Pilgrim's Pride Stock

Pilgrim’s Pride Corporation primarily engages in the production, processing, marketing and distribution of fresh, frozen and value-added chicken and pork products to retailers, distributors and foodservice operators. The company is a subsidiary of JBS S.A.

The company markets its balanced portfolio of fresh, prepared and value-added meat products to a diverse set of customers across the U.S., the U.K. and Europe, Mexico and in over 115 other countries. The company’s sales efforts are largely targeted towards the foodservice industry, principally chain restaurants and food processors, such as Chick-fil-A and retail customers, including grocery store chains and wholesale clubs, such as Kroger, Costco, Publix and H-E-B in the U.S., chain restaurants, such as McDonald’s and grocery store chains such as Sainsbury’s, Tesco and Waitrose in the U.K. and Europe, and grocery store chains such as Wal-Mart in Mexico.

As a vertically integrated company, the company is able to control every phase of the production process, which helps it manage food safety and quality, control margins and improve customer service. The company’s plants are strategically located to ensure that customers timely receive fresh products. With its global network of approximately 4,800 growers, 34 feed mills, 47 hatcheries, 39 processing plants, 30 prepared foods cook plants, 27 distribution centers, ten protein conversion facilities and five pet food plants, the company is well-positioned to supply the growing demand for its products.

Segments

The company operate through three segments: U.S., U.K. and Europe, and Mexico.

The company produces or purchases for resale chicken and pork products through its operations in the U.S., the U.K. and continental Europe, and Mexico and pork products through its operations in the U.K. The company conducts separate operations in the U.S., the U.K., the Republic of Ireland, continental Europe, Puerto Rico and Mexico; however, for geographic reporting purposes, it includes Puerto Rico with its U.S. operations.

Products and Markets

Fresh Products: The company’s fresh products consist of frefrigerated whole or cut-up chicken, frozen whole chickens, breast fillets, mini breast fillets and prepackaged case-ready chicken, and in the U.K., primary pork cuts, added value pork and pork ribs. The company’s case-ready chicken includes various combinations of freshly refrigerated, whole chickens, chicken parts in trays, bags or other consumer packs labeled and priced ready for the retail grocer’s fresh meat counter. Additionally, the company is an important player in the live chicken market in Mexico. In 2023, the company’s fresh product sales accounted for 80.8%, 20.7%, and 84.3% of its total U.S., U.K. and Europe, and Mexico product sales, respectively.

Prepared Products: The company’s prepared products include portion-controlled breast fillets, tenderloins and strips, delicatessen products, salads, formed nuggets and patties and bone-in chicken parts. These products are sold either refrigerated or frozen and may be fully cooked, partially cooked or raw. In addition, these products may be breaded and/or marinated. The company’s prepared products include processed sausages, bacon, slow cooked, smoked meat, gammon joints, ready-to-cook variety of meat products, pre-packed meats, sandwich and deli counter meats, pulled pork balls, meatballs and coated foods. In 2023, the company’s prepared foods products sales accounted for 9.8%, 67.8%, and 10.0% of its total U.S., U.K. and Europe, and Mexico chicken and pork sales, respectively.

Exported Products: Exported products primarily consist of whole chickens and chicken parts sold either refrigerated for distributors in the U.S. or frozen for distribution to export markets and in the U.K., primary pork cuts, hog heads and trotters frozen for distribution to export markets. In 2023, the company’s export product sales accounted for 5.3% and 9.1% of its total U.S. and U.K. and Europe product sales, respectively.

Markets

The company’s foodservice market principally consists of chain restaurants, food processors, broad-line distributors and certain other institutions. The company’s retail market consists primarily of grocery store chains, wholesale clubs and other retail distributors. The company’s export market consists primarily of customers who purchase for distribution in the U.S., the U.K. and continental Europe, or for export to Mexico, the Middle East, Asia, and other international markets.

Trademarks

The company owns registered trademarks which are used in connection with its business. The trademarks are important to the overall marketing and branding of the company’s products. Some of the more significant owned or licensed trademarks used by the company or its affiliates are Pilgrim’s, Just BARE, Gold’n Pump, Gold Kist, Country Pride, Pierce Chicken, Pilgrim’s Mexico, Savoro, To-Ricos, Del Dia, Moy Park, O’Kane, Richmond, Fridge Raiders and Denny.

Research and Development

The company’s research and development costs totaled $5.7million for 2023.

Seasonality

The demand for the company’s chicken products generally is greatest during the spring and summer months and lowest during the winter months. The demand for the company’s pork products generally is higher during the summer and peaks during the winter primarily due to the holiday season.

Regulation and Environmental Matters

The company’s chicken processing facilities in the U.S. are subject to on-site examination, inspection and regulation by the United States Department of Agriculture (USDA). The Food and Drug Administration (FDA) inspects the production of the company’s feed mills in the U.S.

The company’s food processing facilities and feed mills in the U.K., continental Europe, and Mexico are subject to on-site examination, inspection and regulation by government agencies that perform functions similar to those performed by the USDA and FDA.

The Environmental Protection Agency, environmental authorities in the U.K., continental Europe and Mexico, and/or other U.S. or Mexican state and local authorities may, from time to time, adopt revisions to environmental rules and regulations, and/or changes in the terms and conditions of the company’s environmental permits, with which the company must comply.

History

Pilgrim's Pride Corporation was founded in 1946. The company was incorporated in 1986.