Smithfield's New Outlook Reflects Consumer, Cost Headwinds

Dow Jones
Aug 12

12:39 ET--Smithfield is operating in a cautious consumer and volatile commodity environment, CEO Shane Smith says on a call with analysts Tuesday. "Based on what we know today, we believe it is appropriate to update our 2026 outlook to reflect the current macroeconomic backdrop, while continuing to invest in the strategies that positioned Smithfield for long-term growth," he says. The company now expects total sales to be roughly flat this year, compared with a prior forecast of up low-single-digits. On the consumer side, the spending environment continues to pressure volumes, and the company also is navigating softer meat and hog markets, Smith says. "On the cost side, we are expecting continued volatility and inflationary inputs, such as fuel and freight throughout 2026," he adds. Shares are off 2.8%.

 

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