Business Analysis of Pilgrim's Pride

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Pilgrim's Pride

PILGRIM'S PRIDE

Business Overview

Pilgrim's Pride Corporation engages in the production, processing, marketing, and distribution of fresh, frozen, and value-added chicken products to retailers, distributors, and foodservice operators in the United States, Mexico, and Puerto Rico. It offers fresh chicken products comprising pre-marinated or non-marinated refrigerated (non-frozen) whole chickens, prepackaged case-ready chicken, whole cut-up chickens, and selected chicken parts. The company also provides prepared chicken products, including portion-controlled breast fillets, tenderloins and strips, delicatessen products, salads, formed nuggets and patties, and bone-in chicken parts. The company sells its products to foodservice market, including chain restaurants, food processors, broad-line distributors, and other institutions; and retail market customers comprising grocery store chains, wholesale clubs, and other retail distributors. In addition, it exports chicken products to Mexico, the Middle East, Asia, the Commonwealth of Independent States, and other countries. Pilgrim's Pride Corporation was founded in 1946 and is headquartered in Greeley, Colorado. Pilgrim's Pride Corporation is a subsidiary of JBS S.A.

Pilgrim's Pride

Pilgrim's Pride


R&P Rank: 346
Sector: Consumer Goods
Industry:Food Products
H.Q Location:Colorado
Website: www.pilgrims.com
Company Address:
1770 PROMONTORY CIRCLE, GREELEY CO 80634
Ph:812-962-5000

Business Analysis of Pilgrim's Pride

The Consumer Goods Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Pilgrim's Pride compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Pilgrim's Pride to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Pilgrim's Pride with an interactive chart.

  1. Revenue Growth: Pilgrim's Pride reported a revenue growth of -3.0% year-on-year during 2016. Food Products Industry grew at -5.4% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Pilgrim's Pride spent 88.5% of its total revenues on COGS. Food Products industry average (COGS share of revenue) in the same period was 79.3%
  3. R&D share of Revenues: Pilgrim's Pride R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Pilgrim's Pride spent 2.5% of its total revenues on Sales, Marketing, and General Administration (SG&A). Food Products industry average SG&A spending in the same period was 11.6%
  5. Inventory share of Revenues: As a percentage of revenue, Pilgrim's Pride spent 10.3% of its total revenues on Inventories. Food Products industry average Inventory spending in the same period was 10.7%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Pilgrim's Pride invested 7.0% of its total revenues on Accounts Payable (A/P) Food Products industry average Accounts Payable investment in the same period was 12.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Pilgrim's Pride invested 4.0% of its total revenues on Accounts Receivable (A/R). Food Products industry average Accounts Receivable investment in the same period was 7.5%
  8. PP&E share of Revenues: As a percentage of revenue, Pilgrim's Pride invested 19.2% of its total revenues on Property, Plants, and Equipments (PP&E). Food Products industry average PPE investment in the same period was 18.6%
  9. Intangibles share of Revenues: As a percentage of revenue, Pilgrim's Pride invested 2.1% of its total revenues on Intangibles. Food Products industry average Intangibles investment in the same period was 29.4%
  10. Net Margins: Pilgrim's Pride Net Margins in the year 2016 were 5.6%. Food Products industry average Net Margins in the same period were 4.1%

Sector and Industry Association of Pilgrim's Pride

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Pilgrim's Pride is associated with Consumer Goods Sector and Food Products Industry.

Consumer Goods sector is comprised of the following industries: Beverages; Personal Goods; Food Products; Diversified Food; Household Goods & Home Construction; Food Distribution; Tobacco; Toys and Games. The definitions for each of the industries is as follows:

  • Beverages industry consists of: Brewing Companies - manufacturers of cider or malt products such as beer, ale and stout; Distillers and Vintners Companies - blenders and shippers of wine and spirits such as whisky, brandy, rum, gin or liqueurs; and Soft Drinks Companies - manufacturers, bottlers and distributors of nonalcoholic beverages, such as soda, fruit juices, tea, coffee and bottled water.
  • Personal Goods industry includes: Clothing & Accessories Companies - manufacturers and distributors of all types of clothing, jewellery, watches or textiles, sportswear, sunglasses, eyeglass frames, leather clothing and goods, and processors of hides and skins; Footwear Companies - manufacturers and distributors of shoes, boots, sandals, sneakers and other types of footwear; and Consumer Packaged Goods Companies - makers and distributors of cosmetics, toiletries and personal-care and hygiene products, including deodorants, soaps, toothpaste, perfumes, diapers, shampoos, razors and feminine hygiene products.
  • Food Products industry includes: Farming & Fishing companies - companies that grow crops or raise livestock, operate sherries or own non-tobacco plantation; Food Products Companies - food producers, including meatpacking, snacks, fruits, vegetables, dairy products and frozen seafood. It also includes producers of pet food and manufacturers of dietary supplements, vitamins and related items.
  • Diversified Food industry includes companies that offer a diverse portfolio of food products across agricultural, animal and dairy product categories.
  • Household Goods & Home Construction industry includes companies that offer: Durable Household Products - Manufacturers and distributors of domestic appliances, lighting, hand tools and power tools, hardware, cutlery, tableware, garden equipment, luggage, towels and linens; Nondurable Household Products - Producers and distributors of pens, paper goods, batteries, light bulbs, tissues, toilet paper and cleaning products such as soaps and polishes; Furnishings - Manufacturers and distributors of furniture, including chairs, tables, desks, carpeting, wallpaper and office furniture; Home Construction - constructors of residential homes, including manufacturers of mobile and prefabricated homes intended for use in one place.
  • Food Distribution industry includes companies that distribute food, beverage and consumer goods to restaurants, healthcare, educational facilities, lodging establishments; equipment and supplies for the foodservice and hospitality industries.
  • Tobacco industry includes Manufacturers and distributors of cigarettes, cigars and other tobacco products. It also includes tobacco plantations.
  • Toys and Games industry consists of manufacturers and distributors of toys and video/computer games, including such toys and games as playing cards, board games, stuffed animals and dolls.

Industry Ranking of Pilgrim's Pride

With $7.9 billion revenues, Pilgrim's Pride ranked number 6 of all the companies in the US Food Products industry. There were a total of 46 public companies in the US Food Products industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Food Products industry by revenues during 2016 were:

  1. Archer Daniels Midland ($62.3 billion)
  2. Bunge ($42.7 billion)
  3. Tyson Foods ($36.9 billion)
  4. Mondelez International ($25.9 billion)
  5. Leucadia National ($10.1 billion)
  6. Pilgrim's Pride ($7.9 billion)
  7. Dean Foods ($7.7 billion)
  8. Hershey ($7.4 billion)
  9. Ingredion ($5.7 billion)
  10. Herbalife ($4.5 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Pilgrim's Prideand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of pilgrims-pride

Tyson Foods (TSN) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Tyson Foods Inc with $37 billion revenues in the year 2016 was the number 3 Food Products company. Read this report to know the top competitors of Tyson Foods and identify growth and cost optimization opportunities of Tyson Foods

Mondelez International (MDLZ) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Mondelez International, Inc. with $26 billion revenues in the year 2016 was the number 4 Food Products company. Read this report to know the top competitors of Mondelez International and identify growth and cost optimization opportunities of Mondelez International

Leucadia National (LUK) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Leucadia National Corp with $10 billion revenues in the year 2016 was the number 5 Food Products company. Read this report to know the top competitors of Leucadia National and identify growth and cost optimization opportunities of Leucadia National

Dean Foods (DF) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Dean Foods Co with $8 billion revenues in the year 2016 was the number 7 Food Products company. Read this report to know the top competitors of Dean Foods and identify growth and cost optimization opportunities of Dean Foods

Hershey (HSY) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

The Hershey Company with $7 billion revenues in the year 2016 was the number 8 Food Products company. Read this report to know the top competitors of Hershey and identify growth and cost optimization opportunities of Hershey

Ingredion (INGR) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Ingredion Inc with $6 billion revenues in the year 2016 was the number 9 Food Products company. Read this report to know the top competitors of Ingredion and identify growth and cost optimization opportunities of Ingredion

Revenues Analysis

Pilgrim’s Pride (PPC) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Pilgrim's Pride Corp (PPC) from 2012 to 2016. Pilgrim's Pride generated a total of $7.9 billion revenues during 2016. Pilgrim's Pride reported a revenue growth of -3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Pilgrim’s Pride (PPC) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Pilgrim's Pride Corp (PPC) from 2002 to 2016. Pilgrim's Pride generated a total of $7.9 billion revenues during 2016. Pilgrim's Pride reported a revenue growth of -3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Pilgrim’s Pride (PPC) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Pilgrim's Pride Corp (PPC) revenue growth with Food Products industry growth during the last five years from 2012 to 2016. Pilgrim's Pride reported a revenue growth of -3% year-over-year during 2016. The Food Products industry growth was -5.4% year-over-year during 2016. Pilgrim's Pride growth was faster than the industry during 2016.