Pilgrim’s Pride’s fourth quarter results were met with a negative market reaction, as rising sales were offset by margin compression and adjusted earnings below analyst expectations. Management cited robust demand in the U.S. retail and foodservice channels, particularly for value-added and branded products such as Just BARE, but also acknowledged operational headwinds. CEO Fabio Sandri pointed to persistent inflation and commodity market pressure, especially in Mexico and certain European segments, as factors behind the quarter’s underwhelming profit performance. Sandri noted that “chicken’s affordability was exceptionally appealing across channels and categories,” but cautioned that volatility in input costs and supply dynamics weighed on profitability.

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Pilgrim's Pride’s Q4 Earnings Call

• Benjamin M. Theurer (Barclays): Asked about supply-side pressures and CapEx plans; CEO Fabio Sandri explained that hatchability and weather are influencing supply growth, while capital investments will support both U.S. and Mexican expansion projects into 2027.
• Peter Thomas Galbo (BofA): Probed about the sustainability of recent commodity price moves; Sandri responded that consumer trade-down to chicken due to inflation and beef price spreads will likely continue supporting demand.
• Andrew Strelzik (BMO Capital Markets): Sought clarity on Mexico's Q4 volatility and future prospects; Sandri detailed regional supply imbalances and expects normalization, while emphasizing diversification to increase resilience.
• Leah Jordan (Goldman Sachs): Inquired about foodservice channel dynamics and Just BARE’s growth potential; Sandri highlighted continued QSR growth and Just BARE’s distribution and innovation strategy.
• Pooran Sharma (Stephens): Asked about pork disease impacts in Europe; Sandri explained that African Swine Fever in Spain increased regional pork supply, impacting pricing but expects the effect to fade as herds are reduced.

Catalysts in Upcoming Quarters

Going forward, the StockStory team will be monitoring (1) execution of capacity expansion projects—especially the ramp-up in Georgia and Mexico, (2) resilience of branded and value-added product sales, particularly Just BARE’s distribution and innovation, and (3) management’s ability to stabilize margins amid commodity price swings and supply chain shifts. Additional attention will be paid to Mexico’s recovery and European segment performance as signposts for broader earnings stability.

Pilgrim's Pride currently trades at $43.48, in line with $43.19 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free).

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