Tyson Foods Hit by Beef Losses
Tyson Foods' stock tumbled 9% after weak beef demand and rising cattle costs overshadowed a strong chicken performance and better-than-expected profits.
Tyson Foods just served up another helping of disappointing beef results, and Wall Street isn’t hungry for it.
On Monday, Tyson shares dropped 9% after the company reported a sixth consecutive quarterly loss in its beef segment. Despite a 48% jump in overall earnings, investors were spooked by a sour combination: high cattle costs, sluggish consumer demand for expensive beef, and growing concerns about tariffs hitting exports.
The beef business — Tyson’s biggest — saw a $149 million adjusted loss in the second quarter, as U.S. ranchers, still reeling from drought-driven herd reductions, passed higher costs to processors. And with average prices up 8.2%, many consumers have pivoted to cheaper proteins like chicken.
Thankfully, chicken is flying high for Tyson. Sales volumes rose 3%, boosted by lower grain costs, falling prices, and operational efficiencies. That led to a $312 million quarterly profit in the chicken segment, nearly double from a year ago.
Even so, the overall sales number — $13.07 billion — missed Wall Street’s expectations, and executives didn’t revise their full-year revenue guidance, signaling caution amid ongoing economic pressures.
Key Takeaways:
Beef struggles: $149M loss; sixth consecutive quarter in the red.
Chicken wins: $312M profit; volumes up, prices down.
Legal clouds: $343M set aside for pork price-fixing claims.
Tariff tensions: Export jitters continue to linger.
Muted optimism: Earnings beat, but no full-year forecast bump.
Tyson’s CEO Donnie King tried to reassure investors, calling beef market conditions “the most challenging we’ve ever seen,” but maintaining that global meat demand remains intact. The market, however, wasn’t so convinced.
As shoppers rethink what’s affordable to put on their plates, Tyson will have to keep juggling price sensitivity, legal challenges, and geopolitical risk. Chicken might be saving the day now — but beef's bite still stings.
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