(Reuters) -Tyson Foods raised its annual sales forecast on Monday as robust demand for its beef and chicken products helped the meat packer beat estimates for first-quarter results, sending its shares up 4% in premarket trade.

The U.S. company expects fiscal 2025 sales to be flat to up 1%, compared with its prior forecast of flat to down 1%.

Tyson also raised its annual adjusted operating income forecast to between $1.9 billion and $2.3 billion, from the previous range of $1.8 billion to $2.2 billion, driven by lower animal feed costs and efforts to cut costs and streamline operations.

A gradual recovery in restaurant traffic is helping revive Tyson's wholesale supply to fast-food and fine-dining chains, while sustained eat-at-home trends have supported demand for its meat products.

Demand for beef has also withstood stubbornly high prices, benefiting Tyson despite tight cattle supplies in the United States.

Sales in Tyson's beef segment, its largest, were up 6.2% in the quarter ended Dec. 28, while prices were up 0.6% and volumes rose 5.6%. Chicken volumes rose 1.5%.

The company's net sales rose 2.28% to $13.62 billion in the first quarter, compared with analysts' estimates of $13.44 billion, according to data compiled by LSEG.

On an adjusted basis, the company earned $1.14 per share, compared with estimates of 88 cents.

(Reporting by Neil J Kanatt in Bengaluru and Tom Polensek and Heather Schlitz in Chicago; Editing by Devika Syamnath)