(Tiffany Hagler-Geard/Bloomberg)
February 2, 2026 9:05 AM, EST
| Updated: February 2, 2026 11:52 AM, EST
America’s huge appetite for protein is helping support Tyson Foods Inc.’s results, yet the country’s largest meatpacker continues to be dragged down by pressures from a severe cattle shortage.
Tyson’s beef segment, its largest, extended a string of quarterly losses that began at the start of 2024. The company has counted heavily on consumer demand to boost chicken volumes and raise beef prices, while weathering a tight U.S. cattle supply that shows little signs of recovery.
“Continuing to absorb losses like we have been seeing for the past two years is simply unacceptable,” CEO Donnie King said on an earnings call Feb. 2.
Tyson’s beef business had an adjusted operating loss of $143 million in the first quarter, according to a statement. That’s worse than analysts expected, even as a 17% increase in pricing supported year-over-year sales growth.
The company, in a move meant to turn around the segment, said in November it would close a Nebraska beef plant and reduce a Texas facility to a single shift. Those changes, which help bring operations in “alignment with the long-term outlook for the U.S. cattle herd,” were implemented in January and accordingly are not reflected in the company’s first-quarter results, King said.
The company’s chicken segment continued to see year-over-year growth on higher volumes, even as prices for the protein flattened. That marked the fifth straight quarter of volume gains for the segment. Pricing also improved in its prepared foods business, while demand was stable.
Adjusted earnings for the entire company were 97 cents a share, according to a statement Feb. 2. That’s down 15% from the prior year but above analyst estimates of 95 cents.
Tyson shares rose as much as 1.2%, erasing an earlier decline. The stock has climbed 12% this year.
BREAKING: The Trump Administration announces the 2025-2030 Dietary Guidelines for Americans, putting REAL FOOD back at the center of health. 🇺🇸https://t.co/tkGF01onpm pic.twitter.com/1zTLSKdE7R
— The White House (@WhiteHouse) January 7, 2026
A broader protein craze among consumers has helped cushion the blow for Tyson’s beef business. The U.S.’s new dietary guidelines that flip the food pyramid to prioritize meat is seen accelerating that trend. Record retail beef prices are supported in part by demand, which has not dropped as much as feared, while consumers are also flocking to chicken as a more affordable protein.
“These updated guidelines and recommendations represent a historic validation of our core mission,” King said. “The administration has underscored what we have always known. Animal protein is the foundational building block of a nutritious diet.”
But the pressure on beef processors is expected to continue. The U.S. herd remained at a 75-year low as of Jan. 1, nearly unchanged from the prior year, the Department of Agriculture said Jan. 30. Rebuilding the herd will require more animals to be held back from the meat supply for breeding, temporarily tightening supplies further.
That has crunched margins, even as the Trump administration calls the industry out for inflating meat prices. Rising cattle costs have “more than offset higher cutout values and continued higher consumer demand,” Chief Operating Officer Devin Cole said on the call with analysts.
Transport Topics reporters Eugene Mulero and Keiron Greenhalgh examine the critical trends that will define freight transportation in the year ahead. Tune in above or by going to RoadSigns.ttnews.com.
Tyson expects cattle supplies to remain tight throughout 2026 and 2027. Its plant closure is expected to cool cattle prices by reducing competition for supplies, though costs are still forecast to rise year-over-year, according to the USDA.
The company maintained its outlook for the year, but narrowed its expected operating loss in its beef segment to $250 million to $500 million, from a prior forecast of $400 million to $600 million. The estimate does not include costs related to facility closures.
Tyson ranks No. 9 on the Transport Topics Top 100 list of the largest private carriers in North America.
