [● 4 SOURCES] U.S. cattle inventories are at their lowest level in 75 years due to drought and higher feed costs. (Reuters)
- [● 4 SOURCES] Tyson Foods cut its fiscal 2026 adjusted operating‑income forecast to $2.1‑$2.3 billion, down from $2.2‑$2.4 billion. (Reuters)
- [● 4 SOURCES] Chicken sales volumes rose 1% in the quarter, helping offset beef weakness. (Reuters)
- [● 4 SOURCES] Tyson now expects annual revenue growth of 2.5%‑3.5%, below analysts’ expectation of 4.3%. (Reuters)
- [● 4 SOURCES] Tyson forecasts an adjusted operating loss for its beef segment of $500‑$650 million, wider than the prior $350‑$500 million loss. (Reuters)
- [● 4 SOURCES] Beef volumes fell 15.9% in the quarter ended June 27. (Reuters)
- [● 4 SOURCES] The U.S. Department of Agriculture suspended imports of livestock from Mexico over concerns about the New World screwworm, planning to lift the ban later this month. (Reuters)