PILGRIMS PRIDE CORP
For the period ended Jun 28, 2026. Filed Jul 30, 2026.
View on SEC.govAbout this filing
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.
Jun 28, 2026 · Filed Jul 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 2026-03-29; filed 2026-04-30.
0000802481-26-000030
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-28; filed 2026-07-30.
0000802481-26-000051
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 105 previous paragraphs and 148 current paragraphs.
48 unchanged; 25 reworded; 61 added; 32 removed; 0 previous and 14 current paragraphs rearranged.
Tables are not compared: 15 previous and 24 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 (61)
Current report
Our business continues to be subject to global inflationary trends as seen during the second quarter of 2026. U.S. inflation increased through May, primarily driven by higher energy costs associated with geopolitical tensions in the Middle East, before moderating in June as energy prices declined. Food inflation remained elevated but relatively contained compared to energy-related price movements. While inflationary pressures eased toward the end of the quarter, ongoing geopolitical developments continue to present risks to the inflation outlook. In the E.U. region, inflation remained above the European Central Bank’s target during the second quarter, largely due to elevated energy prices and their indirect impact on goods and services. Inflation increased during the early part of the quarter and then eased modestly in June as energy price pressures began to moderate. The ECB responded to these inflationary pressures by increasing interest rates in June 2026 while continuing to monitor the effects of higher energy costs on economic growth and consumer prices. In Mexico, inflation generally trended lower during the second quarter following elevated levels in the first quarter, although services inflation remained persistent and economic growth weakened amid reduced domestic demand and continued uncertainty surrounding trade and investment conditions. The Mexican peso appreciated during much of the quarter, supported by monetary policy and a weaker U.S. dollar, but future exchange rate and inflation trends remain subject to uncertainties related to trade policy, economic conditions in the U.S., and global geopolitical developments.
Current report
U.S. chicken demand remained solid across both retail and foodservice channels during the second quarter of 2026. Chicken continued to offer a favorable value proposition relative to competing proteins amid ongoing pressure on consumer spending. Retail volume growth accelerated to 2.8%, with gains across all major product categories, supported by promotional activity and competitive pricing. In foodservice, operators continued to expand chicken offerings as a value-oriented alternative to higher-priced beef products, with growth led by chicken-focused limited-service restaurant chains.
Current report
Export shipment volumes increased approximately 0.3% compared to the prior year, while export pricing remained below prior-year levels. U.S. chicken cold storage inventories ended the quarter approximately 1.1% above prior-year levels and 1.0% above the historical five-year average, reflecting increased industry production. Breast meat inventories remained below prior-year levels, while dark meat inventories declined, driven by lower leg quarter and drum inventories and supported by favorable pricing and export demand. In contrast, thigh meat inventories increased as prices remained elevated throughout the quarter.
Current report
Despite solid demand trends, industry supply exceeded expectations during the quarter due to continued productivity improvements, including higher hatchability, increased headcounts, and modestly higher liveweights. As a result, the USDA increased its forecast for second quarter production growth during the quarter, and increased production continued to pressure market prices.
Current report
Industry production during the first half of 2026 exceeded expectations, although recent trends indicate moderating growth as egg sets and chick placements have declined from peak levels and liveweights have stabilized. Demand is expected to remain supported by chicken's favorable price position relative to competing proteins, constrained beef supplies, and consumer preference for affordable protein options.
Current report
U.K. poultry market conditions remained relatively stable during the second quarter of 2026. Production increased compared to the first quarter as liveweights normalized and flock placements supported supply growth. Poultry headkill remained generally consistent with prior-year levels, while egg placements continued to exceed prior year levels. Chicken prices were relatively stable compared to the first quarter but remained modestly below prior-year levels due to ample supply. Demand remained steady across retail and foodservice channels.
Current report
Commodity chicken prices in Mexico remained below prior-year levels during the second quarter of 2026 despite stable consumer demand. Production levels remained elevated as strong bird health and lower mortality rates contributed to increased supply. Lower feed costs, including corn and soybean meal, continued to support production economics, while adequate market supply and low priced competing proteins continued to pressure pricing.
Current report
U.K. pork prices remained below prior-year levels during the second quarter of 2026, reflecting ample supply and competitive protein market conditions. Production remained above prior-year levels, supported by favorable slaughter volumes and carcass weights. Across Europe, pork prices continued to face pressure from adequate supply and mixed export demand, although market conditions improved modestly toward quarter-end as production growth moderated.
Current report
Factors impacting the year-over-year change in net sales for the three months ended June 28, 2026, by reportable segment are as follows:
Current report
◦Decrease in sales price per pound, reducing net sales by $186.2 million, or 6.6%
Current report
◦Partially offset by an increase in sales volume of $15.1 million, or 0.5%
Current report
•Europe net sales increased $18.4 million, or 1.3%, driven by the following factors:
Current report
◦Increase in sales volume of $11.9 million, or 0.9%
Current report
◦Favorable impact of foreign currency translation of $7.7 million, or 0.5%
Current report
◦Partially offset by decrease in sales price per pound of $1.2 million, or 0.1%
Current report
•Mexico net sales increased $21.6 million, or 3.8%, driven by the following factors:
Current report
◦Favorable impact of foreign currency translation of $63.7 million, or 11.3%
Current report
◦Increase in sales volume of $96.4 million, or 17.0%
Current report
▪Volume increase was driven by market demand and a favorable product mix, with growth in live chicken and processed chicken
Current report
◦Partially offset by a decrease in sales price per pound of $138.5 million, or 24.5%
Current report
▪This decrease was driven by a decrease in commodity chicken pricing due to greatly improved year-over-year growing conditions resulting in lower mortality rates
Current report
Factors impacting the year-over-year change in cost of sales for the three months ended June 28, 2026, by reportable segment are as follows:
Current report
◦Increase in cost per pound sold of $108.7 million, or 4.7%
Current report
◦Increase in sales volume of $12.4 million, or 0.5%
Current report
•Europe cost of sales increased $31.6 million, or 2.5%, driven by the following factors:
Current report
◦Increase in cost per pound sold of $13.9 million, or 1.1%
Current report
◦Increase in sales volume of $10.9 million, or 0.9%
Current report
◦Unfavorable impact of foreign currency translation of $6.8 million, or 0.5%
Current report
•Mexico cost of sales increased $91.7 million, or 19.8%, driven by the following factors:
Current report
◦Unfavorable impact of foreign currency translation of $60.3 million, or 13.0%
Current report
◦Increase in sales volume of $79.0 million, or 17.0%
Current report
▪This decrease was primarily driven by lower feed ingredient costs
Current report
•Europe SG&A decreased $8.5 million, or 17%, driven by decreases in incentive compensation expense and marketing costs, partially offset by an increase from the unfavorable impact of foreign currency translation
Current report
•Mexico SG&A increased $0.4 million, or 2.5%, driven by the unfavorable impact of foreign currency translation
Current report
•Interest expense increased primarily due to the loss on early extinguishment of debt of $17.5 million related to the tender offer on the Senior Notes due 2033, partially offset by a decrease in interest expense on outstanding borrowings due to lower principal amounts outstanding
Current report
Six Months Ended June 28, 2026 Compared to the Six Months Ended June 29, 2025
Current report
•U.S. net sales decreased $278.9 million, or 5.0%, driven by the following factors:
Current report
◦Decrease in sales price per pound of $315.0 million, or 5.6%
Current report
◦Partially offset by an increase in sales volume of $36.1 million, or 0.6%
Current report
•Europe net sales increased $138.6 million, or 5.3%, driven by the following factors:
Showing the first 40 of 61 passages. Open the source sections for the rest.
Removed paragraphs (32)
Previous report
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 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
◦Decrease in sales price per pound of $128.6 million, or 4.7%
Previous report
◦Partially offset by an increase in sales volume of $20.8 million, or 0.8%
Previous report
•Europe net sales increased $120.2 million, or 9.8%, driven by the following factors:
Previous report
◦Favorable impact of foreign currency translation of $88.6 million, or 7.2%
Previous report
▪This impact was driven by a strengthening of the British pound against the U.S. dollar
Previous report
◦Increase in sales price per pound of $28.1 million, or 2.3%
Previous report
◦Increase in sales volume of $3.5 million, or 0.3%
Previous report
•Mexico net sales increased $57.2 million, or 11.7% driven by the following factors:
Previous report
◦Favorable impact of foreign currency translation of $75.5 million, or 15.5%
Previous report
▪This impact was driven by a strengthening of the Mexican peso against the U.S. dollar
Previous report
◦Increase in sales volume of $58.8 million, or 12.0%
Previous report
◦Partially offset by a decrease in sales price per pound of $77.1 million, or 15.8%
Previous report
◦Increase in cost per pound sold of $65.4 million, or 2.7%
Previous report
◦Increase in sales volume of $17.9 million, or 0.8%
Previous report
•Europe cost of sales increased $116.2 million, or 10.4%, driven by the following factors:
Previous report
◦Unfavorable impact of foreign currency translation of $78.4 million, or 7.0%
Previous report
▪This impact was driven by a strengthening of the British pound against the U.S. dollar
Previous report
◦Increase in cost per pound sold of $34.7 million, or 3.1%
Previous report
◦Increase in sales volume of $3.1 million, or 0.3%
Previous report
•Mexico cost of sales increased $79.6 million, or 18.2% driven by the following factors:
Previous report
◦Unfavorable impact of foreign currency translation of $71.6 million, or 16.4%
Previous report
▪This impact was driven by a strengthening of the Mexican peso against the U.S. dollar
Previous report
◦Increase in sales volume of $52.6 million, or 12.0%
Previous report
•Mexico SG&A increased $3.3 million, or 23.3%, driven by the unfavorable impact of foreign currency translation
Previous report
•A decrease in interest income earned on excess cash due to lower average cash balances
Reworded paragraphs (25)
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 $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.
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 $114.8 million, or $0.48 per diluted common share, and income before tax totaling $153.6 million, for the six months ended June 28, 2026. These operating results included net sales of $9.2 billion, gross profit of $685.2 million and $471.8 million of cash provided by operating activities. We generated a consolidated operating margin of 2.5%. For the six months ended June 28, 2026, we generated EBITDA and Adjusted EBITDA of $472.5 million and $668.1 million, respectively. A reconciliation of net income to EBITDA and Adjusted EBITDA is included below.
Previous wording
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 wording
Since its inception the armed conflict involving Iran and the Gulf 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 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, continued and 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.
Previous 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.
Current wording
U.S. commodity market prices for most chicken products during the three months ended June 28, 2026, remained below prior-year levels and the historical five-year average. Boneless breast prices declined through most of the quarter before stabilizing near quarter-end. Supply remained elevated as record egg sets and favorable hatchability during the first quarter supported higher chick placements and increased flock headcounts, particularly in the 6.3 to 7.8 pound weight category. Average liveweights were also modestly higher, contributing to increased production. Per the July 2026 U.S. Department of Agriculture (“USDA”) report on poultry slaughter, estimated industry ready-to-cook production increased approximately 4.5% during the second quarter of 2026 compared to the prior year levels.
Previous 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:
Current wording
Net sales. Net sales generated in the three months ended June 28, 2026 decreased $131.1 million, or 2.8%, from net sales generated in the three months ended June 29, 2025. The following table provides net sales information:
Previous wording
•U.S. net sales decreased $107.8 million, or 3.9%, driven by the following factors:
Current wording
•U.S. net sales decreased $171.1 million, or 6.1%, driven by the following factors:
Previous 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:
Current wording
Gross profit and cost of sales. Gross profit decreased by $375.5 million, or 52.5%, from $715.3 million generated in the three months ended June 29, 2025 to $339.8 million generated in the three months ended June 28, 2026. The following tables provide information regarding gross profit and cost of sales information:
Previous wording
•U.S. cost of sales increased $83.3 million, or 3.5%, driven by the following factors:
Current wording
•U.S. cost of sales increased $121.1 million, or 5.2%, driven by the following factors:
Previous wording
▪This increase was driven primarily by an increase in live operations costs, grower pay, depreciation, utilities, and other operating costs
Current wording
▪This increase was driven primarily by an increase in live operations costs, grain costs, grower pay, depreciation, utilities, and other operating costs
Previous wording
◦Partially offset by a decrease in cost per pound sold of $44.6 million, or 10.2%
Current wording
◦Partially offset by a decrease in cost per pound sold of $47.6 million, or 10.2%
Previous 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:
Current wording
Operating income and SG&A expense. Operating income decreased by$446.4 million, or 87.1%, from income of$512.3 million generated in the three months ended June 29, 2025 to income of $66.0 million generated in the three months ended June 28, 2026. The following tables provide information regarding operating income and selling, general and administrative (“SG&A”) expense:
Previous wording
•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
Current wording
•U.S. SG&A increased $73.8 million, or 55.0%, driven by an increase in legal settlement expense and legal defense costs
Previous wording
•Europe SG&A increased $2.2 million, or 4.4%, driven by the unfavorable impact foreign currency translation, partially offset by decreases in overall cost structure
Current wording
•Europe SG&A decreased $6.3 million, or 6.3%, driven by decreases in incentive compensation expense and marketing costs, while also partially offset by the unfavorable impact foreign currency translation
Previous 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.
Current wording
•Europe restructuring activities charges of $11.4 million for the six months ended June 28, 2026 were incurred primarily as a result of severance related to back office consolidation
Previous 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.
Current wording
Items necessary to reconcile from net income to cash flow provided by operating activities included net noncash expenses of $293.6 million for the six months ended June 28, 2026. Net noncash expense items included depreciation and amortization of $241.8 million, asset impairment of $22.3 million, loss on early extinguishment of debt of $17.6 million, stock-based compensation costs of $11.2 million, deferred income tax benefit of $5.7 million, loan cost amortization of $2.7 million, losses on property disposals of $2.6 million, and accretion of discounts related to Senior Notes of $1.1 million.
Previous 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.
Current wording
Items necessary to reconcile from net income to cash flow provided by operating activities included net noncash expenses of $220.7 million for the six months ended June 29, 2025. Net noncash expense items included depreciation and amortization of $218.0 million, deferred income tax benefit of $19.5 million, stock-based compensation costs of $14.2 million, loan cost amortization of $2.5 million, losses on property disposals of $2.0 million, loss on early extinguishment of debt of $1.4 million, accretion of discounts related to Senior Notes of $1.2 million, and asset impairment of $0.8 million. Other net noncash items were immaterial.
Previous 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.
Current wording
The change in trade accounts and other receivables represented a $239.4 million source of cash related to operating activities for the six months ended June 28, 2026. This change primarily resulted from the sale of trade receivables. The change in trade accounts and other receivables represented a $75.0 million use of cash related to operating activities for the six months ended June 29, 2025. This change resulted from an increase in trade accounts receivable due to a decrease in discounted accounts receivables and an increase in sales from more favorable market pricing.
Previous wording
The change in inventories represented a $16.0 million use of cash related to operating activities for the three months ended March 29, 2026. This change resulted primarily from increased live inventories and impact of foreign currency translation. The change in inventories represented a $64.2 million use of cash related to operating activities for the three months ended March 30, 2025. This change resulted primarily from increased input costs and an increase in inventories after higher seasonal sales in the fourth quarter of 2024.
Current wording
The change in inventories represented a $7.6 million use of cash related to operating activities for the six months ended June 28, 2026. This change resulted primarily from increased live inventories due to increased grain costs. The change in inventories represented a $105.7 million use of cash related to operating activities for the six months ended June 29, 2025. This change resulted primarily from increased input costs and an increase in inventories after higher seasonal sales in the U.K. and in anticipation of higher demand over the summer season.
Previous 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.
Current wording
The change in prepaid expenses and other current assets represented a $17.5 million use of cash related to operating activities for the six months ended June 28, 2026. This change resulted primarily from an increase in derivative assets and prepaid IT expenses and grower housing incentives, partially offset by a decrease in prepaid property insurance. The change in prepaid expenses and other current assets represented a $17.4 million use of cash related to operating activities for the six months ended June 29, 2025. This change resulted primarily from an increase in prepaid indirect taxes in our Mexico and Europe reportable segments and prepaid insurance.
Previous 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.
Current wording
The change in accounts payable, accrued expenses and other current liabilities represented a $127.6 million use of cash related to operating activities for the six months ended June 28, 2026. This change resulted primarily from the payment of incentive compensation accrued for in 2025 and decreases in accrued payroll, insurance, and tax expenses, partially offset by an increase in litigation settlement accruals. The change in accounts payable, accrued expenses and other current liabilities represented a $34.6 million use of cash related to operating activities for the six months ended June 29, 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.
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 $18.0 million and $51.9 million source of cash for the three months ended March 29, 2026 and March 30, 2025, 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 $6.7 million use and $8.0 million source of cash for the six months ended June 28, 2026 and June 29, 2025, respectively.
Previous 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.
Current wording
Capital expenditures were incurred primarily for growth projects, to improve operational efficiencies, and to reduce costs for the six months ended June 28, 2026. Capital expenditures were incurred primarily for growth projects, to improve operational efficiencies, system enhancement projects, and reduce costs for the six months ended June 29, 2025.
Previous wording
Purchase of acquired business during the three months ended March 29, 2026, is from the equity purchase of Hermitage AI Ltd. from Hermitage Group. For more details, refer to "Note 6. Goodwill and Intangible Assets."
Current wording
Purchase of acquired business during the six months ended June 28, 2026, is from the equity purchase of Hermitage AI Ltd. from Hermitage Group. For more details, refer to "Note 6. Goodwill and Intangible Assets."
Previous 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.
Current wording
Payments on revolving line of credit, long-term borrowings and finance lease obligations during the six months ended June 28, 2026, are primarily related to the repurchase of its 6.250% Senior Notes due 2033 as well as revolving line of credit and finance lease payments. Proceeds from revolving line of credit and long-term borrowings during the six months ended June 28, 2026, are related to revolving line of credit proceeds in the U.S. and Mexico. Payments on early extinguishment of debt during the six months ended June 28, 2026, are related to fees paid during the repurchase of its 6.250% Senior Notes due 2033.
Previous 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.
Current wording
Payments for dividend during the six months ended June 29, 2025 are related to the special cash dividend that was declared during March 2025 and paid in April 2025. Payments on revolving line of credit, long-term borrowings and finance lease obligations and payments on early extinguishment of debt during the six months ended June 29, 2025, are primarily related to open market repurchases of outstanding senior notes.
Previous 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:
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) costs related to litigation settlements, (2) restructuring activities losses, (3) asset impairment, and (4) net loss attributable to noncontrolling interests, and (5) foreign currency transaction gains. 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 (14)
Current report — wording carried from elsewhere
Factors impacting SG&A year-over-year changes for the three months ended June 28, 2026 by reportable segment are as follows:
Current report — wording carried from elsewhere
•Europe restructuring activities charges of $8.7 million in the three months ended June 28, 2026 were incurred primarily as a result of severance related to back office consolidation activities
Current report — wording carried from elsewhere
Net sales. Net sales generated in the six months ended June 28, 2026 decreased $61.5 million, or 0.7%, from net sales generated in the six months ended June 29, 2025. The following table provides net sales information:
Current report — wording carried from elsewhere
▪This decrease was driven primarily by unfavorable market pricing conditions with current year market pricing below historical averages
Current report — wording carried from elsewhere
Gross profit and cost of sales. Gross profit decreased by $584.9 million from $1.3 billion generated in the six months ended June 29, 2025 to $685.2 million generated in the six months ended June 28, 2026. The following tables provide information regarding gross profit and cost of sales information:
Current report — wording carried from elsewhere
▪This increase was driven primarily by an increase in live operations costs, grain costs, grower pay, depreciation, utilities, and other operating costs
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 increase was driven by market requirements in mix
Current report — wording carried from elsewhere
Operating income and SG&A expense. Operating income decreased by $688.3 million, or 75.1%, from$916.8 million generated in the six months ended June 29, 2025 to $228.5 million generated in the six months ended June 28, 2026. The following tables provide information regarding operating income and selling, general and administrative (“SG&A”) expense:
Current report — wording carried from elsewhere
•U.S. SG&A increased $114.6 million, or 56.5%, driven by an increase in legal settlement expense and legal defense costs
Current report — wording carried from elsewhere
Factors impacting restructuring activities charges are as follows:
Current report — wording carried from elsewhere
Factors impacting the year-over-year change in net interest expense are as follows:
Current report — wording carried from elsewhere
Factors impacting the year-over-year change in income tax expense are as follows:
Current report — wording carried from elsewhere
•A decrease in profit before income taxes