Leadership Transition - James P Snee, chairman of the board, president and CEO of Hormel Foods, will retire at the end of fiscal 2025 after a 36-year career with the company [4] - The Board has formed a search committee to identify Snee's successor, considering both internal and external candidates [4] - Snee will serve as a strategic advisor to the Board through the end of fiscal year 2025 and for 18 months thereafter once his successor is named [4] - Snee continues to be a candidate for election to the Board at its 2025 Annual Meeting of Stockholders, scheduled for January 28, 2025 [3] Company Performance and Initiatives - Under Snee's leadership, Hormel Foods grew its protein-centric brands through acquisitions in Retail, Foodservice and International segments, including PLANTERS, FONTANINI and CERATTI [1] - Snee launched critical initiatives for long-term success, including reorganization of the operating model and the Transform & Modernize for growth initiative [1] - The company announced its 59th consecutive year of annual dividend increases in November 2024 [1] - The company's fiscal 2025 performance outlook remains unchanged [3] Company Overview - Hormel Foods Corporation is a global branded food company with approximately $12 billion in annual revenue across more than 80 countries [2] - The company's brands include PLANTERS, SKIPPY, SPAM, HORMEL NATURAL CHOICE, APPLEGATE, JUSTIN'S, WHOLLY, HORMEL BLACK LABEL, COLUMBUS, JENNIE-O and more than 30 other brands [2] - Hormel Foods is a member of the S&P 500 Index and the S&P 500 Dividend Aristocrats [2] - The company has received numerous awards and accolades for corporate responsibility and community service efforts [2]

Vici Properties - Vici Properties is a REIT focused on experiential properties, with over 95% of its rents coming from casino assets, making it a casino REIT [2] - The company successfully navigated the coronavirus pandemic, even increasing its dividend during that time, and has an average remaining rent term of over 40 years with tenants [3] - 90% of its rent roll is covered by leases with CPI-linked rent increases, and the stock's drop has pushed its dividend yield up to 5.8%, making it attractive for income-focused investors [4] Coca-Cola - Coca-Cola is a globally recognized beverage company with a leading soda brand and a diverse product portfolio including coffee, sports drinks, and energy drinks [5] - The company is a Dividend King, having increased its dividends annually for 62 years, with a current yield of 3.1% [6] - Coca-Cola's valuation metrics, such as price-to-sales and price-to-earnings ratios, are below their five-year averages, suggesting it is fairly priced or slightly cheap [7][8] Hormel Foods - Hormel is a Dividend King in the consumer staples sector, currently trading with a historically high yield of 3.6%, near its highest levels in recent history [9] - The stock is down 15% from its 52-week high and over 40% from its three-year high, reflecting market concerns about rising costs, slow recovery in China, avian flu, and weakness in its Planters business [10] - Despite challenges, Hormel has a strong track record of product innovation, which could help address some of its issues, though avian flu remains a broader industry challenge [11][12] Market Overview - Despite the overall market being near all-time highs, there are still opportunities in dividend stocks, with Vici Properties offering a high yield and growth potential, Coca-Cola being a reliable dividend stock, and Hormel priced as a turnaround play [14] - Each of these stocks presents a unique opportunity for investors, whether they are looking for income, value, or long-term growth [15]

When I look at my brokerage account, there is one stock that stands out as particularly disappointing performance-wise: Hormel Foods (HRL -1.25%). And yet, I haven't once thought of jettisoning it from my portfolio. Here's why I still love Hormel despite the fact that it is my worst performer.Hormel Foods has a good core businessEven good companies go through difficult times. That's a key part of my investment approach, as I specifically try to find what are often called fallen angels. Hormel, specifically, ...

Customer Concentration - The Company reported that sales to its largest customer, Walmart Inc., accounted for approximately 16% of consolidated gross sales during fiscal 2024[31]. - The top five customers collectively represented about 37% of consolidated gross sales during fiscal 2024[31]. Employee Information - As of October 27, 2024, the Company had approximately 20,000 active employees, with over 90% located in the U.S.[19]. - Approximately 50% of the Company's team members had five or more years of service as of October 27, 2024[22]. Patents and Intellectual Property - The Company holds 22 U.S. patents and eight foreign patents as of October 27, 2024[34]. Sustainability Efforts - The Company has set aspirational goals to improve sustainability efforts, including reducing greenhouse gas emissions and organic waste[30]. Risk Management - The Company utilizes futures, swaps, and options contracts to hedge a portion of its anticipated purchases to manage input cost risks[17]. - The Company is exposed to various forms of market risk, including commodity price risk and foreign currency exchange rate risk[235]. Financial Position - The Company's long-term debt had a fair value of $2.5 billion as of October 27, 2024, down from $2.7 billion as of October 29, 2023[237]. - The net asset position in foreign currencies increased to $1.2 billion as of October 27, 2024, compared to $1.1 billion as of October 29, 2023[238]. - The balance of corporate-owned life insurance policies classified as trading securities totaled $209.7 million as of October 27, 2024, up from $188.2 million as of October 29, 2023[239]. Financial Performance - Net sales for the fiscal year ended October 27, 2024, were $11,920,797, a decrease of 1.57% from $12,110,010 in the previous year[270]. - Gross profit increased to $2,022,138, up 1.5% from $1,999,841 year-over-year[270]. - Operating income slightly decreased to $1,067,932, compared to $1,072,046 in the prior year, reflecting a decline of 0.2%[270]. - Net earnings attributable to Hormel Foods Corporation were $805,038, an increase of 1.9% from $793,572 in the previous year[270]. - Basic and diluted net earnings per share both increased to $1.47, up from $1.45 year-over-year[270]. - Comprehensive income attributable to Hormel Foods Corporation was $813,959, up from $776,881, an increase of 4.8%[272]. Asset Management - Total current assets decreased to $3,246,476 from $3,297,249, a decline of 1.54%[274]. - Total assets slightly decreased to $13,434,729 from $13,448,772, a decline of 0.1%[274]. - Cash and cash equivalents increased to $741,881 from $736,532, a slight increase of 0.5%[274]. Debt Management - Long-term debt increased to $2,850,944 from $2,358,719, reflecting a rise of 20.8%[274]. - The company repaid $959.017 million in long-term debt during the fiscal year ending October 27, 2024[278]. Dividends and Shareholder Returns - The company declared dividends of $1.13 per share for the fiscal year ending October 27, 2024, compared to $1.10 per share in the previous year[276]. Impairment and Asset Valuation - The Company recorded no material impairment charges for long-lived or definite-lived assets in fiscal years 2024, 2023, or 2022[297]. - In fiscal 2023, the Company recorded a $28.4 million intangible asset impairment charge for the Justin's trade name[310]. - The carrying amount of goodwill decreased to $4,923.5 million as of October 27, 2024, from $4,928.5 million as of October 29, 2023, primarily due to the divestiture of Hormel Health Labs[344]. Revenue Recognition - The Company recognizes revenue at the point in time when performance obligations have been satisfied, typically when the ordered product is received or picked up by the customer[320]. Research and Development - Research and development expenses for fiscal years 2024, 2023, and 2022 were $36.1 million, $33.7 million, and $34.7 million, respectively, showing a year-over-year increase in R&D investment[327]. Investment Activities - The Company completed the divestiture of Hormel Health Labs for a preliminary purchase price of $25.0 million, resulting in a pre-tax gain of $3.9 million recognized in the Consolidated Statements of Operations[342]. - The Company acquired a 30% stake in PT Garudafood Putra Putri Jaya Tbk for $425.8 million, enhancing its presence in Southeast Asia[351]. Inventory Management - Total inventories decreased to $1.58 billion as of October 27, 2024, from $1.68 billion a year earlier, a decline of 6.2%[355]. Pension and Retirement Plans - The Company had $1.3 billion in plan assets related to defined benefit pension plans as of October 27, 2024, including $87.3 million in private equity and real estate funds[264]. - The net periodic cost for defined benefit plans was $44,334,000 for the fiscal year ended October 27, 2024, compared to $37,413,000 for the year ended October 29, 2023, reflecting an increase of 18.5%[374]. - The benefit obligation at the end of the year for pension plans was $1,339,726,000 as of October 27, 2024, compared to $1,174,380,000 as of October 29, 2023, showing a rise of 14.1%[375]. Accounting and Reporting - The Company maintained effective internal control over financial reporting as of October 27, 2024, as confirmed by independent auditors[246]. - The consolidated financial statements present fairly the financial position of the Company at October 27, 2024, in conformity with U.S. generally accepted accounting principles[258]. - The audit of the Company's internal control over financial reporting was conducted in accordance with PCAOB standards, resulting in an unqualified opinion[259].

Conservative Income Portfolio targets the best value stocks with the highest margins of safety. The volatility of these investments is further lowered using the best priced options. Our Enhanced Equity Income Solutions Portfolio is designed to reduce volatility while generating 7-9% yields.We have generally stayed away from the bullish view that has gripped investors about Hormel Foods Corporation (NYSE: HRL ). Granted, as the stock has moved lower we have looked for some tactical upside plays. But overall, ...

Hormel Foods Corporation (NYSE:HRL) Q4 2024 Earnings Conference Call December 4, 2024 9:00 AM ET Company Participants Jess Blomberg - Director of IR Jim Snee - Chairman, President and CEO Jacinth Smiley - EVP and CFO John Ghingo - EVP, Retail Segment Nathan Annis - VP, Corporate Development Conference Call Participants Rupesh Parikh - Oppenheimer Ken Goldman - JPMorgan Thomas Palmer - Citi Heather Jones - Heather Jones Research Max Gumport - BNP Paribas Peter Galbo - Bank of America Michael Lavery - Piper S ...

Core Insights - Hormel Foods Corporation reported its fourth-quarter fiscal 2024 results, with net sales matching the Zacks Consensus Estimate but declining year-over-year. The bottom line remained flat compared to the previous year but missed consensus expectations [1][2]. Financial Performance - Adjusted earnings were 42 cents per share, missing the Zacks Consensus Estimate of 43 cents [2]. - Net sales totaled $3,138.1 million, down from $3,198.1 million in the year-ago quarter, reflecting a volume decline of 4.1% [3]. - Gross profit increased to $521.2 million from $514.4 million year-over-year, while SG&A expenses rose to $238.6 million from $216.5 million [4]. - Adjusted operating income decreased to $308 million from $313.1 million, with the adjusted operating margin remaining stable at 9.8% [4]. Segment Performance - Retail unit net sales fell 3.8% year-over-year to $1,907.1 million, with volumes down 6%. Despite declines in several categories, growth in branded products partially offset the decrease [5]. - Foodservice segment net sales increased by 1.3% to $1,046 million, with volumes up 2%. However, segment profit decreased by 8% due to reduced margins and increased SG&A expenses [6]. - International unit net sales rose 1.4% to $185 million, despite a 10% drop in volumes. The increase was driven by demand in China and strong exports, although turkey export volumes declined [7]. Financial Health - The company ended the quarter with cash and cash equivalents of $741.9 million and total long-term debt of $2,850.9 million. Cash flow from operations was $408.6 million [8]. Shareholder Returns - Hormel Foods announced a 3% dividend increase, raising the annual rate to $1.16 per share, marking the 59th consecutive year of annual dividend growth [9]. Strategic Initiatives - The company made significant progress with its Transform and Modernize (T&M) initiative, generating $75 million in operating income benefits, with expectations of an additional $100 million to $150 million in fiscal 2025 [10]. - Hormel Foods aims for at least $250 million in annualized operating income growth by fiscal 2026 through this initiative [10]. Fiscal 2025 Outlook - For fiscal 2025, Hormel Foods expects net sales between $11.9 billion and $12.2 billion, with organic growth projected at 1% to 3% [11]. - Operating income is anticipated to be between $1.13 billion and $1.23 billion, with adjusted operating income expected in the range of $1.18 billion to $1.28 billion [12]. - The company forecasts annual EPS between $1.51 and $1.65, with adjusted EPS projected to range from $1.58 to $1.72 [12]. Market Performance - Hormel Foods' stock has decreased by 0.9% over the past three months, contrasting with the industry's growth of 1.5% [15].

Hormel Foods (HRL) reported $3.14 billion in revenue for the quarter ended October 2024, representing a year-over-year decline of 1.9%. EPS of $0.42 for the same period compares to $0.42 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $3.14 billion, representing a surprise of -0.05%. The company delivered an EPS surprise of -2.33%, with the consensus EPS estimate being $0.43.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ho ...

Hormel Foods (HRL) came out with quarterly earnings of $0.42 per share, missing the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.42 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.33%. A quarter ago, it was expected that this maker of Spam canned ham, Dinty Moore stew and other foods would post earnings of $0.36 per share when it actually produced earnings of $0.37, delivering a surprise of 2 ...

INVESTOR CONTACT: Jess Blomberg ir@hormel.com MEDIA CONTACT: Media Relations media@hormel.com HORMEL FOODS REPORTS FOURTH QUARTER AND FULL-YEAR FISCAL 2024 RESULTS Strength in Value-Added Portfolio and $75 million in Operating Income Benefit from Transform and Modernize Initiative Results in Record Operating Cash Flow AUSTIN, Minn. (Dec. 4, 2024) – Hormel Foods Corporation (NYSE: HRL), a Fortune 500 global branded food company, today reported fourth quarter and full-year fiscal 2024 results. All comparisons ...