Walmart opens first owned beef processing facility in Kansas

Published 27/06/2025, 14:10
© Reuters.

OLATHE, Kansas - Walmart (NYSE:WMT), the retail giant with a market capitalization of over $766 billion and annual revenue exceeding $685 billion, opened its first company-owned and operated case-ready beef processing facility in Olathe, Kansas, the retailer announced Friday. According to InvestingPro, Walmart maintains a "GOOD" overall financial health score, positioning it well for such strategic investments.

The 300,000-square-foot facility will package and distribute Angus beef sourced from Sustainable Beef LLC in North Platte, Nebraska, to Walmart stores across the Midwest. The company made an equity investment in Sustainable Beef in 2022 as part of its strategy to create an end-to-end beef supply chain.

"This is the first case-ready facility fully owned and operated by Walmart, and that milestone ensures we’re able to bring more consistency, more transparency and more value to our customers," said John Laney, executive vice president of Food at Walmart U.S., in a press release statement.

The new facility has created more than 600 jobs for Olathe and surrounding communities. It will process fresh beef into case-ready cuts that will be shipped directly to Walmart distribution centers serving Midwest stores.

Kansas Governor Laura Kelly said, "Kansas has long been at the forefront of the agriculture industry, and Walmart’s investment in Olathe is further driving our success."

During the opening celebration, Walmart awarded grants totaling $90,000 to local organizations including Kansas Special Olympics, Boys & Girls Club of Greater Kansas City, Friends In Service of Heroes, and Mayor Bacon’s Book Club.

The facility opening supports Walmart’s pledge to invest $350 billion in U.S.-made products by 2031. According to the company, over two-thirds of Walmart’s annual spend is on products made, grown or assembled in the United States. This expansion comes as Walmart demonstrates strong financial performance, with revenue growth of 4.22% and a return on equity of 23%. For deeper insights into Walmart’s investment potential and access to 12 additional ProTips, visit InvestingPro, where you’ll find comprehensive analysis in the Pro Research Report, part of our coverage of 1,400+ top US stocks.

In other recent news, Walmart announced the closure of a Sam’s Club fulfillment center in Fort Worth, Texas, which could lead to job losses. The operations will be relocated to other facilities in the Dallas area, including a high-tech center in Lancaster, Texas. This move is part of Walmart’s ongoing efforts to enhance its e-commerce operations, which have recently yielded the company’s first-ever profit from its online business. UBS has reiterated its buy rating on Walmart stock, maintaining a $110 price target, emphasizing the importance of the company’s fulfillment services as a key component of its business transformation. Additionally, Walmart is partnering with Soda Health to launch the Walmart Everyday Health Signals program, offering personalized nutrition guidance for select Medicare Advantage and Medicaid members. The program aims to connect shopping habits with health goals, leveraging Walmart’s extensive retail reach. Furthermore, Walmart is exploring the possibility of issuing its own stablecoin, potentially bypassing traditional banking systems and saving on transaction fees. Finally, KeyBanc has identified Walmart as well-positioned to navigate current tariff environments, highlighting its resilience amid economic pressures.

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