🕒 Created · Updated

Donnie King of Tyson Foods lowers 2026 profit and sales targets due to beef segment pressures

Donnie King, the President and Chief Executive Officer of Tyson Foods, reported a downward revision to the company's fiscal 2026 adjusted operating income and revenue growth targets. The company now expects adjusted operating income to fall between $1.85 billion and $2.05 billion, down from a previous forecast of $2.1 billion to $2.3 billion. Revenue growth is also projected to be between 1.5% and 2.0%, compared to the previous estimate of 2.5% to 3.5%. These revisions were driven by significant margin compression and volatile cattle prices. The beef segment is specifically forecast to lose between $625 million and $775 million, a widening loss from previous estimates. To address these pressures, Tyson Foods announced plans to close or sell three beef plants and packaging operations, including facilities in Joslin, Illinois, and Eagle Mountain, Utah, while seeking to sell the Pasco, Washington plant. King noted that these actions reflect industry-wide cattle-cycle dynamics. The company also expects to benefit from the resumption of Mexican livestock imports, though it will take approximately one year for the industry to benefit from the imported feeder cattle.

Sources

Paywall and unreadable sources