Although Pilgrim's Pride Has Made Strategic Improvements, It Remains Vulnerable to Commodity Cycles

Even as the second-largest poultry producer in the US (59% of 2024 sales), the UK and Europe (29%), and Mexico (12%), Pilgrim’s Pride remains vulernable to commodity cycles. It primarily sells fresh chicken (with pork also sold in Europe), with just 26% of sales coming from prepared products, which includes private-label offerings. Because meat is a commodity and carries little to no brand, it is exposed to volatility in input costs and selling prices. We don’t think diversification afforded through acquisitions into pork and Europe reduces that risk, given the limited synergies we see across proteins and regions.