Tyson Foods beat on both adjusted earnings and revenue in its fiscal second quarter report as the protein craze pushed results higher.
Adjusted earnings came in at $0.87, beating Bloomberg consensus estimates of $0.79. Revenue came in at $13.65 billion, more than the $13.58 Wall Street expected.
“I would characterize it as just a continuation of what’s been going on. It’s just seeing the compounding effect of all the great work that’s been going on at Tyson for a number of quarters now,” CEO Donnie King said in a phone call with Yahoo Finance.
King said the company has hit a stride by investing in operations, including its supply chain and innovation — especially around prepared foods and protein — as well as value, offering various price points in this environment.
All that growth is offsetting ongoing challenges around beef.
The US cattle herd is at its lowest level in 75 years, per the USDA, prompting Tyson to close a beef facility earlier this year.
Higher prices, up 4.1%, especially for beef, up 11.5%, were a key driver of the quarter and offset lower volume for beef, down 13%.
In the quarter, chicken prices ticked higher, up more than expected at 1.8%, but volume was up just 1.7%, less than the 2.7% growth the Street expected.
“We think expectations into the print were for upside in Chicken to offset a shortfall in Beef. We view the magnitude of the Chicken beat as encouraging, along with the guidance boost for total company operating profit,” JPMorgan Thomas Palmer said in a note to clients.
More consumers are buying pork and Tyson’s prepared foods options, like its Jimmy Dean and Ball Park brands, offsetting results.
The company is in “fairly early innings” of connecting with more younger consumers, King said, with digital tools and products designed to target them, including Jimmy Dean high-protein breakfast bowls, high-protein sandwiches, and even high-protein waffles.
For 2026, the company now expects adjusted operating income to be in the range of $2.2 billion and $2.4 billion. That’s $100 million more than the previously expected range.
As the USDA expects a 2% decline in beef production this year, the company expects a loss of between $350 million and $500 million, a higher range compared to the previous low end of $350 million.
Tyson increased its profit outlook for chicken to a range of $1.9 billion to $2.05 billion, compared to its previous outlook of $1.65 billion to $1.90 billion this fiscal year.
Something else to watch: higher gas prices, which are now at $4.46, according to AAA data.
“If high gas prices persist, ultimately you’re going to see an impact on discretionary spending, and you’re going to see an impact on food service traffic then, so the consumer is going to go to retail from food service,” King said, adding that quick-service restaurants will then likely engage in promotional activity.
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