Financial Data and Key Metrics Changes - Total enterprise sales grew 4% to $13.9 billion, driven by beef, chicken, and prepared foods, reflecting healthy demand for protein [19] - Adjusted operating income increased by 2.9% to $500 million, supported by strong growth in chicken, prepared foods, and pork, which offset a decline in beef [19] - Adjusted earnings per share rose 4.6% to $0.91, marking the fifth consecutive quarter of year-over-year growth across sales, adjusted operating income, and adjusted earnings per share [20] Business Line Data and Key Metrics Changes - Prepared Foods segment saw sales up 3.4% year-over-year, with adjusted operating income increasing by 21% and margins improving by 150 basis points [20][13] - Chicken segment reported sales growth of 3.5% year-over-year, with adjusted operating income rising by 12% due to efficiencies and top-line growth [21][15] - Beef segment experienced a decline in adjusted operating income due to tighter cattle supply and higher cattle costs, despite an increase in sales driven by higher average prices [22][16] - Pork segment's adjusted operating income increased by 64%, reflecting operational efficiencies and network optimization [22][18] Market Data and Key Metrics Changes - Nielsen data indicated that Tyson Foods grew retail branded volumes across prepared foods and chicken, with overall volume growth of 1.5% and dollar sales growth of 2% [10] - Tyson's branded frozen chicken saw a 10% increase in volume sales, driven by brand relaunch and strong performance [11] - The snacking portfolio, particularly Hillshire brand snacks, experienced a 20% volume growth, contributing to increased market share [11] Company Strategy and Development Direction - The company is focused on driving efficiencies across all businesses while delivering growth through world-class service and innovation [7] - Tyson Foods is committed to a multi-year plan to enhance profitability, particularly in the Prepared Foods segment, which is expected to continue delivering strong results [13][26] - The company is strategically managing its beef business through data and digital tools to navigate the current cattle cycle and improve operational resilience [34][17] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers remain cautious and selective in spending, but protein continues to be a priority for consumers [9] - The company anticipates that cattle availability will improve in the coming years as heifer retention begins [32] - Management raised overall guidance for 2025, expecting full-year sales to increase by 2% to 3% year-over-year and adjusted operating income to be between $2.1 billion and $2.3 billion [25] Other Important Information - The company has successfully reduced net leverage to 2.1 times, down nearly a full turn over the past year, and has restarted share repurchases [24][105] - Operating cash flow for the year to date was $1.6 billion, with capital expenditures at $691 million, resulting in free cash flow of $929 million [23] Q&A Session Summary Question: Insights on cattle supply and cost for the beef segment - Management indicated that cattle supplies are tightening, with heifer retention beginning, and expects herd rebuilding to start in 2026 [31][32] Question: Input cost pressure in Prepared Foods - Management acknowledged significant increases in raw material costs but noted successful offsetting through operational execution and innovation [35][36] Question: Beef impairment and market recovery - Management explained that the beef cycle has been challenging to forecast due to prolonged drought and noted a significant decrease in beef cow slaughter as a positive indicator [44][46] Question: Elasticity and competitive behavior in Prepared Foods - Management expressed confidence in managing cost pressures and noted that protein typically has lower elasticity compared to other food categories [52] Question: Chicken segment investments and performance - Management confirmed that the chicken business is running efficiently, with ongoing investments expected to yield positive returns [55][57] Question: Capital allocation and leverage outlook - Management reiterated a disciplined approach to capital allocation, focusing on maintaining financial strength and returning cash to shareholders [105]

Financial Data and Key Metrics Changes - Total enterprise sales grew 4% to $13.9 billion, driven by beef, chicken, and prepared foods, reflecting healthy demand for protein [18][19] - Adjusted operating income increased by 2.9% to $500 million, supported by strong growth in chicken, prepared foods, and pork, which offset the decline in beef [19][21] - Adjusted earnings per share rose 4.6% to $0.91, marking the fifth consecutive quarter of year-over-year growth across sales, adjusted operating income, and adjusted earnings per share [19][21] Business Line Data and Key Metrics Changes - Prepared Foods segment saw sales up 3.4% year-over-year, with adjusted operating income increasing by 21% and margins improving by 150 basis points [19][12] - Chicken segment reported sales growth of 3.5% year-over-year, with adjusted operating income rising by 12% due to efficiencies and top-line growth [20][15] - Beef segment's sales increased primarily due to higher average prices per pound, but adjusted operating income declined due to compressed spreads from higher cattle costs [21][15] - Pork segment achieved a 64% increase in adjusted operating income, reflecting operational efficiencies and network optimization [21][17] Market Data and Key Metrics Changes - Nielsen data indicated that retail branded volumes grew across prepared foods and chicken, with Tyson branded frozen chicken volume increasing by 10% [6][10] - The overall food and beverage retail volume remained steady, but protein categories, including beef, pork, and chicken, showed strong consumer preference [9][10] Company Strategy and Development Direction - The company is focused on driving efficiencies, reducing costs, and innovating new products to capitalize on market opportunities [7][8] - A multi-year plan to enhance profitability in Prepared Foods is yielding results, with a strong emphasis on innovation and distribution [12][13] - The company is committed to maintaining financial strength, investing in the business, and returning cash to shareholders, with a disciplined approach to capital allocation [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the challenging beef market due to tightening cattle supplies and anticipated herd rebuilding starting in 2026 [30][31] - The company raised its overall guidance for the year, expecting full-year sales to increase by 2% to 3% year-over-year and adjusted operating income to be between $2.1 billion and $2.3 billion [24][25] - Management highlighted the importance of protein demand and consumer behavior favoring high-protein options, positioning the company well for future growth [100][92] Other Important Information - The company restarted its share repurchase program, returning $200 million to shareholders through dividends and repurchases in the quarter [23][22] - The company ended the quarter with $4 billion in liquidity and reduced net leverage to 2.1 times, down nearly a full turn over the past year [22][23] Q&A Session Summary Question: Insights on cattle supply and cost for the beef segment - Management noted tightening cattle supplies and indicated that heifer retention has begun, with expectations for herd rebuilding to start in 2026 [30][31] Question: Input cost pressure in Prepared Foods - Management acknowledged significant raw material cost increases but emphasized strong operational execution and innovation driving profitability [35][36] Question: Beef impairment and market recovery - Management explained that the beef cycle has been challenging to forecast due to prolonged drought and noted a significant reduction in beef cow slaughter as a positive indicator [44][46] Question: Elasticity and competitive behavior in Prepared Foods - Management expressed confidence in managing cost pressures and noted that protein typically has lower elasticity compared to other food categories [51][52] Question: Chicken segment investments and performance - Management confirmed that investments in the chicken business are yielding positive results, with operational efficiencies and innovation driving growth [54][56] Question: Capital allocation and leverage outlook - Management reiterated a disciplined approach to capital allocation, focusing on maintaining financial strength and returning cash to shareholders [105][106] Question: International margins and future expectations - Management highlighted operational excellence and cost management as key drivers of strong international margins, with positive expectations for the future [108][109]