Tyson Foods Lowers Annual Profit Forecast Due to Tight Cattle Supplies
Tyson Foods has revised its annual profit forecast downward, citing continued pressure on its beef business from tight cattle supplies. The company now expects fiscal 2026 adjusted operating income between $2.1 billion and $2.3 billion, down slightly from the previous range of $2.2 billion to $2.4 billion. This shift is attributed to a prolonged drought that has reduced U.S. cattle inventories to their lowest level in 75 years, increasing livestock costs and squeezing profit margins. The company anticipates an adjusted operating loss for its beef segment between $500 million and $650 million—worse than the previously expected range of $350 million to $500 million. Beef volumes dropped by nearly 16% in Q3, while higher prices have led consumers to shift toward cheaper protein sources like chicken. Tyson's chicken sales rose slightly during the quarter with improved margins. The U.S. Department of Agriculture recently began lifting a ban on Mexican cattle imports, which could help ease supply constraints for processors.
Tickers: $TSN
Topics: beef business cattle supply issues profit forecast cut