Comment: Tyson - the meat of the matter into the quarter

Research evidence excerpt

Comment: Tyson - the meat of the matter into the quarter

17 June 2026

Alexia Howard +1 917 344 8453 alexia.howard@bernsteinsg.com

Cinnie Lin +1 917 344 8567 cinnie.lin@bernsteinsg.com

Although incoming CEO Mr. Jeff Schomburger does not have direct experience running a meat company, he has been on the

board of the company for a decade, and has been heavily involved in charting the company’s overall strategy and M & A activity. He also

brings 35 years of experience at Procter and Gamble, where he rose to the position of Global Sales Officer. This experience will clearly be

very relevant for accelerating growth in the Prepared Foods segment. Meanwhile, Mr. Wes Morris, who has just replaced Mr. Devin Cole

as COO, has worked with the company for over two decades and brings a great deal of operational expertise, particularly in the chicken

business.

The beef segment remains under pressure for now: With drought conditions beginning to pick up again, and new world screwworms

now present in Texas, it seems as though the long-awaited beginnings of herd rebuilding that seemed to be getting underway have faltered

once again. From a profit perspective, the strength seen in April then gave way to weaker performance in May and June, although in recent

weeks things seem to be getting a little better.

The good news is that the weakness in beef seems to be being more than offset by strength in chicken: The rollout of the Cobb

800 genetic line has begun, and will continue over the next year. A minority of facilities will remain on the old genetic line as this is a smaller

bird that is more appropriate for deli meat or rotisserie chickens. This new bird is significantly better than previous genetic lines in terms of

hatchability, liveability and has a higher proportion of breast meat.