PILGRIMS PRIDE CORP
For the period ended Sep 27, 2026. Filed Oct 29, 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.
Sep 27, 2026 · Filed Oct 29, 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 2026-06-28; filed 2026-07-30.
0000802481-26-000051
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-27; filed 2026-10-29.
0000802481-26-000081
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 148 previous paragraphs and 166 current paragraphs.
48 unchanged; 40 reworded; 77 added; 53 removed; 7 previous and 1 current paragraphs rearranged.
Tables are not compared: 24 previous and 23 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 (77)
Current report
Our business continues to be subject to global inflationary pressures and broader economic uncertainty. In the U.S., inflation moderated compared to periods of elevated inflation experienced in recent years; however, labor, energy and other operating costs remain subject to market volatility. Consumer demand generally remained resilient during the third quarter of 2026, although ongoing uncertainty related to geopolitical developments, trade policies and broader economic conditions may continue to impact inflation trends and purchasing behavior.
Current report
In Europe, inflation continued to moderate during the third quarter of 2026 but remained affected by energy market volatility and broader economic conditions. Economic growth remained subdued in certain markets, and consumer spending patterns continued to reflect the effects of inflationary pressures experienced in recent periods. While inflationary conditions have improved compared to prior periods, geopolitical developments and fluctuations in energy markets continue to create uncertainty within the region.
Current report
In Mexico, inflation trends generally remained stable during the third quarter of 2026, although certain categories, including services, continued to experience inflationary pressures. Economic activity remained influenced by domestic demand, trade conditions and broader macroeconomic factors. Foreign currency exchange rates, including fluctuations in the Mexican peso relative to the U.S. dollar, may continue to impact the translation of our operating results and the competitiveness of our operations.
Current report
Geopolitical conflicts, including ongoing tensions in the Middle East and the conflict between Russia and Ukraine, continue to contribute to volatility in global commodity, energy and transportation markets. These events have resulted in and may continue to result in, disruptions to trade flows, supply chains and freight networks, as well as increased costs for certain inputs and services. While such conditions did not have a material impact on our costs during the current reporting period, prolonged or expanded hostilities could adversely affect our business, results of operations and financial condition in future periods.
Current report
Our business continues to be affected by global economic conditions, including inflationary pressures, geopolitical developments, foreign currency fluctuations, trade policy changes and overall consumer demand trends. Inflation in the U.S., Europe and Mexico moderated compared to elevated levels experienced in recent periods; however, labor, energy and other operating costs remain subject to market volatility. Additionally, changes in interest rates, foreign exchange rates and broader economic conditions may continue to impact consumer spending patterns and operating costs in the markets in which we operate.
Current report
Announced Walkers Acquisition
Current report
On August 14, 2026, Pilgrim’s Europe agreed to acquire Walkers Deli & Sausage Company (Walkers) from Samworth Brothers, subject to approval by the Competition and Markets Authority (“CMA”) and employee consultation requirements in the U.K.. Walkers is a U.K. based producer of premium pork products operating four production facilities in Leicester and employing approximately 1,150 team members.
Current report
The proposed acquisition aligns with Pilgrim’s Europe strategy to expand its presence in the U.K. pork market and increase its participation in value-added product categories. The transaction is currently expected to close early in 2027, and therefore had no impact on the Company’s results of operations, financial position, or cash flows for the period presented.
Current report
Unsolicited Offer from JBS to Purchase Outstanding Shares of PPC Common Stock
Current report
On August 18, 2026, JBS submitted to the Company’s board of directors (the “Board”) a proposal to acquire the outstanding shares of the Company not already owned by JBS or its subsidiaries. JBS’s offer proposes this acquisition at a fixed exchange ratio of 2.086 JBS Class A common shares for each share of our common stock, based on the JBS and Company closing share prices on August 18, 2026 of $13.66 and $28.49, respectively (the “Proposed Transaction”). The Board has established a special committee of independent directors (the “Special Committee”) to review and evaluate the proposal. The Board will not approve the Proposed Transaction without the favorable recommendation of the Special Committee. No assurance can be given regarding whether any transaction will be entered into, approved by our Board and/or stockholders, or completed.
Current report
Market prices for most chicken products during the three months ended September 27, 2026, were below both prior-year levels and the five-year historical average. Boneless skinless breast prices declined during the quarter but remained relatively stable overall, with prices unchanged for several weeks during the period. Supply remained elevated, supported by higher bird counts, particularly within the 6.26-7.75 lb weight category. Eggs set and chick placements continued to exceed prior-year levels, although growth moderated compared to previous quarters. However, live weights were below prior-year levels, partially offsetting overall production growth. As a result, industry ready-to-cook chicken production increased 2.2% year over year, although growth was slower than in the preceding two quarters.
Current report
The third quarter of 2026 reflected continued consumer demand for chicken across both retail and foodservice channels. Amid ongoing economic pressures, including elevated fuel and food prices, inflation outpacing income growth, and subdued consumer sentiment, demand patterns became increasingly bifurcated, with value-oriented consumers remaining focused on affordability while higher-income consumers continued to support demand for premium offerings.
Current report
This dynamic had varying effects on chicken demand across categories, though overall volume growth remained positive in both retail and foodservice channels. Retail chicken volume increased 1.4% year over year, with all major retail categories posting positive volume growth. Within fresh chicken, increased promotional activity by retailers drove solid volume gains in boneless skinless breast meat and boneless dark meat products, continuing a trend observed in recent quarters. These gains were partially offset by softer performance in other fresh chicken categories, including bone-in dark meat and wings.
Current report
Individually quick frozen chicken continued to deliver strong volume growth, supported by more favorable pricing relative to other chicken categories. In contrast, deli and frozen prepared chicken products experienced modest price increases while maintaining positive volume growth. Frozen Prepared growth is being driven by nuggets, chunks, and popcorn chicken, offsetting declines in tenders and wings. Overall, demand remained favorable across chicken categories, supported by consumers’ continued focus on value, convenience, and product quality.
Current report
In foodservice, demand trends reflected the increasingly bifurcated consumer environment. Traffic trends varied by channel, with quick-service restaurants experiencing softer traffic levels as lower-income consumers moderated discretionary spending, while full-service restaurants benefited from continued spending by higher-income consumers. Despite these dynamics, chicken volume remained positive across most foodservice subcategories, although growth moderated compared to prior periods. Full-service restaurants were the only major subcategory to experience volume declines. Continued expansion of chicken-focused menu offerings and restaurant units across foodservice channels supported overall demand for chicken.
Current report
Despite a more challenging macroeconomic environment, demand for chicken remained generally stable during the quarter. However, increased industry supply continued to pressure market prices.
Current report
While the latest World Agricultural Supply and Demand Estimates outlook has not yet incorporated the final third quarter chicken production numbers, the weaker-than-expected quarter may temper full-year production growth expectation. Pullet placements in August and September were generally in line with prior-year levels after exceeding prior-year levels for most of the year. Production growth is expected to continue moderating as producers adjust production levels to align with recent strong growing conditions resulting in lower mortality rates. Chicken demand is expected to remain favorable, supported by promotional activity and the relative value proposition of chicken compared to competing proteins. Beef supplies remain constrained, while pork production is expected to remain relatively stable, positioning chicken favorably within the protein complex.
Current report
Looking ahead, the timing and pace of supply and demand rebalancing are expected to be the primary factors influencing market conditions through year end and into 2027. Consumer spending patterns and broader macroeconomic conditions will continue to play an important role in determining the timing and extent of this rebalancing.
Current report
◦Decrease in sales volume of $100.5 million, or 3.5%
Current report
▪The decrease was primarily attributable to lower domestic sales volumes due to increased intercompany transfers to Prepared Foods and the impacts of the conversion of Russellville to a Case Ready plant from a Big Bird plant, which was partially offset by increased export volumes
Current report
◦Decrease in sales volume, reducing net sales by $19.5 million, or 1.4%
Current report
▪The decrease was driven by lower domestic and export volumes compared to the prior year period
Current report
◦Unfavorable impact of foreign currency translation of $5.5 million, or 0.4%
Current report
▪This impact was driven by a depreciation of the British pound against the U.S. dollar
Current report
◦Partially offset by increase in sales price per pound, increasing net sales by $6.5 million, or 0.5%
Current report
▪The increase was primarily attributable to improved pricing across domestic and export channels
Current report
•Mexico net sales increased $68.8 million, or 13.0%, driven by the following factors:
Current report
◦Favorable impact of foreign currency translation of $44.4 million, or 8.4%
Current report
◦Increase in sales volume of $45.2 million, or 8.5%
Current report
◦Partially offset by a decrease in sales price per pound of $20.8 million, or 3.9%
Current report
◦Increase in cost per pound sold of $227.0 million, or 9.6%
Current report
◦Decrease in sales volume of $83.3 million, or 3.5%
Current report
•Europe cost of sales decreased $9.5 million, or 0.7%, driven by the following factors:
Current report
◦Decrease in sales volume of $17.8 million, or 1.4%
Current report
▪The decrease was primarily driven by lower domestic and export volumes, resulting in lower production and operating costs
Current report
◦Favorable impact of foreign currency translation of $5.1 million, or 0.4%
Current report
▪This impact was driven by the depreciation of the British pound against the U.S. dollar
Current report
◦Partially offset by an increase in cost per pound sold of $13.4 million, or 1.1%
Current report
▪The increase was primarily driven by higher operating costs, including increased input and utility costs, third-party services, and other operating expenses, reflecting continued inflationary pressures
Current report
•Mexico cost of sales increased $85.4 million, or 18.0%, driven by the following factors:
Showing the first 40 of 77 passages. Open the source sections for the rest.
Removed paragraphs (53)
Previous 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.
Previous report
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 report
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 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
Global market prices for the remainder of the year will depend on (1) the evolution of foodservice, retail and export meat demand, (2) factors such as feed production input costs, further spread of avian influenza, or other bird diseases, both domestically and abroad, (3) uncertainty surrounding the general economy, (4) shifts in trade policy that could influence consumer spending dynamics in price-sensitive market segments, and (5) overall meat protein supply.
Previous report
◦Partially offset by an increase in sales volume of $15.1 million, or 0.5%
Previous report
◦Increase in sales volume of $11.9 million, or 0.9%
Previous report
◦Favorable impact of foreign currency translation of $7.7 million, or 0.5%
Previous report
◦Partially offset by decrease in sales price per pound of $1.2 million, or 0.1%
Previous report
◦Favorable impact of foreign currency translation of $63.7 million, or 11.3%
Previous report
◦Increase in sales volume of $96.4 million, or 17.0%
Previous report
◦Partially offset by a decrease in sales price per pound of $138.5 million, or 24.5%
Previous report
◦Increase in cost per pound sold of $108.7 million, or 4.7%
Previous report
◦Increase in sales volume of $12.4 million, or 0.5%
Previous report
•Europe cost of sales increased $31.6 million, or 2.5%, driven by the following factors:
Previous report
◦Increase in cost per pound sold of $13.9 million, or 1.1%
Previous report
◦Increase in sales volume of $10.9 million, or 0.9%
Previous report
◦Unfavorable impact of foreign currency translation of $6.8 million, or 0.5%
Previous report
•Mexico cost of sales increased $91.7 million, or 19.8%, driven by the following factors:
Previous report
◦Unfavorable impact of foreign currency translation of $60.3 million, or 13.0%
Previous report
◦Increase in sales volume of $79.0 million, or 17.0%
Previous report
◦Partially offset by a decrease in cost per pound sold of $47.6 million, or 10.2%
Previous report
▪This decrease was primarily driven by lower feed ingredient costs
Previous report
•Mexico SG&A increased $0.4 million, or 2.5%, driven by the unfavorable impact of foreign currency translation
Previous report
Six Months Ended June 28, 2026 Compared to the Six Months Ended June 29, 2025
Previous report
◦Decrease in sales price per pound of $315.0 million, or 5.6%
Previous report
◦Partially offset by an increase in sales volume of $36.1 million, or 0.6%
Previous report
•Europe net sales increased $138.6 million, or 5.3%, driven by the following factors:
Previous report
◦Favorable impact of foreign currency translation of $99.8 million, or 3.8%
Previous report
◦Increase in sales price per pound of $23.7 million, or 0.9%
Previous report
▪This increase was driven by the pass through of higher input costs, such as labor and utilities
Previous report
◦Increase in sales volume of $15.1 million, or 0.6%
Previous report
•Mexico net sales increased $78.8 million, or 7.5% driven by the following factors:
Previous report
◦Favorable impact of foreign currency translation of $140.2 million, or 13.3%
Previous report
◦Increase in sales volume of $153.2 million, or 14.5%
Showing the first 40 of 53 passages. Open the source sections for the rest.
Reworded paragraphs (40)
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 $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.
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 $232.4 million, or $0.97 per diluted common share, and income before tax totaling $313.9 million, for the nine months ended September 27, 2026. These operating results included net sales of $13.8 billion, gross profit of $1.0 billion and $684.2 million of cash provided by operating activities. We generated a consolidated operating margin of 3.0%. For the nine months ended September 27, 2026, we generated EBITDA and Adjusted EBITDA of $786.2 million and $984.4 million, respectively. A reconciliation of net income to EBITDA and Adjusted EBITDA is included below.
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 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.
Current wording
We are monitoring changes in tariffs and trade policies in the U.S. and other countries where we operate and conduct business. Changes to these policies may impact our export sales and international operations. Our U.S. business is primarily characterized by inputs sourced domestically and products sold domestically, with export sales from the U.S. representing less than 5% of our total net sales. While the impact of trade policy changes remains uncertain and continues to evolve, we do not currently anticipate a material impact on our results of operations. We will continue to monitor potential impacts and take mitigation actions, as appropriate.
Previous 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.
Current wording
We generally respond to ongoing challenges in global economic conditions through discussions with customers to help mitigate the impact of extraordinary costs we experience. We also continue to focus on operational initiatives aimed at delivering labor efficiencies, improved agricultural performance and enhanced yields.
Previous wording
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 wording
Export volumes increased 0.7% year over year from January through August, as geopolitical tensions and elevated energy costs continued to affect global trade flows. Chicken cold storage inventories were 5.0% below prior-year levels and 4.7% below the five-year average, reflecting healthy inventory levels despite increased industry production during the quarter. Breast meat inventories ended September 7.8% below prior-year levels, while dark meat inventories also declined, primarily due to lower leg quarter and drumstick inventories. These trends reflected continued export demand and balanced inventory conditions across the market. In contrast, thigh inventories increased as prices weakened in July before stabilizing over the remainder of the quarter.
Previous 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:
Current wording
Net sales. Net sales generated in the three months ended September 27, 2026 decreased $106.1 million, or 2.2%, from net sales generated in the three months ended September 28, 2025. The following table provides net sales information:
Previous wording
•U.S. net sales decreased $171.1 million, or 6.1%, driven by the following factors:
Current wording
•U.S. net sales decreased $156.5 million, or 5.5%, driven by the following factors:
Previous wording
◦Decrease in sales price per pound, reducing net sales by $186.2 million, or 6.6%
Current wording
◦Decrease in sales price per pound, reducing net sales by $56.0 million, or 2.0%
Previous wording
•Europe net sales increased $18.4 million, or 1.3%, driven by the following factors:
Current wording
•Europe net sales decreased $18.5 million, or 1.3%, driven by the following factors:
Previous wording
▪Volume increase was driven by market demand and a favorable product mix, with growth in live chicken and processed chicken
Current wording
▪Volume increase was driven by market demand and favorable growing conditions, with growth in live chicken and processed chicken products
Previous 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:
Current wording
Gross profit and cost of sales. Gross profit decreased by $325.7 million, or 49.4%, from $659.4 million generated in the three months ended September 28, 2025 to $333.7 million generated in the three months ended September 27, 2026. The following tables provide information regarding gross profit and cost of sales information:
Previous wording
•U.S. cost of sales increased $121.1 million, or 5.2%, driven by the following factors:
Current wording
•U.S. cost of sales increased $143.7 million, or 6.1%, driven by the following factors:
Previous wording
▪This increase was driven primarily by an increase in live operations costs, grain 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; partially offset by insurance income recoveries associated with losses from a hurricane
Previous wording
▪This increase was driven by market requirements in mix
Current wording
▪This increase was driven by market requirements in product mix
Previous 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:
Current wording
Operating income and SG&A expense. Operating income decreased by$301.1 million, or 61.1%, from income of$492.6 million generated in the three months ended September 28, 2025 to income of $191.5 million generated in the three months ended September 27, 2026. The following tables provide information regarding operating income and selling, general and administrative (“SG&A”) expense:
Previous wording
•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 wording
•Europe SG&A decreased $1.2 million, or 2.4%, driven by decreases in incentive compensation expense and marketing costs
Previous wording
•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 wording
•Interest expense increased primarily due to a decrease in interest income earned on lower average cash balances, partially offset by a decrease in interest expense on outstanding borrowings.
Previous wording
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 wording
Net sales. Net sales generated in the nine months ended September 27, 2026 decreased $167.6 million, or 1.2%, from net sales generated in the nine months ended September 28, 2025. The following table provides net sales information:
Previous wording
•U.S. net sales decreased $278.9 million, or 5.0%, driven by the following factors:
Current wording
•U.S. net sales decreased $435.4 million, or 5.2%, driven by the following factors:
Previous wording
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 wording
Gross profit and cost of sales. Gross profit decreased by $0.9 billion from $1.9 billion generated in the nine months ended September 28, 2025 to $1.0 billion generated in the nine months ended September 27, 2026. The following tables provide information regarding gross profit and cost of sales information:
Previous wording
•U.S. cost of sales increased $204.4 million, or 4.4%, driven by the following factors:
Current wording
•U.S. cost of sales increased $348.1 million, or 4.9%, driven by the following factors:
Previous wording
•Mexico net sales increased $21.6 million, or 3.8%, driven by the following factors:
Current wording
•Europe cost of sales increased $138.3 million, or 3.8%, driven by the following factors:
Previous wording
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 wording
Operating income and SG&A expense. Operating income decreased by $1.0 billion, or 70.2%, from$1.4 billion generated in the nine months ended September 28, 2025 to $420.0 million generated in the nine months ended September 27, 2026. The following tables provide information regarding operating income and selling, general and administrative (“SG&A”) expense:
Previous wording
•U.S. SG&A increased $73.8 million, or 55.0%, driven by an increase in legal settlement expense and legal defense costs
Current wording
•U.S. SG&A increased $92.8 million, or 30.7%, driven by an increase in litigation settlement expense and legal defense costs
Previous 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
Current wording
•Europe SG&A decreased $7.5 million, or 5.0%, 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 $11.4 million for the six months ended June 28, 2026 were incurred primarily as a result of severance related to back office consolidation
Current wording
•Europe restructuring activities charges of $11.5 million for the nine months ended September 27, 2026 were incurred primarily as a result of severance related to back office consolidation
Previous wording
•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, and lower year-over-year interest income due to a decrease in average cash balances
Current wording
•Interest expense increased primarily due to the loss on early extinguishment of debt of $16.3 million primarily driven by the tender offer on the Senior Notes due 2033, and lower year-over-year interest income due to a decrease in average cash balances
Previous wording
(a)Availability under the U.S. Credit Facility may also reduced by outstanding standby letters of credit.
Current wording
(a)Availability under the U.S. Credit Facility may also be 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.
Current wording
We expect cash flows from operations, combined with availability under our credit facilities, to provide sufficient liquidity to fund current obligations, the pending Walkers acquisition, 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 $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.
Current wording
Items necessary to reconcile from net income to cash flow provided by operating activities included net noncash expenses of $452.9 million for the nine months ended September 27, 2026. Net noncash expense items included depreciation and amortization of $365.0 million, asset impairment of $22.3 million, deferred income tax expense of $21.6 million, stock-based compensation costs of $17.0 million, loss on early extinguishment of debt of $16.3 million, losses on property disposals of $5.2 million, loan cost amortization of $3.8 million, and accretion of discounts related to Senior Notes of $1.7 million.
Previous 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.
Current 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.
Previous 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.
Current wording
The change in trade accounts and other receivables represented a $154.6 million source of cash related to operating activities for the nine months ended September 27, 2026. This change primarily resulted from the sale of trade receivables. 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.
Previous 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.
Current wording
The change in inventories represented a $64.6 million use of cash related to operating activities for the nine months ended September 27, 2026. This change resulted primarily from increased live inventory balances due to increased grain costs. 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.
Previous 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.
Current wording
The change in prepaid expenses and other current assets represented a $54.9 million use of cash related to operating activities for the nine months ended September 27, 2026. This change resulted primarily from an increase in derivative assets, prepaid property insurance, prepaid indirect taxes in our Mexico and Europe reportable segments and prepaid grower housing incentives. 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.
Previous 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.
Current wording
The change in accounts payable, accrued expenses and other current liabilities represented a $16.4 million source of cash related to operating activities for the nine months ended September 27, 2026. This change resulted primarily from an increase in trade payables, an increase in litigation settlement accruals and an increase in accrued payroll, partially offset by payment of incentive compensation accrued for in 2025. 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.
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 $6.7 million use and $8.0 million source of cash for the six months ended June 28, 2026 and June 29, 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 $27.2 million use and $95.8 million source of cash for the nine months ended September 27, 2026 and September 28, 2025, respectively.
Previous 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.
Current wording
Capital expenditures were incurred primarily for growth projects, such as a new prepared foods facility in Walker County, GA and the conversion of a commodity plant to a plant supporting our U.S. retail customers, and to improve operational efficiencies for the nine months ended September 27, 2026. Capital expenditures were incurred primarily for growth projects, such as the conversion of a commodity plant to a plant supporting our U.S. retail customers, system enhancement projects, and to improve operational efficiencies for the nine months ended September 28, 2025.
Previous 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."
Current wording
Purchase of acquired business during the nine months ended September 27, 2026, is from the equity purchase in Europe 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 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.
Current wording
Proceeds from the revolving line of credit and long-term borrowings during the nine months ended September 27, 2026, are related to the issuance of 4.75% Euro Senior Notes due 2034 and borrowings on the revolving U.S. and Mexico lines of credit. Payments on revolving line of credit, long-term borrowings and finance lease obligations during the nine months ended September 27, 2026, are primarily related to the repurchase of the 6.25% Senior Notes due 2033 and its 3.50% Senior Notes due 2032 as well as revolving line of credit and finance lease payments. Payments on early extinguishment of debt during the nine months ended September 27, 2026, are related to fees paid during the repurchase of its 6.25% Senior Notes due 2033. Payments of capitalized loan costs during the nine months ended September 27, 2026, are related to fees paid during the issuance of its 4.75% Euro Senior Notes due 2034.
Previous 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.
Current 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.
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) 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:
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, (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 (1)
Current report — wording carried from elsewhere
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.
Rearranged previous paragraphs (7)
Previous report — wording carried 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
Previous report — wording carried elsewhere
▪This decrease was driven by a decrease in commodity chicken pricing
Previous report — wording carried elsewhere
▪This increase was driven by higher input costs, such as labor and utilities
Previous report — wording carried elsewhere
▪This increase was driven by market requirements in mix
Previous report — wording carried elsewhere
▪This decrease was driven by a decrease in commodity chicken pricing
Previous report — wording carried elsewhere
•U.S. SG&A increased $114.6 million, or 56.5%, driven by an increase in legal settlement expense and legal defense costs
Previous report — wording carried elsewhere
Factors impacting restructuring activities charges are as follows: