It's been a rough two years for Tyson Foods with declining cattle numbers pushing prices higher and squeezing margins.

 

The American meat giant—based in Springdale, Arkansas—recorded beef operating losses in excess of US$816 million through the first three quarters of 2025. On an adjusted basis, the beef loss exceeded US$332 million and is expected to total as much as US$475 million for the full year, which ends Sept. 28.

 

Curt Calaway, chief financial officer at Tyson Foods, said that evidence of heifer retention has begun, which signals the start of the beef industry turnaround.

 

"Relative to beef, there's certainly been limited cattle availability, and we have been on that journey for some time. We've also seen pricing spread volatility during that period. But, we have continued to focus on the efficiencies within our business and controlling what we can," Calaway said during a question-and-answer session at the Barclays consumer staples conference held in Boston on September 4.

 

While heifer retention signs are positive, Calaway said it will be 2028 before there is a sustainable level of cattle coming into processing plants. He said it's too early for Tyson to give investors a normalized range for profit margins, given the lengthy rebuilding cycle for cattle.

 

"But we're very optimistic relative to what we've done within our business to control our future. And the cattle cycle will manage its way through, and it'll balance over time," Calaway said.

 

Calaway said there are still improvements needed in Tyson's pork business from an operational perspective. He expects demand for pork to improve amid elevated beef and chicken prices.

 

Devin Cole, the new chief operating officer at Tyson Foods, provided an update on the company's growing chicken and prepared foods segments, and Tyson's read on consumers. Cole said consumers are cautious with their spending. Cole said restaurant traffic counts are down, and consumers have pivoted to more retail shopping.

 

"The great news for us as a company is that protein is winning, particularly animal protein, which is seen as an essential part of people's diets," Cole said.

 

He said Tyson's exposure in food service and in retail with its chicken products are an advantage. Cole said Tyson's retail chicken segment added 20 new products over the past year. He said the fresh chicken business has growth opportunities with various package sizes and added flavourings. The retail deli business is also rapidly growing as consumers want to have restaurant-quality food while eating at home, with items like fried chicken or a rotisserie chicken, he said.

 

"Product innovation is truly a lot of white space for us, and I think we will continue to grow within the category or within segments that we are known for. I expect consumers will get excited about some of the items in our prepared foods pipeline for the next year," Cole said.