Chicken gains momentum as beef costs bite
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Americans are still eating plenty of protein — but rising beef prices are pushing more shoppers toward chicken.
Why it matters: Tyson Foods' results show a widening shift in how Americans are buying meat: the move toward chicken is playing out in grocery aisles and in a restaurant sector seeing a traffic rebound.
Driving the news: Tyson's results, released Monday, underscore the shift:
- Total sales for the meat processor rose to $13.7 billion in the quarter ending March 28, even as its beef sales — its largest segment — fell 13% in volume terms from a year earlier.
- Chicken sales volume increased 1.7%, and about 3x faster at grocery stores and restaurants, the company said.
- Tyson CFO Curt Calaway said Monday that Tyson sees "continued evidence that chicken will be a preferred protein in the upcoming year."
Between the lines: Consumers aren't cutting back on meat — they're trading across it, with affordability and convenience playing a bigger role.
- Branded, value-added chicken is growing faster than fresh meat, with frozen and prepared items outperforming the broader food category, NielsenIQ data shows.
- U.S. chicken production is expected to rise this year overall while prices remain relatively stable, according to USDA data.
Tyson's beef segment, meanwhile, is getting squeezed from both sides.
- While its total sales from beef increased in the quarter, that was driven by an over 11% rise in average prices.
- The company posted a $240 million loss in the beef segment as costs surged, Tyson said.
- U.S. beef production is expected to decline again in 2026, while cattle prices are projected to rise about 8%, according to the USDA.
Zoom in: The U.S. cattle herd is at its lowest level in decades, tightening supply, per USDA data.
- Ground beef averaged about $6.70 per pound in March — roughly 16% higher than a year earlier, according to Bureau of Labor Statistics data.
What we're watching: Separately, the Justice Department said Monday at a news conference that it will use "every law enforcement tool available" to address rising food prices.
- The department, along with the USDA, is continuing a broader probe into potential antitrust issues in the meatpacking industry, which includes major players like Tyson, Cargill JBS and National Beef.
- The effort dates back to a Trump directive last year to investigate alleged collusion as beef prices climbed.
The bottom line: Beef is getting more expensive — and chicken is taking its place on more American plates.
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