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1. Company Snapshot

1.a. Company Description

Pilgrim's Pride Corporation engages in the production, processing, marketing and distribution of fresh, frozen and value-added chicken, and pork products to retailers, distributors, and foodservice operators in the United States, the United Kingdom, Mexico, the Middle East, Asia, Continental Europe, and internationally.The company offers fresh products, including pre-marinated or non-marinated chicken, frozen whole chickens, breast fillets, mini breast fillets and prepackaged case-ready chicken, primary pork cuts, and pork and pork ribs; prepared products, which include portion-controlled breast fillets, tenderloins and strips, delicatessen products, salads, formed nuggets and patties, and bone-in chicken parts; processed sausages, bacon, slow cooked, smoked meat, gammon joints, as well as variety of meat products, pre-packed meats, sandwich and deli counter meats, pulled pork balls, meatballs, and coated foods.In addition, its exported products include whole chickens and chicken parts sold either refrigerated for distributors in the U.S. or frozen for distribution to export markets and primary pork cuts, hog heads and trotters frozen for distribution to export markets.


The company offers its products under the Pilgrim's, Just BARE, Gold'n Pump, Gold Kist, County Pride, Pierce Chicken, Pilgrim's Mexico, County Post, Savoro, To-Ricos, Del Dia, Moy Park, O'Kane, Richmond, Fridge Raiders, and Denny brands.Pilgrim's Pride Corporation sells its products to the foodservice market principally consists of chain restaurants, food processors, broad-line distributors, and other institutions; and retail market, which comprise primarily grocery store chains, wholesale clubs, and other retail distributors.The company was founded in 1946 and is headquartered in Greeley, Colorado.


Pilgrim's Pride Corporation operates as a subsidiary of JBS S.A.

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1.b. Last Insights on PPC

Pilgrim's Pride Corporation faced challenges in recent months. The company's Q2 2025 earnings call revealed a mixed performance, with a 4% revenue increase. However, a significant investment of $400 million to build a new prepared foods facility in Georgia may have raised concerns about capital allocation. Furthermore, despite e-commerce sales growth of 26% in Q2 2025, the company's strategic focus on digital channels may not be yielding immediate returns. A special dividend of approximately $500 million was announced, which could be viewed as a positive return of capital to shareholders.

1.c. Company Highlights

2. Pilgrim's Pride: Robust Q3 Earnings with Diversified Portfolio

Pilgrim's Pride reported net revenues of $4.8 billion, with an adjusted EBITDA of $633 million and an adjusted EBITDA margin of 13.3% for the third quarter of 2025. The company's EPS came in at $1.52, beating estimates of $1.41. The U.S. segment drove growth, with a 2.3% year-over-year increase in net revenues, while Mexico and Europe saw increases of over 5% and 6%, respectively. Adjusted EBITDA margins were 16.9% in the U.S., 7.9% in Europe, and 8.2% in Mexico.

Publication Date: Nov -03

📋 Highlights
  • Strong Revenue & Margin Performance: Pilgrim's Pride reported $4.8B net revenues with 13.3% adjusted EBITDA margin ($633M), driven by U.S. commodity upside and portfolio diversification.
  • Regional EBITDA Growth: U.S. EBITDA margin hit 16.9% ($479.1M), outpacing Europe (7.9%) and Mexico (8.2%), with 2.3% U.S. revenue growth and over 5% in Mexico/Europe.
  • Capital Expenditure Expansion: Q3 CapEx rose to $182M (+$78M YoY), funding new facilities in Walker County and Mexico, with full-year CapEx targeting $700M for growth initiatives.
  • Portfolio Diversification & Pricing Stability: 25% of pricing tied to Big Bird market, but fixed-price contracts with retail customers reduce commodity exposure, boosting margin stability.
  • Future Growth Outlook: Anticipates 2–3% U.S. chicken demand growth in 2026 due to beef price shifts and stable input costs, with 20% EU production increase planned by 2027.

Regional Performance

The company's diversified portfolio captured upsides in the commodity market while protecting from downsides. In the U.S., demand for chicken remains robust, driven by consumers' choice to eat more chicken due to the high prices of beef. The company's pricing contracts are about 25% exposed to the commoditized Big Bird market. Europe is turning the page on its profitability journey, with a focus on growth through M&A and organic expansions.

Growth Initiatives and Investments

The company continues to invest in growth initiatives, including the conversion of a Big Bird facility to Case Ready, a new protein conversion plant, and a new state-of-the-art Prepared Foods facility in Walker County. These investments are expected to enhance the company's competitive differentiation in Fresh, further diversify its portfolio through brands, and enhance operating efficiencies. The company expects a full-year CapEx spend of approximately $700 million.

Valuation and Outlook

With a P/E Ratio of 7.36 and an EV/EBITDA of 4.14, the company's valuation appears reasonable. The Dividend Yield is attractive at 22.05%. Analysts estimate next year's revenue growth at 0.1%. The company's leverage ratio is expected to remain stable in Q4. As the company continues to invest in growth initiatives and navigate the competitive US chicken industry, its diversified portfolio and focus on key customers position it for long-term success.

Operational Highlights

The company has made progress on its investments in Fresh and Prepared in Mexico, and its growth projects align with its strategy of portfolio diversification, focus on key customers, operational excellence, and commitment to team member health and safety. The company is no longer actively buying back bonds, having completed its program in the first half of the year.

3. NewsRoom

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PPC Ltd (PPCLY) Q2 2026 Earnings Call Transcript

Nov -24

Source: seekingalpha.com

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Brandywine Global Investment Management LLC Takes $3.91 Million Position in Pilgrim’s Pride Corporation $PPC

Nov -24

Source: defenseworld.net

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Envestnet Asset Management Inc. Sells 16,782 Shares of Pilgrim’s Pride Corporation $PPC

Nov -16

Source: defenseworld.net

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Is Pilgrim's Pride's U.S. Fresh Segment Driving Margin Stability?

Nov -14

Source: zacks.com

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Atria Investments Inc Reduces Holdings in Pilgrim’s Pride Corporation $PPC

Nov -14

Source: defenseworld.net

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Aviva PLC Purchases Shares of 11,428 Pilgrim’s Pride Corporation $PPC

Nov -14

Source: defenseworld.net

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Pilgrim's Pride Corporation (PPC) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Pilgrim's Pride Third-Quarter Sales Rise on Demand for Chicken

Oct -29

Source: wsj.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.84%)

6. Segments

Fresh Products

Expected Growth: 1.8%

Pilgrim's Pride Corporation's Fresh Products segment growth of 1.8% is driven by increasing demand for protein-rich foods, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on operational efficiency, cost savings, and investments in technology have contributed to the growth. Furthermore, the rising popularity of organic and premium products has also boosted sales.

Prepared Products

Expected Growth: 1.9%

Pilgrim's Pride Corporation's Prepared Products segment growth of 1.9% is driven by increasing demand for convenient and protein-rich foods, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on innovation, product diversification, and operational efficiencies have contributed to the growth.

Exports

Expected Growth: 2.1%

Pilgrim's Pride Corporation's 2.1% export growth is driven by increasing global demand for protein, particularly in Asia and Latin America. Strong operational efficiency, competitive pricing, and strategic partnerships also contribute to the growth. Furthermore, the company's diversified product portfolio, including chicken, beef, and pork, helps to mitigate risks and capitalize on market opportunities.

Other Products

Expected Growth: 1.7%

Pilgrim's Pride Corporation's 1.7% growth in Other Products is driven by increasing demand for value-added products, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on innovation, quality, and customer satisfaction has led to market share gains and pricing power. Furthermore, cost savings initiatives and operational efficiencies have also contributed to the segment's growth.

7. Detailed Products

Chicken Products

Pilgrim's Pride Corporation offers a wide range of chicken products, including fresh and frozen whole birds, parts, and value-added products such as breaded and marinated chicken.

Prepared Foods

The company's prepared foods segment includes a variety of products such as chicken nuggets, chicken strips, and other value-added products.

Export Products

Pilgrim's Pride exports a range of chicken products to countries around the world, including whole birds, parts, and value-added products.

Feed and Ingredients

The company's feed and ingredients segment includes a range of products such as poultry feed, pet food, and animal nutrition products.

8. Pilgrim's Pride Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Pilgrim's Pride Corporation faces moderate threat from substitutes, as consumers have limited alternatives to chicken products. However, the increasing popularity of plant-based meat alternatives and other protein sources poses a moderate threat to the company's market share.

Bargaining Power Of Customers

Pilgrim's Pride Corporation has a diverse customer base, including retailers, distributors, and foodservice providers, which reduces the bargaining power of individual customers. Additionally, the company's strong brand recognition and product offerings limit the ability of customers to negotiate prices.

Bargaining Power Of Suppliers

Pilgrim's Pride Corporation relies on a network of suppliers for feed, transportation, and other essential services. While the company has some bargaining power due to its scale, suppliers may still exert some pressure on prices and terms, particularly in times of high demand or supply chain disruptions.

Threat Of New Entrants

The poultry industry has significant barriers to entry, including high capital requirements, complex regulatory compliance, and established relationships with suppliers and customers. These barriers limit the threat of new entrants and provide Pilgrim's Pride Corporation with a relatively stable market position.

Intensity Of Rivalry

The poultry industry is highly competitive, with several large players vying for market share. Pilgrim's Pride Corporation faces intense competition from rivals such as Tyson Foods, Sanderson Farms, and Perdue Farms, which can lead to pricing pressure and advertising wars.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.56%
Debt Cost 5.70%
Equity Weight 49.44%
Equity Cost 7.76%
WACC 6.72%
Leverage 102.27%

11. Quality Control: Pilgrim's Pride Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Pilgrim's Pride

A-Score: 6.7/10

Value: 7.6

Growth: 7.3

Quality: 6.9

Yield: 8.0

Momentum: 3.0

Volatility: 7.7

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Yield: 0.0

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A-Score: 4.4/10

Value: 7.4

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Quality: 5.0

Yield: 0.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

39.74$

Current Price

39.74$

Potential

-0.00%

Expected Cash-Flows