Core Viewpoint - Hormel Foods is spinning off its Justin's brand through an investment agreement with Forward Consumer Partners, with the transaction expected to close by year-end, resulting in Justin's becoming a standalone company with a new CEO [1][2]. Company Overview - Justin's brand, known for nut butters and chocolate snacks, was founded in 2004 and has been recognized for its strong brand equity and growth potential [2][3]. - Hormel Foods acquired Justin's in 2016 and has since expanded its product portfolio to include almond and peanut butters, as well as peanut and almond butter cups [3]. Leadership Changes - Peter Burns will return as CEO of Justin's, a position he previously held in 2016, while Matt Leeds from Forward Consumer Partners will become chairman of the new standalone company [4]. - John Ghingo, president of Hormel Foods, emphasized the strategic partnership with Forward as a means to unlock the brand's potential [3]. Financial Performance - Hormel Foods anticipates a strong top line for the fourth quarter, driven by sustained demand across retail, foodservice, and international sectors, particularly from turkey products and Planters snacks [5]. - Net sales for the quarter are projected at the upper end of guidance, although adjusted earnings per share are expected to be around $0.08 to $0.09 below previous expectations [6].

Financial Performance - Net sales for the third quarter reached $3.03 billion, with organic net sales growth of 6%[7] - Operating income was reported at $240 million, with an adjusted operating income of $254 million, resulting in an operating margin of 7.9%[7] - Diluted earnings per share were $0.33, while adjusted diluted earnings per share were $0.35[7] - The company expects fourth quarter net sales to be between $3.15 billion and $3.25 billion, with an organic net sales growth rate of 1% to 4%[6] - Net sales for the quarter ended July 27, 2025, were $3,032,876, a 4.6% increase from $2,898,443 in the same quarter last year[24] - Gross profit for the quarter was $487,309, slightly down from $488,369 year-over-year[24] - Operating income increased to $239,748, compared to $236,693 in the prior year, reflecting a 1.0% growth[24] - Net earnings attributable to Hormel Foods Corporation were $183,742, up from $176,701, representing a 0.6% increase[24] - Total net sales for the quarter reached $3,032,876, representing a 5.7% increase compared to the previous year, driven by growth in retail and foodservice segments[38] - The fiscal 2025 outlook for adjusted operating income is estimated at $1,054,000,000, revised down from a previous estimate of $1,175,000,000[42] - Diluted earnings per share (GAAP) for fiscal 2025 are projected to be between $1.33 and $1.35, down from the previous range of $1.49 to $1.59[42] - Adjusted diluted earnings per share (Non-GAAP) are projected to be between $1.43 and $1.45, revised from a previous range of $1.58 to $1.68[42] Investments and Expenditures - Hormel's advertising investments increased to $41 million from $40 million year-over-year, with expectations for a decline in the fourth quarter[17] - Capital expenditures for the quarter were $72 million, with a full-year estimate of approximately $300 million[17] - The Transform and Modernize initiative contributed approximately 90 projects that added measurable value and earnings to the enterprise[12] - The Transform and Modernize initiative is expected to incur costs of approximately $61,000,000 in the revised outlook for fiscal 2025[42] Tax and Shareholder Returns - The effective tax rate for the quarter was 22.3%, slightly up from 21.7% the previous year[17] - The effective tax rate for the quarter was 22.3%, slightly higher than 21.7% in the previous year[24] - The company returned approximately $159 million to stockholders through dividends during the quarter[17] - Dividends declared per share increased to $0.2900 from $0.2825, reflecting a growth of 6.0%[24] Segment Performance - The international segment saw strong performance driven by growth in the China market and robust exports of SPAM luncheon meat[15] - Retail segment net sales increased by 5.2% to $1,858,434, while foodservice segment sales rose by 3.5% to $986,976[27] - Retail net sales increased by 1.2% to $5,532,401,000, while foodservice net sales grew by 5.1% to $2,853,603,000[39] - International sales increased by 3.5% to $534,495,000 compared to $516,517,000 in the previous year[39] Operational Adjustments and Future Outlook - In Q4 fiscal 2023, the Company launched a multi-year Transform and Modernize (T&M) initiative, excluding non-recurring expenses related to external consulting and supply chain optimization from its financial performance measures[29] - Future operating performance is expected to benefit from ongoing savings realized through the T&M initiative, which are not adjusted out of the financial measures[29] - The Company incurred a loss on the sale of Mountain Prairie, LLC, which was excluded from adjusted financial measures as it was deemed non-core and non-recurring[30] - The company anticipates that the one-time costs associated with the T&M initiative and the sale of Mountain Prairie, LLC will not recur in the foreseeable future[40] Volume and Asset Changes - Total volume for the nine months ended July 27, 2025, was 3,101,288 lbs, a decrease of 1.0% compared to 3,180,087 lbs for the same period in 2024[39] - Total assets as of July 27, 2025, were $13,496,726, compared to $13,434,729 on October 27, 2024[25] - Cash and cash equivalents decreased to $599,189 from $741,881, indicating a decline of 19.2%[25] - Total segment profit decreased by 3.4% to $282,218, down from $292,211 year-over-year[27] - SG&A expenses as a percentage of net sales were reported at 8.5% for the quarter, with adjustments for the T&M initiative bringing the adjusted figure to 8.1%[36]

Leadership Appointment - Hormel Foods Corporation appointed Paul Kuehneman as interim chief financial officer and controller effective October 27, 2025, reporting to interim CEO Jeff Ettinger [1][3] - Kuehneman has over 30 years of experience at Hormel Foods, holding various leadership roles, including vice president and controller [2] - He succeeds Jacinth Smiley, who is leaving the company for other opportunities [3][4] Fourth Quarter Update - Hormel Foods anticipates strong top-line results for the fiscal 2025 fourth quarter, driven by sustained demand across retail, foodservice, and international businesses [5] - Key contributors to growth include the turkey portfolio, PLANTERS brand, and strong market positions [5] - The company is facing persistent inflation in key commodity inputs and impacts from avian influenza and pneumoviruses in the poultry industry [6] Operational Challenges - A fire at the Little Rock, Arkansas peanut butter production facility was contained with no injuries, and full production is expected to resume early in fiscal 2026 [7] - The company issued a voluntary class 1 recall for certain chicken products sold in foodservice channels [7] - Hormel Foods expects net sales growth for the quarter toward the top end of previous guidance, but adjusted earnings per share are projected to be approximately $0.08 to $0.09 below prior expectations [8] Future Outlook - The company is not reaffirming its previously issued GAAP earnings per share guidance pending year-end financial closing procedures, which may include non-cash impairment charges [8] - Hormel Foods remains confident in its portfolio and brands, aiming for long-term sustainable growth despite recent inflationary pressures and operational disruptions [9] - A comprehensive review of the fourth quarter and full-year results, along with the fiscal 2026 outlook, will be provided in early December [10]

Core Insights - Hormel Foods is selling a 51% stake in Justin's to Forward Consumer Partners while retaining 49% ownership [2][4] - Justin's has expanded its product offerings since Hormel's acquisition in 2016, including new nut spreads and candy products [3] - The partnership aims to leverage resources for growth while maintaining Hormel's investment in Justin's success [4] Company Overview - Hormel Foods, known for brands like Spam and Planters, acquired Justin's in 2016 for $286 million [2] - Justin's founder, Justin Gold, will return as a strategic advisor, and Peter Burns will resume the role of CEO [4][5] Strategic Implications - The transaction reflects Hormel's strategy to unlock brand potential through partnerships [4] - Forward Consumer Partners views Justin's as a strong brand with significant untapped potential [5]

Performance Overview - The Dividend Kings experienced a decline of 1.58% in September, underperforming the SPDR S&P 500 ETF (SPY) by 4.47% [1] Current Month Performance - The performance in the current month is not showing improvement compared to previous results [1]

Core Insights - Hormel Foods Corporation and Forward Consumer Partners have signed a definitive agreement to establish a strategic partnership, allowing the Justin's® brand to become a standalone company, with Forward owning 51% and Hormel Foods owning 49% [1][3] Company Overview - Justin's® brand was founded in 2004 by Justin Gold, starting with handcrafted almond butters sold at the Boulder Farmers Market, and has since grown into a recognized brand in nut butters and organic snacks [2][5] - Hormel Foods acquired Justin's® in 2016 and has since expanded its product offerings, including various nut butters and confectionery items [3][5] Leadership Changes - Justin Gold will return as a strategic advisor and board member, while Peter Burns will resume his role as CEO, bringing extensive experience from previous leadership positions in the food and beverage industry [3][4] Strategic Goals - The partnership aims to leverage the strong brand equity of Justin's® and unlock its growth potential, reflecting Hormel Foods' broader strategy to enhance the value of its brands [3][4] Financial Context - Forward Consumer Partners manages $425 million in committed capital through its debut fund, which closed in 2023, indicating a strong financial backing for the new partnership [6]

Core Insights - Hormel Foods Corporation has a market capitalization of $13.1 billion and is a prominent global manufacturer and marketer of meat and food products, featuring well-known brands such as SKIPPY™, SPAM™, Hormel™, and Planters™ [1] Financial Performance - Hormel Foods is expected to announce its fiscal Q4 2025 results soon, with analysts predicting an adjusted EPS of $0.38, which represents a 9.5% decline from $0.42 in the same quarter last year [2] - For fiscal 2025, the company is projected to report an adjusted EPS of $1.44, down 8.9% from $1.58 in fiscal 2024, but is anticipated to see a 6.3% growth year-over-year to $1.53 in fiscal 2026 [3] Stock Performance - Over the past 52 weeks, Hormel Foods' shares have decreased by 22.8%, underperforming compared to the S&P 500 Index, which increased by 18.4%, and the Consumer Staples Select Sector SPDR Fund, which dipped by 2.6% [4] - Despite reporting better-than-expected Q3 2025 revenue of $3.03 billion, shares fell by 13.1% due to missed earnings estimates, with an adjusted EPS of $0.35 attributed to higher commodity costs [5] Analyst Sentiment - The consensus view among analysts on Hormel Foods stock is cautious, with an overall "Hold" rating; out of 10 analysts, three recommend "Strong Buy," six suggest "Hold," and one advises "Strong Sell" [6] - The average analyst price target for Hormel Foods is $28.71, indicating a potential upside of 20.9% from current levels [6]

Company Summary - Hormel Foods Corporation (HRL) is recalling nearly 4.9 million pounds of frozen ready-to-eat chicken products due to reports of metal fragments found in the products [2][7] - The recall affects items sold under the "Hormel FIRE BRAISED MEATS ALL NATURAL" label, produced between February 10 and September 19, 2025, and distributed to foodservice clients [2][7] - The current stock price of Hormel Foods is approximately $23.83, with a market capitalization of around $13.11 billion [2] Industry Summary - The recall of Hormel Foods products highlights potential quality control issues within the food processing industry, particularly concerning food safety and contamination risks [2][7] - The geopolitical landscape, including military advancements by Russia and peace negotiations involving the PKK, may indirectly impact the food industry through shifts in market stability and consumer confidence [3][5][7]

Core Points - Hormel Foods is recalling 215,258 cases, totaling 4,874,815 pounds, of HORMEL FIRE BRAISED items due to potential extraneous metal contamination [1] - The recall affects only specific products with establishment number P-223, and no other Hormel products are impacted [1] - No illnesses or injuries have been reported in connection with this recall [1] Product Details - The recalled products include various HORMEL FIRE BRAISED items with label dates ranging from February 10, 2025, to April 29, 2025 [2] - Specific item numbers affected include 65009 (Chicken Thigh), 46750 (Fire Braised), 86206 (5OZ Halal), and 77531 (Chicken Breast) among others [3] Recall Process - Hormel Foods is conducting this recall in coordination with the Food Safety and Inspection Service (FSIS) to ensure customer awareness [4] - All foodservice customers who received the affected products have been properly notified [1]

Core Viewpoint - Hormel Foods (NYSE: HRL) has experienced poor stock performance due to lackluster results and general weakness in consumer staples, but analysts believe these issues are temporary and overlook the company's strengths [1]. Company Performance - Hormel Foods shares have been negatively impacted by recent financial results and broader market trends affecting consumer staples [1]. Analyst Perspective - An analyst suggests that the current challenges faced by Hormel Foods are not indicative of long-term issues, implying potential for recovery and growth in the future [1].