Pilgrim’s Pride Corporation (PPC) produces chicken products ranging from fresh to frozen to value-added chicken, which includes portioning, breading, marinating, and pre-cooking. Pilgrim’s Pride markets and distributes its products to Foodservice operators, distributors, and retailers. The company operates in the US, Puerto Rico, and Mexico, and sells its products across 100 countries.
Pilgrim’s Pride primarily serves the food services industry, including restaurant chains such as Yum! Brands (YUM), Chick-fil-A (privately held), grocery and wholesale clubs like Walmart (WMT), Costco (COST), and Kroger (KR), and distributors like Sysco and US Foods.
Pilgrim’s Pride has a market cap of $7.2 billion and is a subsidiary of JBS USA Holdings, Inc., which owns 75.5% of the company.
About 80% of the company’s revenue comes from US domestic sales, 10% comes from Mexico sales, and the remaining 10% comes from export sales.
According to Watt Poultry USA, in terms of ready-to-cook production capacity in the US, Tyson Foods (TSN) had the largest market share of 21%, followed by Pilgrim, which had the second largest market share of 18%, then Sanderson Farms (SAFM) with a 7% market share, followed by Perdue and Koch foods with 7% and 6% market share, respectively. Tyson is also a part of the Consumer Staples Select Sector SPDR Fund (XLP).
With almost 60% of the market share in the hands of five players, the poultry processing industry is quite concentrated.
In the next part of this series, we’ll look at Pilgrim’s Pride Corporation’s revenue segments.