Tyson Foods Lowers Profit Outlook Amid Cattle Shortage

Tyson Foods Inc. lowered its fiscal year profit outlook for the second time in two months, citing a severe cattle shortage in the United States and significant margin compression. The company now projects annual adjusted operating income between $1.85 billion and $2.05 billion, a decrease from its previous forecast of $2.1 billion to $2.3 billion.

Beef operating losses are expected to reach between $625 million and $775 million. In response to these pressures, the company is closing plants in Illinois and Utah and seeking the sale of a facility in Washington. These restructuring efforts are not expected to alleviate cost pressures until fiscal 2027. Following the announcement, company shares fell as much as 8.5%.

Chief Executive Officer Donnie King attributed the cuts to industry-wide cattle-cycle dynamics. Meanwhile, President Donald Trump has planned to import up to 300,000 tons of ground beef at lower tariff rates to increase domestic supplies.