Tyson misses Q2 sales estimates as a major US cattle shortage weighs on beef demand
The company says its beef business is facing “the most challenging market conditions yet.”
Tyson Foods shares slid nearly 8% on Monday, making it one of the worst performers in the S&P 500, after the protein giant posted mixed Q2 earnings and offered a shaky outlook.
While Tyson’s earnings per share came in at $0.92 for the quarter, topping FactSet estimates of $0.83, sales reached $13.0 billion, falling shy of estimates. Beef continued to be a pain point, with sales falling for the sixth consecutive quarter.
A nationwide cattle shortage has sent prices soaring to nearly $6 per pound, about 50% higher than in 2020. The drop in beef sales has shifted Tyson’s focus to its chicken business, which has thrived thanks to lower grain costs and stronger consumer demand.
Looking ahead, Tyson expects full-year 2025 sales to stay flat or grow just 1%, falling short of analysts’ expectations.
Tyson shares are now down about 4% over the past year.