yson Foods reported better-than-expected profits in the fourth quarter, driven by strong performance in its chicken division, which is now positioned as a primary contributor to the company’s growth outlook for 2025. After challenges in recent quarters, including plant closures, Tyson’s chicken segment benefited from lower feed costs and increased plant efficiency, supporting a turnaround that offset ongoing struggles in its beef division.
CEO Donnie King emphasized that Tyson’s chicken business has undergone substantial improvement, achieving an adjusted operating margin of 3.8% for the quarter, up from 1.8% a year prior. Although chicken volumes fell slightly, operating income in this segment surged to $409 million from a $267 million loss last year. Tyson now expects the chicken segment to generate over half of its projected adjusted operating income for 2025, estimated between $1.8 billion and $2.2 billion.
The company’s net sales increased by 1.6% to $13.57 billion, exceeding analyst expectations, with shares jumping nearly 9% in response to the positive outlook. Tyson’s strategic shift to focus on the chicken business, which has shown resilience against broader industry challenges, reflects its commitment to strengthening profitability in the face of an uncertain beef market.
