We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Pilgrim's Pride's U.S. Fresh Segment Driving Margin Stability?
Read MoreHide Full Article
Key Takeaways
PPC maintained Q3 margins as the U.S. Fresh segment offset declines in commodity chicken pricing.
Case Ready and Small Bird delivered strong results on retail and QSR demand from key customers.
Operational gains and retail trade-down to fresh chicken helped stabilize results across Fresh.
Pilgrim's Pride Corporation’s ((PPC - Free Report) ) ability to maintain margins in the third quarter of 2025 despite a downturn in commodity chicken pricing underscores the crucial role of the U.S. Fresh segment, particularly the Case Ready and Small Bird businesses.
Management highlighted that U.S. Fresh sustained strong results, backed by quality, service and progress in operational excellence. Case Ready and Small Bird specifically benefited from strong retail and QSR demand from key customers, while Big Bird captured efficiencies from targeted operational improvements.
On the latest earnings call, the company detailed how Case Ready served as a stabilizer, outperforming category averages with higher-attribute offerings. Profitability in Case Ready improved both year over year and sequentially, reinforcing its position as a high-value, low-volatility contributor. Meanwhile, Small Bird’s alignment with chicken-focused QSRs, one of the most resilient parts of foodservice traffic, helped offset softness in the bone-in category. These customer-aligned channels provided demand consistency even as consumers shifted spending patterns amid inflationary pressure.
The Fresh portfolio also absorbed pressure from Big Bird commodity declines, thanks to ongoing operational upgrades. Improved yields, healthier bird performance and better live operations helped Big Bird margins remain comparable to last year despite sharp declines in boneless breast prices in September.
Fresh chicken demand rose in retail as consumers traded down from beef due to a record price spread, providing a favorable demand environment for Case Ready and other Fresh cuts. This balance within the business helped cushion the impact of commodity fluctuations.
Overall, margin stability was mainly driven by the fresh segment’s reliable performance, as it continued to benefit from demand strength and ongoing efficiency gains.
Shares of this Zacks Rank #3 (Hold) company have lost 21.1% over the past three months, outperforming the industry’s 27.5% decline but trailing the broader Consumer Staples sector’s 4.7% drop. Over the same period, PPC also underperformed the S&P 500 index, which gained 7.7%.
PPC Stock's Past 3 Months Performance
Image Source: Zacks Investment Research
Is PPC a Value Play Stock?
Pilgrim’s Pride currently trades at a forward 12-month P/E ratio of 8.22, which is down from the industry average of 13.51 and notably below the sector average of 16.44. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
PPC P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Top-Ranked Stocks
United Natural Foods, Inc. ((UNFI - Free Report) ) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for United Natural’s current fiscal-year sales and earnings implies growth of 2.5% and 167.6%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 416.2%, on average.
Lamb Weston Holdings, Inc. ((LW - Free Report) ) engages in the production, distribution and marketing of frozen potato products in the United States, Canada, Mexico and internationally. It sports a Zacks Rank #1 at present. Lamb Weston delivered a trailing four-quarter earnings surprise of 16%, on average.
The Zacks Consensus Estimate for Lamb Weston's current fiscal-year sales indicates growth of 1.3% from the prior-year levels.
The Chefs' Warehouse, Inc. ((CHEF - Free Report) ) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. It currently carries a Zacks Rank of 1. CHEF delivered a trailing four-quarter earnings surprise of 14.7%, on average.
The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings indicates growth of 8.1% and 29.3%, respectively, from the prior-year levels.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Pilgrim's Pride's U.S. Fresh Segment Driving Margin Stability?
Key Takeaways
Pilgrim's Pride Corporation’s ((PPC - Free Report) ) ability to maintain margins in the third quarter of 2025 despite a downturn in commodity chicken pricing underscores the crucial role of the U.S. Fresh segment, particularly the Case Ready and Small Bird businesses.
Management highlighted that U.S. Fresh sustained strong results, backed by quality, service and progress in operational excellence. Case Ready and Small Bird specifically benefited from strong retail and QSR demand from key customers, while Big Bird captured efficiencies from targeted operational improvements.
On the latest earnings call, the company detailed how Case Ready served as a stabilizer, outperforming category averages with higher-attribute offerings. Profitability in Case Ready improved both year over year and sequentially, reinforcing its position as a high-value, low-volatility contributor. Meanwhile, Small Bird’s alignment with chicken-focused QSRs, one of the most resilient parts of foodservice traffic, helped offset softness in the bone-in category. These customer-aligned channels provided demand consistency even as consumers shifted spending patterns amid inflationary pressure.
The Fresh portfolio also absorbed pressure from Big Bird commodity declines, thanks to ongoing operational upgrades. Improved yields, healthier bird performance and better live operations helped Big Bird margins remain comparable to last year despite sharp declines in boneless breast prices in September.
Fresh chicken demand rose in retail as consumers traded down from beef due to a record price spread, providing a favorable demand environment for Case Ready and other Fresh cuts. This balance within the business helped cushion the impact of commodity fluctuations.
Overall, margin stability was mainly driven by the fresh segment’s reliable performance, as it continued to benefit from demand strength and ongoing efficiency gains.
Pilgrim's Pride’s Zacks Rank & Share Price Performance
Shares of this Zacks Rank #3 (Hold) company have lost 21.1% over the past three months, outperforming the industry’s 27.5% decline but trailing the broader Consumer Staples sector’s 4.7% drop. Over the same period, PPC also underperformed the S&P 500 index, which gained 7.7%.
PPC Stock's Past 3 Months Performance
Image Source: Zacks Investment Research
Is PPC a Value Play Stock?
Pilgrim’s Pride currently trades at a forward 12-month P/E ratio of 8.22, which is down from the industry average of 13.51 and notably below the sector average of 16.44. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.
PPC P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Top-Ranked Stocks
United Natural Foods, Inc. ((UNFI - Free Report) ) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for United Natural’s current fiscal-year sales and earnings implies growth of 2.5% and 167.6%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 416.2%, on average.
Lamb Weston Holdings, Inc. ((LW - Free Report) ) engages in the production, distribution and marketing of frozen potato products in the United States, Canada, Mexico and internationally. It sports a Zacks Rank #1 at present. Lamb Weston delivered a trailing four-quarter earnings surprise of 16%, on average.
The Zacks Consensus Estimate for Lamb Weston's current fiscal-year sales indicates growth of 1.3% from the prior-year levels.
The Chefs' Warehouse, Inc. ((CHEF - Free Report) ) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. It currently carries a Zacks Rank of 1. CHEF delivered a trailing four-quarter earnings surprise of 14.7%, on average.
The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings indicates growth of 8.1% and 29.3%, respectively, from the prior-year levels.