Pilgrim’s Pride profit drops 96% in Q2 despite steady demand for chicken

USA – Pilgrim’s Pride Corporation reported net profit of US$13.2 million for the second quarter ended 28 June 2026, down sharply from US$356 million recorded during the same period last year, as weaker commodity chicken prices reduced profitability despite continued consumer demand.

Revenue declined 2.8% year on year to US$4.6 billion from US$4.8 billion, while earnings per share fell to US$0.06 from US$1.49 in the corresponding quarter of 2025.

President and Chief Executive Officer Fabio Sandri said chicken demand remained strong across retail and foodservice markets, with consumers continuing to choose poultry because of its affordability, while the company maintained investments aimed at supporting long term sales growth and reducing exposure to fluctuations in commodity markets.

Pilgrim’s said chicken supply exceeded demand during the quarter, leading to counter seasonal weakness in the jumbo commodity cutout market, where prices fell by more than 25% compared with 2025 and dropped below the five year average.

The company said ongoing investment in large bird portioning equipment and dark meat deboning capacity is intended to increase prepared foods production and reduce dependence on commodity chicken sales.

Retail sales increased across all major protein categories, with chicken delivering the strongest growth, while volumes of boneless skinless chicken breast rose compared with a year earlier as pricing remained stable.

The company also reported continued growth in boneless skinless dark meat sales during the quarter, building on momentum recorded in the first quarter of 2026.

Investment programme continues

Prepared foods volumes increased by almost 14% year on year, supported by strong performance from the Just Bare brand, whose sales grew 30%, allowing it to gain nearly 300 basis points of market share in the frozen fully cooked chicken category over the past year.

Pilgrim’s said its US$400 million investment in Walker County, Georgia, announced in 2025 and scheduled to begin operations in the second half of 2027, will expand production capacity for value added poultry products.

The company also recorded higher volumes across its case ready and small bird product lines, while demand from foodservice customers remained stable as restaurant operators continued expanding chicken based menu offerings.

Last month, Pilgrim’s announced a US$75 million investment in its poultry processing facility in Ellijay, Georgia, to increase deboning capacity and support rising demand for products supplied to quick service restaurant chains.

Outside the United States, the company’s European operations increased retail sales volumes despite weaker pork margins and softer foodservice demand, while its Mexican business benefited from favourable growing conditions that increased bird weights and production, alongside continued strong consumer demand for fresh and prepared chicken products.

Pilgrim’s said ongoing investments in Mexico, including a new prepared foods production line at Porvenir and expansion work in the Southern Peninsula, remain on schedule as the company continues positioning its business to improve margins and reduce exposure to commodity price volatility.

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