Tyson Foods shares rose slightly on Monday after the company posted mixed results for its fourth quarter and reported that chicken sales have hit their highest level in three years amid a drop in demand for beef as prices rise.
Key data
Tyson, the largest meat company in the United States, on Monday reported sales of $13.86 billion in its latest fiscal quarter, missing Wall Street’s sales estimate of $14.11 billion, but posted better-than-expected adjusted earnings of $1.15 per share (analysts had forecast 84 cents).
Chicken sales increased almost 4% compared to last year, going from $4,251 million to $4,411 million, according to the company, which predicts that they will continue to increase between 2% and 4% more in fiscal year 2026.
Tyson’s beef business, hurt by limited U.S. cattle supplies, lost $94 million last quarter on an adjusted basis, and with domestic beef production expected to continue to decline, Tyson estimates it will have an adjusted operating loss of between $400 million and $600 million for its beef business in fiscal 2026.
Tyson sold 8.4% fewer pounds of beef in the quarter despite prices rising 17%, as the company’s livestock costs rose nearly $2 billion from a year earlier.
The company cited the USDA in estimating that domestic pork and beef production will fall 3% and 2%, respectively, in fiscal 2026, while chicken production is expected to increase 1%.
Tyson shares hit an intraday high of $55.67 on Monday, up about 5%, before falling back to $53.76 in the afternoon.
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The price of ground beef increased 51% between February 2020 and September 2025, according to the Bureau of Labor Statistics. Prices rose approximately 12% between September 2024 and September 2025.
Key background
Tyson sources most of its beef from American ranchers, who are working with the lowest supply of cattle since the 1950s. The national cattle herd is at historic lows due primarily to drought in major beef-producing states, including Texas, the top producer. The national beef herd hit its lowest level in 73 years in January 2024, at 28.2 million head, and while numbers have risen slightly (to 28.7 million head), cow and calf prices continue to skyrocket. In addition to problems with domestic supply, tariffs imposed by President Donald Trump have significantly reduced imports from Brazil, one of the country’s main suppliers. Brazilian beef imported into the United States has been subject to a 76.4% tariff since August, and has decreased by nearly 100 million pounds month-over-month since May. Last month, Trump suggested that the United States would buy Argentine meat to reduce high prices, which generated strong rejection from American ranchers.
Tangent
Tyson’s earnings report comes days after Trump sharply criticized meatpacking companies and announced that the Justice Department is investigating possible collusion to artificially inflate beef prices. Trump claimed that large corporations are blaming ranchers for artificially inflating prices. Julie Anna Potts, president of the Meat Institute lobbying group, said government data shows the beef packing sector is experiencing catastrophic losses and that packers have been operating at a loss for more than a year due to livestock shortages and strong demand.
This article was originally published by Forbes US
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