Tyson trims annual profit forecast as tight cattle supplies squeeze beef business

As beef prices rise, some consumers have turned to chicken as a cheaper source of protein, helping Tyson offset part of the weakness in its larger beef segment.

Chicken sales volumes rose 1% during the quarter, while adjusted operating margin in the segment increased 11.2%.

Tyson reported quarterly sales of $13.87 billion, below analysts' estimates of $14.12 billion.

Tyson Foods cut its annual profit forecast on Monday, warning that losses in its beef business would widen as tight cattle supplies keep livestock costs elevated.

U.S. ranchers have slashed herd sizes after years of drought burned up pastures and raised feed costs, shrinking cattle inventories to their lowest level in 75 years, driving up beef prices, and squeezing meatpackers' profit margins.

Higher prices have also weighed on demand as inflation-conscious consumers curb spending.

Tyson now expects fiscal 2026 adjusted operating income of $2.1 billion to $2.3 billion, compared with its previous forecast of $2.2 billion to $2.4 billion.