Tyson Foods Inc. has raised its full-year earnings forecast, as robust U.S. chicken demand and lower feed costs offset continued losses in its beef division. The company now expects operating earnings, excluding certain items, to fall between $2.1 billion and $2.3 billion for fiscal year 2025. This represents a $100 million increase at the midpoint compared to its previous outlook. Tyson attributed the more optimistic forecast mainly to improved performance in its chicken business.
A sharp shortage of cattle has driven slaughter-weight animal prices to record highs, squeezing profits for beef processors who are unable to fully pass on higher costs to consumers. Tyson has been able to soften the blow from its struggling beef operations with increased demand for chicken, as consumers opt for less expensive protein. Additionally, the company’s poultry segment has been supported by plentiful grain supplies, helping keep feed costs in check.
