Aug 5 (Reuters) - Tyson Foods ( TSN ) surpassed Wall

Street expectations for third-quarter revenue and profit on

Monday, indicating that demand was rebounding for its meat

products, while lower grain prices reduced costs for animal

feed.

After sales declined in 2023, Tyson Foods ( TSN ) is now

starting to see some of its customers return to stores to

purchase its products as higher costs of dining out push people

to cook more meals at home.

The U.S. meat packer's net sales rose 1.6% to $13.35 billion

in the quarter, compared with analysts' estimates of $13.24

billion. It continues to expect full-year revenue to be flat

compared to fiscal 2023.

The company's beef segment - its largest - saw volumes up

4.4%, building on the last quarter's growth of 2.8% that was

driven by higher average carcass weights. Prices in the segment

also rose to 1.4% as it continued to grapple with limited cattle

supply.

Still, sales in Tyson's chicken segment - which struggled

with an excess of supply during 2023 - were down 3.2% in the

quarter, while prices also dropped 3.7%. Previously, Tyson said

it had lowered production to align its supplies with consumer

demand.

Similarly, while its pork segment reported a 10.4% rise in

quarterly sales, its volumes increased only by 1.2% that were

sequentially lower than 2.9% seen in the second quarter, when

the company saw more hog supplies.

Meanwhile, Tyson Foods ( TSN ) has also undertaken a vigorous

cost-control plan under which it has sold off a poultry

facility, shuttered six U.S. chicken plants, said it would close

a pork plant and had cut jobs to grow profit margins.

Lower grain prices and raw material expenses have helped

Tyson Foods ( TSN ) post adjusted earnings of 87 cents per share,

topping estimates of 65 cents.