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- **Record Q3 Performance**: $4.8B revenue, $633M EBITDA, 13.3% margin. U.S. Case Ready/Prepared Foods growth offset Big Bird margin decline.
- **25% Commodity Exposure**: 25% of Big Bird production tied to volatile commodity pricing, but 20%+ in differentiated Case Ready/Prepared Foods.
- **2026 Growth Drivers**: USDA projects 2-3% U.S. chicken growth, chicken only protein category expanding. Europe organic chicken +20% over 2 years.
- **Financial Strength**: $1.7B cash, <1x leverage. $700M 2025 CapEx for plant conversions and Mexico expansion.
- **SNAP Risk**: Potential short-term demand hit, but long-term affordability trend intact.

**【CEO Summary Section】**
- **Q3 2025 Performance**: Net revenues of $4.8 billion and adjusted EBITDA of $633 million, reflecting strong demand across U.S., Europe, and Mexico. U.S. adjusted EBITDA margin of 16.9% vs. 18% last year, driven by operational improvements and cost control.
- **U.S. Growth**: Case Ready sales exceeded category averages, Big Bird margins comparable to last year despite September volatility. Prepared Foods net sales grew 25% with Just BARE brand gaining 300bps market share. Small Bird QSR demand up 15% YTD.
- **Europe Transition**: Moving from cost-cutting to growth via innovation and brand expansion. Branded portfolio (e.g., Fridge Raiders) achieved record household penetration. Foodservice sales up 17% YTD.
- **Mexico Diversification**: Fresh retail sales up 9%, Prepared Foods up 12%, and QSR sales up 17%. New facilities in Veracruz and Campeche to enhance biosecurity and distribution.
- **Supply Dynamics**: U.S. broiler production +2.7% YoY, driven by improved hatchability and live weights. USDA projects 2% 2025 growth, with chicken as only protein category expanding.
- **Demand Drivers**: Chicken affordability vs. beef (spread >$2), QSR promotions, and retail smaller basket shopping. Frozen prepared nuggets/strips capture new occasions.

**【CFO Financial Commentary】**
- **Regional EBITDA**: U.S. $479M (-4%), Europe $110M (-1.8%), Mexico $43.7M (-11.3%). Higher SG&A costs (+$24M) offset by $78M YoY CapEx increase.
- **Liquidity**: $1.7B cash, no near-term debt maturities. 2025 CapEx target $700M for plant conversions (e.g., Russellville to Case Ready) and Mexico expansion.
- **Tax & Dividends**: 25% effective tax rate. $2B dividends paid YTD, maintaining <1x leverage ratio.

**【Q&A Highlights】**
- **Commodity Exposure**: ~25% of Big Bird production exposed to commodity pricing, but 20%+ of U.S. sales in differentiated Case Ready/Prepared Foods.
- **2026 Outlook**: Stable prices post-Q3 volatility, USDA projects 2-3% U.S. chicken growth. Input costs stable due to record corn/soy supplies.
- **Europe Strategy**: Organic chicken production +20% over 2 years, M&A opportunities in fragmented European protein markets.
- **Exports**: U.S. competitive in chicken, but focus on domestic growth. China trade barriers limit leg quarter exports.
- **SNAP Impact**: Potential short-term demand disruption, but retroactive payments expected to stabilize.
- **Promotional Pricing**: Investments in BOGOs/tray packs drive volume, reducing plant costs and supporting key customers.

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