Pilgrim’s Pride Corporation’s Margin Collapse: Can Chicken Supply Rebalance?

Pilgrim’s Pride Corporation reported net revenues of $4.63 billion for the second quarter of 2026, reflecting a slight decline from $4.76 billion in the prior-year period. Adjusted EBITDA decreased to $360 million, yielding a margin of 7.8%, down from 14.4% last year. This margin contraction was evident across the U.S., Europe, and Mexico segments, with the U.S. adjusted EBITDA margin falling from 17.1% to 8.7%, Europe declining slightly from 8.2% to 7.6%, and Mexico seeing a more pronounced reduction from 16.3% to 3.9%. In the United States, chicken demand remained robust across retail and foodservice channels, supported by consumer preferences for affordability amid inflationary pressures. Fresh chicken volumes to key customers remained steady while prepared foods, notably under the Just Bare brand, experienced double-digit growth, driven by increased consumer demand for convenience. Operational improvements were realized following plant upgrades and enhanced live operations. However, U.S.