olivLaw · US equity research
Pilgrim's Pride Corporation PPC
Poultry Slaughtering and Processing · SIC 2015 · Vertical: Food products (SIC 201x)
Pilgrim's Pride is one of the largest chicken producers in the world, with operations in the U.S., the U.K., Europe and Mexico, and a vertically integrated model that lets it control nearly every stage of production. It reported sales above 18.5 billion USD in fiscal 2025, while in the first half of 2026 pressure in commodity markets cut margins, which makes the resilience of its earnings worth examining.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Pilgrim's Pride Corporation (PPC) stock was 29.01 USD (+6.34% on the day), with market capitalisation 6.9 bn USD, P/E 21.5 on diluted EPS of 1.35 USD over the last 12 months, dividend yield 0.00%, beta 0.12, 52-week range 25.20–43.76 USD. Latest reported quarter (Q3 2026): revenue of 4.7 bn USD (−2.2% YoY), net income of 117.6 m USD (−65.7% YoY), diluted EPS 0.49 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 54.6
- neutral
- Bollinger (20, 2)
- 26.72 – 29.76
- in the upper half of the band · %B 0.75 · band width 10.8%
- SMA 50 / 200
- 28.87 / 32.25
- mixed trend
- MACD (12, 26, 9)
- -0.14 / -0.24
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +3.6% | −1.1% | +4.7 pp | — |
| 3 months | +9.1% | −0.5% | +9.6 pp | — |
| 6 months | −7.3% | +4.4% | −11.7 pp | — |
| Year to date | −25.6% | +12.3% | −37.9 pp | — |
| 1 year | −22.1% | +13.5% | −35.7 pp | −1.9% |
| 3 years | +10.9% | +76.4% | −65.6 pp | +1.3% |
| 5 years | +3.5% | +63.7% | −60.2 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 27 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 4.4 bn | 4.5 bn | 4.8 bn | 4.8 bn | 4.5 bn | 4.5 bn | 4.6 bn | 4.7 bn |
| Cost of revenue | 3.8 bn | 3.9 bn | 4.0 bn | 4.1 bn | 4.1 bn | 4.2 bn | 4.3 bn | 4.3 bn |
| Gross profit | 553.3 m | 554.9 m | 715.3 m | 659.4 m | 428.6 m | 345.5 m | 339.8 m | 333.7 m |
| SG&A | 235.3 m | 133.8 m | 199.5 m | 165.0 m | 215.0 m | 180.2 m | 265.1 m | 142.2 m |
| Operating income | 306.7 m | 404.5 m | 512.3 m | 492.6 m | 204.1 m | 162.6 m | 66.0 m | 191.5 m |
| Depreciation & amortisation | 111.9 m | 104.5 m | 113.5 m | 116.4 m | 121.7 m | 118.5 m | 123.3 m | 123.2 m |
| Interest expense | 47.1 m | 41.7 m | 42.5 m | 38.2 m | 39.0 m | 37.8 m | 49.9 m | 31.8 m |
| Pre-tax income | 276.5 m | 390.4 m | 475.6 m | 461.4 m | 174.7 m | 131.8 m | 21.8 m | 160.3 m |
| Income tax | 40.7 m | 94.1 m | 119.6 m | 118.3 m | 86.8 m | 30.4 m | 8.6 m | 44.0 m |
| Net income | 235.9 m | 296.0 m | 355.5 m | 342.8 m | 88.0 m | 101.4 m | 13.4 m | 117.6 m |
| Diluted EPS | 0.99 ≈ | 1.24 | 1.49 | 1.44 | 0.37 ≈ | 0.43 | 0.06 | 0.49 |
| Operating cash flow | 349.3 m | 126.9 m | 495.2 m ≈ | 458.3 m ≈ | 291.2 m | 140.8 m | 331.0 m ≈ | 212.3 m ≈ |
| Capex | 172.7 m | 98.8 m | 156.1 m ≈ | 182.4 m ≈ | 281.2 m | 236.2 m | 254.2 m ≈ | 201.3 m ≈ |
| Dividends paid | 0 | — | — | 498.9 m ≈ | 0 | — | — | 0 ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 76 percentile of its own 38-quarter history (min 6.2, median 11.8, max 212.5; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 10.9 bn | 11.4 bn | 12.1 bn | 14.8 bn | 17.5 bn | 17.4 bn | 17.9 bn | 18.5 bn |
| Revenue YoY | +1.6% | +4.3% | +6.0% | +22.2% | +18.2% | −0.6% | +3.0% | +3.5% |
| Net income | 247.9 m | 455.9 m | 94.8 m | 31.0 m | 745.9 m | 321.6 m | 1.1 bn | 1.1 bn |
| Net income YoY | −64.3% | +83.9% | −79.2% | −67.3% | +2,306.2% | −56.9% | +237.9% | −0.4% |
| Diluted EPS | 1.00 | 1.83 | 0.39 | 0.13 | 3.10 | 1.36 | 4.57 | 4.54 |
| Diluted EPS YoY | −64.2% | +83.0% | −78.7% | −66.7% | +2,284.6% | −56.1% | +236.0% | −0.7% |
| net % | 2.3% | 4.0% | 0.8% | 0.2% | 4.3% | 1.9% | 6.1% | 5.9% |
| Free cash flow | 143.0 m | 318.4 m | 369.5 m | -55.2 m | 182.8 m | 120.1 m | 1.5 bn | 653.2 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 28 Dec 2025
- Cash
- 640.2 m USD
- Financial debt
- 924.0 k USD
- Net debt
- -639.3 m USD
- Equity
- 3.7 bn USD
- Total assets
- 10.3 bn USD
- Debt / equity
- 0.00x
- Current ratio
- 1.47x
- ROE
- 27.2%
- ROA
- 10.3%
- FCF margin
- 3.5%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 12.1 bn | 14.8 bn | 17.5 bn | 17.4 bn | 17.9 bn | 18.5 bn | SEC (XBRL)· 12 Feb 2026verified |
| Cost of revenue | 11.3 bn | 13.4 bn | 15.7 bn | 16.2 bn | 15.6 bn | 16.1 bn | SEC (XBRL)· 12 Feb 2026verified |
| Gross profit | 838.2 m | 1.4 bn | 1.8 bn | 1.1 bn | 2.3 bn | 2.4 bn | SEC (XBRL)· 12 Feb 2026verified |
| Research & development | 5.4 m | 5.1 m | 12.5 m | 5.7 m | 12.4 m | 17.9 m | SEC (XBRL)· 12 Feb 2026verified |
| SG&A | 592.6 m | 1.1 bn | 604.7 m | 551.8 m | 713.3 m | 713.3 m | SEC (XBRL)· 12 Feb 2026verified |
| Operating income | 245.5 m | 211.2 m | 1.2 bn | 522.3 m | 1.5 bn | 1.6 bn | SEC (XBRL)· 12 Feb 2026verified |
| Depreciation & amortisation | 337.1 m | 380.8 m | 403.1 m | 419.9 m | 433.6 m | 456.2 m | SEC (XBRL)· 12 Feb 2026verified |
| EBITDA | 582.6 m ≈ | 592.0 m ≈ | 1.6 bn ≈ | 942.2 m ≈ | 1.9 bn ≈ | 2.1 bn ≈ | SEC (XBRL)· 12 Feb 2026derived |
| Interest expense | 126.1 m | 145.8 m | 152.7 m | 202.3 m | 161.2 m | 161.4 m | SEC (XBRL)· 12 Feb 2026verified |
| Pre-tax income | 161.8 m | 92.4 m | 1.0 bn | 365.2 m | 1.4 bn | 1.5 bn | SEC (XBRL)· 12 Feb 2026verified |
| Income tax | 66.8 m | 61.1 m | 278.9 m | 42.9 m | 325.0 m | 418.8 m | SEC (XBRL)· 12 Feb 2026verified |
| Net income | 94.8 m | 31.0 m | 745.9 m | 321.6 m | 1.1 bn | 1.1 bn | SEC (XBRL)· 12 Feb 2026verified |
| Diluted EPS | 0.39 | 0.13 | 3.10 | 1.36 | 4.57 | 4.54 | SEC (XBRL)· 12 Feb 2026verified |
| Weighted average diluted shares | 246.1 m | 244.1 m | 240.4 m | 237.3 m | 237.8 m | 238.4 m | SEC (XBRL)· 12 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 547.6 m | 427.7 m | 401.0 m | 697.7 m | 2.0 bn | 640.2 m | SEC (XBRL)· 12 Feb 2026verified |
| Inventories | 1.4 bn | 1.6 bn | 2.0 bn | 2.0 bn | 1.8 bn | 2.0 bn | SEC (XBRL)· 12 Feb 2026verified |
| Current assets | 2.9 bn | 3.3 bn | 3.9 bn | 4.2 bn | 5.1 bn | 4.2 bn | SEC (XBRL)· 12 Feb 2026verified |
| Property, plant & equipment, net | 2.7 bn | 2.9 bn | 2.9 bn | 3.2 bn | 3.1 bn | — | SEC (XBRL)· 13 Feb 2025verified |
| Goodwill | 1.0 bn | 1.3 bn | 1.2 bn | 1.3 bn | 1.2 bn | 1.3 bn | SEC (XBRL)· 12 Feb 2026verified |
| Intangibles (excl. goodwill) | 589.9 m | 963.2 m | 846.0 m | 854.0 m | 806.2 m | 832.1 m | SEC (XBRL)· 12 Feb 2026verified |
| Total assets | 7.5 bn | 8.9 bn | 9.3 bn | 9.8 bn | 10.7 bn | 10.3 bn | SEC (XBRL)· 12 Feb 2026verified |
| Accounts payable | 1.0 bn | 1.4 bn | 1.6 bn | 2.5 bn | 2.5 bn | 2.8 bn | SEC (XBRL)· 12 Feb 2026verified |
| Short-term debt | 25.5 m | 26.2 m | 26.3 m | 674.0 k | 858.0 k | 924.0 k | SEC (XBRL)· 12 Feb 2026verified |
| Long-term debt | — | — | — | 3.3 bn | 3.2 bn | — | SEC (XBRL)· 13 Feb 2025verified |
| Current liabilities | 1.9 bn | 2.4 bn | 2.6 bn | 2.5 bn | 2.6 bn | 2.9 bn | SEC (XBRL)· 12 Feb 2026verified |
| Total liabilities | 4.9 bn | 6.3 bn | 6.4 bn | 6.5 bn | 6.4 bn | 6.6 bn | SEC (XBRL)· 12 Feb 2026verified |
| Equity | 2.6 bn | 2.6 bn | 2.9 bn | 3.3 bn | 4.3 bn | 3.7 bn | SEC (XBRL)· 12 Feb 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 724.2 m | 326.5 m | 669.9 m | 677.9 m | 2.0 bn | 1.4 bn | SEC (XBRL)· 12 Feb 2026verified |
| Capex | 354.8 m | 381.7 m | 487.1 m | 557.8 m | 458.5 m | 718.5 m | SEC (XBRL)· 12 Feb 2026verified |
| Free cash flow | 369.5 m ≈ | -55.2 m ≈ | 182.8 m ≈ | 120.1 m ≈ | 1.5 bn ≈ | 653.2 m ≈ | SEC (XBRL)· 12 Feb 2026derived |
| Investing cash flow | -327.0 m | -1.3 bn | -445.3 m | -503.4 m | -460.8 m | -705.5 m | SEC (XBRL)· 12 Feb 2026verified |
| Financing cash flow | -136.7 m | 901.3 m | -232.0 m | 116.7 m | -150.9 m | -2.1 bn | SEC (XBRL)· 12 Feb 2026verified |
| Dividends paid | — | — | — | 0 | 0 | 2.0 bn | SEC (XBRL)· 12 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 53 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 6.9 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet74
- Valuation55
- Quality35
- Growth53
- Returns40
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 9.44 – 48.88 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)9.44 – 12.27 (Mid 10.55)WACC 9.3% · starting FCFF 105.9 m USD · terminal value share of EV 72%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/EBITDAunavailable · not enough peers
- Peers: P/E11.67 – 48.88 (Mid 33.55)5 companies used · median multiple 24.9x · quartiles 8.6x – 36.2xHRL, JBS, SFD, TSN, WYHG
- Dividend discount (DDM)unavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 53/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 13.8% | 60 (vs peers) | 10% |
| Net margin · Quality | 1.7% | 29 (vs peers) | 6% |
| FCF conversion · Quality | 0.8% | 0 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | 1.9% | 16 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | 13.6% | 90 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | -0.8x | 100 (on a fixed band) | 10% |
| Interest coverage · Balance sheet | 3.9x | 37 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 1.5x | 62 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 21.5x | 67 (vs peers) | 10% |
| EV/EBITDA · Valuation | 5.4x | 87 (on a fixed band) | 10% |
| FCF yield · Valuation | 0.0% | 0 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 0.0% | 0 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 0.0% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet74/100 · 3/3 factors with a value
- Growth53/100 · 2/2 factors with a value
- Quality35/100 · 3/3 factors with a value
- Returns40/100 · 2/2 factors with a value
- Valuation55/100 · 3/3 factors with a value
Memo
PILGRIM’S PRIDE CORPORATION (PPC). Latest full fiscal year: 2025; data up to 2026-09-27.
Figures computed from the financial statements: revenue 18.5 bn USD in 2025; YoY growth 3.5%; net margin 1.7%; ROE 8.6%; net debt/EBITDA -0.8x.
The estimated value range is 10.55–30.58 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 22.05 USD, the price of 29.01 USD leaves a potential of -24.0% (value / price − 1) and a margin of safety of -31.6% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 53/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EPS CAGR 3Y: 13.6%
- Net debt / EBITDA: -0.8x
- EV/EBITDA: 5.4x
- Payout ratio (FCF): 0.0%
What contradicts it
- Net margin: 1.7%
- FCF conversion: 0.8%
- Revenue CAGR 3Y: 1.9%
- FCF yield: 0.0%
- Shareholder yield (distributions): 0.0%
- The valuation methods diverge
Versus the vertical median
Food products (SIC 201x) · same industry group (3-digit SIC) · compared with 7 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| SFDSmithfield Foods, Inc. | 7.8 bn | 8.6 | 13.4% | 5.9% | +9.8% | −9% / unavailable |
| PPCPilgrim’s Pride Corporation | 6.9 bn | 21.5 | 8.6% | 1.7% | +3.5% | −22% / +11% |
| MAMAMama’s Creations, Inc. | 629.4 m | 78.1 | 7.5% | 3.5% | +39.2% | +18% / +230% |
| WYHGWing Yip Food Holdings Group Limited | 200.3 m | 24.9 | 4.8% | 5.9% | −6.5% | +8% / unavailable |
| BRIDBridgford Foods Corporation | 49.3 m | — | -12.3% | -6.1% | +3.3% | −32% / −49% |
| JBSJbs N.V. | — | 6.9 | 25.6% | 2.3% | +11.7% | −12% / unavailable |
| TSNTyson Foods, Inc. | — | 37.0 | 3.2% | 1.0% | +2.1% | +3% / +28% |
| HRLHormel Foods Corporation | — | 36.2 | 4.3% | 2.8% | +1.6% | −2% / −26% |
1- and 3-year price returns: for PPC from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 16.66 Total return -43% · Per year -43% | 29.50 Total return 2% · Per year 2% | 44.48 Total return 53% · Per year 53% |
| 3 years | 15.35 Total return -47% · Per year -19% | 30.64 Total return 6% · Per year 2% | 50.86 Total return 75% · Per year 21% |
| 5 years | 14.13 Total return -51% · Per year -13% | 31.84 Total return 10% · Per year 2% | 58.15 Total return 100% · Per year 15% |
- Exit P/E± 7.66
- Net margin± 5.36
- Annual revenue growth± 4.51
- Annual dilution± 0.45
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
In brief
Pilgrim's Pride is one of the largest chicken producers in the world, with operations in the U.S., the U.K., Europe and Mexico, and a vertically integrated model that lets it control nearly every stage of production. It reported sales above 18.5 billion USD in fiscal 2025, while in the first half of 2026 pressure in commodity markets cut margins, which makes the resilience of its earnings worth examining.
SWOT
Strengths
- Full vertical integration, from growers to distribution, gives control over quality, costs and deliveries.
- Presence in several markets, the U.S., Europe and Mexico, reduces dependence on a single region.
- Brand development and prepared products provide steadier revenue than selling commodity product.
Weaknesses
- Margins are sensitive to meat and grain price cycles, and margins in the second quarter of 2026 fell from the prior year 3.
- Concentration on a few large U.S. customers means losing one important client could have a considerable impact.
- The majority shareholder holds a very large stake, which limits the influence of other shareholders.
Opportunities
- Expanding capacity for prepared foods and boneless products could support margin improvement.
- Demand for chicken as an affordable protein could support volumes over the long term.
- Exports to Middle East and Asian markets could become an additional revenue source if international trade stabilizes.
Threats
- Outbreaks of avian influenza or other animal diseases could disrupt operations and reduce demand for the company's products.
- Product contamination could lead to recalls and costly liability claims.
- Trade tensions, tariffs and instability in the Middle East could raise costs and disrupt supply chains 2.
Risks
- Volatility of feed grain priceshigh
Feed costs can rise sharply because of global supply, agricultural policies or weather, and the company could lose margin if it cannot pass these costs on to customers 1.
- Animal disease and avian influenzahigh
Outbreaks of avian influenza or African swine fever could reduce demand, impose export restrictions and require culling of flocks or herds 1.
- Market price cyclemedium
U.S. chicken prices fell in the second quarter of 2026, and continued oversupply could prolong pressure on margins 23.
- Product liability and recallsmedium
Contamination with pathogens such as Listeria or Salmonella could lead to liability claims, recalls and reputational damage, and insurance may not cover all losses 1.
- International operations riskmedium
Currency fluctuations, tariffs, trade restrictions and regulatory changes in Mexico, the U.K. and Europe could affect results and the ability of subsidiaries to transfer funds 1.
Investment thesis
What would need to be true (bull case)
- If chicken demand stays firm and oversupply eases, margins could recover toward earlier levels, particularly in prepared products 23.
- Vertical integration and brand development, such as Just Bare, could stabilize revenue and reduce dependence on commodity prices 3.
- Net leverage of 1.43 times Adjusted EBITDA, below the target range of 2x to 3x, could give flexibility for investment 3.
What would break the thesis
- If chicken supply continues to exceed demand, price pressure could persist and further reduce margins in the U.S. 2.
- Feed and energy costs could rise again because of geopolitical tensions, weighing on profitability across all segments 2.
- Reliance on a few large customers and on a majority shareholder could limit strategic flexibility and expose the company to sudden volume changes.
What to watch
- Trend of U.S. chicken margins and commodity pricesQ3 2026
- Impact of pork imports on U.K. marginsQ3 2026
- Progress of the Walker County and Ellijay investments2027
- Margin and feed cost disclosures in the next annual reportnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 8-K (29 Oct 2026 · results), 10-Q (29 Oct 2026).
The business
The company produces, processes, markets and distributes fresh, frozen and value-added chicken and pork products to retailers, distributors and foodservice operators 1. Its key customers include chain restaurants and grocery chains, and its two largest U.S. customers together accounted for approximately 16.8% of consolidated net sales in 2025 1. Its vertically integrated model, spanning growers, feed mills, hatcheries and processing plants, is described by the company as a source of long-term cost and quality advantages 1.
In fiscal 2025 the company reported net income attributable to it of 1.1 billion USD, or 4.54 USD per diluted share, with a consolidated operating margin of 8.7% 1. For the six months ended June 28, 2026, net income attributable to it was 114.8 million USD, and the consolidated operating margin fell to 2.5% 2. For the second quarter of 2026 it reported net sales of 4.6 billion USD and an Adjusted EBITDA margin of 7.8% 3.
The company runs a 52/53-week fiscal year, and demand for chicken is usually highest in spring and summer, while demand for pork rises in summer and peaks in winter around the holiday season 1. JBS beneficially owns 82.28% of the outstanding common stock, so control is concentrated 1.
Segments
U.S.
The U.S. segment generated net sales of 11.0 billion USD in fiscal 2025, the largest segment, with an operating margin of 10.7% 1. Fresh products dominate, while prepared foods grew to about 1.3 billion USD, helped by the Just Bare brand, whose retail sales rose more than 30% according to the second-quarter 2026 release 3.
Europe
The European segment had net sales of 5.4 billion USD in fiscal 2025, with an operating margin of 5.1% 1. Prepared foods are central here, and pressure on U.K. pork margins came from imports from other European countries, which weighed on the second quarter of 2026 3.
Mexico
The Mexican segment had net sales of 2.1 billion USD in fiscal 2025, with an operating margin of 7.9% 1. In the second quarter of 2026 margins were compressed by higher domestic production and imports of chicken and eggs, while expansion of live operations in the Southern Peninsula continued as planned 3.
Market context
U.S. chicken prices in the first half of 2026 stayed below prior-year levels, because supply grew faster than demand and cold storage stocks ended the quarter above the historical five-year average 2. Demand was supported by chicken's affordability relative to other proteins, and the company noted that U.K. and Mexican prices were also below prior-year levels because of ample supply 2.
Trends
- U.S. chicken oversupplyheadwind
Higher production, chick placements and liveweights outpaced demand in the first half of 2026 and pressured market prices, and the company said supply growth was faster than demand 23. If this oversupply persists, margins in the American segment could stay under pressure.
- Chicken as an affordable proteintailwind
Chicken remains an affordable protein compared with beef, and foodservice operators have expanded chicken offerings as a value alternative 2. This trend could support volumes, especially for fresh and prepared products.
- Energy and trade pressuresmixed
The armed conflict involving Iran and the Gulf has raised energy and freight costs and disrupted shipping lanes, and tariff and trade policy changes could affect exports and international operations 2. The company said the supply constraints did not have a material impact on its costs in the period, but prolonged hostilities could have a more pronounced effect 2.
- Value-added prepared productstailwind
Prepared foods and branded products such as Just Bare are growing in the U.S., adding diversification away from commodity fresh meat, which could reduce earnings volatility from commodity markets 3.
Competitive position
The chicken and pork industries in the U.S., the U.K., continental Europe and Mexico are highly competitive, and the main factors are price, product quality, product development, brand identification, breadth of product line and customer service 1. The company believes its vertical integration gives it cost and quality advantages over non-integrated processors 1. Indirect competition also comes from other meats and fish, since changes in relative prices can alter consumer buying patterns 1.
Markets are also shaped by imports, such as pork imports into the U.K. from European countries, which pressured the company's margins in the second quarter of 2026 3. Competition on price and volume remains intense, particularly when supply exceeds demand.
- Tyson FoodsTSN
Another large U.S. chicken processor; the supplied sources do not analyze it, and information about it does not come from the company's own filings.
- Mexican chicken producers
Local Mexican chicken producers put pressure on commodity prices, especially through higher production and imports, as the company's results indicate 3.
- European pork processors
Pork imports from European countries into the U.K. pressured the margins of the British segment, according to the company's communication 3.
- Producers of other proteins
Beef, fish and other proteins compete for consumer spending, and their relative prices can change demand for chicken 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- JBS Seeks Rest of Pilgrim’s Pride Stake in $1.2 Billion DealBloomberg Markets · 18 Aug 2026 · EN
The latest news item in our archive is from 18 Aug 2026; the newest SEC filing is from 29 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report29 Oct 2026
- Current report29 Oct 2026Regulation FD disclosure · Financial statements and exhibits
- Current report29 Oct 2026Results of operations · Financial statements and exhibits
- Current report09 Oct 2026Other events · Financial statements and exhibits
- Current report23 Sept 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report09 Sept 2026Regulation FD disclosure · Financial statements and exhibits
- Current report04 Sept 2026Regulation FD disclosure · Financial statements and exhibits
- Current report28 Aug 2026Other events · Financial statements and exhibits
- Current report20 Aug 2026Other events · Financial statements and exhibits
- Current report17 Aug 2026Material agreement · Regulation FD disclosure · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-28 · SEC / Pilgrim's Pride Corporation · 12 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-28 · SEC / Pilgrim's Pride Corporation · 30 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Pilgrim's Pride Corporation · 30 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.