ZACKSยท2025-09-16 14:05Core Insights - Pilgrim's Pride Corporation's Small Bird segment experienced growth due to increased demand in the quick-service restaurant (QSR) channel during Q2 2025, leading to expanded sales and margins [1][9] - The overall margins for the Small Bird segment remained strong, driven by significant demand from key QSR customers, with foodservice volumes increasing nearly 10% year-over-year [2][9] - Management highlighted the company's focus on quality, service, and innovation to meet QSR demand, positioning Small Bird products effectively in a price-sensitive market [3] Industry Trends - The chicken-focused QSRs outperformed the broader dining sector by leveraging chicken's affordability, with operators focusing on value offerings and targeted promotions to attract consumers [2] - The resilience of the Small Bird segment was crucial for Pilgrim's results amid a challenging macroeconomic environment, showcasing the strategic importance of QSRs as a stable, high-volume channel [4] Financial Performance - Pilgrim's Pride shares have declined by 6.7% over the past three months, underperforming both the industry and the broader Consumer Staples sector [5] - The company currently trades at a forward 12-month P/E ratio of 8.79, which is below the industry average of 12 and the sector average of 16.89, indicating a modest discount relative to peers [10]