(Reuters) -Tyson Foods forecast full-year revenue below Wall Street expectations on Tuesday, pressured by slowing chicken demand and lower pork prices.
The company is losing market share to cheaper private-label products as more and more consumers shy away from its meat-based products, which are usually more expensive.
Sales in Tyson’s chicken segment rose 2.3% in the fourth quarter, while prices were up 0.2% and volumes dropped 0.7%.
Tyson’s pork segment saw volumes increase 3.2%, while prices fell 6.9%.
The company expects fiscal 2025 revenue to be between flat and down 1%. Analysts had expected 1.8% growth to $54.09 billion, according to data compiled by LSEG.
However, volume in the beef segment rose 3.7%, hinting to strong demand at a time when U.S. meat packers including Tyson Foods are facing short supply of beef, with no signs showing that producers are willing to start to rebuild herds.
Tyson Foods’ net sales rose 1.6% to $13.57 billion in the fourth quarter, compared with the average analyst estimate of $13.39 billion.
The company’s shares rose nearly 6% in premarket trading.
(Reporting by Neil J Kanatt and Ananya Mariam Rajesh in Bengaluru and Karl Plume and Heather Schlitz in Chicago; Editing by Shounak Dasgupta)