Those sky-high beef prices are no benefit to Tyson Foods. In a revised financial update Sept. 3, the company projects a $625-775 million loss in its beef segment, more than offset by $1.85-1.95 billion operating income in its chicken segment, as it nears the end of its fiscal 2026 at the end of this month.

“Driven by significant margin compression amid volatile cattle prices and one of the most severe cattle shortages in U.S. history,” Tyson now expects 2026 revenue growth of 1.5-2.0% and total company adjusted operating income of $1.85-2.05 billion. Earlier estimates were 2.5-3.5% growth in sales and $2.1-2.3 billion in income.

“The beef pressures that have intensified this quarter reflect industry-wide cattle-cycle dynamics that required decisive action,” said President/CEO Donnie King – who will retire on Oct. 4, replaced by longtime board member Jeff Schomburger.

“As announced in August, we are restructuring our beef network around three strategically located facilities in the central United States to create a more efficient and competitive footprint for the long term,” King continued. “We expect these actions to begin reducing operating cost pressures as we enter fiscal 2027.”

The beef-processing plant in Joslin, Ill., and the case-ready facility in Eagle Mountain, Utah, will close, and the Pasco, Wash., beef plant is being sold.

“Consumer caution around discretionary spending has created a more challenging foodservice demand environment. Tyson Foods’ Chicken portfolio continues to benefit from strategic customer partnerships and a growing value-added mix,” the company said. “With demand stabilizing, Tyson Foods continues to outpace the broader category across its branded and private-label retail and foodservice portfolio.”

Pork, Prepared Foods and International segments are coming in about as expected.