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Tyson Foods reported better-than-expected first quarter results on Monday before market open, boosted by volume growth in chicken that offset the decline in beef.

The volume “shortfall” in beef alone was roughly 133 million pounds from the fourth quarter to the first quarter, CEO Donnie King told Yahoo Finance exclusively in an interview. The major decline was countered by growth in chicken, pork, its prepared business like Jimmy Dean, and the international segment, leading to a net decline of 22 million pounds overall.

Chicken prices fell 0.10% during the quarter, while beef prices surged more than 17.2%.

“The prices we paid for cattle were at an all-time high,” King said, adding that cutout prices — the estimated value of the carcass based on wholesale cuts like rib, chuck, round, loin, brisket, and flank — were “very high.”

In November, the company announced the closure of a beef facility in Lexington, Neb., and said it plans to lower production at its beef plant in Amarillo, Texas.

King said the closures will be reflected in the second quarter results and are in an effort to “rightsize” its footprint and reflect what “cattle availability would be in the future.”

Cattle supply is down 1% compared to last year, per the USDA, and King expects supply to remain “tight” throughout 2026 and 2027.

For 2026, the company expects sales to increase 2% to 4% year over year, alongside adjusted operating income between $2.1 billion and $2.3 billion.

Tyson’s expects an operating loss for beef of between $250 million and $500 million, excluding the facility closure. Operating income for chicken is expected to be positive, between $1.65 billion and $1.9 billion.