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Tyson's Beef Woes Deepen Amid Revenue Rise
27 Aug
Summary
- Tyson Foods updated fiscal 2026 revenue outlook to 2.5%-3.5%.
- Company reported Q3 2026 sales of $13.87 billion, flat year-over-year.
- Beef segment faces significant losses, leading to plant closures.
Tyson Foods has raised its fiscal 2026 revenue growth outlook to between 2.5% and 3.5%, driven by price adjustments across protein categories. This comes as the company reported third-quarter 2026 sales of $13.87 billion, essentially flat compared to the previous year. Despite challenges, the Chicken and Prepared Foods segments demonstrated robust operating growth.
The company's Beef segment, however, continues to grapple with severe structural losses attributed to cattle herd shortages and high input costs. Management projects a full-year operating loss for Beef between $(650) million and $(500) million. In response, Tyson announced on August 13, 2026, the closure of its Joslin, Illinois beef plant and the sale of its Pasco, Washington facility.
These strategic shifts occur as Tyson Foods maintains a solid financial position, reporting $913 million in nine-month free cash flow and $4.0 billion in available liquidity. Analysts, such as BofA, have maintained a cautious stance, adjusting price targets and earnings estimates for the company.
