PILGRIMS PRIDE CORP
For the period ended Mar 29, 2026. Filed Apr 30, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 29, 2026 · Filed Apr 30, 2026
PPC$28.53-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-28; filed 2025-10-30.
0000802481-25-000143
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-29; filed 2026-04-30.
0000802481-26-000030
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 92 previous paragraphs and 105 current paragraphs.
29 unchanged; 26 reworded; 48 added; 36 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 20 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (48)
Current report
The ongoing armed conflict involving Iran and the Gulf has led, and may continue to lead, to, among other things, increased volatility and higher prices for commodities, such as energy products and freight on input material costs, increased inflation in various countries, disruptions to global trade and supply chains, including key energy transit routes. Actual or threatened disruptions to maritime shipping lanes and other escalating security tensions have increased various costs. While the supply constraints related to the conflict did not have a material impact on our costs during the current reporting period, prolonged or expanded hostilities could have a more pronounced effect in future periods. Additionally, the Russia-Ukraine war’s impact on the global feed ingredient and energy markets continues to be less pronounced than during the initial onset of the war, but there remain many risks and uncertainties that may impact global markets.
Current report
During the first quarter of 2026, the U.S. chicken market demand fluctuated. Chicken remained a strong value option relative to other proteins amid ongoing pressure on consumer finances. Consumption expenditures outpaced real disposable income and inflation accelerated, driven in part by higher energy and food costs. Volumes grew across both retail and foodservice channels. However, retail growth slowed to 1.3% in the first quarter of 2026, down from 2.8% in the first quarter of 2025, with demand higher in January and weaker in February and March following winter storm-related consumer stock-up activity. In foodservice, chicken offerings continued to expand as operators leaned into value positioning and responded to elevated beef prices, including non-chicken-focused quick service restaurants expanding chicken offerings. However, the sector remained constrained by soft traffic levels, limiting overall upside despite increased menu presence.
Current report
Export volume shipments declined about 1.1% from prior year levels as global geopolitical conflicts disrupted trade flows. Export pricing was also slightly lower than prior year levels. U.S. chicken cold storage inventories ended the first quarter of 2026 down 3.4% below the historical five-year average. Breast meat inventories were about 7.5% below prior year levels, while wing and dark meat inventories remained low. The low dark meat cold storage levels reflect increased demand and favorable pricing.
Current report
While demand remained strong, supply exceeded previous estimates during the first quarter of 2026 as the industry continued to deliver broad-based productivity gains, including improved hatchability, livability, headcounts, and liveweights, alongside record high egg sets and placements. In response to anticipated strong demand and elevated beef prices, production increased, which limited price gains during the quarter.
Current report
The reduction in first quarter of 2026 U.K. poultry volumes reflect normalization in average liveweights from the exceptionally high levels seen in late 2025 and January 2026, rather than any contraction in supply. U.K. poultry headkill during the first quarter was broadly in line with prior-year levels. Egg placements increased year-over-year through the first quarter, supporting continued strength in the domestic egg market. U.K. chicken prices remained stable versus the fourth quarter of 2025, but were modestly lower than the first quarter of 2025.
Current report
Commodity prices for chicken in Mexico increased slightly during the first quarter of 2026, though were below prior year average prices. Production was increased in the first quarter to offset expected mortality levels. Overall bird health was better than expected, due to private investments in biosecurity and animal health protocols throughout 2025, resulting in oversupply leading to reduced prices in the first quarter of 2026. Global corn and soybean meal prices were lower in the first quarter of 2026 compared to prior year levels, which helped support higher production levels for poultry in Mexico.
Current report
U.K. pork prices declined during the first quarter of 2026, reflecting continued supply pressure, while U.K. pig meat production increased by approximately 5.3% year-over-year, supported by higher slaughter numbers and sustained carcass weights, according to the U.K. Agriculture and Horticulture Development Board. In contrast, E.U. pork prices remained under pressure during the quarter despite longer-term supply contraction, with any price stabilization emerging only toward the end of the period.
Current report
Factors impacting net sales year-over-year changes by reportable segment are as follows:
Current report
•U.S. net sales decreased $107.8 million, or 3.9%, driven by the following factors:
Current report
◦Decrease in sales price per pound of $128.6 million, or 4.7%
Current report
▪This decrease was driven primarily by unfavorable market pricing conditions with current year market pricing below historical averages
Current report
◦Partially offset by an increase in sales volume of $20.8 million, or 0.8%
Current report
•Europe net sales increased $120.2 million, or 9.8%, driven by the following factors:
Current report
◦Favorable impact of foreign currency translation of $88.6 million, or 7.2%
Current report
▪This impact was driven by a strengthening of the British pound against the U.S. dollar
Current report
◦Increase in sales price per pound of $28.1 million, or 2.3%
Current report
◦Increase in sales volume of $3.5 million, or 0.3%
Current report
•Mexico net sales increased $57.2 million, or 11.7% driven by the following factors:
Current report
◦Favorable impact of foreign currency translation of $75.5 million, or 15.5%
Current report
▪This impact was driven by a strengthening of the Mexican peso against the U.S. dollar
Current report
◦Increase in sales volume of $58.8 million, or 12.0%
Current report
◦Partially offset by a decrease in sales price per pound of $77.1 million, or 15.8%
Current report
Factors impacting cost of sales year-over-year changes by reportable segment are as follows:
Current report
•U.S. cost of sales increased $83.3 million, or 3.5%, driven by the following factors:
Current report
◦Increase in cost per pound sold of $65.4 million, or 2.7%
Current report
▪This increase was driven primarily by an increase in live operations costs, grower pay, depreciation, utilities, and other operating costs
Current report
◦Increase in sales volume of $17.9 million, or 0.8%
Current report
•Europe cost of sales increased $116.2 million, or 10.4%, driven by the following factors:
Current report
◦Unfavorable impact of foreign currency translation of $78.4 million, or 7.0%
Current report
▪This impact was driven by a strengthening of the British pound against the U.S. dollar
Current report
◦Increase in cost per pound sold of $34.7 million, or 3.1%
Current report
◦Increase in sales volume of $3.1 million, or 0.3%
Current report
•Mexico cost of sales increased $79.6 million, or 18.2% driven by the following factors:
Current report
◦Unfavorable impact of foreign currency translation of $71.6 million, or 16.4%
Current report
▪This impact was driven by a strengthening of the Mexican peso against the U.S. dollar
Current report
◦Increase in sales volume of $52.6 million, or 12.0%
Current report
▪This increase was driven by market requirements in mix
Current report
◦Partially offset by a decrease in cost per pound sold of $44.6 million, or 10.2%
Current report
Factors impacting SG&A year-over-year changes by reportable segment are as follows:
Current report
•U.S. SG&A increased $40.8 million, or 59.3%, driven by an increase in legal settlement expense, legal defense costs, and marketing costs
Showing the first 40 of 48 passages. Open the source sections for the rest.
Removed paragraphs (36)
Previous report
During the third quarter of 2025, the U.S. chicken market experienced firm volume demand, supported by growth in the retail and foodservice channels early in the quarter. Toward the end of the quarter, a typical seasonal slowdown emerged. Retail demand remained resilient throughout the quarter driven by chicken's relative affordability compared to other proteins. Foodservice demand also performed well, supported by operators leveraging chicken's value proposition to expand menu offerings and attract cost-conscious customers. Export volume shipments declined about 1.7% from prior year levels, but pricing remained favorable and above prior year levels. As excess supply began to pressure chicken pricing, cold storage inventories rose by 4.3% in August, primarily driven by increased breast meat and wing stocks. Despite these increases in stock levels, inventory levels remained below the historical five-year average, consistent with trends throughout 2024.
Previous report
While demand remained strong in retail and foodservice, supply outpaced expectations. Elevated egg sets and placements compared to prior year levels drove an increase in headcount. Additionally, improvements in hatchability, liveability, and average liveweights contributed to a 2.5% year-over-year increase in ready-to-cook volumes. The imbalance between supply and demand led to sharp declines in U.S. chicken market pricing by the end of the third quarter. As a result of the market pressures, jumbo cutout pricing fell below prior year levels, though remained above the historical five-year average.
Previous report
In the third quarter of 2025, the U.K. chicken market reduced slightly year-over-year, primarily driven by an increase in production costs. Imports from the E.U. were constrained due to avian influenza outbreaks, but increased volumes from Brazil and Ukraine helped offset the shortfall. Despite stable grain prices compared to the third quarter of 2024, chicken prices rose, driven by production capacity constraints and the implementation of a mandated reduction in stocking density to 30kg/m². The market remains tight, with limited domestic flexibility as U.K. headkill is down slightly with increased supply from imports supplementing the market. In the retail channel, poultry demand is outpacing demand in the meat, fish and poultry category and prices are increasing as a result of higher welfare products.
Previous report
Commodity prices for chicken in Mexico decreased during the third quarter of 2025, though rose again later in the quarter and ended above average prior year prices. Market corn prices in Mexico were slightly higher than the same quarter in the prior year though remained lower than the historical five-year average price levels. Soybean meal prices in Mexico continued to decrease throughout the third quarter of 2025.
Previous report
U.K. market prices for pork products remained steady during the third quarter of 2025; while the market for live pigs increased slightly due to domestic demand and an increasing price differential between U.K. and E.U. pork prices. E.U. pork prices declined during the third quarter of 2025, primarily due to pressure from increases in supply earlier in the year after the reinstatement of Germany's foot and mouth disease-free status. E.U. pork prices are also under pressure as the Chinese market is softening, leading to reduced demand and lower prices on E.U. exports.
Previous report
U.K. pig production declined slightly below prior-year levels by approximately 1.3% in the third quarter of 2025, according to the U.K. Agriculture and Horticulture Development Board. This decrease was mainly driven by the prior year having an exceptionally high production level.
Previous report
Special Cash Dividend
Previous report
On March 13, 2025, the Company declared a special dividend of $6.30 per share, to stockholders of record as of April 3, 2025. On April 17, 2025, the Company paid that special dividend from retained earnings of approximately $1.5 billion. The Company used cash on hand to fund the special cash dividend.
Previous report
On July 30, 2025, the Company declared a special dividend of $2.10 per share, to stockholders of record as of August 20, 2025. On September 3, 2025, the Company paid that special dividend from retained earnings of approximately $500.0 million. The Company used cash on hand to fund the special cash dividend.
Previous report
U.S. Reportable Segment. U.S. net sales generated in the three months ended September 28, 2025 increased $63.2 million, or 2.3%, from U.S. net sales generated in the three months ended September 29, 2024 primarily due to an increase in sales volume of $131.0 million, or 4.7 percentage points, partially offset by a decrease in sales price per pound of $67.8 million, or 2.4 percentage points. The increase in sales volume was across multiple business units. The decrease in sales price per pound was driven by declining commodity market prices.
Previous report
Mexico Reportable Segment. Mexico net sales generated in the three months ended September 28, 2025 increased $26.8 million, or 5.3%, from Mexico net sales generated in the three months ended September 29, 2024 due to an increase in sales volume, the favorable impact of foreign currency translation, and sales price per pound of $15.7 million, or 3.1 percentage points, $8.1 million, or 1.6 percentage points, and $3.0 million, or 0.6 percentage points, respectively. The increase in sales price per pound was driven by an increase in commodity chicken prices based on market requirements.
Previous report
U.S. Reportable Segment. Cost of sales incurred by our U.S. operations during the three months ended September 28, 2025 increased $72.9 million, or 3.2%, from cost of sales incurred by our U.S. segment during the three months ended September 29, 2024. The increase in cost of sales was primarily driven by an increase in sales volume of $107.8 million, or 4.7 percentage points, partially offset by a decrease in cost per pound sold of $34.9 million, or 1.5 percentage points. The decrease from prior year in cost per pound sold is primarily due to decreased live operations costs driven by declining feed ingredients costs, specifically soybean meal. Soybean meal market prices decreased approximately 21% from prior year levels, while corn market prices increased approximately 5% from prior year levels.
Previous report
Europe Reportable Segment. Cost of sales incurred by our Europe operations during the three months ended September 28, 2025 increased $94.9 million, or 8.1%, from cost of sales incurred by our Europe segment during the three months ended September 29, 2024. The increase in cost of sales was primarily driven by an increase in cost per pound sold and the unfavorable impact of foreign currency translation of $95.4 million, or 8.1 percentage points, and $44.7 million or 3.8 percentage points, respectively, partially offset by a decrease in sales volume of $45.2 million, or 3.8 percentage points. The increase in cost per pound sold was driven by increases in labor costs, both from higher national insurance costs and higher temporary labor, repairs and maintenance, and utilities costs.
Previous report
Mexico Reportable Segment. Cost of sales incurred by our Mexico operations during thethree months ended September 28, 2025 increased $31.2 million, or 7.0%, from cost of sales incurred by our Mexico segment during the three months ended September 29, 2024. The increase in cost of sales was driven primarily by an increase in sales volume, cost per pound sold, and the unfavorable impact of foreign currency translation of $13.8 million, or 3.1 percentage points, $10.1 million, or 2.3 percentage points, and $7.3 million, or 1.6 percentage points, respectively. The increase in cost was primarily driven by broiler health challenges in our live operations.
Previous report
U.S. Reportable Segment. SG&A expense incurred by our U.S. reportable segment during the three months ended September 28, 2025 increased $26.1 million, or 35.7%, from SG&A expense incurred by our U.S. reportable segment during the three months ended September 29, 2024. The increase in SG&A expense resulted primarily from a net increase in legal settlement expense and incentive compensation costs.
Previous report
Europe Reportable Segment. SG&A expense incurred by our Europe reportable segment during the three months ended September 28, 2025 decreased $5.3 million, or 9.6%, from SG&A expense incurred by our Europe segment during the three months ended September 29, 2024. The decrease in SG&A expense was primarily due to a decrease in payroll and benefit costs, partially offset by an unfavorable impact of foreign currency translation.
Previous report
Mexico Reportable Segment. SG&A expense incurred by our Mexico reportable segment during the three months ended September 28, 2025 decreased $0.5 million, or 3.3%, from SG&A expense incurred by our Mexico segment during the three months ended September 29, 2024 primarily due to a decrease in benefits costs, partially offset by an increase in marketing costs.
Previous report
Net interest expense. Net interest expense increased to $29.0 million recognized in the three months ended September 28, 2025 from $19.5 million recognized in the three months ended September 29, 2024. The increase in net interest expense resulted primarily from a decrease in interest income earned on excess cash due to lower cash balances in the current year. Partially offsetting the increase in net interest expense was a decrease in interest expense on outstanding borrowings due to the repurchases of outstanding debt.
Previous report
Income taxes. Income tax expense decreased to $118.3 million, a 25.6% effective tax rate, for the three months ended September 28, 2025 compared to an income tax expense of $131.6 million, a 27.3% effective tax rate, for the three months ended September 29, 2024. The decrease in income tax expense in 2025 resulted primarily from the decrease of profit before income taxes.
Previous report
Nine Months Ended September 28, 2025 Compared to the Nine Months Ended September 29, 2024
Previous report
Net sales. Net sales generated in the nine months ended September 28, 2025 increased $473.5 million, or 3.5%, from net sales generated in the nine months ended September 29, 2024. The following table provides net sales information:
Previous report
U.S. Reportable Segment. U.S. net sales generated in the nine months ended September 28, 2025 increased $383.5 million, or 4.8%, from U.S. net sales generated in the nine months ended September 29, 2024 primarily due to an increase in sales volume and sales price per pound of $208.4 million, or 2.6 percentage points, and $175.1 million, or 2.2 percentage points, respectively. The increase in sales price per pound was driven primarily by favorable market pricing conditions and shift in consumer demand to higher value products.
Previous report
Europe Reportable Segment. Europe net sales generated inthe nine months ended September 28, 2025 increased $117.7 million, or 3.0%, from Europe net sales generated in the nine months ended September 29, 2024 primarily due to an increase in sales price per pound and the favorable impact of foreign currency translation of $176.4 million, or 4.5 percentage points, and $110.5 million, or 2.9 percentage points, respectively, partially offset by a decrease in sales volume of $169.2 million, or 4.4 percentage points. The increase in sales price per pound was primarily due to the pass through of higher input costs, such as feed, labor, and utilities.
Previous report
Gross profit and cost of sales. Gross profit increased by $170.0 million from $1.76 billion generated in the nine months ended September 29, 2024 to $1.93 billion generated in the nine months ended September 28, 2025. The following tables provide information regarding gross profit and cost of sales information:
Previous report
Europe Reportable Segment. Cost of sales incurred by our Europe operations during the nine months ended September 28, 2025 increased $93.8 million, or 2.7%, from cost of sales incurred by our Europe segment during the nine months ended September 29, 2024. The increase in cost of sales was primarily driven by an increase in cost per pound sold and the unfavorable impact of foreign currency translation of $147.6 million, or 4.2 percentage points, and $100.7 million, or 2.9 percentage points, respectively, partially offset by a decrease in sales volume of $154.5 million, or 4.4 percentage points. The increase in cost per pound sold was driven by inflationary impacts of raw materials.
Previous report
Mexico Reportable Segment. Costof sales incurred by our Mexico operations during thenine months ended September 28, 2025 increased $3.7 million, or 0.3%, from cost of sales incurred by our Mexico segment during thenine months ended September 29, 2024. The increase in cost of sales was driven by an increase in cost per pound sold and an increase in sales volume of $125.4 million, or 9.1 percentage points, and $18.5 million, or 1.3 percentage points, respectively. Partially offsetting these increases was the favorable impact of foreign currency translation of $140.2 million, or 10.1 percentage points. As noted above, there was a year-over-year depreciation of 10% in the Mexican peso against the U.S. dollar. The increase in cost per pound sold was driven by an increase in year-over-year prices of commodity ingredients, such as corn which increased about 14%, while the average market price of soybean meal during the first nine months of 2025 was about 11% below prior year levels.
Previous report
Operating income and SG&A expense. Operating income increased by$210.0 million, or 17.5%, from income of$1.2 billion generated in the nine months ended September 29, 2024 to income of $1.4 billion generated in the nine months ended September 28, 2025. The following tables provide information regarding operating income and selling, general and administrative (“SG&A”) expense:
Previous report
U.S. Reportable Segment. SG&A expense incurred by our U.S. reportable segment during the nine months ended September 28, 2025 increased $26.9 million, or 9.8%, from SG&A expense incurred by our U.S. reportable segment during the nine months ended September 29, 2024. The increase in SG&A expense resulted primarily from an increase in incentive compensation, marketing costs, and legal settlement expense.
Previous report
Europe Reportable Segment. SG&A expense incurred by our Europe reportable segment during the nine months ended September 28, 2025 decreased $4.2 million, or 2.7%, from SG&A expense incurred by our Europe segment during the nine months ended September 29, 2024. The decrease in SG&A expense was primarily due to decreases in payroll costs, professional fees, and insurance, partially offset by the unfavorable impact of foreign currency translation.
Previous report
Mexico Reportable Segment. SG&A expense incurred by our Mexico reportable segment during the nine months ended September 28, 2025 decreased $2.5 million, or 5.3%, from SG&A expense incurred by our Mexico segment during the nine months ended September 29, 2024. The primary driver of the decrease in SG&A expense was the favorable impact of foreign currency translation due to the year-over-year depreciation of the Mexican peso against the U.S. dollar. This decrease was partially offset by an increase in payroll and incentive compensation costs.
Previous report
Restructuring activities. Restructuring activities costs of $21.9 million were recognized in the nine months ended September 28, 2025. These charges were incurred by our Europe reportable segment primarily as a result of severance related to back office consolidation and warehouse closure costs.
Previous report
(b)The U.S. dollar-equivalent of the facility amount under the Mexico Credit Facility is $60.4 million (Mex$1.1 billion).
Previous report
(c)The U.S. dollar-equivalent of the facility amount under the Europe Credit Facility is $201.0 million (£150 million).
Previous report
On March 13, 2025, the Company declared a special dividend of $6.30 per share, to stockholders of record as of April 3, 2025. On April 17, 2025, the Company paid that special dividend from retained earnings of approximately $1.5 billion. The Company used cash on hand to fund the special cash dividend.
Previous report
On July 30, 2025, the Company declared a special dividend of $2.10 per share, to stockholders of record as of August 20, 2025. The Company paid that special dividend from retained earnings of approximately $500.0 million on September 3, 2025. The Company used cash on hand to fund the special cash dividend.
Previous report
The change in inventories represented a $138.9 million use of cash related to operating activities for the nine months ended September 28, 2025. This change resulted primarily from building inventories to meet increased demand and in anticipation of fourth quarter seasonal demand. The change in inventories represented a $173.0 million source of cash related to operating activities for the nine months ended September 29, 2024. This change resulted primarily from decreased raw materials, work-in-process inventory values due to lower feed ingredient costs, and lower finished goods inventories.
Reworded paragraphs (26)
Previous wording
Pilgrim’s Pride Corporation (referred to herein as “Pilgrim’s,” “PPC,” “the Company,” “we,” “us,” “our,” or similar terms) is one of the largest chicken producers in the world, with operations in the United States (“U.S.”), the United Kingdom (“U.K.”), Mexico, France, Puerto Rico, the Netherlands and the Republic of Ireland. We reported net income attributable to Pilgrim’s of $994.4 million, or $4.17 per diluted common share, and income before tax totaling $1.3 billion, for the nine months ended September 28, 2025. These operating results included net sales of $14.0 billion, gross profit of $1.9 billion and $1.1 billion of cash provided by operating activities. We generated a consolidated operating margin of 10.1%. For the nine months ended September 28, 2025, we generated EBITDA and Adjusted EBITDA of $1.7 billion and $1.9 billion, respectively. A reconciliation of net income to EBITDA and Adjusted EBITDA is included below.
Current wording
Pilgrim’s Pride Corporation (referred to herein as “Pilgrim’s,” “PPC,” “the Company,” “we,” “us,” “our,” or similar terms) is one of the largest chicken producers in the world, with operations in the United States (“U.S.”), the United Kingdom (“U.K.”), Mexico, France, Puerto Rico, the Netherlands and the Republic of Ireland. We reported net income attributable to Pilgrim’s of $101.4 million, or $0.43 per diluted common share, and income before tax totaling $131.8 million, for the three months ended March 29, 2026. These operating results included net sales of $4.5 billion, gross profit of $345.5 million and $140.8 million of cash provided by operating activities. We generated a consolidated operating margin of 3.6%. For the three months ended March 29, 2026, we generated EBITDA and Adjusted EBITDA of $281.3 million and $308.1 million, respectively. A reconciliation of net income to EBITDA and Adjusted EBITDA is included below.
Previous wording
Our business is subject to global inflationary trends. U.S. inflation rose in August, then slightly decreased in September ending third quarter flat relative to end of the second quarter levels, and slightly above prior year levels. The fluctuations in the third quarter were driven by policy changes, supply chain dynamics, and consumer spending behavior. U.K. inflation remained relatively stable at elevated levels during the third quarter of 2025. The E.U. region also saw a slight increase in the inflation rate during the third quarter of 2025 driven by increased food prices. The Russia-Ukraine war's impact on the global feed ingredient and energy markets continues to be less pronounced than during the initial onset of the war, but there remain many risks and uncertainties that may impact global markets. In Mexico, inflation rose gradually during the third quarter of 2025 partially driven by increased food prices. The peso continued to strengthen against the U.S. dollar during the third quarter of 2025, although future trends will be impacted by economic uncertainties in Mexico and with their primary trading partners, such as the U.S.
Current wording
Our business is subject to global inflationary trends. U.S. inflation decreased from the fourth quarter of 2025 through January and held steady in February, then sharply rose in March driven by increased energy prices from geopolitical disruptions. The increased energy prices drove a slight increase at the end of the first quarter of 2026 in U.S. food inflation. U.K. inflation eased slightly from the fourth quarter of 2025, then remained relatively stable throughout the first quarter of 2026. The E.U. region also saw a slight decrease in the inflation rate in January 2026, followed by a mild increase in February and sharper increase in March 2026, driven by increased energy prices. In Mexico, inflation rose during the first quarter of 2026 primarily driven by increased food and services prices, with additional increases from higher energy prices and the impact of tariffs. The peso strengthened against the U.S. dollar in January and February of 2026, followed by a sharp weakening in March 2026. Future trends will be impacted by economic uncertainties in Mexico and with their primary trading partners, such as the U.S. The Russia-Ukraine war's impact on the global feed ingredient and energy markets continues to be less pronounced than during the initial onset of the war, but there remain many risks and uncertainties that may impact global markets.
Previous wording
We are monitoring changes in tariffs and trade policies both in the U.S. and throughout other countries where we operate and do business. Changes to these policies may impact our export sales and international operations. Our U.S. business is primarily characterized with inputs being made in country and our products being sold in country, demonstrated by our export sales from the U.S. accounting for less than 3% of our total net sales. The impact of trade policy changes is uncertain and evolving; however, we do not anticipate material impacts to our results of operations. We will continue to monitor potential impacts and take mitigation actions as necessary.
Current wording
We are monitoring changes in tariffs and trade policies both in the U.S. and throughout other countries where we operate and do business. Changes to these policies may impact our export sales and international operations. Our U.S. business is primarily characterized with inputs being made in country and our products being sold in country, demonstrated by our export sales from the U.S. accounting for less than 5% of our total net sales. The impact of trade policy changes is uncertain and evolving; however, we do not anticipate material impacts to our results of operations. We will continue to monitor potential impacts and take mitigation actions as necessary.
Previous wording
We generally respond to these challenges in global economic conditions through discussions with customers to mitigate the impact of extraordinary costs we experience. We also continue to focus on operational initiatives that aim to deliver labor efficiencies, better agricultural performance and improved yields.
Current wording
We generally respond to ongoing challenges in global economic conditions through discussions with customers to mitigate the impact of extraordinary costs we experience. We also continue to focus on operational initiatives that aim to deliver labor efficiencies, better agricultural performance and improved yields.
Previous wording
U.S. commodity market prices for chicken products during the three months ended September 28, 2025, trended below prior year levels, but remained above the historical five-year average. Boneless breast prices started the quarter above prior year level and the historical five-year average, but dropped later in the quarter as supply outpaced demand. Prices rose slightly in July before declining rapidly from late August through September. Per the September 2025 U.S. Department of Agriculture (or “USDA”) report on poultry slaughter, estimated industry ready-to-cook production during the third quarter of 2025 increased by 2.5% compared to prior year levels, primarily driven by increased egg sets and chick placements, along with improved live performance resulting in increased headcount and heavier average liveweights.
Current wording
U.S. commodity market prices for chicken products during the three months ended March 29, 2026, trended below prior year levels and the historical five-year average. Boneless breast prices rebounded from levels at the beginning of 2026 and trended upward overall, with pricing relatively stable in February before strengthening further in March, albeit below prior year. Supply remained elevated during the first quarter of 2026, reflecting higher egg sets and chick placements late in the prior year that translated into increased headcounts in the first quarter. Average liveweights were also higher in the first quarter of 2026, further contributing to higher production levels. Per the March 2026 U.S. Department of Agriculture (“USDA”) report on poultry slaughter, estimated industry ready-to-cook production during the first quarter of 2026 increased by 3.4% compared to prior year levels.
Previous wording
Net sales. Net sales generated in the three months ended September 28, 2025 increased $174.4 million, or 3.8%, from net sales generated in the three months ended September 29, 2024. The following table provides net sales information:
Current wording
Net sales. Net sales generated in the three months ended March 29, 2026 increased $69.6 million, or 1.6%, from net sales generated in the three months ended March 30, 2025. The following table provides net sales information:
Previous wording
Europe Reportable Segment. Europe net sales generated inthe three months ended September 28, 2025 increased $84.4 million, or 6.4%, from Europe net sales generated in the three months ended September 29, 2024 due to an increase in sales price per pound and the favorable impact of foreign currency translation of $83.8 million, or 6.4 percentage points, and $50.9 million, or 3.8 percentage points, respectively, partially offset by a decrease in sales volume of $50.3 million, or 3.8 percentage points. The increase in sales price per pound was primarily due to the pass through of higher input costs, such as feed, labor, and utilities.
Current wording
▪This increase was driven by the pass through of higher input costs, such as labor and utilities
Previous wording
Mexico Reportable Segment. Mexico net sales generated in the nine months ended September 28, 2025 decreased $27.7 million, or 1.7%, from Mexico net sales generated in the nine months ended September 29, 2024 primarily due to the unfavorable impact of foreign currency translation of $161.2 million, or 10.0 percentage points, partially offset by an increase in sales price per pound and an increase in sales volume of $111.8 million, or 7.0 percentage points, and $21.7 million, or 1.3 percentage points, respectively. The decrease due to the unfavorable impact of foreign currency translation was driven by a year-over-year depreciation of 10% in the Mexican peso against the U.S. dollar due to inflation in the Mexican economy, along with uncertainties impacting the exchange rate. The increase in price per pound sold was driven by an increase in commodity chicken pricing due to increased local consumer demand and lower supply due to bird disease.
Current wording
▪This decrease was driven by a decrease in commodity chicken pricing
Previous wording
Gross profit and cost of sales. Gross profit decreased by $24.6 million, or 3.6%, from $684.0 million generated in the three months ended September 29, 2024 to $659.4 million generated in the three months ended September 28, 2025. The following tables provide information regarding gross profit and cost of sales information:
Current wording
Gross profit and cost of sales. Gross profit decreased by $209.4 million from $554.9 million generated in the three months ended March 30, 2025 to $345.5 million generated in the three months ended March 29, 2026. The following tables provide information regarding gross profit and cost of sales information:
Previous wording
U.S. Reportable Segment. Cost of sales incurred by our U.S. operations during the nine months ended September 28, 2025 increased $205.9 million, or 3.0%, from cost of sales incurred by our U.S. segment during the nine months ended September 29, 2024. The increase in cost of sales was primarily driven by an increase in sales volume and an increase in cost per pound sold of $177.6 million, or 2.6 percentage points, and $28.3 million, or 0.4 percentage points, respectively. The increase in sales volume was driven by consumer demand. The increase from prior year in cost per pound sold is primarily due to increased labor, fleet, grower pay, utilities, and other operating costs. These increases were partially offset by a decrease in live operations costs driven by declining feed ingredients costs, specifically soybean meal. Corn market prices increased approximately 4% from prior year levels and soybean meal market prices decreased approximately 17% from prior year levels.
Current wording
▪This increase was driven by consumer demand
Previous wording
Operating income and SG&A expense. Operating income decreased by $15.7 million, or 3.1%, from income of$508.4 million generated in the three months ended September 29, 2024 to income of $492.6 million generated in the three months ended September 28, 2025. The following tables provide information regarding operating income and selling, general and administrative (“SG&A”) expense:
Current wording
Operating income and SG&A expense. Operating income decreased by$241.9 million, or 59.8%, from$404.5 million generated in the three months ended March 30, 2025 to $162.6 million generated in the three months ended March 29, 2026. The following tables provide information regarding operating income and selling, general and administrative (“SG&A”) expense:
Previous wording
Restructuring activities. Restructuring activities costs of $1.8 million were recognized in the three months ended September 28, 2025. These charges were incurred by our Europe reportable segment primarily as a result of severance related to back office consolidation activities.
Current wording
•Europe restructuring activities charges of $2.8 million for the three months ended March 29, 2026 were incurred primarily as a result of severance related to back office consolidation.
Previous wording
Net interest expense. Net interest expense increased to $77.2 million recognized in the nine months ended September 28, 2025 from $65.7 million recognized in the nine months ended September 29, 2024. The increase in net interest expense resulted primarily from a prior year gain recognized on early extinguishment of debt and a decrease in interest income earned on excess cash due to lower average cash balances in the nine months ended September 28, 2025 compared to the nine months ended September 29, 2024, partially offset by a decrease in interest expense on outstanding borrowings due to repurchases of outstanding debt.
Current wording
•A decrease in interest income earned on excess cash due to lower average cash balances
Previous wording
Income taxes. Income tax expense increased to $332.0 million, a 25.0% effective tax rate, for the nine months ended September 28, 2025 compared to an income tax expense of $284.3 million, a 25.0% effective tax rate, for the nine months ended September 29, 2024. The increase in income tax expense resulted primarily from the increase in profit before income taxes.
Current wording
•A decrease in profit before income taxes
Previous wording
(a)Availability under the U.S. Credit Facility is also reduced by our outstanding standby letters of credit. Standby letters of credit outstanding at September 28, 2025 totaled $24.2 million.
Current wording
(a)Availability under the U.S. Credit Facility may also reduced by outstanding standby letters of credit.
Previous wording
We expect cash flows from operations, combined with availability under our credit facilities, to provide sufficient liquidity to fund current obligations, projected working capital requirements, maturities of long-term debt and capital spending for at least the next twelve months. This includes the construction of a new prepared foods facility in Walker County, Georgia which we expect to be completed in the first half of 2027.
Current wording
We expect cash flows from operations, combined with availability under our credit facilities, to provide sufficient liquidity to fund current obligations, projected working capital requirements, maturities of long-term debt and capital spending for at least the next twelve months.
Previous wording
Items necessary to reconcile from net income to cash flow provided by operating activities included net noncash expenses of $329.8 million for the nine months ended September 28, 2025. Net noncash expense items included depreciation and amortization of $334.4 million, deferred income tax benefit of $34.0 million, stock-based compensation costs of $19.6 million, loan cost amortization of $3.7 million, losses on property disposals of $2.9 million, accretion of discounts related to Senior Notes of $1.8 million, asset impairment of $0.8 million, and loss on early extinguishment of debt of $0.6 million. Other net noncash items were immaterial.
Current wording
Items necessary to reconcile from net income to cash flow provided by operating activities included net noncash expenses of $123.5 million for the three months ended March 29, 2026. Net noncash expense items included depreciation and amortization of $118.5 million, stock-based compensation costs of $6.1 million, deferred income tax benefit of $4.9 million, losses on property disposals of $2.0 million, loan cost amortization of $1.2 million, and accretion of discounts related to Senior Notes of $0.6 million.
Previous wording
Items necessary to reconcile from net income to cash flow provided by operating activities included net noncash expenses of $398.4 million for the nine months ended September 29, 2024. Net noncash expense items included depreciation and amortization of $321.8 million, asset impairment of $26.6 million, deferred income tax expense of $45.2 million, gain on early extinguishment of debt recognized as component of interest expense of $11.2 million, stock-based compensation costs of $9.2 million, loan cost amortization of $3.8 million, accretion of discounts related to Senior Notes of $1.9 million, and losses on property disposals of $1.1 million. Other net noncash items were immaterial.
Current wording
Items necessary to reconcile from net income to cash flow provided by operating activities included net noncash expenses of $103.8 million for the three months ended March 30, 2025. Net noncash expense items included depreciation and amortization of $104.5 million, deferred income tax benefit of $11.0 million, stock-based compensation costs of $7.0 million, loan cost amortization of $1.2 million, losses on property disposals of $0.9 million, asset impairment of $0.6 million, accretion of discounts related to Senior Notes of $0.6 million, and gain on early extinguishment of debt recognized as component of interest expense of $0.1 million. Other net noncash items were immaterial.
Previous wording
The change in trade accounts and other receivables represented a $84.7 million use of cash related to operating activities for the nine months ended September 28, 2025. This change resulted primarily from an increase in sales from more favorable market pricing. The change in trade accounts and other receivables represented a $62.6 million source of cash related to operating activities for the nine months ended September 29, 2024. This change primarily resulted from a decrease in trade accounts receivable due to timing of payments received.
Current wording
The change in trade accounts and other receivables represented a $74.3 million source of cash related to operating activities for the three months ended March 29, 2026. This change primarily resulted from a decrease in trade accounts receivable. The change in trade accounts and other receivables represented a $91.5 million use of cash related to operating activities for the three months ended March 30, 2025. This change resulted from an increase in trade accounts receivable primarily due to an increase in sales from more favorable market pricing and a decrease in the use of our discounted accounts receivable program.
Previous wording
The change in prepaid expenses and other current assets represented a $34.6 million use of cash related to operating activities for the nine months ended September 28, 2025. This change resulted primarily from an increase in prepaid indirect taxes in our Mexico and Europe reportable segments, prepaid property insurance, and an increase in prepaid grower housing incentives. The change in prepaid expenses and other current assets represented a $65.6 million use of cash related to operating activities for the nine months ended September 29, 2024. This change resulted primarily from an increase in prepaid indirect taxes in our Mexico and Europe reportable segments.
Current wording
The change in prepaid expenses and other current assets represented a $10.2 million source of cash related to operating activities for the three months ended March 29, 2026. This change resulted primarily from a decrease in prepaid indirect taxes in our Mexico and Europe reportable segments, partially offset by an increase in derivative assets. The change in prepaid expenses and other current assets represented a $44.0 million use of cash related to operating activities for the three months ended March 30, 2025. This change resulted primarily from an increase in prepaid indirect taxes in our Mexico and Europe reportable segments.
Previous wording
The change in accounts payable, accrued expenses and other current liabilities represented a $42.4 million use of cash related to operating activities for the nine months ended September 28, 2025. This change resulted primarily from the payment of incentive compensation accrued for in 2024 and payments of litigation settlements, partially offset by an increase in the days payables outstanding, and increases in accrued payroll and insurance expenses. The change in accounts payable, accrued expenses and other current liabilities represented a $79.7 million source of cash related to operating activities for the nine months ended September 29, 2024. This change resulted primarily from timing of payments to our suppliers, a reduction in grain input costs, and timing of legal settlement payments.
Current wording
The change in accounts payable, accrued expenses and other current liabilities represented a $157.1 million use of cash related to operating activities for the three months ended March 29, 2026. This change resulted primarily from the payment of incentive compensation accrued for in 2025 and a decrease in the average days payable outstanding. The change in accounts payable, accrued expenses and other current liabilities represented a $118.7 million use of cash related to operating activities for the three months ended March 30, 2025. This change resulted primarily from the payment of incentive compensation accrued for in 2024.
Previous wording
The change in income taxes, which includes income taxes receivable, income taxes payable, deferred tax assets, deferred tax liabilities, reserves for uncertain tax positions, and the tax components within accumulated other comprehensive loss, represented a $95.8 million and $151.9 million source of cash for the nine months ended September 28, 2025 and September 29, 2024, respectively.
Current wording
The change in income taxes, which includes income taxes receivable, income taxes payable, deferred tax assets, deferred tax liabilities, reserves for uncertain tax positions, and the tax components within accumulated other comprehensive loss, represented a $18.0 million and $51.9 million source of cash for the three months ended March 29, 2026 and March 30, 2025, respectively.
Previous wording
Capital expenditures were incurred for growth projects, such as the South Georgia protein conversion plant, and to improve operational efficiencies, system enhancement projects, and reduce costs for the nine months ended September 29, 2024.
Current wording
Capital expenditures were incurred primarily for growth projects, to improve operational efficiencies, and to reduce costs for the three months ended March 29, 2026. Capital expenditures were incurred primarily to improve operational efficiencies, system enhancement projects, and to reduce costs for the three months ended March 30, 2025.
Previous wording
Payments for dividends during the nine months ended September 28, 2025 are related to the special cash dividends that were paid in April and September 2025. Payments on revolving line of credit, long-term borrowings and finance lease obligations and payments on early extinguishment of debt during the nine months ended September 28, 2025, are primarily related to open market repurchases of outstanding senior notes. The repurchase of noncontrolling interest represents cash paid in exchange for equity of a subsidiary that was previously owned by a noncontrolling interest partner.
Current wording
Payments on revolving line of credit, long-term borrowings and finance lease obligations during the three months ended March 29, 2026, are related to finance lease payments.
Previous wording
Payments on revolving line of credit, long-term borrowings and finance lease obligations during the nine months ended September 29, 2024, are primarily related to open market repurchases of outstanding senior notes. The proceeds from contribution of capital under the Tax Sharing Agreement with JBS USA Holdings were an allocation made during tax year 2023 for payment of historical tax adjustments. Payments on early extinguishment of debt are transaction fees related to the bond repurchases.
Current wording
Payments on revolving line of credit, long-term borrowings and finance lease obligations during the three months ended March 30, 2025, are primarily related to open market repurchases of outstanding senior notes.
Previous wording
“EBITDA” is defined as the sum of net income (loss) plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative of our ongoing operating performance consisting of: (1) foreign currency transaction losses, (2) restructuring activities losses, (3) costs related to litigation settlements, and (4) net income attributable to noncontrolling interests. EBITDA is presented because it is used by us and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with U.S. GAAP, to compare the performance of companies. We believe investors would be interested in our Adjusted EBITDA because this is how our management analyzes EBITDA applicable to continuing operations. We also believe that Adjusted EBITDA, in combination with our financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of our performance with our competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under U.S. GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP. Some of the limitations of these measures are:
Current wording
“EBITDA” is defined as the sum of net income plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative of our ongoing operating performance consisting of: (1) foreign currency transaction losses, (2) costs related to litigation settlements, (3) restructuring activities losses, and (4) net income attributable to noncontrolling interests. EBITDA is presented because it is used by us and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with U.S. GAAP, to compare the performance of companies. We believe investors would be interested in our Adjusted EBITDA because this is how our management analyzes EBITDA applicable to continuing operations. We also believe that Adjusted EBITDA, in combination with our financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of our performance with our competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under U.S. GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP. Some of the limitations of these measures are:
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
▪This increase was driven by higher input costs, such as labor and utilities
Current report — wording carried from elsewhere
▪This decrease was driven by a decrease in commodity chicken pricing
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Capital expenditures were incurred primarily for growth projects, to improve operational efficiencies, system enhancement projects, such as the conversion of a commodity plant to a plant supporting our U.S. retail customers, and reduce costs for the nine months ended September 28, 2025.