Will 25% Sales Growth in Prepared Foods Continue for Pilgrim's Pride?

Pilgrim's Pride Corporation (PPC) reported more than 25% year-over-year sales growth in its prepared foods segment in the third quarter of 2025, raising the question of whether this pace can continue. Management suggests the growth is being driven by steady demand expansion rather than short-term factors.

One major support is a broader distribution with large retail and foodservice customers. Prepared foods volumes increased as Pilgrim’s Pride added new product placements and expanded existing programs across multiple channels. In foodservice, prepared foods sales grew faster than the overall channel, suggesting that demand for Pilgrim’s Pride offerings outpaced general market growth during the quarter.

Brand performance also supported results. In retail, Just Bare remained a key driver, with market share rising by nearly 300 basis points year over year in the third quarter. The brand continues to sell at a faster pace than the overall frozen prepared chicken category, suggesting that shoppers are actively choosing these products rather than buying them only during promotions. The Pilgrim’s Pride branded product line also gained traction, contributing to improved visibility and repeat purchases.

Product innovation played a central role in the segment’s expansion. More than 80% of prepared foods sales growth came from newly launched items, highlighting the importance of new offerings in driving incremental demand rather than shifting volumes from existing products.

From an operational standpoint, the company began construction of a new prepared foods facility in Walker County, Georgia, during the fourth quarter, aimed at supporting branded prepared foods, including Just Bare. While the facility is still under development, it provides additional context around how the company is aligning capacity with demand.

As the prepared foods business expands, sustaining a 25% growth rate may become more difficult due to a larger revenue base and tougher comparisons. However, recent results suggest growth has been supported by distribution gains, brand performance and product launches. The durability of these factors will influence prepared foods sales growth in future periods.

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

Shares of this Zacks Rank #2 (Buy) company have gained 6.1% over the past month, outperforming the industry and the broader Consumer Staples sector’s growth of 4.8% and 0.3%, respectively. Over the same period, PPC also outperformed the S&P 500 index, which gained 1.4%.

PPC Stock's Past Month Performance

Is PPC a Value Play Stock?

Pilgrim’s Pride currently trades at a forward 12-month P/E ratio of 8.88, which is down from the industry average of 12.46 and notably below the sector average of 16.35. 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 Top-Ranked Stocks

United Natural Foods, Inc. (UNFI) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for United Natural’s current fiscal-year sales and earnings implies growth of 1% and 187.3%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 52.1%, on average.

Village Farms International, Inc. (VFF) produces, markets and distributes greenhouse-grown tomatoes, bell peppers, cucumbers and mini-cukes in North America. It sports a Zacks Rank #1 at present. Village Farms delivered a trailing four-quarter earnings surprise of 155.6%, on average.

The Zacks Consensus Estimate for Village Farms’ current fiscal-year earnings indicates growth of 165.6% from the prior-year levels.

The Vita Coco Company, Inc. (COCO) develops, markets and distributes coconut water products under the Vita Coco brand name. COCO currently flaunts a Zacks Rank #1. Vita Coco delivered a trailing four-quarter earnings surprise of 30.4%, on average.

The Zacks Consensus Estimate for Vita Coco's current fiscal-year sales and earnings implies growth of 18% and 15%, respectively, from the year-ago figures.

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