How Strong QSR Demand Supports PPC's Small Bird Segment in Q2 2025

Pilgrim's Pride Corporation’s (PPC) Small Bird segment benefited from continued growth in the quick-service restaurant (“QSR”) channel during the second quarter of 2025. The U.S. Fresh portfolio expanded sales and margins, supported by strong demand, a focus on quality and service, and effective customer partnerships. While Case Ready sales outpaced category averages, the Small Bird business specifically realized gains from the sustained momentum with leading QSR customers.

According to the second quarter earnings call transcript, the Small Bird segment’s overall margins remained strong, driven by extensive demand from key QSR customers. This development was part of a broader industry trend where chicken-focused QSRs outperformed the wider dining sector by capitalizing on chicken’s relative affordability. QSR operators strategically focused on value offerings, limited-type production and targeted promotions to capture consumer traffic and market share. The company noted that growth within the foodservice sector was driven by QSRs, with volumes increasing nearly 10% compared with the previous year.

Management emphasized Pilgrim Pride’s ability to “drive quality, service, and innovation” to meet this strong QSR demand, positioning Small Bird products effectively in a price-sensitive market environment. Unlike other segments, such as deli walks, which experienced more pricing pressure, the Small Bird segment’s success was rooted in the alignment with key customer needs and the broader market shift toward value-driven protein consumption.

Amid a challenging macroeconomic backdrop that saw full-service restaurant traffic decline, the Small Bird segment’s resilience was a critical contributor to Pilgrim’s results. It showcased the strategic importance of QSRs as a stable, high-volume channel and highlighted Small Bird’s role in strengthening Pilgrim’s diversified U.S. protein portfolio during the second quarter.

Pilgrim's Pride’s Zacks Rank & Share Price Performance

Shares of this Zacks Rank #2 (Buy) company have lost 6.7% over the past three months, underperforming both the industry and the broader Consumer Staples sector decline of 5% and 1.9%, respectively. Over the same period, PPC also underperformed the S&P 500 index, which gained 11.4%.

PPC Stock's Past 3 Months Performance

Is PPC a Value Play Stock?

Pilgrim’s Pride currently trades at a forward 12-month P/E ratio of 8.79, which is down from the industry average of 12 and notably below the sector average of 16.89. This valuation positions the stock at a modest discount relative to both its direct peers and the broader consumer staples sector.

PPC P/E Ratio (Forward 12 Months)

Other Stocks to Consider

The Chefs' Warehouse, Inc. (CHEF) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings indicates growth of 6.6% and 19.1%, respectively, from the prior-year levels. CHEF delivered a trailing four-quarter earnings surprise of 11.3%, on average.

Smithfield Foods, Inc. (SFD) produces packaged meats and fresh pork in the United States and internationally. It holds a Zacks Rank #2 at present. SFD delivered a trailing four-quarter earnings surprise of 6.6%, on average.

The Zacks Consensus Estimate for Smithfield Foods’ current fiscal-year sales and earnings indicates growth of 7.1% and 28.7%, respectively, from the prior-year levels.

Laird Superfood, Inc. (LSF) manufactures and markets plant-based, natural and functional food in the United States. It has a Zacks Rank # 2 at present. LSF delivered a trailing four-quarter earnings surprise of 11.3%, on average.

The Zacks Consensus Estimate for Laird Superfood’s current fiscal-year sales and earnings indicates growth of 21% and 23.8%, respectively, from the prior-year levels.

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