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Pilgrim's Pride Q1 Earnings Miss Estimates, Sales Grow About 1.6% Y/Y
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Key Takeaways
PPC missed earnings estimates as adjusted EBITDA margin fell 520 basis points to 6.8%.
Pilgrim's Pride saw strong Prepared Foods momentum, with Just Bare sales rising nearly 40%.
PPC's Europe and Mexico businesses posted sales growth despite margin pressure and higher costs.
Pilgrim’s Pride Corporation (PPC - Free Report) reported fiscal first-quarter 2026 results, wherein the top line increased year over year and came slightly ahead of the Zacks Consensus Estimate, while the bottom line saw a year-over-year decline and fell short of the consensus mark.
Pilgrim’s Pride’s Q1 Metrics in Detail
Pilgrim's Pride posted adjusted earnings of 51 cents per share, missing the Zacks Consensus Estimate of 69 cents. Also, the figure decreased from adjusted earnings of $1.31 per share in the year-ago quarter.
Pilgrim's Pride Corporation Price, Consensus and EPS Surprise
The company generated net sales of $4,532.6 million, which increased 1.6% from $4,463 million in the year-ago quarter. However, the top line came slightly higher than the Zacks Consensus Estimate of $4,500 million.
Pilgrim's Pride’s cost of sales was $4,187.1 million, which increased from $3,908.1 million reported in the year-ago quarter. Gross profit fell year over year to $345.5 million from $554.9 million in the prior year.
Selling, general and administrative expenses were $180.2 million compared with $133.8 million reported in the year-ago period.
The company reported an adjusted EBITDA of $308.1 million, down 42.2% from $533.2 million reported in the year-ago quarter. The adjusted EBITDA margin was 6.8%, a decrease of 520 basis points from 12% reported in the prior-year quarter. The operating income was $162.6 million, a year-over-year decline of 59.8% from $404.5 million.
Decoding PPC’s Segmental Performance
U.S. operations reported net sales of $2,635.4 million, down from $2,743.2 million in the prior year. The adjusted operating income was $110.1 million compared with $326.1 million in the prior year, with an adjusted operating margin of 4.2% compared with 11.9% in the prior-year quarter.
The U.S. Fresh segment advanced initiatives to improve product mix, operational efficiency, and key customer partnerships, strengthening long-term growth and stability. Meanwhile, U.S. Prepared Foods continued strong momentum with record retail volumes. The Just Bare brand delivered nearly 40% year-over-year sales growth, supported by the ongoing construction of a new value-added facility in Walker County, GA.
Europe operations delivered net sales of $1,351.7 million, up from $1,231.5 million in the prior-year period. The adjusted operating income was $67.5 million compared with $65.7 million in the prior year, while the adjusted operating margin declined slightly to 5% from 5.3% in the prior-year quarter.
The steady performance was supported by a balanced portfolio across proteins and meal occasions. Rollover outperformed its category, while Fridge Raiders maintained a stable position in the snacking segment. Ongoing back-office integration and network optimization initiatives continue to enhance productivity and support future growth.
Mexico operations reported net sales of $545.5 million, up from $488.3 million in the prior-year quarter, driven by more than 10% volume growth across its branded Fresh and Prepared Foods portfolio.
Expansion efforts continued through increased production in the South and Peninsula regions, supporting geographic diversification. However, improved growing conditions in live markets and higher imports led to margin compression compared to the first quarter of 2025. The adjusted operating income was $10.9 million, which decreased from $36.6 million in the prior year, with an adjusted operating margin of 2% compared with 7.5% in the prior-year quarter.
Other Financial Aspects of PPC
Pilgrim’s Pride ended the quarter with cash and cash equivalents of $542.4 million, long-term debt (less current maturities) of $3,095.6 million and total shareholders’ equity of $3,736.5 million. The company provided $140.8 million in cash from operating activities for the three months ended March 29, 2026.
This Zacks Rank #4 (Sell) stock has plunged 31.1% in the past three months compared with the industry’s 7% decline.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
The Zacks Consensus Estimate for SFD's current fiscal-year sales and earnings implies growth of 1.1% and 7.5%, respectively, from the year-ago reported figures. SFD delivered a trailing four-quarter earnings surprise of 12%, on average.
Tyson Foods, Inc. (TSN - Free Report) operates as a food company and processes live fed cattle and hogs; fabricates dressed beef and pork carcasses into primal and sub-primal meat cuts, as well as case-ready beef and pork, and fully cooked meats; raises and processes chickens into fresh, frozen, and value-added chicken products.TSN currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for TSN’s current fiscal-year sales implies growth of 4.4% and the same for earnings implies a decline of 4.1% from the year-ago actuals. TSN delivered a trailing four-quarter earnings surprise of 16.5%, on average.
B&G Foods, Inc. (BGS - Free Report) manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods and household products. BGS currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for B&G Foods’ current fiscal-year earnings implies growth of 5.9% from the year-ago actuals. BGS delivered a trailing four-quarter negative earnings surprise of 19.5%, on average.
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Pilgrim's Pride Q1 Earnings Miss Estimates, Sales Grow About 1.6% Y/Y
Key Takeaways
Pilgrim’s Pride Corporation (PPC - Free Report) reported fiscal first-quarter 2026 results, wherein the top line increased year over year and came slightly ahead of the Zacks Consensus Estimate, while the bottom line saw a year-over-year decline and fell short of the consensus mark.
Pilgrim’s Pride’s Q1 Metrics in Detail
Pilgrim's Pride posted adjusted earnings of 51 cents per share, missing the Zacks Consensus Estimate of 69 cents. Also, the figure decreased from adjusted earnings of $1.31 per share in the year-ago quarter.
Pilgrim's Pride Corporation Price, Consensus and EPS Surprise
Pilgrim's Pride Corporation price-consensus-eps-surprise-chart | Pilgrim's Pride Corporation Quote
The company generated net sales of $4,532.6 million, which increased 1.6% from $4,463 million in the year-ago quarter. However, the top line came slightly higher than the Zacks Consensus Estimate of $4,500 million.
Pilgrim's Pride’s cost of sales was $4,187.1 million, which increased from $3,908.1 million reported in the year-ago quarter. Gross profit fell year over year to $345.5 million from $554.9 million in the prior year.
Selling, general and administrative expenses were $180.2 million compared with $133.8 million reported in the year-ago period.
The company reported an adjusted EBITDA of $308.1 million, down 42.2% from $533.2 million reported in the year-ago quarter. The adjusted EBITDA margin was 6.8%, a decrease of 520 basis points from 12% reported in the prior-year quarter. The operating income was $162.6 million, a year-over-year decline of 59.8% from $404.5 million.
Decoding PPC’s Segmental Performance
U.S. operations reported net sales of $2,635.4 million, down from $2,743.2 million in the prior year. The adjusted operating income was $110.1 million compared with $326.1 million in the prior year, with an adjusted operating margin of 4.2% compared with 11.9% in the prior-year quarter.
The U.S. Fresh segment advanced initiatives to improve product mix, operational efficiency, and key customer partnerships, strengthening long-term growth and stability. Meanwhile, U.S. Prepared Foods continued strong momentum with record retail volumes. The Just Bare brand delivered nearly 40% year-over-year sales growth, supported by the ongoing construction of a new value-added facility in Walker County, GA.
Europe operations delivered net sales of $1,351.7 million, up from $1,231.5 million in the prior-year period. The adjusted operating income was $67.5 million compared with $65.7 million in the prior year, while the adjusted operating margin declined slightly to 5% from 5.3% in the prior-year quarter.
The steady performance was supported by a balanced portfolio across proteins and meal occasions. Rollover outperformed its category, while Fridge Raiders maintained a stable position in the snacking segment. Ongoing back-office integration and network optimization initiatives continue to enhance productivity and support future growth.
Mexico operations reported net sales of $545.5 million, up from $488.3 million in the prior-year quarter, driven by more than 10% volume growth across its branded Fresh and Prepared Foods portfolio.
Expansion efforts continued through increased production in the South and Peninsula regions, supporting geographic diversification. However, improved growing conditions in live markets and higher imports led to margin compression compared to the first quarter of 2025. The adjusted operating income was $10.9 million, which decreased from $36.6 million in the prior year, with an adjusted operating margin of 2% compared with 7.5% in the prior-year quarter.
Other Financial Aspects of PPC
Pilgrim’s Pride ended the quarter with cash and cash equivalents of $542.4 million, long-term debt (less current maturities) of $3,095.6 million and total shareholders’ equity of $3,736.5 million. The company provided $140.8 million in cash from operating activities for the three months ended March 29, 2026.
This Zacks Rank #4 (Sell) stock has plunged 31.1% in the past three months compared with the industry’s 7% decline.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Smithfield Foods, Inc. (SFD - Free Report) produces various packaged meats and fresh pork products in the United States and internationally. SFD currently sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The Zacks Consensus Estimate for SFD's current fiscal-year sales and earnings implies growth of 1.1% and 7.5%, respectively, from the year-ago reported figures. SFD delivered a trailing four-quarter earnings surprise of 12%, on average.
Tyson Foods, Inc. (TSN - Free Report) operates as a food company and processes live fed cattle and hogs; fabricates dressed beef and pork carcasses into primal and sub-primal meat cuts, as well as case-ready beef and pork, and fully cooked meats; raises and processes chickens into fresh, frozen, and value-added chicken products.TSN currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for TSN’s current fiscal-year sales implies growth of 4.4% and the same for earnings implies a decline of 4.1% from the year-ago actuals. TSN delivered a trailing four-quarter earnings surprise of 16.5%, on average.
B&G Foods, Inc. (BGS - Free Report) manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods and household products. BGS currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for B&G Foods’ current fiscal-year earnings implies growth of 5.9% from the year-ago actuals. BGS delivered a trailing four-quarter negative earnings surprise of 19.5%, on average.