Tyson Shuts Two Beef Plants, Sells Pasco Facility Amid Historic Cattle Shortage
TSN is trading near its 52-week low of $50.56 (13% above the low).
Summary
Tyson is restructuring its beef network, closing its Joslin, Illinois and Eagle Mountain, Utah facilities and selling its Pasco, Washington plant. The company will anchor operations around Dakota City, Holcomb, and Amarillo, and ramp up a second shift at Amarillo as cattle supply allows. This follows the August 3 guidance cut where beef losses widened on tight cattle supply. The beef segment lost $142 million last quarter with cattle costs up $525 million year-over-year, and Tyson now expects a fiscal 2026 adjusted operating loss of $500-$650 million for the segment, worse than the prior $350-$500 million forecast. The closures signal a permanent reduction in processing capacity to match the historic cattle shortage, which should improve beef segment margins over time but confirms near-term volume pressure. Watch for details on the Pasco sale and any charges tied to the closures in the next earnings report.
Updated with a Dow Jones Newswires report · What changed
Updates
· Dow Jones Newswires — Beef segment lost $142 million last quarter with cattle costs up $525 million year-over-year. Tyson now expects a fiscal 2026 adjusted operating loss of $500-$650 million for the segment, worse than the prior $350-$500 million forecast.
At the time of this announcement, TSN was trading at $57.16 on NYSE in the Trade & Services sector, with a market capitalization of approximately $19.4B. The 52-week trading range was $50.56 to $69.48. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: dpa-AFX.