Pilgrims Pride Q2 sales fall on softer chicken demand

Pilgrims Pride

29/07/2026 22:13

Overview
U.S. poultry producer's Q2 sales declined 2.8% and missed analyst expectations
Q2 adjusted EBITDA dropped 48% year-over-year and missed analyst expectations
Company cites lower commodity pricing and supply growth outpacing demand for weaker results

Outlook
Company expects investments in plant upgrades and operational improvements to mitigate commodity volatility
Pilgrims Pride says expansion projects in U.S. and Mexico remain on schedule

Result Drivers
LOWER COMMODITY PRICING - Co said profitability declined from previous year due to reductions in commodity market pricing
SUPPLY OUTPACING DEMAND - Co said supply growth rose faster than demand, putting pressure on margins
PLANT UPGRADES AND PRODUCTIVITY - Co said sequential margin improvement was supported by completion of plant upgrades and gains in live operations

Company press release: ID:nGNX2Kxm68

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$4.63 bln
$4.71 bln (5 Analysts)
Q2 EPS
 
$0.06
 
Q2 Adjusted EBITDA
Miss
$360 mln
$384.96 mln (5 Analysts)
Q2 Adjusted EBITDA Margin
 
7.80%
 
Q2 Operating Income
 
$66 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy."
Wall Street's median 12-month price target for Pilgrims Pride Corp is $33.50, about 12.4% above its July 28 closing price of $29.81
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
July 29 - US beef/pork packer margins - Hedgersedge
July 29 - Bunge posts Q2 earnings beat on strong crush margins, raises 2026 outlook
July 27 - Most CME feeder cattle fall daily limit as USDA lifts ban on Mexican imports

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)