New perfectly portioned servings give bacon lovers more freedom to enjoy premium bacon whenever the craving strikes
Key highlights
Perfectly portioned: Individual perforated sections contain four slices each (12 slices total), making it easy to prepare only what you need while keeping the remaining bacon fresh. Designed for everyday moments: Ideal for solo meals, smaller households, flexible schedules, recipe ingredients and "just for me" moments, making it easy to enjoy just the right amount of bacon, whenever you need it. Premium bacon made flexible: Delivers the same premium HORMEL® BLACK LABEL®Original Bacon people know and love in a first-of-its-kind portioned package. , /PRNewswire/ -- HORMEL® BLACK LABEL® Bacon is introducing a new way for bacon lovers to enjoy the premium bacon they crave with the launch of HORMEL® BLACK LABEL® Portion Pack Bacon. Featuring individually perforated portions, the new package gives people the flexibility to prepare exactly the amount of bacon they want while keeping the remaining portions fresh for another occasion.
HORMEL® BLACK LABEL® Bacon is introducing a new way for bacon lovers to enjoy the premium bacon they crave with the launch of HORMEL® BLACK LABEL® Portion Pack Bacon.
HORMEL® BLACK LABEL® Portion Pack Bacon makes it easier, offering premium bacon in a convenient format that delivers just the right amount for every occasion—with less waste.
Featuring three individually perforated sections with four slices of bacon per section, HORMEL® BLACK LABEL® Portion Pack Bacon makes it easy to separate portions before opening, prepare the desired amount and keep the remaining bacon fresh until it is ready to be enjoyed.
HORMEL® BLACK LABEL® Bacon
Bacon lovers want the flexibility to enjoy their favorite foods whenever and however they want. HORMEL® BLACK LABEL® Portion Pack Bacon makes it easier, offering premium bacon in a convenient format that delivers just the right amount for every occasion—with less waste.
"Bacon has always been a food people crave, but the way people enjoy it continues to evolve," said Aly Sill, senior brand manager for the HORMEL® BLACK LABEL® Bacon brand. "With HORMEL® BLACK LABEL® Portion Pack Bacon, people can enjoy the bacon they love in a way that fits their lives. This innovative package makes it easier to enjoy bacon on their terms, whether it's a quick breakfast, a meal for one, a weekend brunch or simply a moment worth savoring."
Featuring three individually perforated sections with four slices of bacon per section, HORMEL® BLACK LABEL® Portion Pack Bacon makes it easy to separate portions before opening, prepare the desired amount and keep the remaining bacon fresh until it is ready to be enjoyed. The product features the same premium HORMEL® BLACK LABEL® Original Bacon that bacon lovers know and love.
Whether cooking a weekday breakfast, making a quick meal, enhancing a recipe, entertaining friends or answering a bacon craving, HORMEL® BLACK LABEL® Portion Pack Bacon delivers convenient, perfectly portioned servings for the way people enjoy bacon today.
HORMEL® BLACK LABEL® Portion Pack Bacon is now available in 12 oz. packages at select Walmart, Meijer and Albertsons locations with a suggested retail price of $5.97-$6.97. For more information, including recipes, nutritional information and where to buy, visit www.blacklabelbacon.com.
About the HORMEL® BLACK LABEL® Brand
Bacon plays a larger-than-life role in consumers' lives. It's more than food. It's a symbol, a feeling, an experience. That's what the makers of the HORMEL® BLACK LABEL® brand believe. First established in 1963, the HORMEL® BLACK LABEL® brand is the fastest-growing bacon brand in America and continues to push the bacon world forward, offering a portfolio of flavor-forward products that no other brand can match. For more information on all HORMEL® BLACK LABEL® products, including nutritional information, recipes and where to buy, visit blacklabelbacon.com.
About Hormel Foods
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include PLANTERS®, SKIPPY®, SPAM®, HORMEL® NATURAL CHOICE®, APPLEGATE®, WHOLLY®, HORMEL® BLACK LABEL®, COLUMBUS®, JENNIE-O® and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report and one of America's most responsible companies by Newsweek, was recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. For more information, visit hormelfoods.com.
Frequently Asked Questions
What is HORMEL® BLACK LABEL® Portion Pack Bacon?
HORMEL® BLACK LABEL® Portion Pack Bacon features the same premium HORMEL® BLACK LABEL® Original Bacon people know and love in an innovative package with individually perforated portions.
How is HORMEL® BLACK LABEL® Portion Pack Bacon different from traditional bacon packaging?
HORMEL® BLACK LABEL® Portion Pack Bacon features three individually perforated sections with four slices of bacon per section, allowing people to separate portions and prepare what they need while keeping the remaining bacon fresh for later.
Why should people choose HORMEL® BLACK LABEL® Portion Pack Bacon?
HORMEL® BLACK LABEL® Portion Pack Bacon gives bacon lovers more flexibility to enjoy premium bacon whenever the craving strikes, whether for a quick meal, a personal bacon moment or an everyday recipe.
Who is HORMEL® BLACK LABEL® Portion Pack Bacon designed for?
HORMEL® BLACK LABEL® Portion Pack Bacon is ideal for people looking for a convenient way to enjoy premium bacon, including those cooking for themselves, smaller households and anyone looking for flexible meal options.
Where can people purchase HORMEL® BLACK LABEL® Portion Pack Bacon?
HORMEL® BLACK LABEL® Portion Pack Bacon is now available in 12 oz. packages at select Walmart, Meijer and Albertsons locations.
AUSTIN, Minn., Oct. 22, 2026 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today announced that Joe O'Connor has been named group vice president, enterprise performance.
Hormel Foods Corporation (NYSE:HRL – Get Free Report)’s stock price reached a new 52-week low on Wednesday. The company traded as low as $18.96 and last traded at $19.2170, with a volume of 4,380,659 shares traded. The stock had previously closed at $19.30.
Analyst Ratings Changes Several research analysts recently weighed in on HRL shares. Bank of America increased their target price on Hormel Foods from $25.00 to $27.00 and gave the stock a “neutral” rating in a research report on Tuesday, June 30th. BNP Paribas Exane reissued a “neutral” rating and set a $23.00 price target (down from $26.00) on shares of Hormel Foods in a research report on Wednesday, October 7th. Barclays restated an “overweight” rating and set a $28.00 price target (down from $30.00) on shares of Hormel Foods in a research note on Wednesday. Weiss Ratings downgraded Hormel Foods from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, August 28th. Finally, JPMorgan Chase & Co. raised their price objective on Hormel Foods from $25.00 to $26.00 and gave the stock a “neutral” rating in a report on Friday, August 14th. Two research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $25.43.
View Our Latest Analysis on HRL
Hormel Foods Stock Up 1.8% The firm’s 50-day moving average price is $21.55 and its 200-day moving average price is $22.57. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.88 and a quick ratio of 0.92. The company has a market cap of $11.10 billion, a price-to-earnings ratio of 32.02, a price-to-earnings-growth ratio of 2.33 and a beta of 0.30. Hormel Foods (NYSE:HRL – Get Free Report) last announced its quarterly earnings results on Wednesday, August 26th. The company reported $0.37 earnings per share for the quarter, topping analysts’ consensus estimates of $0.35 by $0.02. The firm had revenue of $2.96 billion during the quarter, compared to analysts’ expectations of $3.03 billion. Hormel Foods had a net margin of 2.82% and a return on equity of 9.91%. The firm’s revenue was down 2.4% on a year-over-year basis. During the same period in the prior year, the company earned $0.35 EPS. Sell-side analysts forecast that Hormel Foods Corporation will post 1.48 earnings per share for the current fiscal year.
Hormel Foods Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 16th. Shareholders of record on Tuesday, October 13th will be issued a $0.2925 dividend. This represents a $1.17 dividend on an annualized basis and a yield of 5.8%. The ex-dividend date of this dividend is Tuesday, October 13th. Hormel Foods’s payout ratio is currently 185.71%.
Insider Activity In other news, Chairman William A. Newlands acquired 10,000 shares of the business’s stock in a transaction that occurred on Monday, October 5th. The shares were purchased at an average cost of $20.10 per share, for a total transaction of $201,000.00. Following the transaction, the chairman directly owned 76,375 shares in the company, valued at $1,535,137.50. This trade represents a 15.07% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.58% of the company’s stock.
Institutional Inflows and Outflows Several institutional investors and hedge funds have recently made changes to their positions in the stock. BlackRock Inc. acquired a new stake in Hormel Foods in the second quarter worth approximately $489,092,000. Dimensional Fund Advisors LP boosted its stake in Hormel Foods by 2.0% during the 1st quarter. Dimensional Fund Advisors LP now owns 6,849,174 shares of the company’s stock valued at $155,152,000 after purchasing an additional 134,983 shares in the last quarter. Vest Financial LLC increased its position in shares of Hormel Foods by 7.8% during the 2nd quarter. Vest Financial LLC now owns 2,285,103 shares of the company’s stock valued at $56,716,000 after purchasing an additional 165,403 shares during the period. Bank of America Corp DE raised its stake in shares of Hormel Foods by 3.4% in the 1st quarter. Bank of America Corp DE now owns 2,405,895 shares of the company’s stock worth $54,494,000 after buying an additional 79,509 shares in the last quarter. Finally, Epoch Investment Partners Inc. acquired a new stake in shares of Hormel Foods in the first quarter valued at $44,733,000. 40.99% of the stock is currently owned by institutional investors.
About Hormel Foods (Get Free Report)
Hormel Foods Corporation is a global food company headquartered in Austin, Minnesota. Founded in 1891 by George A. Hormel, the company began as a meat processor and has expanded into a broad portfolio of branded food products sold through retail, foodservice and international channels.
Its products include refrigerated and shelf-stable meat, deli meats, bacon, pepperoni, sausages, canned foods, nut products and other prepared foods. Key brands include Hormel, SPAM, Jennie-O, Applegate, Columbus and Planters.
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of HRL, TSCO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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The milestone report highlights two decades of global impact and continued progress through the company's Good Feeds Us All framework
, /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today released its 20th annual Global Impact Report. The new report, available online, highlights fiscal year 2025 progress through Good Feeds Us All, the framework that guides the company's global impact efforts and focuses on action across its interconnected Planet and Society pillars.
Hormel Foods shares 20th Annual Global Impact Report highlighting notable accomplishments across its global impact framework "For 135 years, Hormel Foods has been guided by the belief that good business and good deeds go hand in hand," said Jeff Ettinger, interim chief executive officer. "As we mark the release of our 20th Global Impact Report, we're proud of the progress we've made. Good Feeds Us All provides a clear framework for how we approach our global impact priorities, helping us focus on the areas where we can make the greatest difference. The progress highlighted in this report reflects the dedication of our team members around the world and our continued commitment to creating lasting value for the people, communities and ecosystems connected to our business."
"Our commitment to sustainability, responsible growth and creating long-term value remains central to our strategy, and we will continue working to strengthen our positive impact on people, communities and the planet for years to come," said John Ghingo, president and chief executive officer-elect. "While we are proud of the progress reflected in this report, we are equally focused on the opportunities ahead. By advancing our environmental and social priorities and integrating them into how we operate and innovate, we can help create a stronger, more resilient future for generations to come."
The company's notable accomplishments in FY2025 include:
Reducing Planet Footprint Hormel Foods subsidiary, Applegate Farms, LLC achieved the goal of sourcing 100% of the beef for the APPLEGATE® beef hot dog portfolio from certified regenerative farms Achieved 100% traceability of purchased palm oil to the plantation level, with all the palm oil purchased Roundtable on Sustainable Palm Oil (RSPO) certified More than 2.5 million pounds of virgin plastics removed from packaging content compared to a 2021 baseline Packaging initiatives resulted in approximately 1.1 million pounds of material savings Supporting Employees and Increasing Access to Education Contributed more than $575,000 in tuition expenses for eligible team members pursuing education while working Supported 186 students through Inspired Pathways, which is an investment of more than $650,000 to provide a free two-year college education to the dependent children of our U.S. team members Enhancing the Consumer Experience Launched more than 420 new items in our Retail, Foodservice and International business segments to continue to meet consumer preferences and needs1 Increasing Access to Nutritious Food Donated approximately $12.4 million in cash and product including the delivery of more than 5 million pounds of food to expand worldwide food access To learn more about the company's global impact progress and read the full FY2025 report, visit hormelfoods.com/globalimpact.
1 The number of items launched includes MegaMex Foods products.
About Hormel Foods
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include PLANTERS®, SKIPPY®, SPAM®, HORMEL® NATURAL CHOICE®, APPLEGATE®, WHOLLY®, HORMEL® BLACK LABEL®, COLUMBUS®, JENNIE-O® and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report and one of America's most responsible companies by Newsweek, was recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. For more information, visit hormelfoods.com.
Contact: Media Relations
Hormel Foods
[email protected]
Key Takeaways HRL began benefiting from lower pork commodity prices in the third quarter, with more gains expected ahead.HRL faced elevated beef, freight, logistics and fuel costs, plus higher short-term turkey supply-chain costs.HRL is using pricing, mix, efficiency gains and SG&A actions to improve profitability amid cost pressures. Hormel Foods Corp. (HRL - Free Report) continues to improve profitability despite softer Retail volumes pressuring sales. In the third quarter of 2026, the company expanded its adjusted operating margin by 60 basis points to 9%, contributing to a 30-basis-point improvement in the first nine months. Adjusted earnings per share increased 6% year over year to 37 cents.
The margin improvement came despite Retail volume declines, driven by business exits, lower whole-bird and private-label snack nut volumes, contract manufacturing and pricing-related elasticity. Consumer takeaway across branded Retail weakened, while total company dollar consumption declined 1% during the quarter compared with approximately 1% growth earlier in the year.
However, Hormel Foods continued to benefit from operational measures supporting profitability across its business. The Foodservice segment delivered another quarter of strong performance, with profit growth outpacing sales growth and driving further margin expansion. Management attributed this performance to disciplined product mix management and a continued focus on profitability. Foodservice remains an important contributor to the company's overall performance.
In addition, the company also began recognizing benefits from lower pork prices, with further benefits expected in future quarters due to cost-recognition timing. Adjusted SG&A expenses, as a percentage of net sales, improved year over year due to lower employee-related expenses and the timing of marketing and advertising investments. The company remains focused on cost discipline and prioritizing high-return SG&A investments.
Overall, continued strength in Foodservice, benefits from lower pork costs and disciplined expense management could help Hormel Foods sustain margin improvement while it works to stabilize Retail volumes and support overall profitability.
The Zacks Rundown for HRLThis Zacks Rank #4 (Sell) company’s shares have lost 21.1% in the past three months compared with the industry’s 13.9% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, HRL trades at a forward price-to-earnings ratio of 12.58, lower than the industry’s average of 13.46.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HRL’s current and next fiscal year earnings implies a year-over-year increase of 8% and 3.6%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
The Chef’s Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. CHEF currently carries a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CHEF’s current fiscal-year sales and earnings indicates growth of 10.8% and 33.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Mama’s Creations, Inc. (MAMA - Free Report) , together with its subsidiaries, manufactures and markets fresh deli-prepared foods in the United States. MAMA currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for MAMA's current fiscal-year sales & earnings implies growth of 30.3% and 66.7%, respectively, from the year-ago actuals. MAMA delivered a trailing four-quarter negative earnings surprise of 121.7%, on average.
Medifast, Inc. (MED - Free Report) operates as a health and wellness company that provides habit-based and coach-guided lifestyle solutions to address obesity and support a healthy life in the United States. MED currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for MED's current fiscal-year sales and earnings implies a decline of 10.8% and 33.7%, respectively, from the year-ago actuals. MED delivered a trailing four-quarter negative earnings surprise of 462.2%, on average.
, /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today announced Holly LaVallie is re-joining the company as vice president of marketing excellence.
In her new role, LaVallie will lead the development and execution of enterprise marketing capabilities designed to support brand growth across the company's Retail, Foodservice and International businesses. Her responsibilities include brand strategy and experience, design and content, media and agency management, marketing technology, marketing training and marketing effectiveness.
"We are thrilled to welcome Holly back to Hormel Foods," John Ghingo, president and chief executive officer-elect, said. "She brings a unique combination of deep institutional knowledge, marketing expertise and proven leadership. Holly has a strong track record of building brands, developing talent and creating capabilities that help organizations grow. She will play an important role as we continue to accelerate growth across our portfolio."
LaVallie returns to the company after serving as senior vice president of marketing, R&D and PMO, at Link Snacks. During her 19-year career with Hormel Foods, she held a variety of leadership roles across the company's brand portfolio and played a key role in strategic planning and innovation.
About Holly LaVallie
LaVallie is an accomplished food industry leader with more than two decades of experience driving growth, innovation and business transformation across consumer-packaged goods organizations. She most recently served as senior vice president of marketing, R&D and PMO at Link Snacks, where she oversaw a multi-billion-dollar portfolio of brands and led end-to-end commercialization efforts.
Prior to joining Link Snacks, LaVallie spent 19 years at Hormel Foods in a variety of leadership roles spanning brand management, long-range planning, innovation, new business development and general management. During her tenure, she played a key role in the development and growth of the company's Deli Solutions business and led major refrigerated retail businesses.
LaVallie holds a Master of Business Administration from the University of St. Thomas and a bachelor's degree in hospitality, restaurant and tourism management from the University of Wisconsin-Stout.
About Hormel Foods
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include PLANTERS®, SKIPPY®, SPAM®, HORMEL® NATURAL CHOICE®, APPLEGATE®, WHOLLY®, HORMEL® BLACK LABEL®, COLUMBUS®, JENNIE-O® and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report and one of America's most responsible companies by Newsweek, was recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. For more information, visit hormelfoods.com.
View original content to download multimedia:https://www.prnewswire.com/news-releases/hormel-foods-names-holly-lavallie-vice-president-of-marketing-excellence-302905203.html
, /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today announced Holly LaVallie is re-joining the company as vice president of marketing excellence.
Holly LaVallie returns to Hormel Foods as Vice President of Marketing Excellence In her new role, LaVallie will lead the development and execution of enterprise marketing capabilities designed to support brand growth across the company's Retail, Foodservice and International businesses. Her responsibilities include brand strategy and experience, design and content, media and agency management, marketing technology, marketing training and marketing effectiveness.
"We are thrilled to welcome Holly back to Hormel Foods," John Ghingo, president and chief executive officer-elect, said. "She brings a unique combination of deep institutional knowledge, marketing expertise and proven leadership. Holly has a strong track record of building brands, developing talent and creating capabilities that help organizations grow. She will play an important role as we continue to accelerate growth across our portfolio."
LaVallie returns to the company after serving as senior vice president of marketing, R&D and PMO, at Link Snacks. During her 19-year career with Hormel Foods, she held a variety of leadership roles across the company's brand portfolio and played a key role in strategic planning and innovation.
About Holly LaVallie
LaVallie is an accomplished food industry leader with more than two decades of experience driving growth, innovation and business transformation across consumer-packaged goods organizations. She most recently served as senior vice president of marketing, R&D and PMO at Link Snacks, where she oversaw a multi-billion-dollar portfolio of brands and led end-to-end commercialization efforts.
Prior to joining Link Snacks, LaVallie spent 19 years at Hormel Foods in a variety of leadership roles spanning brand management, long-range planning, innovation, new business development and general management. During her tenure, she played a key role in the development and growth of the company's Deli Solutions business and led major refrigerated retail businesses.
LaVallie holds a Master of Business Administration from the University of St. Thomas and a bachelor's degree in hospitality, restaurant and tourism management from the University of Wisconsin-Stout.
About Hormel Foods
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include PLANTERS®, SKIPPY®, SPAM®, HORMEL® NATURAL CHOICE®, APPLEGATE®, WHOLLY®, HORMEL® BLACK LABEL®, COLUMBUS®, JENNIE-O® and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report and one of America's most responsible companies by Newsweek, was recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. For more information, visit hormelfoods.com.
Key Takeaways HRL began benefiting from lower pork commodity prices in the third quarter, with more gains expected ahead.HRL faced elevated beef, freight, logistics and fuel costs, plus higher short-term turkey supply-chain costs.HRL is using pricing, mix, efficiency gains and SG&A actions to improve profitability amid cost pressures. Hormel Foods Corporation (HRL - Free Report) continues to navigate input cost pressures through pricing actions, supply chain improvements and favorable developments in select raw material markets. While commodity dynamics remain mixed, lower pork commodity prices began to benefit in the third quarter of fiscal 2026, though the timing of cost recognition delayed the full benefit, with a greater portion of the benefit expected in future quarters.
However, beef costs remained higher than last year, while freight, logistics and fuel expenses continued to weigh on performance. Grain and beef costs are expected to stay elevated in some areas, and the turkey business also faced short-term pressure from higher temperatures and weaker feed efficiency. Fuel costs eased for a time but later moved higher again, leaving the company’s overall logistics outlook largely unchanged.
Hormel Foods continues to build long-term capabilities across its supply chain, including through Hormel production systems that are driving more consistent and improved performance across its manufacturing network. The company is also enhancing its data and planning tools to improve collaboration and support better decision-making across the enterprise. Management remains positive about the progress being made in these areas while navigating short-term headwinds.
Additionally, Hormel Foods is using multiple levers to improve bottom-line performance, including pricing, mix, efficiency gains and SG&A actions. The company successfully executed two waves of pricing actions, while the team continues to focus on mix. The company has also generated further efficiency gains and taken significant SG&A actions.
Looking ahead, Hormel Foods appears well positioned to partially offset persistent input cost pressures through a combination of pricing, mix improvement, efficiency gains and tighter cost discipline. Lower pork costs should provide additional support in coming quarters, while ongoing supply chain and SG&A initiatives could help cushion elevated beef, freight and other operating expenses. The effectiveness of these actions will remain important to watch as the company works to protect profitability in a still-challenging cost environment.
The Zacks Rundown for HRLThe company’s shares have lost 19% in the past three months compared with the industry’s 14.4% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, HRL trades at a forward price-to-earnings ratio of 12.93, in line with the industry’s average. HRL currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HRL’s current and next fiscal year earnings implies a year-over-year increase of 8.8% and 3.6%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderThe Zacks Consensus Estimate for CHEF’s current fiscal-year sales and earnings indicates growth of 10.8% and 33.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Medifast, Inc. (MED - Free Report) operates as a health and wellness company that provides habit-based and coach-guided lifestyle solutions to address obesity and support a healthy life in the United States. MED currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for MED's current fiscal-year sales and earnings implies a decline of 27.3% and 26.8%, respectively, from the year-ago actuals. MED delivered a trailing four-quarter negative earnings surprise of 462.2%, on average.
Utz Brands, Inc. (UTZ - Free Report) , together with its subsidiaries, markets, sells and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. UTZ currently carries a Zacks Rank 2.
The Zacks Consensus Estimate for UTZ’s current fiscal-year sales implies growth of 3.7%, and the same for earnings implies a decline of 2.4% from the year-ago actuals. UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average.
While it tends to be a rewarding long-term strategy, dividend investing requires some trade-offs. Most notably, investors looking for steady, growing equity income will likely wind up embracing stocks with slower growth profiles than, say, a hot artificial intelligence (AI) stock.
That's certainly true of the largest consumer staples companies by market cap, a group that's home to some of the most dependable dividend payers on the market, but one that, broadly speaking, lacks exhilarating returns. Another rub with some dividend stocks is that, despite perceived safety, they deliver negative returns.
Hormel's dividend is high, but the stock may be a rebound candidate. Image source: Getty Images.
Of late, that's been the case with Hormel Foods (HRL -1.00%). Down 50.5% over the past five years, the Spam maker is delivering spam to investors' portfolios, pushing its dividend yield to nearly 5.7%, as of Oct. 2. That's a multiyear high, maybe a record. Still, this stock may also be a credible rebound candidate.
The good, the bad, and the ugly of Hormel stock Obviously, the "ugly" is that shares of the SKIPPY peanut butter maker have lost more than half their value over the past five years, including a 14.6% decline this year.
As with some other old-guard food stocks, Hormel has been punished by consumers who are prioritizing healthier options. To be fair, Hormel's product portfolio isn't bereft of healthy fare, but there are perceptions, some with merit, that canned beef stew and chili don't exactly qualify as healthy eating.
On a more positive note, shifting consumer tastes aren't altering Hormel's dividend dynamics. With a payout increase streak spanning 61 years, the Jennie-O maker is a Dividend King, or one of the companies that have raised dividends for at least 50 straight years. Relevant to investors considering this stock a long-term play that can find its groove back are points such as some market observers viewing Hormel as a value play and as a company committed to maintaining its status as a dividend royalty.
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Investors considering sinking their teeth into Hormel have other positives to consider. For example, over 40 of the company's products rank first or second in their respective categories. Second, protein consumption is still highly fashionable. In fact, some professional investors note that consumers who use weight-loss drugs consume three times as much protein as their peers who aren't taking those pharmaceuticals, suggesting that Hormel may be an underappreciated play on the GLP-1 boom.
On the protein-related front, Hormel recently paid almost $1.1 billion for Brakebush Brothers, a chicken company. Some analysts believe Hormel is getting a good deal, particularly because chicken is the fastest-growing protein segment.
The interest rate quagmire High interest rates are a headwind for the Hormel thesis, not because the company carries unmanageable debt. It doesn't. Rather, the issue is that as of Oct. 2, 10-year Treasury yields were flirting with 5.3%. Some investors see a number like that and may say to themselves, "Why would I bother with the Hormels of the world when I can get a 5%-plus yield on lower-risk U.S. government debt?"
There's merit in that perspective, but it also requires a trade-off. That is taking on too much safety while missing out on a potential Hormel rebound, which could be ushered in by the company's moves to shed underperforming businesses and renew its emphasis on its top-performing brands.
Hormel Foods is rated a Buy, trading at its lowest level since 2013, offering margin of safety and re-rating potential. HRL demonstrates resilience amid sector-wide consumer and commodity headwinds, supported by a strong balance sheet and portfolio adaptation. The company maintains its Dividend King status with a ~6% yield, backed by solid free cash flow and conservative payout management.
The partnership reimagines the Italian holiday classic and kicks off an ongoing series of flavor innovations
, /PRNewswire/ -- Peanut butter and chocolate – a timeless pairing that never fails. Now, Bauducco®, the world's largest producer of panettone, and the SKIPPY® brand, one of the world's most loved peanut butter brands, are celebrating that beloved combination with the debut of SKIPPY® Peanut Butter Chocottone® – a collaboration that brings the creamy richness of America's favorite peanut butter to Bauducco®'s iconic, sweet holiday loaf.
Bauducco® and the SKIPPY® brand debut SKIPPY® Peanut Butter Chocottone®, a chocolate-coated holiday sweet loaf filled with real SKIPPY® Peanut Butter. The SKIPPY® Peanut Butter Chocottone® layers rich, creamy peanut butter with the airy, chocolatey crumb of The One and Only™ Chocottone®, creating an indulgent, melt-together bite that feels at once familiar and entirely new. It's a flavor mashup that gives longtime Chocottone® fans and first-time tasters alike something to talk about, share and gift, well ahead of the traditional holiday rush.
Alongside the new peanut butter innovation, Bauducco® is introducing Pistachio Chocottone®, a smooth, nutty take on the classic treat that rounds out the new flavor lineup. The launch taps one of the biggest flavor movements in sweets and pastries today. Once a niche indulgence, pistachio has become a defining taste across desserts, and Bauducco® is bringing that sought after flavor to a beloved format.
"At Bauducco®, we're passionate about bringing moments of joy and celebration to the table," said Juliana Corá Bastos, Marketing, Trade Marketing & E-commerce Director, Bauducco International BU. "This partnership with the SKIPPY® brand invites American consumers to discover the Chocottone® in a way that feels personal and delicious, combining two globally recognized brands into something fresh and special. And this is just the beginning of what we have planned together – stay tuned for more exciting innovations."
The collaboration showcases Bauducco®'s evolving approach to the Chocottone® – moving beyond the traditional panettone to meet modern consumer tastes. The launch marks the first chapter in an ongoing collaboration between the two brands, with additional SKIPPY® product inspired creations planned for the future.
"Peanut butter is the star of countless holiday baking traditions, and the SKIPPY® brand is delighted to team up with another global icon to find new ways to spread joy," said Sam Hovick, brand manager for the SKIPPY® brand. "This collaboration is the perfect way to spread joy, whether sharing a loaf with loved ones for a special holiday breakfast or bringing it along on a visit to friends or family. Adding a spread of SKIPPY® peanut butter to a slice of Chocottone® makes a simple and delicious treat for the whole family."
The SKIPPY® Peanut Butter Chocottone® and Pistachio Chocottone® will be available beginning in October at major food and grocery retailers across the U.S.
About Bauducco®
Founded in Brazil in 1952 by an Italian immigrant, Bauducco® is one of the world's largest producers of baked goods, globally. Inspiring unforgettable moments with recipes crafted with innovation and passion, Bauducco®'s products are synonymous with The Feeling of Family. As a global company exporting to more than 50 countries, Bauducco® has been doing business in the U.S. for more than 20 years and has a national presence. Panettone, one of Bauducco®'s most iconic products, is a strategic player in the U.S. market, where the brand holds an 86% value share in this category. Bauducco® is the leading wafer producer nationwide. Bauducco®'s signature Panettones, Wafers, Chocobiscuits, Cookies and Toasts are sold in most major retailers across the U.S. To learn more, visit www.bauducco.com and follow @bauducco.us on Instagram.
About the SKIPPY® Brand
At its core, the SKIPPY® peanut butter brand brings fun to life, building the trust and loyalty of peanut-butter fans since 1933. This commitment to quality has earned us our rightful place among America's favorite peanut butters. SKIPPY® peanut butter, which was acquired by Hormel Foods Corporation (NYSE: HRL) in 2013, brings the perfect combination of sweet-and-savory peanut flavor to everything it touches. For more information on all SKIPPY® products, visit peanutbutter.com.
About Hormel Foods
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include PLANTERS®, SKIPPY®, SPAM®, HORMEL® NATURAL CHOICE®, APPLEGATE®, WHOLLY®, HORMEL® BLACK LABEL®, COLUMBUS®, JENNIE-O® and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report and one of America's most responsible companies by Newsweek, was recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. For more information, visit hormelfoods.com.
Key Takeaways Hormel Foods' $1.055B Brakebush deal will expand value-added chicken and strengthen Foodservice.Brakebush adds direct sales, customer relationships, category expertise and production scale.Brakebush is expected to support growth, unlock operational synergies and enhance Hormel Foods' cash flows. Hormel Foods Corporation (HRL - Free Report) is sharpening focus on growing protein categories as it looks to strengthen the Foodservice business and build a more growth-oriented portfolio. HRL has entered into a definitive agreement to acquire Brakebush Brothers, LLC, a leading value-added chicken company, for approximately $1.055 billion.
The transaction is expected to close in the first quarter of fiscal 2027. Brakebush generated about $1.2 billion in net sales over the past 12 months. The business operates five production facilities and two research and development labs and serves a broad base of national and regional foodservice operators.
The acquisition is expected to significantly expand Hormel Foods’ presence in value-added chicken while strengthening the Foodservice business. Brakebush brings an established direct sales organization, deep customer relationships, category expertise and additional scale. These capabilities should broaden Hormel Foods’ reach among foodservice operators and support a wider portfolio of value-added protein solutions. Brakebush’s results are expected to be reported primarily within the Foodservice segment.
The deal also builds on an area that has maintained organic net sales growth for Hormel Foods. In the third quarter of fiscal 2026, Foodservice recorded the 12th consecutive quarter of organic net sales growth, with net sales increasing 2% and segment profit rising 3%. Premium prepared proteins, branded pepperoni and Jennie-O turkey were among the significant growth contributors, underscoring the role of value-added protein offerings in the segment’s momentum.
The acquisition is expected to support growth, unlock operational synergies and enhance cash flows, with accretion to adjusted earnings per share beginning in fiscal 2028. More broadly, the deal advances Hormel Foods’ portfolio-shaping strategy by increasing exposure to value-added protein categories and expanding scale in Foodservice.
Hormel Foods’ Share Price PerformanceShares of this Zacks Rank #3 (Hold) company have declined 19.9% over the past three months, underperforming the industry and the broader Consumer Staples sector, which fell 15.8% and 1.9%, respectively. HRL also lagged the S&P 500’s 1.7% rise over the same period.
HRL Stock's Past 3 Months’ Performance
Image Source: Zacks Investment Research
Is Hormel Foods a Value Play Stock?Hormel Foods currently trades at a forward 12-month P/E ratio of 12.97 compared with the industry average of 12.74. This valuation places the stock at a premium relative to peers, indicating broader market expectations around its business stability and ability to navigate current cost and demand dynamics.
HRL Valuation Picture
Image Source: Zacks Investment Research
Stocks to ConsiderThe Chefs' Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Chefs' Warehouse’s current fiscal-year sales and earnings implies growth of 10.8% and 33.7%, respectively, from the year-ago reported figures. Chefs' Warehouse delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Luckin Coffee Inc. (LKNCY - Free Report) offers retail services of freshly brewed drinks and pre-made food and beverage items in the People's Republic of China. The company currently sports a Zacks Rank of 1. LKNCY delivered a trailing four-quarter earnings surprise of 6.6%, on average.
The Zacks Consensus Estimate for Luckin Coffee’s current financial-year sales and earnings indicates growth of 33.3% and 40.8%, respectively, from the prior-year reported levels.
Lamb Weston Holdings, Inc. (LW - Free Report) engages in the production, distribution and marketing of frozen potato products in the United States, Canada, Mexico and internationally, and presently carries a Zacks Rank of 2 (Buy). LW delivered a trailing four-quarter earnings surprise of 24.6%, on average.
The Zacks Consensus Estimate for Lamb Weston’s current fiscal-year earnings indicates growth of 1.7% from the year-ago numbers.
Hormel Foods has raised its dividend for 60 straight years, but something just happened on the earnings statement that has never happened before in two decades of records, and it raises a serious question about whether that streak has a…
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Hormel Foods (NYSE:HRL | HRL Price Prediction) has raised its dividend for 60 consecutive years, a record that puts it on nearly every retiree’s short list. Its own guidance now tells a harder story: Hormel expects fiscal 2026 GAAP diluted EPS of $1.06 to $1.12, below its $1.17 annualized dividend. A high yield is only as good as the company’s ability to keep paying it, and that ability is under real strain.
Quick test: a dividend becomes unsustainable when earnings and free cash flow stop covering it and the company leans on cash reserves or debt to keep the checks going out.
Hormel Foods (HRL): A 5.9% Yield Built on a Falling Share Price At $19.97, Hormel yields 5.89%. For a low-volatility staple behind SPAM, Skippy, Planters and Jennie-O, with a beta of 0.315, that looks like a sleep-at-night income stream.
Look at where the yield came from. The quarterly dividend rose from $0.245 in 2021 to $0.2925 today, and the latest raise, from $0.29, was roughly 1%. Over the same stretch the shares fell 43.11% across five years, 15% over the past year and 7.42% in the past month alone. The yield expanded mainly because the price collapsed while dividend growth slowed to a crawl. This is a classic trap setup.
A Payout Line Hormel Had Not Crossed in Two Decades Hormel is an ordinary corporate, so earnings per share and net income are the proper metrics for coverage. In fiscal 2025, Hormel paid $633.2 million in dividends against net income of $477.8 million. In annual records going back to fiscal 2006, that was the first year dividends paid exceeded net income. Net income fell 40.6% that year.
Fiscal 2026 extends the problem. GAAP EPS guidance was cut to $1.06 to $1.12 from $1.28 to $1.37, and the original range was $1.29 to $1.39. Trailing diluted EPS is just $0.62. The damage traces to a $56M loss on the Brazil sale, a $48.2M impairment on an Indonesia stake and a $37.5M antitrust settlement.
Bulls will point to adjusted EPS guidance of $1.45 to $1.51, which does cover the dividend. Fair enough, but the cushion is thin, and one-time charges that repeat two years running deserve a skeptical eye.
Cash Flow Coverage Has Been Spotty Fiscal 2025 operating cash flow dropped 33.27% to $845.3 million while capex rose 21.24% to $310.9 million. Set capex and the $633.2 million dividend bill side by side, and together they exceeded the cash the business produced. Individual quarters were worse: in the quarter ending April 2025, operating cash flow of $56.4 million trailed dividends of $159.2 million.
The latest quarter improved. Operating cash flow rose 53.54% to $240.6 million against capex of $68.2 million and dividends of $161.0 million, which management credited to better inventory and working-capital management. One strong quarter helps. It does not yet prove a trend.
Balance Sheet Is Steady, but a Bill Is Coming Due Total debt was $2.855 billion at the end of July, essentially flat with $2.857 billion at fiscal 2025 year-end. The longer view is less comforting: debt stood at $250 million in fiscal 2019. Short-term debt jumped to $505.6 million from $6.6 million, signaling a maturity approaching, against cash of $839.6 million. Management called it “a sound financial position with ample liquidity and a conservative balance sheet.” That is true today, but refinancing or paying down that note competes with the dividend for the same cash.
Why a 60-Year Streak Cuts Both Ways On the August call, management said, “We remain committed to the dividend and are proud to have reached our 392nd consecutive quarterly payout.” CEO-elect John Ghingo added that “the dividend continues to be very important to us.”
That institutional pressure is real, and it brings down the odds of an outright near-term cut. It also explains the pattern: token raises, payouts held while earnings slide. A payout kept intact amid clear strain signals trouble rather than safety. The stress is visible: third-quarter revenue of $2.96B fell 2.4% and missed expectations, net income dropped 67.58%, and Ghingo said “the consumer environment right now really is not improving.” Leadership is also in transition, with an interim CEO and interim CFO on that call.
What Has to Go Right, and the One Number to Watch The path to safety exists. Foodservice posted its 12th consecutive quarter of organic sales growth, adjusted operating margin expanded to 9.0% from 8.4%, and management expects lower pork costs to flow through in future quarters, with a 53rd week in fiscal 2027 adding a boost. At 13x forward earnings, the market is partly pricing that recovery in. If the charges stop and cash flow holds at third-quarter levels, coverage repairs itself.
The verifiable test: when Hormel issues fiscal 2027 guidance, check whether the GAAP EPS range tops $1.17. If it does, the streak has breathing room. If it does not, Hormel faces a third straight year of paying more than it earns on a GAAP basis, and the risk rises sharply.
Dividend cuts rarely arrive alone; the stock usually falls with them. Hormel’s yield is fat because the stock has drop, and a 60-year streak can make a board stubborn right up to the point it cannot. The thesis rests on coverage.
Contact [email protected] for any questions or corrections.
5 Dividend Kings to Buy in July with Irresistible Value and YieldHormel Foods NYSE: HRL has agreed to acquire value-added chicken company Brakebush Brothers, LLC for approximately $1.055 billion in cash, a transaction the company said would expand its foodservice presence and increase its exposure to the chicken category.
The deal is structured on a cash-free, debt-free basis and remains subject to regulatory approvals and customary closing conditions. Hormel expects the acquisition to close during the first quarter of fiscal 2027.
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Expanding Foodservice and Chicken Exposure Campbell's Soup Stock: Deep Value and a 7% Dividend YieldBrakebush is a foodservice-focused supplier of value-added chicken products, with five production facilities, two research and development labs, a direct sales organization and a customer base that includes national and regional restaurant operators. Hormel said Brakebush is expected to generate approximately $1.2 billion in net sales during calendar 2026.
Jeff Ettinger, Hormel’s interim chief executive officer, said the acquisition supports two strategic priorities: strengthening the company’s foodservice operations and building a larger chicken business. He said chicken has historically represented less than 5% of Hormel’s protein portfolio, but would account for closer to 13% following the acquisition.
Was Hormel’s Q2 Earnings Report the Turnaround Investors Needed?“It is foodservice, where we think we already have an advantage business, and this is a great opportunity to double down in that area, and it is value-added chicken,” Ettinger said.
Hormel executives emphasized that Brakebush is not vertically integrated and does not operate chicken harvest facilities. Instead, the company purchases chicken inputs from suppliers and focuses on further processing, product development and value-added offerings. Ash Bhumbla, Hormel’s chief financial officer, said this model allows Brakebush to concentrate on processing, innovation and customer solutions while avoiding some volatility associated with upstream poultry production.
John Ghingo, Hormel’s president and CEO-elect, said value-added chicken is benefiting from menu innovation, consumer demand for chicken and foodservice operators’ need for convenient products that simplify kitchen preparation. He said the value-added chicken foodservice category has grown at a mid-single-digit rate over the past five or more years, while Brakebush has outpaced that trend.
Subsidiary Structure and Growth Opportunities Brakebush will operate as a subsidiary within Hormel’s foodservice segment. Ghingo said Hormel’s initial priority is to preserve Brakebush’s existing operating model, culture and growth momentum while identifying opportunities to broaden distribution and innovation.
The companies have limited overlap in customer relationships, according to management. Brakebush has a strong position in national and regional restaurant accounts, along with some healthcare and retail business, while Hormel has a broader foodservice footprint across commercial, non-commercial, independent and regional channels.
Hormel also sees opportunities to expand value-added chicken products in retail. However, Ghingo said Brakebush will continue to report through the foodservice segment in the near term because the vast majority of its business is currently foodservice-oriented.
Ettinger compared the transaction with Hormel’s prior foodservice acquisitions, including Fontanini, Sadler’s and Burke, as well as its Applegate acquisition. He said Hormel has followed Brakebush for more than two decades and viewed the company as “the right target, the right price at the right time.”
Financial Expectations and Financing Based on estimated adjusted EBITDA for calendar 2026, Hormel said the purchase price represents a multiple of approximately 10.7 times EBITDA before synergies and 8.9 times including anticipated annual run-rate cost synergies.
Hormel identified approximately $20 million in annual run-rate cost synergies, primarily from procurement and manufacturing productivity, and expects to realize them by the end of fiscal 2028. Management said potential commercial benefits from combining Hormel’s foodservice reach and retail capabilities with Brakebush’s chicken portfolio and direct sales organization would be incremental to the stated cost-synergy target.
Bhumbla said Brakebush’s margins have been consistent over time, supported by a mix of pricing structures. Some business is conducted under longer-term fixed-price arrangements, while other portions use stable-margin approaches such as cost-plus or market-minus mechanisms. Ghingo added that Brakebush generally uses pass-through pricing provisions similar to Hormel Foodservice’s practices, though timing varies by contract.
Hormel plans to finance the acquisition with a combination of cash on hand and new debt. The company expects pro forma net debt to adjusted EBITDA at closing to be slightly above its long-term target range of 1.5 times to 2 times, but said it expects to return to that range within fiscal 2027 through combined-company cash generation.
The transaction is expected to receive asset-purchase treatment for U.S. federal income-tax purposes, resulting in an ongoing cash-tax benefit from a stepped-up tax basis in acquired assets, according to Hormel.
Hormel expects Brakebush to contribute substantially in fiscal 2027, though it said financing costs, purchase-price accounting effects and limited first-year synergy realization would affect results. The company expects the acquisition to be solidly accretive to adjusted earnings per share beginning in fiscal 2028.
About Hormel Foods (NYSE:HRL)Hormel Foods Corporation is a global food company headquartered in Austin, Minnesota. Founded in 1891 by George A. Hormel, the company began as a meat processor and has expanded into a broad portfolio of branded food products sold through retail, foodservice and international channels.
Its products include refrigerated and shelf-stable meat, deli meats, bacon, pepperoni, sausages, canned foods, nut products and other prepared foods. Key brands include Hormel, SPAM, Jennie-O, Applegate, Columbus and Planters.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Hormel Foods Corporation (HRL) M&A Call September 30, 2026 8:00 AM EDT
Company Participants
Jess Blomberg - Director of Investor Relations
Jeffrey Ettinger - Interim CEO & Director
John Ghingo - President & Director
Ash Bhumbla - Executive VP & CFO
Conference Call Participants
Rupesh Parikh - Oppenheimer & Co. Inc., Research Division
Heather Jones - Heather Jones Research LLC
Peter Galbo - BofA Securities, Research Division
Thomas Palmer - JPMorgan Chase & Co, Research Division
Benjamin Theurer - Barclays Bank PLC, Research Division
Pooran Sharma - Stephens Inc., Research Division
Presentation
Operator
Good morning, and welcome, everyone, to the Hormel Foods conference call, where they will discuss their announced definitive agreement to acquire Brakebush Brothers, LLC. My name is Joel, and I will be your conference operator today.
[Operator Instructions]
I will now pass the call to Jess Blomberg, Director of Investor Relations. Jess, you may now begin your conference.
Jess Blomberg
Director of Investor Relations
Good morning. Welcome to the Hormel Foods conference call regarding today's announcement of our agreement to acquire Brakebush Brothers, LLC. Earlier this morning, we issued a press release announcing the transaction. If you did not receive a copy of the release, you can find it on our website, hormelfoods.com, under the Investors section, along with supplemental slide materials.
Joining me on today's call are Jeff Ettinger, Interim Chief Executive Officer; John Ghingo, President and Chief Executive Officer-elect; and Ash Bhumbla, Chief Financial Officer. Jeff, John and Ash will discuss the strategic rationale for the acquisition, provide an overview of the transaction and review our financial expectations. We will conclude with the Q&A portion of the call, and the line will be open for questions following the prepared remarks.
Before we get started today, I'd like to reference our safe harbor statement. Some of the comments we make today will be forward-looking, and
Acquisition Will Strengthen Hormel Foods' Position in a Growing Protein Category and Enhance its Leading Foodservice Capabilities
, /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today announced it has entered into a definitive agreement to acquire Brakebush Brothers, LLC, a leading value-added chicken company, from the Brakebush family.
The purchase price is approximately $1.055 billion, and the transaction is expected to close during the first quarter of Hormel Foods' fiscal 2027, subject to customary closing conditions, including regulatory approval.
The acquisition advances Hormel Foods' strategy of investing in growing protein categories, will meaningfully expand the company's position in value-added chicken and is expected to strengthen its leading Foodservice platform through enhanced operator relationships, category expertise and an expanded direct sales organization.
"Brakebush is a highly respected leader in value-added chicken and has earned the trust of customers for more than 100 years through innovation, quality and exceptional relationships," said Jeff Ettinger, interim chief executive officer. "The company's talented team, strong culture and differentiated capabilities make it an excellent fit for Hormel Foods. Our industry-leading Foodservice business has been a source of growth, and we are excited to meaningfully expand our presence in value-added chicken."
"Chicken has been one of the most attractive growth categories in protein, and Brakebush has built an exceptional platform to serve that demand," said John Ghingo, president and chief executive officer-elect. "Hormel Foods has built a strong Foodservice business by helping operators succeed through innovation, service and value-added solutions. We believe that Brakebush will bolster our capabilities, bringing additional scale, expertise and customer reach, in support of our long-term growth strategy."
"Brakebush has always been a people-first company, built on strong relationships, shared values and a commitment to doing business the right way," said Carey Brakebush, chairman of the board, Brakebush. "We see those same qualities in Hormel Foods. Their culture, integrity and long-term approach to growth give us great confidence that Brakebush will continue to thrive for our employees, customers and communities in the years ahead."
Founded in 1925 and headquartered in Westfield, Wisconsin, Brakebush has established itself as a leading, value-added, non-vertically integrated chicken provider, serving a diverse foodservice customer base across national and regional operators. Brakebush generated approximately $1.2 billion in net sales over the last 12 months and operates five production facilities and two research and development labs.
Hormel Foods expects the acquisition to generate growth, unlock operational synergies, and enhance cash flows. The company expects the acquisition to be accretive to adjusted earnings per share beginning in fiscal 2028. The company expects to report the results of Brakebush's operations primarily in its Foodservice segment.
ADVANCING HORMEL FOODS' GROWTH STRATEGY
Hormel Foods expects the acquisition to provide the following strategic benefits:
Strengthens Hormel Foods' Position in a Growing Protein Category: The addition of Brakebush will significantly expand Hormel Foods' presence in value-added chicken, positioning the company to participate more meaningfully in one of the most attractive segments of protein. Creates a Broader Platform for Foodservice Segment Growth: Brakebush's established direct sales organization, deep relationships and category expertise are expected to enhance Hormel Foods' existing Foodservice capabilities and customer reach. Together, the businesses are expected to be better positioned to serve national and regional operators with high-quality, value-added protein solutions. Adds a Reputable, Scaled Asset: Opportunities to acquire a leading value-added chicken business with Brakebush's scale, reputation and customer loyalty are uncommon. Hormel Foods believes the company brings a solid asset base, strong innovation capabilities and deep customer relationships built over more than 100 years. Aligns with Hormel Foods' Long-Term Growth Strategy: The acquisition reflects Hormel Foods' disciplined approach to portfolio management and capital allocation, and reinforces its focus on categories, channels and capabilities with long-term growth potential. Wells Fargo is acting as exclusive financial advisor to Hormel Foods and Faegre Drinker Biddle & Reath is serving as legal counsel. William Blair is acting as exclusive financial advisor and Michael Best & Friedrich LLP is serving as legal counsel for Brakebush.
CONFERENCE CALL
A conference call will be webcast at 7 a.m. CT on Sep. 30, 2026. Access is available at hormelfoods.com by clicking on "Investors." The call will also be available via telephone by dialing 833-461-5787 (toll free) or 585-542-9983 (international) and providing the conference ID 284 105 358. A webcast replay will be available at investor.hormelfoods.com following the call and will remain on the website for one year.
ABOUT HORMEL FOODS
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include Planters®, Skippy®, SPAM®, Hormel® Natural Choice®, Applegate®, Wholly®, Hormel® Black Label®, Columbus®, Jennie-O® and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report and one of America's most responsible companies by Newsweek, was recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. For more information, visit hormelfoods.com.
ABOUT BRAKEBUSH BROTHERS, LLC
Family-owned and operated since 1925, Brakebush Brothers, LLC, offers a wide variety of further processed chicken for foodservice establishments nationwide. The company is headquartered in Westfield, WI with additional facilities in Mocksville, NC; Irving, TX; Wells, MN; and Hartwell, GA. Visit www.brakebush.com for more information.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements, which are based on the current assumptions and expectations of Hormel Foods Corporation (the "Company"). These statements are typically accompanied by the words "aim," "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "project," "seek," "target," "will," "would," or similar words or expressions. The principal forward-looking statements in this news release include statements regarding the pending acquisition of Brakebush and the anticipated benefits of, and the Company's plans, strategies, and objectives relating to, such acquisition.
All such forward-looking statements are intended to enjoy the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended. Although the Company believes there is a reasonable basis for the forward-looking statements, actual events or results could be materially different. The most important factors that could cause actual future results or events to differ from its forward-looking statements include, but are not limited to, risks relating to completing the acquisition in the anticipated timeframe, or at all; risks related to the ability to realize the anticipated benefits of the acquisition; the possibility that unforeseen liabilities, future capital expenditures, revenues, expenses, charges, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, and strategies resulting from the acquisition or otherwise could adversely impact the value or expected benefit of the acquisition; the expected financial and operating performance and future opportunities following the acquisition; risks relating to the receipt of regulatory approvals without unexpected delays or conditions and possibility of regulatory action; the risks and costs of the pursuit and/or implementation of the acquisition; risks related to the Company's access to available financing to consummate the acquisition upon acceptable terms and on a timely basis or at all; the effect of the announcement or pendency of the acquisition on the Company's or Brakebush's business relationships, competition, business, financial condition, and operating results, including risks that the acquisition disrupts current plans and operations of the Company or Brakebush, the ability of the Company or Brakebush to retain and hire key personnel, and risks related to diverting either management team's attention from ongoing business operations; the ability of the Company to successfully integrate Brakebush's operations and implement its plans, forecasts, and other expectations with respect to Brakebush's business or the combined business after the closing of the acquisition; the ability of the Company to manage any additional debt and successfully de-lever following the acquisition; the outcome of any legal proceedings that may be instituted against the Company or Brakebush related to the acquisition; and the other risks and uncertainties described in Item 1A – Risk Factors of the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which can be accessed at hormelfoods.com in the "Investors" section. Though the Company has attempted to list comprehensively these important cautionary risk factors, the Company cautions that other factors may in the future prove to be important in affecting the Company's business or results of operations. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update any forward-looking statement except as otherwise required by law.
Hormel Foods (HRL.N) on Wednesday said it would buy family-owned chicken processor Brakebush Brothers for $1.06 billion, as the Skippy peanut butter maker looks to expand its protein portfolio.
Consumers are increasingly gravitating toward protein-rich meals as health and wellness trends shape food choices.
The Westfield, Wisconsin-based Brakebush generated nearly $1.2 billion in net sales in the last 12 months. The company, operated by the Brakebush family since 1925, sells processed raw and cooked chicken, including patties, wings and nuggets.
Hormel said the deal is expected to close in the first quarter of fiscal year 2027 and will add to its adjusted earnings per share from fiscal 2028.
Hormel, which also owns brands such as organic meat processor Applegate, last month cut its annual sales forecast after missing third-quarter sales estimates.
Its shares rose about 2% in premarket trading following the news.
Dr. Aaron Asmus promoted to vice president of R&D; Lisa Selk named vice president of growth and innovation, R&D AUSTIN, Minn., Sept. 29, 2026 /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today announced the promotion of Dr. Aaron Asmus to vice president of Research and Development (R&D).
Key Takeaways HRL's two pricing rounds contributed to a 1% decline in total dollar consumption in the fiscal third quarter.HRL's adjusted operating margin rose 60 basis points to 9%, while adjusted EPS increased 6% to 37 cents.HRL is adapting products, messaging, pack formats and pricing as consumers place greater emphasis on value. Hormel Foods Corp. (HRL - Free Report) is using pricing as one of several levers to improve profitability while adapting its portfolio to consumers who are becoming increasingly deliberate about value. Management has executed two rounds of Retail pricing, which contributed to the expected elasticity-related contraction in volume. Total Hormel dollar consumption declined 1% during the fiscal third quarter. At the same time, priority businesses such as Jennie-O ground turkey and Hormel entrées delivered mid- to high-single-digit consumption growth.
The company is pursuing several initiatives to improve bottom-line performance alongside continued momentum in parts of the business. Pricing remains an important lever, with management highlighting the successful execution of two pricing rounds. The team is also focused on improving mix, generating efficiency gains and taking significant SG&A actions. Together, these initiatives represent a broader approach to improving profitability through pricing, mix, efficiency and cost discipline. In the fiscal third quarter, adjusted operating margin reached 9%, up 60 basis points year over year, while adjusted earnings per share rose 6% to 37 cents.
However, Hormel Foods recognizes that consumers are becoming increasingly deliberate in their purchasing choices, with greater emphasis on value. In response, the company is adapting its portfolio to changing consumer behavior. This involves adjusting its product offerings, messaging, retail positioning, pack formats and pricing to better reflect evolving consumer needs. These efforts are intended to keep the portfolio aligned with consumers' growing focus on value.
Overall, Hormel Foods is pursuing a broader profitability strategy that combines pricing with mix improvements, efficiency gains and SG&A actions. At the same time, cost discipline and portfolio changes remain central to the company's efforts to improve profitability and support long-term growth.
The Zacks Rundown for HRLThe company’s shares have lost 24.1% in the past three months compared with the industry’s 17.8% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, HRL trades at a forward price-to-earnings ratio of 12.99, slightly higher than the industry’s average of 12.76. HRL currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HRL’s current and next fiscal year earnings implies a year-over-year increase of 8.8% and 3.6%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
The Chef’s Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. CHEF currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CHEF’s current fiscal-year sales and earnings indicates growth of 10.6% and 33.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Medifast, Inc. (MED - Free Report) operates as a health and wellness company that provides habit-based and coach-guided lifestyle solutions to address obesity and support a healthy life in the United States. MED currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for MED's current fiscal-year sales and earnings implies a decline of 27.3% and 26.8%, respectively, from the year-ago actuals. MED delivered a trailing four-quarter negative earnings surprise of 462.2%, on average.
Utz Brands, Inc. (UTZ - Free Report) , together with its subsidiaries, markets, sells and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. UTZ currently carries a Zacks Rank 2.
The Zacks Consensus Estimate for UTZ’s current fiscal-year sales implies growth of 3.7%, and the same for earnings implies a decline of 2.4% from the year-ago actuals. UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average.
Three new Peanutters will travel the country in the 26-foot-long NUTmobile beginning in June 2027
The PLANTERS® NUTmobile is hiring three Peanutters to hit the salty streets in June 2027. Applications are open through Nov. 1. College graduates can apply for this once in a lifetime opportunity with a resume and creative video. Peanutters travel the country in the NUTmobile, create social media content, work with media and execute events, while earning a salary and benefits. , /PRNewswire/ -- The PLANTERS® NUTmobile is hitting the road again, and the PLANTERS® brand is seeking three adventurous Peanutters to join the ride beginning in June 2027.
The NUTmobile is a 26-foot-long peanut on wheels and the center of a year-round experiential marketing program. Peanutters drive the NUTmobile, create social media content, plan and execute hundreds of events and stops, connect with local and national media and surprise and delight brand fans across the country.
The PLANTERS® NUTmobile is hitting the road again, and the PLANTERS® brand is seeking three adventurous Peanutters to join the ride beginning in June 2027.
The NUTmobile is a 26-foot-long peanut on wheels and the center of a year-round experiential marketing program. Peanutters drive the NUTmobile, create social media content, plan and execute hundreds of events and stops, connect with local and national media and surprise and delight brand fans across the country. One Shell of an Opportunity
The PLANTERS® brand is seeking college graduates who are engaging storytellers, confident communicators and savvy social content creators with a willingness to jump into nutty situations. Prospective Peanutters must submit a resume and short video showing what they would bring to the role. Creativity and humor are highly encouraged.
Travel enthusiasts with an appetite for adventure and salty snacks are encouraged to apply at BeAPeanutter.com through Nov. 1, 2026.
"The Peanutters have an incredible opportunity to take the brand on the road while gaining experiences they'll remember long after the job is over," said Patrick Horbas, director of marketing for the PLANTERS® brand. "They get to travel, meet people from all over, experience some unique events and make connections along the way. It's a chance to step outside their everyday routine, have some fun and be part of something that's unlike any other job."
For Those Who Go Nuts for a Road Trip
Trade in a desk job for a year in the driver's seat. Peanutters crisscross the country bringing the PLANTERS® brand to life at sporting events, festivals, college campuses, community events and more. Last year's class of Peanutters traveled to 41 states and logged over 30,000 miles on their journey, all while receiving an annual salary, full-time benefits, generous meal and travel stipends and real-world marketing and PR experience.
When the road trip rolls to its final stop, Peanutters are encouraged to apply for full-time roles at Hormel Foods to continue their careers.
In a Nutshell
This isn't your typical entry-level role — it's a once-in-a-lifetime adventure featuring a 26-foot-long peanut on wheels. From unexpected encounters to unforgettable road trip moments, no two days on the road are the same. Along the way, Peanutters gain valuable real-world experience in a marketing, public relations, content creation and communication while making memories and friendships that can last a lifetime.
To Be or Nut to Be
Ready to throw your name in the top hat? Apply now at BeAPeanutter.com and get ready to go nuts.
About the PLANTERS® Brand
Founded in 1906 in Wilkes-Barre, Pa., the Planters® brand has been the ultimate snacking solution for consumers for over a century with a vast portfolio of peanuts, snackable nut mixes, seeds and so much more. No matter what you're craving — salted, unsalted, dry roasted, honey roasted, whole nuts, half nuts, peanuts, mixed nuts — Planters® products have you covered. The Planters® brand, which has been owned by Hormel Foods Corporation (NYSE: HRL) since 2021, is also home to the beloved Mr. Peanut® character, who is currently touring the salty streets of America in his world-famous NUTmobile. Fans of the Planters® brand can request the world's largest peanut on wheels by submitting a request at plantersnutmobile.com. For more information on all Planters® products, visit planters.com.
About Hormel Foods
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include PLANTERS®, SKIPPY®, SPAM®, HORMEL® NATURAL CHOICE®, APPLEGATE®, WHOLLY®, HORMEL® BLACK LABEL®, COLUMBUS®, JENNIE-O® and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report and one of America's most responsible companies by Newsweek, was recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. For more information, visit hormelfoods.com.
Frequently Asked Questions
How do I apply to become a 2027 PLANTERS® Peanutter?
Applicants can apply at BeAPeanutter.com through Nov. 1, 2026. Applicants must submit a resume and a short, creative video showing what they would bring to the role.
What does a Peanutter do?
Peanutters travel across the country in the 26-foot-long NUTmobile, creating social media content, working with local and national media, planning and executing events and connecting with PLANTERS® brand fans along the way.
Where do Peanutters travel?
Peanutters travel throughout the United States, making stops at sporting events, festivals, college campuses, community events and other destinations. The 2026 class traveled to 41 states and met more than 160,000 people.
Is the Peanutter position a paid job?
Yes. The Peanutter position is a paid, full-time role. Peanutters receive an annual salary, full-time benefits and generous meal and travel stipends.
When does the 2027 Peanutter job begin?
The 2027 Peanutter class will begin traveling in the NUTmobile in June 2027.
Who is eligible to become a Peanutter?
The PLANTERS® brand is seeking college graduates who are engaging storytellers, confident communicators and savvy social content creators. Applicants should also be comfortable traveling extensively and representing the PLANTERS® brand at events and in local and national media.
, /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today announced its quarterly dividend on the common stock, authorized by the Board of Directors at $0.2925 per share. The dividend will be paid on November 16, 2026, to stockholders of record at the close of business on October 13, 2026.
This marks the 393rd consecutive quarterly dividend paid by the company. Since becoming a public company in 1928, Hormel Foods Corporation has paid a regular quarterly dividend without interruption.
About Hormel Foods
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include Planters®, Skippy®, SPAM®, Hormel® Natural Choice®, Applegate®, Wholly®, Hormel® Black Label®, Columbus®, Jennie-O® and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report and one of America's most responsible companies by Newsweek, was recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. For more information, visit hormelfoods.com.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of HRL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways HRL's Jennie-O ground turkey and Applegate brands posted sales growth on demand for protein-rich products.HRL saw mid to high-single-digit consumption growth in Jennie-O ground turkey and Hormel entrees.Foodservice delivered 12th straight quarter of organic sales growth, led by premium proteins and pepperoni. Hormel Foods Corp. (HRL - Free Report) highlighted that its protein-centric portfolio is well positioned to address evolving consumer needs across breakfast, lunch, dinner, snacking and convenience, while offering value and affordability. As consumers become increasingly deliberate and value-focused in their choices, the company is focused on evolving its portfolio to ensure it has the right offerings, messaging, point of purchase, pack and price. This effort reflects the company’s focus on evolving its portfolio in response to changing consumer preferences and value considerations.
Hormel Foods’ protein-centric portfolio continued to show marketplace momentum across several priority Retail brands. Jennie-O ground turkey and Applegate both posted sales growth, supported by continued demand for protein-rich products. Jennie-O ground turkey and Hormel entrées also recorded mid- to high-single-digit consumption growth. Consumption also grew across Applegate, the center-store canned portfolio, HERDEZ, Hormel Black Label Bacon and Planters, with management noting strong consumption momentum across several priority Retail businesses.
Foodservice delivered its 12th consecutive quarter of organic net sales growth, continuing to outperform an industry facing softer traffic trends and ongoing macro pressure. Growth remained broad-based across channels, customers and product platforms, reflecting the breadth of the portfolio and strength of its category positions. Premium prepared proteins and branded pepperoni were particularly strong contributors, supported by operator demand for differentiated, value-added solutions.
Overall, Hormel Foods’ protein-focused portfolio is being positioned around affordability, convenience and versatility across a broad range of consumption occasions. Momentum across several priority Retail brands, together with continued Foodservice growth, highlights the breadth of the portfolio as the company responds to evolving consumer preferences.
The Zacks Rundown for HRLThe company’s shares have lost 13.9% in the past three months compared with the industry’s 18.3% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, HRL trades at a forward price-to-earnings ratio of 12.92, higher than the industry’s average of 12.83. HRL currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HRL’s current and next fiscal year earnings implies a year-over-year increase of 8.8% and 3.6%, respectively.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks have been discussed below:
The Chef’s Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. CHEF currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CHEF’s current fiscal-year sales and earnings indicates growth of 10.6% and 33.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Medifast, Inc. (MED - Free Report) operates as a health and wellness company that provides habit-based and coach-guided lifestyle solutions to address obesity and support a healthy life in the United States. MED currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for MED's current fiscal-year sales and earnings implies a decline of 27.3% and 26.8%, respectively, from the year-ago actuals. MED delivered a trailing four-quarter negative earnings surprise of 462.2%, on average.
Utz Brands, Inc. (UTZ - Free Report) , together with its subsidiaries, markets, sells and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. UTZ currently carries a Zacks Rank 2.
The Zacks Consensus Estimate for UTZ’s current fiscal-year sales implies growth of 3.7%, and the same for earnings implies a decline of 2.4% from the year-ago actuals. UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average.
Funding supports more than 40 nonprofit organizations addressing food insecurity in communities across the United States
Local Impact: Hormel Foods U.S. production facilities donated a combined $332,000 for Hunger Action Month to support more than 40 local hunger-relief organizations across its U.S. plant network. Continued National Support to Fight Hunger: Since 2020, the company has provided more than $53.6 million in cash and product donations to support food security efforts. Empowering Production Facilities to Make a Difference: For more than a decade, the Hormel Foods Charitable Trust has provided funding to each U.S. production facility to help address hunger in local communities. , /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today announced the distribution of $332,000 in Hunger Action Month cash donations from its production facilities to more than 40 hunger-relief organizations across the U.S., supporting efforts to address food insecurity in local communities where the company operates.
For Hunger Action Month, Hormel Foods U.S. plant locations donate a combined $332,000 to local nonprofit organizations throughout its U.S. plant network As food banks and hunger-relief organizations continue to face elevated demand across the U.S., Hunger Action Month serves as a way to aid communities nationwide, raise awareness and support local efforts to ensure access to nutritious food. For more than a decade, the Hormel Foods Charitable Trust has provided funding to U.S. production facilities, allowing local teams to support hunger-relief organizations in their own communities. This year, each facility received $10,000 to help address food insecurity in their local communities.
"Food insecurity affects families in every region of the country, and local organizations are often on the front lines of meeting that need," said Will Bonifant, chief supply chain officer at Hormel Foods. "As a global branded food company, we're proud to support organizations making a difference in the communities where our team members live and work."
Organizations receiving support include food pantries, community meal programs and hunger-relief nonprofits in more than 40 communities nationwide including Second Harvest Food Pantry of Beloit, the Knoxville Senior Center, Channel One Regional Food Bank and Foodbank of Somerset County in New Jersey.
"Hunger affects every community, including our own," said Joe Muzik, Austin, Minnesota plant manager. "Our team members are proud to support local organizations working to ensure families have reliable access to food. Investing in our neighbors is one of the most meaningful ways we can strengthen the community we call home."
Hormel Foods brands also support hunger-relief efforts throughout the year by partnering with regional grocery partners for an annual donation of CURE® 81 hams and leading national nonprofit organizations, including Convoy of Hope® and Feeding America®, to provide hunger relief across the country and during natural disasters. Since 2020, Hormel Foods has contributed more than $53.6 million in cash and product donations to support food security efforts.
Learn more about how Hormel Foods strengthens communities across the globe and its Good Feeds Us All Global Impact Framework through the company's annual global impact report.
About Hormel Foods
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include PLANTERS®, SKIPPY®, SPAM®, HORMEL® NATURAL CHOICE®, APPLEGATE®, WHOLLY®, HORMEL® BLACK LABEL®, COLUMBUS®, JENNIE-O® and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report and one of America's most responsible companies by Newsweek, was recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. For more information, visit hormelfoods.com.
Sixty years of uninterrupted dividend raises sounds like a triumph, but a closer look at Hormel's latest increase reveals a streak that is surviving on thinner and thinner margins with each passing year.
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An income streak this long earns automatic respect. Hormel Foods (NYSE:HRL | HRL Price Prediction) confirmed with its fiscal 2025 fourth quarter release that it has now delivered 60 consecutive years of uninterrupted dividend increases, cementing its place among the market’s Dividend Kings. The headline is impressive. What sits under it is more nuanced: the most recent raise was a 1% bump that lifted the annualized rate to $1.17 per share, and the payout is barely keeping pace with a broad inflation backdrop that pushed the CPI to 334.980 in August 2026 from 323.976 a year earlier.
Streak Confirmed, Raise Cadence Slowing The verified dividend record backs the streak claim. Hormel paid $0.29 per quarter through all of 2025 before stepping up to $0.2925 with the January 12, 2026 ex-dividend date. Compare that with earlier steps in the same series: $0.26 rising to $0.275 in early 2023, and $0.275 to $0.2825 in early 2024. Each of those was a larger bump than the current one. The streak is intact. Its slope has flattened.
Interim CEO Jeff Ettinger framed the milestone directly: “This marks an impressive milestone, 60 years of uninterrupted dividend increases at Hormel Foods, a legacy we’re extremely proud of.”
What the Payout Is Actually Doing For a retirement holder, a 1% raise against ongoing grocery and services inflation means real income is drifting lower even as the streak survives. The yield cushions that: shares closed at $20.83 on September 18, 2026, down 12.19% over one year and 41.22% over five years, pushing the trailing yield to roughly 5.62%.
Is the Payout Funded? Cash generation still covers the check. Hormel returned $161 million to stockholders in dividends in the second quarter of fiscal 2026, its 391st consecutive quarterly payout, and finished the quarter with $827 million in cash. Third quarter operating cash flow reached $240.6 million, up 53.5% year over year, with adjusted operating margin expanding to 9.0% from 8.4%. Management raised fiscal 2026 adjusted EPS guidance to $1.45 to $1.51, comfortably above the $1.17 annualized payout.
Peers on the Same Trade Hormel’s slow-raise pattern echoes broader packaged food trends. McCormick & Company (NYSE:MKC), another Dividend King, has leaned on smaller annual bumps in recent years, while Kraft Heinz (NASDAQ:KHC) sits on the other side of the trade with a portfolio restructuring and a payout that was rebased years ago rather than grown steadily. Hormel is threading between them: streak preserved, growth deferred. (We ranked ten Dividend Kings by valuation right now in a free report you can grab here.)
Verdict The 60-year record is real, and coverage is not in doubt. A buyer today is purchasing stability and yield, backed by a 0.315 beta and disciplined cash generation, rather than the mid-single-digit dividend growth Hormel delivered earlier in the decade. The streak still means something. It just means something different now.
Contact [email protected] for any questions or corrections.
Treasuries are considered safe because they are backed by the U.S. government. A "safe" 5% yield, which is where the 10-year Treasury is hovering around today, is pretty enticing if you are worried that stock prices are going to crater. However, bonds have a major shortfall for long-term investors. Here's why I'd rather own out-of-favor Hormel (HRL +0.34%) and its 5.6% yield.
The problem with bonds To sum up the problem in one word: Inflation. A bond is a loan in which you provide capital and collect interest. But the deal is that when the loan matures, you get your principal back. Inflation will reduce the value of that cash, and the longer the bond, the worse the impact. Meanwhile, the interest you collect is locked in, so inflation slowly erodes the value of the interest you receive as well. Bonds can provide diversification to a portfolio, but they clearly have their own risks, too.
Image source: Getty Images.
Which is why I would prefer to own the food maker Hormel rather than a 10-year Treasury right now. Yes, I'm taking on more near-term risk. But I have the opportunity to benefit from Hormel's business growth over time. To be fair, Hormel hasn't been growing. The business is struggling, and management has been working on a turnaround. That's why Hormel's yield is so high right now.
Hormel has a strong foundation and a great history I believe Hormel's yield is ample compensation for the risk I'm taking on. While the company is revamping its business, it is a Dividend King with over 50 annual dividend increases. It has survived difficult times before. As for dividend safety, the company has modest leverage and covers its interest expenses 11x over. The company is operating from a position of financial strength, even if earnings are currently depressed.
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And there's a more unique feature here that appeals to me. The Hormel Foundation controls around 47% of Hormel's stock. The foundation uses the dividends it collects from Hormel to fund its philanthropic efforts. In other words, there is a very large shareholder who wants Hormel to remain a financially prudent business that can continue to support and slowly grow its dividend. That's perfectly aligned with my desires for the business.
My time frame transcends a near-term bear market Eventually, I expect Hormel's growth to pick up again. And I'm willing to collect what I see as a reliable high-yield while I wait. But the real story is that I'm not thinking in days, weeks, months, or even years. I'm thinking in decades. By the time a 10-year Treasury matures, I expect Hormel's share price to be higher and its dividend to be larger than either is today. With a bond, I'm locked in, and I know my principal and the interest I am collecting won't be worth as much in a decade due to the inexorable impact of inflation.
Emerging culinary professionals can apply for an immersive enrichment experience focused on creativity, leadership and foodservice industry innovation
Hands-On Learning Experience: Selected participants will take part in three immersive learning modules with Hormel Foods Foodservice team members in April 2027 (Napa Valley, California), October 2027 (San Antonio, Texas) and April 2028 (New York City). Application Requirements: Through Nov. 30, applicants with more than 10 years of professional culinary experience, proven culinary and leadership skills, and a long-term commitment to the industry are encouraged to apply at www.ceipinfo.com. An Investment in Culinary Leaders of Tomorrow: To help foster the culinary leaders of tomorrow, the Hormel Foods Foodservice team has underwritten the cost of program development and the tuition of this unique program. , /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today announced that applications are now open for the National Culinary Enrichment and Innovation Program (CEIP) class of 2028, a rigorous leadership development experience designed for accomplished culinary professionals. Launched in partnership with the Culinary Institute of America (CIA) in 2008, CEIP is the only culinary program to provide advanced culinary leadership training and enrichment specifically created for commercial and non-commercial chefs.
Culinary Enrichment and Innovation Program Class of 2024
Annemarie Vaupel vice president of marketing at Hormel Foods The year-long leadership program selects a cohort of 20 accomplished foodservice chefs for three immersive learning modules held at CIA facilities in Napa Valley, California; San Antonio, Texas; and New York.
"The future of foodservice depends on strong culinary leaders who can inspire teams, drive innovation and adapt to a rapidly evolving industry," said Annemarie Vaupel, vice president of foodservice marketing at Hormel Foods. "Through CEIP, we're investing in experienced chefs who are committed to advancing their craft and elevating the profession. We're proud to partner with the Culinary Institute of America to help develop the next generation of industry leaders."
The program brings together chefs from across the industry to learn from each other and build relationships with the CIA and Hormel Foods Foodservice teams. To continue to showcase their investment, the program's tuition is underwritten by Hormel Foods, underscoring the company's commitment to developing the next generation of culinary leaders.
Culinary professionals with more than 10 years of experience, proven culinary and leadership skills, and long-term commitment to the industry are encouraged to apply from now until Nov. 30 at www.ceipinfo.com.
About Hormel Foodservice
Our culinary passion is what fuels us; a shared love of food is the inspiration behind our products, our brands and our protein expertise. Hormel Foodservice prides itself on offering pioneering solutions meant to ignite creativity while minimizing the back-of-house challenges of a fast-paced kitchen. Whatever the need, Hormel Foodservice is here to help its customers thrive. For more information on the vast product collection of Hormel Foodservice, including an array of globally inspired flavors and fully cooked proteins, visit hormelfoodservice.com.
About Hormel Foods
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include PLANTERS®, SKIPPY®, SPAM®, HORMEL® NATURAL CHOICE®, APPLEGATE®, WHOLLY®, HORMEL® BLACK LABEL®, COLUMBUS®, JENNIE-O® and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report and one of America's most responsible companies by Newsweek, was recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. For more information, visit hormelfoods.com.
About The Culinary Institute of America
Founded in 1946, The Culinary Institute of America is dedicated to developing leaders in food, beverage, and hospitality. The independent, not-for-profit CIA offers associate degrees in culinary arts and baking and pastry arts; bachelor's degrees with majors in culinary arts, baking & pastry arts, food business management, hospitality management, culinary science, and applied food studies; and master's degrees in culinary arts, culinary therapeutics, food business, sustainable food systems, and wine and beverage management. The college also offers executive education, certificate programs, and courses for professionals and enthusiasts. Its conferences, leadership initiatives, and consulting services are a valuable resource to industry professionals, and its worldwide network of nearly 60,000 alumni includes innovators in every area of the food world. The CIA has locations in New York, California, Texas, and Singapore. For more information, visit www.ciachef.edu.
Frequently Asked Questions (FAQs)
When do CEIP applications open?
Applications for the CEIP class of 2028 are open now through Nov. 30, 2026 at www.ceipinfo.com.
What qualifications and/or prerequisites must be met to apply?
Chefs interested in applying for CEIP must meet the following requirements:
10+ years professional culinary experience Proven culinary and leadership skills Highly creative and innovative Long-term commitment to the industry Prerequisites:
There are no academic prerequisites College degree and/or past schooling in, or certification from, a culinary institution is not required for acceptance This is, however, a fast-paced, interactive learning environment requiring participation among other professionals. How long is CEIP?
The Culinary Enrichment and Innovation Program occurs over a 12-month period at the CIA campuses. Participants are required to attend each module in order to receive the CIA certificate of completion and the continuing education units at the conclusion of the program.
CEIP Class of 2028 – Program Dates:
Module I: Napa Valley, CA, April 5–8, 2027 Module II: San Antonio, TX, Oct. 2027 TBA Module III: Hyde Park, NY, April 2028 TBA What is the total cost of CEIP?
Hormel Foods underwrites all tuition fees and meals for the length of the program. All additional costs connected to attending CEIP will be the responsibility of the participants. These costs will include, but are not limited to:
Transportation to and from The Culinary Institute of America locations Lodging Personal expenses SOURCE Hormel Foods Corporation
Amundi trimmed its position in Hormel Foods Corporation (NYSE:HRL – Free Report) by 51.3% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 732,866 shares of the company’s stock after selling 771,322 shares during the period. Amundi owned approximately 0.13% of Hormel Foods worth $18,190,000 as of its most recent SEC filing.
Several other institutional investors also recently bought and sold shares of HRL. SlateStone Wealth LLC lifted its position in Hormel Foods by 2.3% in the second quarter. SlateStone Wealth LLC now owns 17,890 shares of the company’s stock valued at $444,000 after purchasing an additional 400 shares during the period. Hennion & Walsh Asset Management Inc. lifted its holdings in shares of Hormel Foods by 1.1% in the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 39,005 shares of the company’s stock valued at $968,000 after buying an additional 427 shares during the period. Banco Bilbao Vizcaya Argentaria S.A. boosted its stake in shares of Hormel Foods by 5.0% in the fourth quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 8,967 shares of the company’s stock valued at $213,000 after buying an additional 431 shares in the last quarter. Advisory Alpha LLC boosted its stake in shares of Hormel Foods by 2.9% in the fourth quarter. Advisory Alpha LLC now owns 15,477 shares of the company’s stock valued at $367,000 after buying an additional 440 shares in the last quarter. Finally, Vermillion Wealth Management Inc. grew its holdings in Hormel Foods by 1.7% during the fourth quarter. Vermillion Wealth Management Inc. now owns 25,944 shares of the company’s stock worth $615,000 after acquiring an additional 441 shares during the period. 40.99% of the stock is owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth Several research analysts have issued reports on HRL shares. Stephens set a $23.00 price objective on Hormel Foods in a research report on Friday, August 28th. Weiss Ratings cut shares of Hormel Foods from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, August 28th. JPMorgan Chase & Co. increased their price target on shares of Hormel Foods from $25.00 to $26.00 and gave the company a “neutral” rating in a report on Friday, August 14th. Bank of America increased their price target on shares of Hormel Foods from $25.00 to $27.00 and gave the company a “neutral” rating in a report on Tuesday, June 30th. Finally, The Goldman Sachs Group set a $25.00 price objective on shares of Hormel Foods in a report on Thursday, May 21st. Two research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Hormel Foods presently has an average rating of “Hold” and a consensus target price of $26.14.
View Our Latest Report on HRL Insider Activity at Hormel Foods In related news, Director Gary C. Bhojwani sold 20,200 shares of the stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $24.51, for a total value of $495,102.00. Following the completion of the transaction, the director owned 32,002 shares in the company, valued at $784,369.02. This represents a 38.70% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Company insiders own 0.58% of the company’s stock.
Hormel Foods Price Performance Shares of NYSE HRL opened at $20.55 on Friday. Hormel Foods Corporation has a 1-year low of $19.70 and a 1-year high of $26.60. The company has a market capitalization of $11.31 billion, a price-to-earnings ratio of 32.61, a PEG ratio of 2.45 and a beta of 0.33. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.88 and a quick ratio of 0.92. The business has a 50-day moving average of $23.99 and a 200-day moving average of $23.19.
Hormel Foods (NYSE:HRL – Get Free Report) last posted its quarterly earnings data on Thursday, August 27th. The company reported $0.37 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $0.02. Hormel Foods had a net margin of 2.82% and a return on equity of 9.91%. The firm had revenue of $2.96 billion for the quarter, compared to the consensus estimate of $3.03 billion. During the same period in the prior year, the firm posted $0.35 EPS. The firm’s revenue was down 2.4% compared to the same quarter last year. Hormel Foods has set its FY 2026 guidance at 1.450-1.510 EPS. On average, equities analysts anticipate that Hormel Foods Corporation will post 1.49 EPS for the current fiscal year.
About Hormel Foods (Free Report)
Hormel Foods Corporation (NYSE: HRL) is a global food company that develops, produces and markets branded meat, prepared foods and other grocery products. Its portfolio includes SPAM luncheon meat, Hormel pepperoni, Hormel Compleats meals, Jennie-O turkey products, Applegate natural and organic foods, Columbus deli meats and Planters snack products.
The company sells products through retail grocery channels, foodservice operations and international markets. Its offerings are used by consumers, restaurants, schools, hospitals and other institutional customers, with products distributed across the United States and in selected markets worldwide.
Founded in 1891 by George A.
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, /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today announced the appointment of Paul Kuehneman as chief accounting officer.
In this role, Kuehneman will lead the company's accounting organization and oversee its tax function, creating greater alignment across these important areas of the finance organization. He will work closely with Ash Bhumbla, executive vice president and chief financial officer, to support the company's finance strategy and operations.
Hormel Foods names Paul Kuehneman chief accounting officer "Paul is a respected leader whose deep understanding of our business, financial expertise and commitment to our people make him exceptionally well-suited for this role," said John Ghingo, president, Hormel Foods. "Paul's experience and perspective will serve him well in this expanded role."
With more than three decades of experience at Hormel Foods, Kuehneman most recently served as interim chief financial officer and controller, helping guide the company through an important leadership transition.
About Paul Kuehneman
Kuehneman joined Hormel Foods in 1993 and has held various accountant and controller roles at the company's Austin, Minnesota, and Rochelle, Illinois, manufacturing facilities, as well as the company's headquarters in Austin. In 2009, he became director of internal audit and in 2016 was promoted to vice president and chief financial officer for Jennie-O Turkey Store. He was named assistant controller in November 2020 and controller in January 2022. Kuehneman earned a bachelor's degree in accounting from Northwest Missouri State University and is a certified public accountant (CPA).
About Hormel Foods
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include PLANTERS®, SKIPPY®, SPAM®, HORMEL® NATURAL CHOICE®, APPLEGATE®, WHOLLY®, HORMEL® BLACK LABEL®, COLUMBUS®, JENNIE-O® and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report and one of America's most responsible companies by Newsweek, was recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. For more information, visit hormelfoods.com.
Contact: Media Relations
Hormel Foods
[email protected]
, /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, announced today that Jeff Ettinger, interim chief executive officer, and John Ghingo, president and chief executive officer-elect, will participate in a fireside chat discussion at the Barclays Global Consumer Staples Conference on Wednesday, Sept. 9, 2026. A webcast of the discussion is scheduled to begin at 1:30 p.m. ET (12:30 p.m. CT).
The webcast, replay and other information related to the event can be accessed on the company's investor website, investor.hormelfoods.com.
About Hormel Foods
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include Planters®, Skippy®, SPAM®, Hormel® Natural Choice®, Applegate®, Wholly®, Hormel® Black Label®, Columbus®, Jennie-O® and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report and one of America's most responsible companies by Newsweek, was recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. For more information, visit hormelfoods.com.
Hormel Foods Corporation (NYSE:HRL) will release its third quarter earnings report before the opening bell on Thursday, Aug. 27.
Analysts expect the Austin, Minnesota-based company to report quarterly earnings of 35 cents per share, versus 35 cents per share in the year-ago period. The consensus estimate for HRL’s quarterly revenue is $3.04 billion. It reported $3.03 billion last year, according to Benzinga Pro.
On Aug. 24, Hormel Foods announced the appointment of Ash Bhumbla as chief financial officer.
Shares of Hormel Foods fell 0.3% to close at $23.71 on Wednesday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
JP Morgan analyst Thomas Palmer maintained a Neutral rating and increased the price target from $25 to $26 on Aug. 14, 2026. This analyst has an accuracy rate of 51%. Stephens & Co. analyst Pooran Sharma maintained an Equal-Weight rating with a price target of $25 on July 9, 2026. This analyst has an accuracy rate of 75%. B of A Securities analyst Peter Galbo maintained a Neutral rating and raised the price target from $25 to $27 on June 30, 2026. This analyst has an accuracy rate of 54%. Barclays analyst Benjamin Theurer maintained an Overweight rating and cut the price target from $31 to $30 on Dec. 9, 2025. This analyst has an accuracy rate of 57%. Piper Sandler analyst Michael Lavery maintained a Neutral rating and raised the price target from $25 to $26 on Dec. 5, 2025. This analyst has an accuracy rate of 63%. Trending
Considering buying HRL stock? Here’s what analysts think:
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Company Raises and Narrows Adjusted EPS¹ Outlook Following Solid Third Quarter and Strong Year-to-Date Performance
, /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today reported results for the third quarter of fiscal 2026, which ended July 26, 2026. All comparisons are to the comparable period of fiscal 2025, unless otherwise noted.
EXECUTIVE SUMMARY — THIRD QUARTER
Net sales of $2.96 billion; organic net sales1 down 2% Operating income of $111 million; adjusted operating income1 of $266 million Operating margin of 3.7%; adjusted operating margin1 of 9.0% Earnings before income taxes of $103 million; adjusted earnings before income taxes1 of $258 million Diluted earnings per share of $0.11; adjusted diluted earnings per share1 of $0.37 Cash flow from operations of $241 million EXECUTIVE COMMENTARY
"We delivered solid third quarter results, growing our adjusted earnings and continuing to advance our fiscal 2026 objectives," said Jeff Ettinger, interim chief executive officer. "With our strong year-to-date performance and continued opportunities ahead, we are raising and narrowing our adjusted earnings outlook for fiscal 2026 and remain confident in delivering adjusted earnings growth for the year consistent with, or above, our long-term algorithm."
"We continued to make progress against our strategic priorities during the quarter," said John Ghingo, president and chief executive officer-elect. "While net sales declined, the results reflected the impacts of portfolio-shaping actions, lower commodity-based pricing in portions of the business and a consumer environment that remains under pressure. At the same time, several of our Retail priority brands delivered growth, and Foodservice once again outperformed industry trends, supported by the strength of our solutions-based offerings and operator partnerships. As we continue to enhance our capabilities and sharpen our focus, we remain committed to disciplined execution and positioning the company for long-term success."
FULL YEAR FISCAL 2026 GUIDANCE
For fiscal 2026, the Company:
Expects net sales to be in the range of $12.1 billion to $12.2 billion, reflecting organic net sales1 growth of 1% to 2% Updates operating income guidance to be in the range of $0.83 billion to $0.87 billion, which includes the estimated loss related to the Brazil divestiture, a non-cash impairment charge related to a minority investment in Indonesia, and a litigation settlement Raises adjusted operating income1 guidance to be in the range of $1.08 billion to $1.12 billion, reflecting growth of 6% to 10% Updates diluted earnings per share guidance to be in the range of $1.06 to $1.12 Raises adjusted diluted earnings per share1 guidance to be in the range of $1.45 to $1.51, reflecting growth of 6% to 10%
Updated
Previous
Net Sales
$12.1 - $12.2 billion
$12.2 - $12.5 billion
Organic Net Sales1 Growth Rate
1% - 2%
1% - 4%
Diluted Earnings per Share
$1.06 - $1.12
$1.28 - $1.37
Adj. Diluted Earnings per Share1
$1.45 - $1.51
$1.43 - $1.51
PORTFOLIO SHAPING
During the third quarter of fiscal 2026, the Company announced a definitive agreement to sell its Brazil operations, operated under the Ceratti® brand, and classified the business as held for sale. The divestiture reflects the Company's ongoing efforts to simplify and streamline its portfolio and focus its international strategy on markets with the strongest long-term growth opportunities.
The transaction successfully closed in the early part of the fourth quarter of fiscal 2026. The expected impacts of the divestiture are reflected in the Company's updated fiscal 2026 guidance ranges. Beginning in the fourth quarter of fiscal 2026, the impact of the divestiture will be excluded from year-over-year comparisons in the Company's non-GAAP organic volume¹ and organic net sales¹ metrics.
SEGMENT HIGHLIGHTS – THIRD QUARTER
Retail
Volume down 9%; organic volume1 down 9% Net sales down 4%; organic net sales1 down 3% Segment profit down 4% Organic net sales1 decreased in the third quarter of fiscal 2026, as declines in commodity turkey and private label snack nuts were partially offset by strong performance in value-added turkey offerings, contract manufacturing and Planters® snack nuts. Additional priority brands that delivered solid growth during the quarter include the SPAM® family of products, Applegate® natural and organic meats, and Hormel® chili. Segment profit decreased for the third quarter of fiscal 2026, as lower net sales and higher logistics expenses were partially offset by lower selling, general and administrative expenses.
Foodservice
Volume down 1%; organic volume1 down 1% Net sales up 2%; organic net sales1 up 2% Segment profit up 3% The third quarter of fiscal 2026 marked the 12th consecutive quarter of organic net sales1 growth for the Foodservice segment. Organic net sales¹ growth was broad-based despite the impact of lower commodity-based pricing in portions of the portfolio. Growth was driven by multiple product groups and categories, led by significant contributions from premium prepared proteins, branded pepperoni and Jennie-O® turkey. Additional branded products, including Austin Blues® smoked meats, Hormel® Natural Choice® meats and Hormel® Fire Braised™ meats, also delivered strong net sales results. Segment profit increased for the third quarter of fiscal 2026, as higher net sales and favorable pork input costs were partially offset by higher logistics and selling, general and administrative expenses.
International
Volume down 11%; organic volume1 down 11% Net sales down 5%; organic net sales1 down 4% Segment profit down 254%; adjusted segment profit1 flat For the International segment, organic net sales¹ declined in the third quarter of fiscal 2026. While branded export demand remained resilient during the quarter, the recognition of certain SPAM® export sales was adversely impacted due to a one-time legal-entity transition. Segment profit was significantly impacted by a non-cash impairment charge. Adjusted segment profit1 was comparable to the prior year, as minority investment performance offset weaker results in Brazil.
ADDITIONAL FINANCIAL DETAILS – THIRD QUARTER FISCAL 2026
Income Statement
Operating margin and adjusted operating margin1 were 3.7% and 9.0%, respectively, compared to 7.9% and 8.4%, respectively, in the prior year. Selling, general and administrative expenses as a percent of net sales and adjusted selling, general and administrative expenses as a percent of net sales1 were 10.9% and 7.3%, respectively, compared to 8.5% and 8.1%, respectively, in the prior year. Advertising investments were $34 million, compared to $41 million last year. Significant discrete pre-tax items included: a loss of $56 million related to the Brazil divestiture, a non-cash impairment charge related to a minority investment in Indonesia of $48 million and a litigation settlement of $38 million. The effective tax rate was 42.3%, compared to 22.3% last year, and was significantly impacted by one-time items. Cash Flow Statement
Cash flow from operations was $241 million, an increase of 54% compared to the prior year. Capital expenditures were $68 million, compared to $72 million last year. The largest projects in the third quarter of fiscal 2026 were related to infrastructure enhancements and investments in data and technology. Depreciation and amortization expense was $66 million, compared to $65 million last year. The Company returned $161 million to stockholders during the quarter through dividends. Balance Sheet
The Company remained in a strong financial position at quarter end, with ample liquidity and a conservative level of debt. Cash on hand, excluding assets held for sale, was $840 million at quarter end, an increase of $169 million from the end of fiscal 2025. Inventories were $1.8 billion at quarter end, an increase of $54 million from the end of fiscal 2025. PRESENTATION
A conference call will be webcast at 8 a.m. CT on Aug. 27, 2026. Access is available at hormelfoods.com by clicking on "Investors." The call will also be available via telephone by dialing 833-461-5787 (toll free) or 585-542-9983 (international) and providing the conference ID 915 330 197. An audio replay is available at hormelfoods.com. The webcast replay will be available at noon CT, Aug. 27, 2026, and will remain on the website for one year.
ABOUT HORMEL FOODS
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include Planters®, Skippy®, SPAM®, Hormel® Natural Choice®, Applegate®, Wholly®, Hormel® Black Label®, Columbus®, Jennie-O® and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report and one of America's most responsible companies by Newsweek, was recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. For more information, visit hormelfoods.com.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements, which are based on the Company's current assumptions and expectations. These statements are typically accompanied by the words "aim," "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "project," "seek," "target," "will," "would," or similar words or expressions. The principal forward-looking statements in this news release include statements regarding the Company's fiscal 2026 guidance and future financial and operational performance.
All such forward-looking statements are intended to enjoy the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, as amended. Although the Company believes there is a reasonable basis for the forward-looking statements, its actual results could be materially different. The most important factors that could cause the Company's actual results to differ from its forward-looking statements include, but are not limited to, risks related to the deterioration of economic conditions; risks related to acquisitions, joint ventures, equity investments, and divestitures; risks and uncertainties associated with intangible assets, including any future goodwill or intangible assets impairment charges; the risk of disruption of operations; the risk that the Company may fail to realize anticipated cost savings or operating profit improvements associated with strategic initiatives, including the Transform and Modernize initiative and the Company's recent corporate restructuring plan; risk of unfavorable changes in the Company's relationships with third parties; risk of the Company's inability to protect information technology (IT) systems against, or effectively respond to, cyberattacks, security breaches or other IT interruptions; labor relations and labor availability risks; food safety risks; fluctuations in commodity prices and availability of raw materials and other inputs; fluctuations in market demand for the Company's products; risks related to the Company's ability to respond to changing consumer preferences; damage to the Company's reputation or brand image; risks of litigation; risks associated with government regulation; risks related to trade policies, export and import controls, and tariffs; and the other risks and uncertainties described in Item 1A – Risk Factors of the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which can be accessed at hormelfoods.com in the "Investors" section. Though the Company has attempted to list comprehensively these important cautionary risk factors, the Company cautions that other factors may in the future prove to be important in affecting the Company's business or results of operations. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update any forward-looking statement except as otherwise required by law.
Note: Due to rounding, numbers presented throughout this press release may not sum precisely to the totals provided, and percentages may not precisely reflect the absolute figures.
Reclassifications: Certain prior year amounts have been reclassified to conform to the current year presentation.
END NOTES
Non-GAAP measure. See Appendix: Non-GAAP Measures to this news release for more information. INVESTOR CONTACT
Jess Blomberg
[email protected]
MEDIA CONTACT
Laura Cederberg
[email protected]
HORMEL FOODS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands, except per share amounts
Unaudited
Quarter Ended
Nine Months Ended
July 26, 2026
July 27, 2025
July 26, 2026
July 27, 2025
Net Sales
$ 2,961,333
$ 3,032,876
$ 8,961,250
$ 8,920,499
Cost of Products Sold
2,489,818
2,545,567
7,501,653
7,473,524
Gross Profit
471,515
487,309
1,459,597
1,446,975
Selling, General, and Administrative
323,501
258,713
883,822
773,158
Equity in Earnings of Affiliates
(37,110)
11,153
(4,061)
42,614
Operating Income
110,904
239,748
571,713
716,430
Interest Income
6,661
4,877
19,667
18,596
Interest Expense
19,635
19,461
59,185
58,438
Other Income (Expense), Net
5,227
11,350
11,336
8,488
Earnings Before Income Taxes
103,157
236,514
543,531
685,076
Provision for Income Taxes
43,638
52,818
144,865
151,107
Effective Tax Rate
42.3 %
22.3 %
26.7 %
22.1 %
Net Earnings
59,519
183,696
398,666
533,968
Less: Net Earnings (Loss) Attributable
to Noncontrolling Interest
(55)
(46)
(182)
(366)
Net Earnings Attributable to Hormel
Foods Corporation
$ 59,573
$ 183,742
$ 398,848
$ 534,334
Net Earnings Per Share:
Basic
$ 0.11
$ 0.33
$ 0.72
$ 0.97
Diluted
$ 0.11
$ 0.33
$ 0.72
$ 0.97
Weighted-average Shares
Outstanding:
Basic
550,675
550,408
550,572
550,048
Diluted
551,074
550,723
550,898
550,396
Dividends Declared Per Share
$ 0.2925
$ 0.2900
$ 0.8775
$ 0.8700
HORMEL FOODS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION
In thousands
Unaudited
July 26, 2026
October 26, 2025
Assets
Cash and Cash Equivalents
$ 839,639
$ 670,679
Short-term Marketable Securities
28,807
32,909
Accounts and Other Receivables, Net
733,460
813,989
Inventories
1,801,567
1,747,279
Taxes Receivable
58,688
96,791
Prepaid Expenses and Other Current Assets
53,420
44,010
Assets Held for Sale
10,659
—
Total Current Assets
3,526,238
3,405,656
Goodwill
4,867,763
4,924,087
Intangible Assets
1,572,850
1,647,297
Pension Assets
204,135
211,826
Investments in Affiliates
527,864
533,984
Other Assets
430,139
431,500
Property, Plant, and Equipment, Net
2,163,025
2,238,770
Total Assets
$ 13,292,014
$ 13,393,119
Liabilities and Shareholders' Investment
Accounts Payable & Accrued Expenses
$ 771,154
$ 787,350
Accrued Marketing Expenses
133,313
113,947
Employee-related Expenses
250,072
273,402
Interest and Dividends Payable
175,646
180,700
Taxes Payable
10,690
18,752
Current Maturities of Long-term Debt
505,634
6,646
Liabilities Held for Sale
27,483
—
Total Current Liabilities
1,873,991
1,380,796
Long-term Debt Less Current Maturities
2,349,489
2,850,778
Pension and Postretirement Benefits
351,174
358,984
Deferred Income Taxes
653,360
661,349
Other Long-term Liabilities
204,345
225,397
Accumulated Other Comprehensive Loss
(236,907)
(243,646)
Other Shareholders' Investment
8,096,561
8,159,461
Total Liabilities and Shareholders' Investment
$ 13,292,014
$ 13,393,119
HORMEL FOODS CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
In thousands
Unaudited
Quarter Ended
Nine Months Ended
July 26, 2026
July 27, 2025
July 26, 2026
July 27, 2025
Operating Activities
Net Earnings
$ 59,519
$ 183,696
$ 398,666
$ 533,968
Depreciation and Amortization
66,427
64,692
202,348
194,527
Equity in Earnings of Affiliates
37,110
(11,153)
4,061
(42,614)
Loss (Gain) on Divestitures
57,379
—
94,085
10,800
Decrease (Increase) in Working Capital, Net of Divestitures
(2,174)
(95,844)
111
(255,011)
Other
22,339
15,307
69,481
80,674
Net Cash Provided by (Used in)
Operating Activities
240,599
156,698
768,752
522,345
Investing Activities
Net Sale (Purchase) of Securities
3,498
(1,434)
3,372
(6,170)
Proceeds from Sale of Business
(2,979)
—
97,056
13,139
Purchases of Property, Plant, and
Equipment
(68,163)
(72,194)
(219,331)
(219,444)
Proceeds from (Purchases of) Affiliates
and Other Investments
—
(584)
(5,316)
(3,283)
Other
6,119
7,890
11,952
10,767
Net Cash Provided by (Used in)
Investing Activities
(61,526)
(66,323)
(112,267)
(204,991)
Financing Activities
Repayments of Long-term Debt and
Finance Leases
(1,773)
(2,005)
(5,425)
(6,250)
Dividends Paid on Common Stock
(160,963)
(159,467)
(481,401)
(473,692)
Other
(283)
(1,784)
(1,609)
24,057
Net Cash Provided by (Used in)
Financing Activities
(163,019)
(163,256)
(488,435)
(455,884)
Effect of Exchange Rate Changes on
Cash
1,291
2,381
5,368
(4,161)
Increase (Decrease) in Cash, Cash
Equivalents, and Cash Held for Sale
17,345
(70,499)
173,417
(142,692)
Cash, Cash Equivalents, and Cash Held
for Sale at Beginning of Period
826,750
669,688
670,679
741,881
Cash, Cash Equivalents, and Cash Held
for Sale at End of Period
844,095
599,189
844,095
599,189
Less: Cash Held for Sale
4,457
—
4,457
—
Cash and Cash Equivalents at End of
Period
$ 839,639
$ 599,189
$ 839,639
$ 599,189
HORMEL FOODS CORPORATION
SEGMENT DATA
In thousands
Unaudited
Quarter Ended
Nine Months Ended
July 26,
2026
July 27,
2025
%
Change
July 26,
2026
July 27,
2025
%
Change
Volume (lbs.)
Retail
648,340
712,912
(9.1)
2,005,233
2,127,075
(5.7)
Foodservice
244,830
248,540
(1.5)
733,557
734,988
(0.2)
International
75,908
85,138
(10.8)
231,905
239,225
(3.1)
Total Volume (lbs.)
969,078
1,046,590
(7.4)
2,970,695
3,101,288
(4.2)
Net Sales
Retail
$ 1,779,434
$ 1,858,434
(4.3)
$ 5,416,905
$ 5,532,401
(2.1)
Foodservice
1,003,158
986,976
1.6
2,998,096
2,853,603
5.1
International
178,740
187,466
(4.7)
546,249
534,495
2.2
Total Net Sales
$ 2,961,333
$ 3,032,876
(2.4)
$ 8,961,250
$ 8,920,499
0.5
Segment Profit
Retail
$ 118,073
$ 122,566
(3.7)
$ 369,902
$ 378,847
(2.4)
Foodservice
144,475
140,711
2.7
456,800
420,170
8.7
International
(29,233)
18,941
(254.3)
15,812
58,193
(72.8)
Total Segment Profit
233,316
282,218
(17.3)
842,515
857,210
(1.7)
Net Unallocated Expense
130,104
45,658
185.0
298,802
171,769
74.0
Noncontrolling Interest
(55)
(46)
(20.4)
(182)
(366)
50.2
Earnings Before
Income Taxes
$ 103,157
$ 236,514
(56.4)
$ 543,531
$ 685,076
(20.7)
APPENDIX: NON-GAAP MEASURES
This press release includes measures of financial performance that are not defined by U.S. generally accepted accounting principles (GAAP). The Company utilizes these non-GAAP measures to understand and evaluate operating performance on a consistent basis. These measures may also be used when making decisions regarding resource allocation and in determining incentive compensation. The Company believes these non-GAAP measures provide useful information to investors because they aid analysis and understanding of the Company's results and business trends relative to past performance and the Company's competitors. Non-GAAP measures are not intended to be a substitute for GAAP measures in analyzing financial performance. These non-GAAP measures are not calculated in accordance with GAAP and may be different from non-GAAP measures used by other companies.
Transform and Modernize (T&M) Initiative
In the fourth quarter of fiscal 2023, the Company announced a multi-year T&M initiative. In presenting non-GAAP measures, the Company adjusts for (i.e., excludes) expenses for this initiative that are nonrecurring, which are primarily project-based external consulting fees and expenses related to supply chain and portfolio optimization (e.g., asset write-offs, severance, or relocation-related costs). The Company believes that nonrecurring costs associated with the T&M initiative are not reflective of the Company's ongoing operating cost structure; therefore, the Company is excluding these discrete costs. The Company does not adjust for (i.e., does not exclude) certain costs related to the T&M initiative that are expected to continue after the project ends, such as software license fees and internal employee expenses, because those costs are considered ongoing in nature as a component of normal operating costs. The Company also does not adjust for savings realized through the T&M initiative as these are considered ongoing in nature and reflective of expected future operating performance.
Gain or Loss on Divestitures
As part of its ongoing portfolio management activities, the Company may periodically divest certain businesses to better align its portfolio with its strategic objectives and long-term growth strategy. The Company believes the one-time impacts from these transactions, including transaction costs, are not reflective of the Company's ongoing operating cost structure, are not indicative of the Company's core operating performance, and are not meaningful when comparing the Company's operating performance against that of prior periods. Thus, the Company has adjusted for (i.e., excluded) these impacts. Transactions affecting comparability include the Brazil transaction, the whole-bird turkey transaction, the Justin's, LLC transaction, and the Mountain Prairie, LLC divestiture.
Corporate Restructuring Plan
In the fourth quarter of fiscal 2025, the Company commenced a corporate restructuring plan, the focus of which is to reduce administrative expenses, improve efficiencies, and align the workforce to the Company's future needs, while enabling continued investment in the Company's growth. The costs incurred to execute the corporate restructuring plan and the charges incurred under the program are primarily related to severance and employee benefit costs. Because the Company believes certain charges incurred under the corporate restructuring plan do not reflect future operating costs and are not meaningful when comparing the Company's operating performance against that of prior periods, the Company adjusts for (i.e., excludes) these impacts.
Consulting Agreement
On October 27, 2025, the Company entered into a consulting agreement (Consulting Agreement) with its former Chief Executive Officer (CEO), pursuant to which the former CEO is expected to provide consulting services to the Company until April 2027. Consulting costs related to the Consulting Agreement include cash and share-based compensation, which were primarily recognized in the first quarter of fiscal 2026. The Company believes nonrecurring costs associated with the Consulting Agreement are not reflective of the Company's ongoing operating cost structure, are not indicative of the Company's core operating performance, and are not meaningful when comparing the Company's operating performance against that of prior periods; therefore, the Company is excluding these discrete costs.
Legal Matters
From time to time, the Company receives proceeds or incurs expenses related to discrete legal matters that the Company believes are not indicative of the Company's core operating performance, do not reflect expected future operating income or costs, and are not meaningful when comparing the Company's operating performance against that of prior periods. The Company adjusts for (i.e., excludes) these impacts.
Litigation Settlements
In the third quarter of fiscal 2026, the Company executed a settlement agreement with certain plaintiffs in an antitrust lawsuit. In fiscal 2025, the Company entered into a settlement agreement with certain plaintiffs in an antitrust lawsuit.
Impairments
In the third quarter of fiscal 2026, the Company recorded a non-cash impairment charge related to a minority investment in Indonesia. The Company believes these charges are not indicative of the Company's core operating performance, do not reflect expected future operating income or costs, and are not meaningful when comparing the Company's operating performance against that of prior periods. Thus, the Company has adjusted for (i.e., excluded) these impacts.
The tables below show the calculations to reconcile from the GAAP measures to the non-GAAP measures presented in this press release. The tax provision expense or benefit of each of the pre-tax items excluded from the Company's GAAP results was computed based on the facts and tax implications associated with each item.
HORMEL FOODS CORPORATION
RECONCILIATION OF NON-GAAP MEASURES
Unaudited
Quarter Ended
Nine Months Ended
In thousands, except per share amounts
July 26, 2026
July 27, 2025
July 26, 2026
July 27, 2025
Cost of Products Sold (GAAP)
$ 2,489,818
$ 2,545,567
$ 7,501,653
$ 7,473,524
Transform and Modernize Initiative(1)
(447)
(1,010)
(2,222)
(3,973)
Adjusted Cost of Products Sold (Non-GAAP)
$ 2,489,371
$ 2,544,557
$ 7,499,431
$ 7,469,551
SG&A (GAAP)
$ 323,501
$ 258,713
$ 883,822
$ 773,158
Transform and Modernize Initiative(2)
(11,792)
(13,485)
(36,448)
(41,228)
Gain (Loss) on Divestitures
(57,379)
—
(94,911)
(11,324)
Corporate Restructuring Plan
26
—
(8,505)
—
Consulting Agreement
—
—
(7,775)
—
Litigation Settlements
(37,500)
—
(37,500)
(240)
Adjusted SG&A (Non-GAAP)
$ 216,856
$ 245,228
$ 698,684
$ 720,366
Equity in Earnings of Affiliates (GAAP)
$ (37,110)
$ 11,153
$ (4,061)
$ 42,614
Impairments
48,218
—
48,218
—
Adjusted Equity in Earnings of Affiliates (Non-
GAAP)
$ 11,109
$ 11,153
$ 44,157
$ 42,614
Operating Income (GAAP)
$ 110,904
$ 239,748
$ 571,713
$ 716,430
Transform and Modernize Initiative(1)(2)
12,239
14,496
38,669
45,202
(Gain) Loss on Divestitures
57,379
—
94,911
11,324
Corporate Restructuring Plan
(26)
—
8,505
—
Consulting Agreement
—
—
7,775
—
Litigation Settlements
37,500
—
37,500
240
Impairments
48,218
—
48,218
—
Adjusted Operating Income (Non-GAAP)
$ 266,215
$ 254,244
$ 807,292
$ 773,196
Earnings Before Income Taxes (GAAP)
$ 103,157
$ 236,514
$ 543,531
$ 685,076
Transform and Modernize Initiative(1)(2)
12,239
14,496
38,669
45,202
(Gain) Loss on Divestitures
57,379
—
94,911
11,324
Corporate Restructuring Plan
(26)
—
8,505
—
Consulting Agreement
—
—
7,775
—
Litigation Settlements
37,500
—
37,500
240
Impairments
48,218
—
48,218
—
Adjusted Earnings Before Income Taxes (Non-
GAAP)
$ 258,467
$ 251,010
$ 779,110
$ 741,842
Provision for Income Taxes (GAAP)
$ 43,638
$ 52,818
$ 144,865
$ 151,107
Transform and Modernize Initiative(1)(2)
2,999
3,233
9,474
9,960
(Gain) Loss on Divestitures
303
—
4,525
2,469
Corporate Restructuring Plan
(6)
—
2,084
—
Consulting Agreement
—
—
—
—
Litigation Settlements
9,188
—
9,188
52
Impairments
—
—
—
—
Adjusted Provision for Income Taxes (Non-GAAP)
$ 56,120
$ 56,051
$ 170,136
$ 163,588
Net Earnings Attributable to Hormel Foods
Corporation (GAAP)
$ 59,573
$ 183,742
$ 398,848
$ 534,334
Transform and Modernize Initiative(1)(2)
9,241
11,263
29,195
35,242
(Gain) Loss on Divestitures
57,076
—
90,386
8,855
Corporate Restructuring Plan
(20)
—
6,421
—
Consulting Agreement
—
—
7,775
—
Litigation Settlements
28,313
—
28,313
188
Impairments
48,218
—
48,218
—
Adjusted Net Earnings Attributable to Hormel
Foods Corporation (Non-GAAP)
$ 202,402
$ 195,005
$ 609,156
$ 578,620
Diluted Earnings Per Share (GAAP)
$ 0.11
$ 0.33
$ 0.72
$ 0.97
Transform and Modernize Initiative(1)(2)
0.02
0.02
0.05
0.06
(Gain) Loss on Divestitures
0.10
—
0.16
0.02
Corporate Restructuring Plan
—
—
0.01
—
Consulting Agreement
—
—
0.01
—
Litigation Settlements
0.05
—
0.05
—
Impairments
0.09
—
0.09
—
Adjusted Diluted Earnings Per Share (Non-GAAP)
$ 0.37
$ 0.35
$ 1.11
$ 1.05
SG&A as a Percent of Net Sales (GAAP)
10.9 %
8.5 %
9.9 %
8.7 %
Transform and Modernize Initiative(2)
(0.4)
(0.4)
(0.4)
(0.5)
Gain (Loss) on Divestitures
(1.9)
—
(1.1)
(0.1)
Corporate Restructuring Plan
—
—
(0.1)
—
Consulting Agreement
—
—
(0.1)
—
Litigation Settlements
(1.3)
—
(0.4)
—
Adjusted SG&A as a Percent of Net Sales (Non-GAAP)
7.3 %
8.1 %
7.8 %
8.1 %
Operating Margin (GAAP)
3.7 %
7.9 %
6.4 %
8.0 %
Transform and Modernize Initiative(1)(2)
0.4
0.5
0.4
0.5
(Gain) Loss on Divestitures
1.9
—
1.1
0.1
Corporate Restructuring Plan
—
—
0.1
—
Consulting Agreement
—
—
0.1
—
Litigation Settlements
1.3
—
0.4
—
Impairments
1.6
—
0.5
—
Adjusted Operating Margin (Non-GAAP)
9.0 %
8.4 %
9.0 %
8.7 %
(1) Comprised primarily of costs related to supply chain and portfolio optimization.
(2) Comprised primarily of project-based external consulting fees.
ADJUSTED SEGMENT PROFIT (NON-GAAP)
Quarter Ended
July 26, 2026
July 27, 2025
In thousands
GAAP
Non-GAAP Adjustments(1)
Non-GAAP
GAAP
Non-GAAP Adjustments(2)
Non-GAAP
Segment Profit (Loss)
Retail
$ 118,073
$ —
$ 118,073
$ 122,566
$ —
$ 122,566
Foodservice
144,475
—
144,475
140,711
—
140,711
International
(29,233)
48,218
18,985
18,941
—
18,941
Total Segment Profit (Loss)
233,316
48,218
281,534
282,218
—
282,218
Net Unallocated Expense
130,104
(107,092)
23,012
45,658
(14,496)
31,162
Noncontrolling Interest
(55)
—
(55)
(46)
—
(46)
Earnings Before Income Taxes
$ 103,157
$ 155,310
$ 258,467
$ 236,514
$ 14,496
$ 251,010
(1)
International segment profit (loss) adjustments in the third quarter of fiscal 2026 were due to a non-cash impairment charge.
Net Unallocated Expense adjustments were comprised of gain (loss) on divestitures, an unfavorable litigation settlement,
nonrecurring T&M initiative costs, and corporate restructuring plan charges.
(2)
Net Unallocated Expense adjustments in the third quarter of fiscal 2025 were comprised of nonrecurring T&M initiative costs.
Nine Months Ended
July 26, 2026
July 27, 2025
In thousands
GAAP
Non-GAAP Adjustments(1)
Non-GAAP
GAAP
Non-GAAP Adjustments(2)
Non-GAAP
Segment Profit (Loss)
Retail
$ 369,902
$ —
$ 369,902
$ 378,847
$ —
$ 378,847
Foodservice
456,800
—
456,800
420,170
—
420,170
International
15,812
48,218
64,031
58,193
—
58,193
Total Segment Profit (Loss)
842,515
48,218
890,734
857,210
—
857,210
Net Unallocated Expense
298,802
(187,360)
111,442
171,769
(56,766)
115,003
Noncontrolling Interest
(182)
—
(182)
(366)
—
(366)
Earnings Before Income
Taxes
$ 543,531
$ 235,578
$ 779,110
$ 685,076
$ 56,766
$ 741,842
(1)
International segment profit (loss) adjustments in the first nine months of fiscal 2026 were due to a non-cash impairment
charge. Net Unallocated Expense adjustments were comprised of gain (loss) on divestitures, nonrecurring T&M initiative costs,
an unfavorable litigation settlement, corporate restructuring plan charges, and Consulting Agreement costs.
(2)
Net Unallocated Expense adjustments in the first nine months of fiscal 2025 were comprised of nonrecurring T&M initiative
costs, the loss on the divestiture of Mountain Prairie, LLC and an unfavorable litigation settlement.
ORGANIC VOLUME AND ORGANIC NET SALES (NON-GAAP)
The non-GAAP measures of organic volume and organic net sales are presented to provide investors with additional information to facilitate the comparison of past and present operations. Organic volume and organic net sales exclude the impact of the sale of the Company's controlling equity interest in Justin's, LLC in the first quarter of fiscal 2026.
Quarter Ended
July 26, 2026
July 27, 2025
In thousands
GAAP
GAAP
Divestiture
Non-GAAP
Organic
Non-GAAP
% Change
Volume (lbs.)
Retail
648,340
712,912
(3,540)
709,372
(8.6)
Foodservice
244,830
248,540
(346)
248,194
(1.4)
International
75,908
85,138
(68)
85,071
(10.8)
Total Volume (lbs.)
969,078
1,046,590
(3,953)
1,042,637
(7.1)
Net Sales
Retail
$ 1,779,434
$ 1,858,434
$ (19,052)
$ 1,839,382
(3.3)
Foodservice
1,003,158
986,976
(1,856)
985,120
1.8
International
178,740
187,466
(520)
186,947
(4.4)
Total Net Sales
$ 2,961,333
$ 3,032,876
$ (21,427)
$ 3,011,449
(1.7)
Nine Months Ended
July 26, 2026
July 27, 2025
In thousands
GAAP
GAAP
Divestiture
Non-GAAP
Organic
Non-GAAP
% Change
Volume (lbs.)
Retail
2,005,233
2,127,075
(8,605)
2,118,469
(5.3)
Foodservice
733,557
734,988
(724)
734,264
(0.1)
International
231,905
239,225
(117)
239,109
(3.0)
Total Volume (lbs.)
2,970,695
3,101,288
(9,446)
3,091,842
(3.9)
Net Sales
Retail
$ 5,416,905
$ 5,532,401
$ (45,526)
$ 5,486,876
(1.3)
Foodservice
2,998,096
2,853,603
(4,100)
2,849,503
5.2
International
546,249
534,495
(1,190)
533,305
2.4
Total Net Sales
$ 8,961,250
$ 8,920,499
$ (50,815)
$ 8,869,684
1.0
FORWARD-LOOKING GAAP TO NON-GAAP MEASURES
The information below reconciles the estimated fiscal 2026 GAAP measures to the corresponding estimated adjusted non-GAAP measures.
Fiscal 2026 Outlook – Organic Net Sales (Non-GAAP)
To provide a clearer comparison of past and present net sales performance, the Company has adjusted its fiscal 2025 net sales to exclude the impact of the sale of the Justin's® branded business in the first quarter of fiscal 2026 and the sale of its Brazil operations in the fourth quarter of fiscal 2026.
In billions
Fiscal 2026 Outlook
2025 Results
Change
Net Sales (GAAP)
$ 12.1
-
$ 12.2
$ 12.1
0 %
-
1 %
Divestitures
—
-
—
(0.1)
Organic Net Sales (Non-GAAP)
$ 12.1
-
$ 12.2
$ 12.0
1 %
-
2 %
Fiscal 2026 Outlook – Adjusted Operating Income (Non-GAAP)
The Company's fiscal 2026 outlook for adjusted operating income is a non-GAAP measure that excludes items impacting comparability.
In fiscal 2026, the Company expects:
Operating income (GAAP) in the range of $826 million to $869 million Adjustments for gains and losses on divestitures of $94.9 million Adjustments for the T&M initiative of $49.0 million to $52.0 million Adjustment for a non-cash impairment of $48.2 million Adjustment for a litigation settlement of $37.5 million Adjustments for corporate restructuring plan-related charges of $8.5 million Adjustment for the Consulting Agreement of $7.8 million Resulting in an adjusted operating income range (non-GAAP) of $1,075 million to $1,115 million.
Fiscal 2026 Outlook – Adjusted Diluted Earnings per Share (Non-GAAP)
The Company's fiscal 2026 outlook for adjusted diluted earnings per share is a non-GAAP measure that excludes items impacting comparability.
In fiscal 2026, the Company expects:
Diluted earnings per share (GAAP) in the range of $1.06 to $1.12 Adjustments for gains and losses on divestitures of $0.16 Adjustment for a non-cash impairment of $0.09 Adjustments for the T&M initiative of $0.07 Adjustment for a litigation settlement of $0.05 Adjustments for corporate restructuring plan-related charges of $0.01 Adjustment for the Consulting Agreement of $0.01 Resulting in an adjusted diluted earnings per share range (non-GAAP) of $1.45 to $1.51.
Hormel Foods Corp HRL released its 8-K filing detailing its third quarter fiscal 2026 results on August 27, 2026. The results demonstrate a company navigating a mixed environment of financial growth yet facing challenges that could impact long-term success.
Founded in Austin, Minnesota, Hormel Foods Corp has evolved from a meat-focused enterprise to a diversified global branded food company with annual revenues exceeding $12 billion. It operates through various channels such as U.S. retail (61.6% of fiscal 2025 sales), U.S. foodservice (32.6%), and international markets (5.9%). The company's diverse product portfolio includes renowned brands like Hormel, Spam, Jennie-O, Columbus, Applegate, Planters, and Skippy, many of which hold leading market shares in their categories.
Performance Overview and ChallengesHormel Foods Corp reported third quarter net sales of $2.96 billion, marking a 2% organic net sales decline compared to the same period last year. Despite this, the operating income stood at $111 million, with an adjusted operating income of $266 million. The diluted earnings per share (EPS) during the quarter was $0.11, which fell below the expected $0.35 from analysts. However, the adjusted diluted EPS was reported at $0.37, surpassing expectations.
This performance is crucial, as sustained revenue growth is essential for maintaining competitive positioning in the consumer packaged goods industry. The noted decline in organic sales highlights ongoing consumer pressure and portfolio adjustments that could lead to potential risks if not addressed effectively. Jeff Ettinger, interim CEO, stated, "With our strong year-to-date performance and continued opportunities ahead, we are raising and narrowing our adjusted earnings outlook for fiscal 2026."
Financial Achievements and Key MetricsKey financial metrics for Hormel Foods Corp reveal a mixed yet promising outlook. The company's operating margin dropped to 3.7%, while the adjusted operating margin improved to 9.0%. A robust cash flow from operations of $241 million, a 54% increase year-over-year, showcases the company's financial strength. Notably, Hormel's commitment to returning value to shareholders is reflected in its dividend payout of $161 million during the quarter.
Below is a summary of key figures from the income statement and balance sheet:
MetricQ3 FY2026Q3 FY2025Net Sales$2.96 billion$3.03 billionOperating Income$111 million$239.7 millionAdjusted Operating Income$266 million$282.2 millionNet Earnings$59.5 million$183.7 millionCash Flow from Operations$241 million$156 millionCash on Hand$840 million$671 million
GuruFocus Valuation CheckHormel Foods Corp currently holds a GF Score of 69/100, suggesting it is above average in terms of fundamentals. The GF Value is set at $31.21, while the current market price stands at $23.71, indicating that the stock is undervalued by 24.0%. With a Financial Strength rating of 7/10 and a Profitability Rank of 8/10, Hormel appears to maintain a sound financial foundation. However, a Growth Rank of 3/10 and a Predictability rating of 1 star highlight areas of concern for potential investors.
Insider activity shows $0.8 million in sales over the past year, which could be perceived as cautious behavior, given that no noteworthy purchases have been made. This suggests potential wariness regarding future performance. Overall, the stock may be considered undervalued at the current price point, but investors should weigh this against the noted challenges in organic sales growth.
For a deeper dive, visit the Hormel Foods Corp stock page on GuruFocus.
Explore the complete 8-K earnings release (here) from Hormel Foods Corp for further details.
GuruFocus context: GuruFocus’ GF Value™ estimates fair value near $31.21 (24.0% undervalued); its GF Score™ is 69/100; 6 gurus currently hold the stock, with 3 adding and 5 trimming positions in recent quarters — guru 13F data Simply Wall St and Morningstar don’t have. See the full Hormel Foods Corp HRL research.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
The food company, which owns Spam and Skippy peanut butter, cut its outlook for annual sales to $12.1 billion to $12.2 billion, compared with a prior range of $12.2 billion to $12.5 billion.
Hormel Foods (HRL.N) cut its annual sales forecast on Thursday, weighed down by declines in the retail segment and weak demand for private-label snack nuts amid a pressured consumer environment.
Consumer demand across the packaged-food industry has remained subdued, with broader inflationary pressure and higher living costs squeezing consumer wallets.
Shares of the Minnesota-based firm were down 1% in premarket trading.
"The results reflected the impacts of portfolio-shaping actions, lower commodity-based pricing in portions of the business and a consumer environment that remains under pressure," CEO-elect John Ghingo said.
Earlier this week, Hormel appointed former Tyson Foods (TSN.N) executive Ash Bhumbla as CFO, effective in September, following the appointment of company veteran Ghingo as chief executive officer last month.
Its retail segment, Hormel's biggest revenue generator, reported a 4% decline in sales, while volumes fell 9%.
The maker of Skippy peanut butter forecast fiscal 2026 net sales of $12.1 billion to $12.2 billion, compared with its prior forecast of $12.2 billion to $12.5 billion, and narrowed its range for organic sales growth expectation to 1% to 2%, from 1% to 4% previously.
The company's third-quarter revenue fell 2.4% to $2.96 billion, missing analysts' estimate of $3.04 billion, hurt by weaker demand in its retail and international businesses.
During the quarter, Hormel completed the divestiture of its Brazilian business under the CERATTI brand as part of efforts to streamline its portfolio and focus on higher-growth markets.
Hormel raised its full-year adjusted earnings per share forecast to between $1.45 and $1.51, from $1.43 to $1.51.
The company's quarterly adjusted net income per share was 37 cents, compared with expectations of 35 cents, according to data compiled by LSEG.
Hormel Foods (HRL - Free Report) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.35 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +2.78%. A quarter ago, it was expected that this maker of Spam canned ham, Dinty Moore stew and other foods would post earnings of $0.35 per share when it actually produced earnings of $0.4, delivering a surprise of +14.29%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Hormel, which belongs to the Zacks Food - Meat Products industry, posted revenues of $2.96 billion for the quarter ended July 2026, missing the Zacks Consensus Estimate by 2.81%. This compares to year-ago revenues of $3.03 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Hormel shares have added about 0% since the beginning of the year versus the S&P 500's gain of 12.1%.
What's Next for Hormel?While Hormel has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Hormel was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.40 on $3.18 billion in revenues for the coming quarter and $1.50 on $12.24 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Meat Products is currently in the bottom 1% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Consumer Staples sector, Brown-Forman B (BF.B - Free Report) , has yet to report results for the quarter ended July 2026. The results are expected to be released on September 2.
This company is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of +5.6%. The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level.
Brown-Forman B's revenues are expected to be $921.18 million, down 0.3% from the year-ago quarter.
Hormel Foods (HRL - Free Report) reported $2.96 billion in revenue for the quarter ended July 2026, representing a year-over-year decline of 2.4%. EPS of $0.37 for the same period compares to $0.35 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $3.05 billion, representing a surprise of -2.81%. The company delivered an EPS surprise of +2.78%, with the consensus EPS estimate being $0.36.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Hormel performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Sales- Retail: $1.78 billion compared to the $1.81 billion average estimate based on two analysts. The reported number represents a change of -4.3% year over year.Net Sales- International: $178.74 million versus the two-analyst average estimate of $200.65 million. The reported number represents a year-over-year change of -4.7%.Net Sales- Foodservice: $1 billion versus the two-analyst average estimate of $1 billion. The reported number represents a year-over-year change of +1.6%.Segment Profit- Foodservice: $144.48 million versus $146.49 million estimated by two analysts on average.Segment Profit- International: $-29.23 million compared to the $23.41 million average estimate based on two analysts.Segment Profit- Retail: $118.07 million versus $120.9 million estimated by two analysts on average.View all Key Company Metrics for Hormel here>>>
Shares of Hormel have returned -8.1% over the past month versus the Zacks S&P 500 composite's +3.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
5 Dividend Kings to Buy in July with Irresistible Value and YieldHormel Foods NYSE: HRL reported third-quarter fiscal 2026 adjusted earnings per share of $0.37, up 6% from the prior-year period, as improved operating margins and cost discipline helped offset a 2% decline in organic net sales.
Interim Chief Executive Officer Jeff Ettinger described the quarter as solid, though not as strong as the second quarter. He said sales were affected by deliberate portfolio actions, softer commodity markets and pressure on consumers, while the company continued to see momentum in strategic portions of its portfolio.
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Campbell's Soup Stock: Deep Value and a 7% Dividend YieldThrough the first nine months of fiscal 2026, Hormel said organic net sales rose 1%, adjusted operating margins expanded 30 basis points and adjusted earnings per share increased 6%.
Updated Fiscal 2026 Outlook The company tightened its full-year organic net sales outlook to growth of 1% to 2%, compared with its prior expectation of 1% to 4%. Hormel now expects fiscal 2026 net sales of $12.1 billion to $12.2 billion.
Was Hormel’s Q2 Earnings Report the Turnaround Investors Needed?Hormel raised and narrowed its adjusted earnings-per-share outlook to $1.45 to $1.51, from a previous range of $1.43 to $1.51. The company said the updated adjusted operating income and adjusted EPS outlook represents year-over-year growth of 6% to 10%.
Ettinger said the revised outlook reflects weaker volumes in certain retail franchises and higher freight and fuel costs, partly offset by an improving cost-of-goods environment. The company had previously viewed approximately $0.40 in fourth-quarter adjusted EPS as its outlook; its updated view places $0.40 at the high end and approximately $0.37 at the midpoint.
Lower pork prices began benefiting results during the third quarter, though Interim CFO and Controller Paul Kuehneman said the company expects a larger share of those benefits in future periods as inventory costs work through the business. Beef costs remained elevated compared with the prior year, while logistics costs continued to be a headwind.
Foodservice Growth Continues; Retail Sales Remain Mixed President and CEO-Elect John Ghingo said Foodservice delivered its 12th consecutive quarter of organic net sales growth despite softer traffic trends across the industry. Premium prepared proteins and branded pepperoni were notable contributors, and Foodservice profit growth outpaced sales growth, producing another quarter of margin expansion.
Retail results were more uneven. The divestiture of Hormel’s whole-bird turkey business, the exit from certain private-label snack nut products, pricing elasticity and a challenging consumer environment weighed on sales and volumes. Ghingo said about half of the Retail segment’s volume decline was related to the whole-bird turkey business, private-label snack nut exits and contract manufacturing.
Nevertheless, the company cited growth in several priority brands and product lines, including JENNIE-O Ground Turkey, Applegate, Hormel Chili, refrigerated entrees and Planters. Ghingo said JENNIE-O Ground Turkey and Hormel Square Table entrees posted mid- to high-single-digit consumption growth. He also cited consumption growth for Applegate, the company’s center-store canned portfolio, Herdez, Hormel Black Label Bacon and Planters.
Hormel is shifting more marketing spending toward retailer media and digital channels, an effort it expects to continue through the fourth quarter. The company said it plans increased advertising spending in the fourth quarter following lower advertising expense in the third quarter due partly to timing.
International Actions and Supply Chain Costs Hormel announced a definitive agreement to sell its Brazil operations, which closed early in the fourth quarter. Kuehneman said the company recognized a loss related to the sale at the corporate level during the third quarter. Brazil’s operating results will be excluded from organic volume and net sales comparisons going forward.
The International segment was also affected by an impairment tied to a minority investment in Indonesia and a one-time legal-entity transition that delayed recognition of certain SPAM export sales. Kuehneman said the majority of the segment’s tonnage decline was associated with the legal-entity change.
Management said underlying demand for branded export products remained resilient and expressed confidence in the segment’s outlook. Hormel is focusing its international strategy more heavily on the Asia-Pacific region and has relocated Group Vice President of International Swen Neufeldt to Singapore.
In the supply chain, Hormel incurred incremental costs from inventory rebalancing, lower production volumes and operating challenges. Ghingo said higher temperatures and weaker feed conversion affected the turkey supply chain, while severe weather-related power outages at several facilities created additional costs. Management characterized those issues as short-term in nature.
Cash Flow, Capital Allocation and Leadership Changes Hormel generated $241 million in operating cash flow during the quarter, up 54% from a year earlier, primarily due to improved inventory management and working capital performance. Capital expenditures totaled $68 million, while the company returned $161 million to shareholders through dividends.
Cash on hand was $840 million at quarter-end, up $169 million from the end of fiscal 2025. Hormel said it had reached its 392nd consecutive quarterly dividend payment and remained committed to its dividend. Ghingo said the company also remains open to strategic partnerships and acquisitions.
Ettinger said this was his final earnings call as interim CEO, though he will remain a member of Hormel’s board. Ghingo will become the company’s next CEO, and Hormel also announced that Ash Bhumbla will join as its next CFO. Ghingo said the company is focused on simplifying operations, investing behind priority brands and growth platforms, and improving execution as it prepares for fiscal 2027.
About Hormel Foods (NYSE:HRL)Hormel Foods Corporation is a global branded foods company primarily engaged in the production, marketing and distribution of value-added, high-quality meat and food products. The company's portfolio spans a range of categories including refrigerated and frozen meats, pantry staples, specialty foods and shelf-stable items. Through manufacturing facilities located across North America and international markets, Hormel Foods supplies retail grocers, foodservice operators, convenience stores and e-commerce platforms.
Among its best-known brands, Hormel Foods produces SPAM® canned meats, Jennie-O® turkey products, Skippy® peanut butter and Applegate® natural and organic meats.
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Key Takeaways Hormel Foods' Q3 adjusted EPS rose 5.7% to 37 cents, while net sales fell 2.4% to $2.96B.Adjusted operating margin expanded 60 bps to 9% as SG&A costs fell 11.6% year over year.Hormel Foods cut fiscal 2026 sales guidance to $12.1-$12.2B but raised EPS guidance to $1.45-$1.51. Hormel Foods Corporation (HRL - Free Report) reported third-quarter fiscal 2026 adjusted earnings of 37 cents per share, up 5.7% year over year and above the Zacks Consensus Estimate of 36 cents.
Net sales fell 2.4% to $2,961.3 million and missed the consensus mark of $3,047 million. Organic net sales decreased 2% in the quarter. Total volume declined 7.4%, while organic volume fell 7.1%.
Adjusted selling, general and administrative expenses fell 11.6% to $216.9 million from $245.2 million. Advertising investments were $34 million compared with $41 million a year earlier.
Adjusted operating income increased 4.7% year over year to $266.2 million. Adjusted operating margin expanded 60 basis points to 9% from 8.4% in the year-ago quarter.
HRL Provides Revenue & Profit Insights by SegmentRetail net sales declined 4.3% year over year to $1,779.4 million, while organic net sales fell 3.3%. Volume decreased 9.1% as commodity turkey and private-label snack nuts pressured results. Strong performance in value-added turkey offerings, contract manufacturing and Planters snack nuts partly offset the weakness. SPAM products, Applegate natural and organic meats and Hormel chili also delivered growth, while segment profit decreased 3.7% to $118.1 million as lower sales and higher logistics expenses outweighed lower SG&A costs.
Foodservice net sales rose 1.6% to $1,003.2 million, with organic net sales up 1.8%. Volume declined 1.5%, but the segment still generated its 12th straight quarter of organic net sales growth. Growth was broad-based and led by premium prepared proteins, branded pepperoni and Jennie-O turkey. Segment profit increased 2.7% to $144.5 million as higher sales and favorable pork input costs more than offset higher logistics and SG&A expenses.
International net sales declined 4.7% to $178.7 million, while organic net sales fell 4.4%. Volume dropped 10.8%, and the timing of certain SPAM export sales was hurt by a one-time legal-entity transition. Segment loss was $29.2 million against $18.9 million of profit in the year-ago quarter, largely because of a non-cash impairment charge.
Hormel Foods’ Financial Health SnapshotHormel Foods ended the quarter with $839.6 million in cash and cash equivalents, up from $670.7 million at the end of fiscal 2025. Inventories were $1.8 billion, while the company returned $161 million to its shareholders through dividends during the quarter.
Cash flow from operations increased 54% year over year to $240.6 million. Capital expenditures totaled $68.2 million, with spending focused on infrastructure enhancements and data and technology investments.
What to Expect From HRL in the Future?Hormel Foods lowered fiscal 2026 net sales guidance to $12.1-$12.2 billion from $12.2-$12.5 billion and narrowed organic net sales growth expectations to 1-2% from 1-4%. The revised view reflects the external environment and the fiscal fourth-quarter impact of the Brazil divestiture. The transaction closed early in the fiscal fourth quarter, and its expected impact is reflected in the updated guidance.
The company raised adjusted operating income guidance to $1.08-$1.12 billion from $1.06-$1.12 billion. Adjusted earnings per share guidance was raised and narrowed to $1.45-$1.51 from $1.43-$1.51, implying growth of 6-10%.
This Zacks Rank #4 (Sell) stock has tumbled 7.3% over the past month compared with the industry’s decline of 6.9%.
Image Source: Zacks Investment Research
Stocks to ConsiderThe Chefs' Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Chefs' Warehouse’s current fiscal-year sales and earnings implies growth of 10.6% and 33.7%, respectively, from the year-ago reported figures. Chefs' Warehouse delivered a trailing four-quarter earnings surprise of 30.4%, on average.
The Vita Coco Company, Inc. (COCO - Free Report) develops, manufactures, markets and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, Africa and the Asia Pacific. COCO currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 21.9%, on average.
The Zacks Consensus Estimate for Vita Coco’s current fiscal-year sales and earnings indicates growth of 31.6% and 64.7%, respectively, from the year-ago reported numbers.
Darling Ingredients Inc. (DAR - Free Report) develops, produces and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America and internationally. At present, Darling Ingredients holds a Zacks Rank of 2 (Buy). DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.
The consensus estimate for Darling Ingredients’ current fiscal-year sales and earnings implies growth of 11.5% and 926.5%, respectively, from the year-ago figures.
Thursday morning, Hormel Foods (HRL +1.36%) published its latest earnings release, and few investors found it tasty. Although the company edged past the consensus analyst estimate for profitability, it missed on revenue and cut full-year guidance. Mr. Market punished it, trading the stock down more than 10% on the day.
Net sales dipped Hormel's fiscal third-quarter net sales came in at $2.96 billion, down 2% year over year. This was on the back of a more than 7% drop in sales volume, to 969 million pounds.
Image source: Getty Images.
By contrast, net income not under generally accepted accounting principles (non-GAAP, or adjusted) rose by almost 4% to $202 million, or $0.37 per share.
That meant Hormel missed the $3.05 billion collective analyst projection for net sales, but topped the $0.35 per share net income consensus.
In the earnings release, the company quoted CEO John Ghingo as explaining that "the results reflected the impacts of portfolio-shaping actions, lower commodity-based pricing in portions of the business and a consumer environment that remains under pressure."
On a brighter note, he added that "several of our retail priority brands delivered growth, and food service once again outperformed industry trends, supported by the strength of our solutions-based offerings and operator partnerships."
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Guidance adjusted Nevertheless, Hormel cut its net sales guidance for the current fiscal year, to $12.1 billion to $12.2 billion. That's down from the previous range of $12.2 billion to $12.5 billion. Management also added $0.02 per share to the bottom end of its adjusted earnings forecast, for an updated range of $1.45 to $1.51 per share.
Hormel's stock price has largely eroded over the past few years, so investors aren't in a forgiving mood these days.
While it maintains a huge business and is free cash flow positive, one of its major appeals might not be sustainable. It's a Dividend King (i.e., it has raised its payout at least once annually for a minimum of 50 consecutive years) with a yield of 5.5%. Yet its payout ratio is awfully high. This, plus Hormel's recent performance, makes the stock a miss for me.
Hormel Foods Corporation experienced a significant share price drop following its latest quarterly results, reflecting heightened sector headwinds. HRL's portfolio remains among the most resilient in large-cap food, given its protein-centric nature. Turkey and other poultry products constitute a substantial portion of HRL's portfolio, benefiting from consumer shifts toward this segment.
Hormel Foods Corporation (NYSE:HRL – Get Free Report) has earned a consensus recommendation of “Hold” from the nine research firms that are covering the firm, MarketBeat.com reports. Seven investment analysts have rated the stock with a hold rating and two have issued a buy rating on the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $26.1429.
Several equities research analysts have issued reports on HRL shares. Stephens set a $23.00 price objective on shares of Hormel Foods in a research report on Friday. Bank of America upped their target price on Hormel Foods from $25.00 to $27.00 and gave the company a “neutral” rating in a research report on Tuesday, June 30th. The Goldman Sachs Group set a $25.00 target price on Hormel Foods in a research note on Thursday, May 21st. Weiss Ratings raised Hormel Foods from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, August 12th. Finally, BNP Paribas Exane reduced their price target on Hormel Foods from $27.00 to $26.00 and set a “neutral” rating for the company in a research note on Friday.
View Our Latest Stock Report on HRL
Hormel Foods News Roundup Here are the key news stories impacting Hormel Foods this week: Positive Sentiment: Hormel reported adjusted third-quarter EPS of $0.37, ahead of analyst estimates of approximately $0.35–$0.36 and up from $0.35 a year earlier. Margin expansion and cost management helped offset weaker volumes. Hormel Foods Q3 Earnings Beat on Margin Expansion, Sales Miss Positive Sentiment: Management raised and narrowed its fiscal 2026 adjusted EPS outlook to $1.45–$1.51, compared with prior guidance of $1.40–$1.50. Operating cash flow also increased 54% to $240.6 million. Hormel Foods Reports Third Quarter Fiscal 2026 Results Neutral Sentiment: BNP Paribas Exane lowered its HRL price target from $27 to $26 and assigned a neutral rating. The revised target still implies meaningful potential upside from recent levels, but the rating signals limited confidence in near-term growth. BNP Paribas Exane Hormel Foods Price Target Update Neutral Sentiment: Some analysts view Hormel’s elevated dividend yield—reported at roughly 5.5% after the sell-off—and valuation as attractive for long-term income investors, though earnings-based valuation remains a concern. Hormel Foods: A Protein Powerhouse With a Secure Yield Negative Sentiment: Third-quarter revenue fell 2.4% year over year to $2.96 billion, missing the roughly $3.03 billion consensus estimate. Retail sales declined 4%, international sales dropped 5%, and management cited pressured consumers, lower commodity prices and weak private-label snack-nut demand. Hormel Foods Cuts Annual Sales Forecast Negative Sentiment: Hormel reduced fiscal 2026 revenue guidance to $12.1–$12.2 billion from $12.2–$12.5 billion, reinforcing concerns that sluggish demand and falling sales will limit growth despite improved margins and EPS. Why Hormel Foods Stock Swooned Hormel Foods Stock Down 0.2% NYSE:HRL opened at $21.53 on Friday. The firm has a market capitalization of $11.85 billion, a price-to-earnings ratio of 34.18, a price-to-earnings-growth ratio of 2.49 and a beta of 0.34. Hormel Foods has a twelve month low of $19.70 and a twelve month high of $26.60. The stock’s 50 day moving average price is $24.76 and its two-hundred day moving average price is $23.37. The company has a quick ratio of 0.92, a current ratio of 1.88 and a debt-to-equity ratio of 0.30.
Hormel Foods (NYSE:HRL – Get Free Report) last released its quarterly earnings data on Thursday, August 27th. The company reported $0.37 earnings per share for the quarter, topping the consensus estimate of $0.35 by $0.02. The company had revenue of $2.96 billion for the quarter, compared to analyst estimates of $3.03 billion. Hormel Foods had a net margin of 2.82% and a return on equity of 9.91%. Hormel Foods’s revenue for the quarter was down 2.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.35 EPS. Hormel Foods has set its FY 2026 guidance at 1.450-1.510 EPS. Equities research analysts expect that Hormel Foods will post 1.49 earnings per share for the current fiscal year.
Insider Transactions at Hormel Foods In related news, Director Gary C. Bhojwani sold 20,200 shares of the firm’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $24.51, for a total value of $495,102.00. Following the transaction, the director owned 32,002 shares in the company, valued at approximately $784,369.02. This trade represents a 38.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 0.58% of the stock is owned by corporate insiders.
Institutional Inflows and Outflows Institutional investors and hedge funds have recently made changes to their positions in the stock. Corient Private Wealth LP lifted its stake in Hormel Foods by 7.8% in the 2nd quarter. Corient Private Wealth LP now owns 58,967 shares of the company’s stock valued at $1,464,000 after purchasing an additional 4,257 shares during the last quarter. HighTower Advisors LLC boosted its holdings in shares of Hormel Foods by 8.0% during the 2nd quarter. HighTower Advisors LLC now owns 132,688 shares of the company’s stock valued at $3,293,000 after acquiring an additional 9,851 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of Hormel Foods during the 2nd quarter valued at $482,000. California State Teachers Retirement System grew its position in Hormel Foods by 2,186.0% during the 2nd quarter. California State Teachers Retirement System now owns 8,259,202 shares of the company’s stock worth $204,993,000 after acquiring an additional 7,897,912 shares during the last quarter. Finally, HB Wealth Management LLC grew its position in Hormel Foods by 32.0% during the 2nd quarter. HB Wealth Management LLC now owns 20,646 shares of the company’s stock worth $512,000 after acquiring an additional 5,011 shares during the last quarter. Institutional investors own 40.99% of the company’s stock.
About Hormel Foods (Get Free Report)
Hormel Foods Corporation is a global branded foods company primarily engaged in the production, marketing and distribution of value-added, high-quality meat and food products. The company’s portfolio spans a range of categories including refrigerated and frozen meats, pantry staples, specialty foods and shelf-stable items. Through manufacturing facilities located across North America and international markets, Hormel Foods supplies retail grocers, foodservice operators, convenience stores and e-commerce platforms.
Among its best-known brands, Hormel Foods produces SPAM® canned meats, Jennie-O® turkey products, Skippy® peanut butter and Applegate® natural and organic meats.
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BlackRock Inc. bought a new stake in shares of Hormel Foods Corporation (NYSE:HRL – Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 19,705,555 shares of the company’s stock, valued at approximately $489,092,000. BlackRock Inc. owned 3.58% of Hormel Foods at the end of the most recent quarter.
Other large investors have also recently made changes to their positions in the company. Deutsche Bank AG purchased a new stake in Hormel Foods during the 2nd quarter valued at about $32,446,000. Perigon Wealth Management LLC purchased a new position in Hormel Foods during the second quarter worth about $314,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Hormel Foods in the 2nd quarter valued at about $14,518,000. AMG National Trust Bank purchased a new position in shares of Hormel Foods in the 2nd quarter valued at about $8,338,000. Finally, Global Retirement Partners LLC purchased a new position in shares of Hormel Foods in the 2nd quarter valued at about $37,000. 40.99% of the stock is owned by institutional investors.
Insider Buying and Selling at Hormel Foods In other news, Director Gary C. Bhojwani sold 20,200 shares of the company’s stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $24.51, for a total value of $495,102.00. Following the sale, the director owned 32,002 shares in the company, valued at approximately $784,369.02. This represents a 38.70% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.58% of the company’s stock.
Hormel Foods Price Performance HRL stock opened at $24.06 on Tuesday. The company has a quick ratio of 0.97, a current ratio of 1.94 and a debt-to-equity ratio of 0.30. Hormel Foods Corporation has a 52-week low of $19.70 and a 52-week high of $29.18. The stock’s 50 day moving average is $24.90 and its two-hundred day moving average is $23.43. The company has a market capitalization of $13.24 billion, a PE ratio of 28.31, a P/E/G ratio of 2.75 and a beta of 0.34. Hormel Foods (NYSE:HRL – Get Free Report) last issued its quarterly earnings results on Wednesday, May 27th. The company reported $0.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.35 by $0.05. The business had revenue of $2.97 billion during the quarter, compared to analyst estimates of $2.96 billion. Hormel Foods had a net margin of 3.82% and a return on equity of 9.74%. The business’s revenue was up 2.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.35 earnings per share. Analysts predict that Hormel Foods Corporation will post 1.5 earnings per share for the current fiscal year.
Wall Street Analysts Forecast Growth Several research analysts have issued reports on HRL shares. Stephens reiterated an “equal weight” rating and issued a $25.00 price objective on shares of Hormel Foods in a research report on Thursday, July 9th. Bank of America lifted their target price on shares of Hormel Foods from $25.00 to $27.00 and gave the company a “neutral” rating in a report on Tuesday, June 30th. Weiss Ratings upgraded Hormel Foods from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Wednesday, August 12th. The Goldman Sachs Group set a $25.00 target price on Hormel Foods in a research report on Thursday, May 21st. Finally, BNP Paribas Exane raised their target price on Hormel Foods from $26.00 to $27.00 and gave the company a “neutral” rating in a report on Tuesday, July 14th. Two equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Hormel Foods has an average rating of “Hold” and a consensus price target of $26.57.
View Our Latest Research Report on Hormel Foods
About Hormel Foods (Free Report)
Hormel Foods Corporation is a global branded foods company primarily engaged in the production, marketing and distribution of value-added, high-quality meat and food products. The company’s portfolio spans a range of categories including refrigerated and frozen meats, pantry staples, specialty foods and shelf-stable items. Through manufacturing facilities located across North America and international markets, Hormel Foods supplies retail grocers, foodservice operators, convenience stores and e-commerce platforms.
Among its best-known brands, Hormel Foods produces SPAM® canned meats, Jennie-O® turkey products, Skippy® peanut butter and Applegate® natural and organic meats.
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, /PRNewswire/ -- Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today announced the appointment of Ash Bhumbla as executive vice president and chief financial officer, effective Sept. 8. Paul Kuehneman, who has served as interim chief financial officer since October 2025, will work closely with Bhumbla to ensure a smooth transition and remain a key senior leader within the company's finance organization.
Hormel Foods appoints Ash Bhumbla as executive vice president and chief financial officer Bhumbla will lead the company's finance organization and serve as a member of the Hormel Foods senior leadership team. He will guide the company's financial strategy, capital allocation and long-term growth objectives.
"Ash is a highly accomplished finance executive with a proven record of driving performance, leading transformation and creating long-term shareholder value," said John Ghingo, president, Hormel Foods. "His broad experience across finance, operations and strategy, coupled with his expertise across consumer-focused, value-added protein businesses, gives him a unique perspective on our business and the opportunities ahead. His leadership will be a tremendous asset as we continue to modernize our business and position Hormel Foods for the future."
Bhumbla brings extensive finance and business leadership experience to Hormel Foods. Throughout his career, he has helped lead large-scale transformation initiatives, drive operational and financial performance, and guide strategic growth efforts across complex businesses.
"Paul has been an exceptional steward of our business and a trusted advisor to our leadership team," said Ghingo. "His deep knowledge of Hormel Foods, financial expertise and commitment to our people have been invaluable. We are grateful for his steady leadership during this transition and look forward to his continued contributions to the company."
About Ash Bhumbla:
Bhumbla is an experienced finance leader with a track record of helping food companies improve performance, strengthen financial operations and execute long-term growth strategies. Bhumbla joins Hormel Foods from Tyson Foods, where he served as senior vice president and chief financial officer for the company's Chicken segment. In 2025 he concurrently served as chief financial officer of Tyson's International segment. During his tenure, he played a key leadership role in improving business performance through operational transformation, finance modernization and strategic planning initiatives. Previously, he held senior finance and corporate development leadership roles at Perdue Farms and International Flavors & Fragrances (IFF). He began his career with strategy consulting firm Marakon Associates. Bhumbla earned a bachelor's degree from the University of Pennsylvania and a Master of Business Administration from The Wharton School of the University of Pennsylvania, where he graduated as a Palmer Scholar.
About Paul Kuehneman:
Kuehneman joined Hormel Foods in 1993 and has held various accountant and controller roles at the company's Austin, Minnesota, and Rochelle, Illinois, food manufacturing facilities as well as the company's headquarters, also in Austin. In 2009, he became the director of internal audit at Hormel Foods and in 2016 was promoted to the position of vice president and chief financial officer for Jennie-O Turkey Store in Willmar, Minnesota. He was named assistant controller in November 2020 and controller in January 2022. Kuehneman earned his bachelor's degree in accounting from Northwest Missouri State University and is a certified public accountant (CPA).
About Hormel Foods
Hormel Foods Corporation, based in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include PLANTERS®, SKIPPY®, SPAM®, HORMEL® NATURAL CHOICE®, APPLEGATE®, WHOLLY®, HORMEL® BLACK LABEL®, COLUMBUS®, JENNIE-O® and more than 30 other beloved brands. The Company is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats, was named one of the best companies to work for by U.S. News & World Report and one of America's most responsible companies by Newsweek, was recognized by TIME magazine as one of the World's Best Companies and has received numerous other awards and accolades for its corporate responsibility and community service efforts. For more information, visit hormelfoods.com.
Contact: Media Relations, Hormel Foods | [email protected]
