Feb 3 (Reuters) - Tyson Foods ( TSN ) raised its annual

sales forecast on Monday, after robust demand for its beef and

chicken products helped the meat packer beat estimates for

first-quarter results.

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 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%. Sales of chicken rose 0.8%.

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)