safety risks; fluctuations in commodity prices and availability of raw materials and other inputs; fluctuations in market demand for Hormel's products; risks related to Hormel's ability to respond to changing consumer preferences; damage to Hormel'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 Hormel's most rece ...

Core Insights - Hormel Foods Corporation (HRL) enters fiscal 2026 with improved earnings visibility after a challenging fiscal 2025, expecting transitional headwinds early in the year but anticipating better performance as cost actions and pricing benefits take effect [1][5] Earnings Outlook - Near-term visibility is limited, with management forecasting a year-over-year decline in first-quarter earnings due to delayed pricing actions, ongoing supply constraints from avian influenza, and timing issues with administrative cost savings [2] - Beyond the first quarter, earnings visibility is expected to improve significantly, with guidance for adjusted earnings per share of $1.43 to $1.51 for fiscal 2026, indicating a growth of 4% to 10% [3][8] - The earnings framework is supported by the full-year benefits of pricing actions from fiscal 2025, productivity gains from the Transform and Modernize initiative, and savings from a corporate restructuring program aimed at reducing administrative expenses [4] Market Conditions - The company anticipates a pressured consumer environment and elevated input costs, particularly for beef, but expects the impact of pricing realization, cost control measures, and operational efficiency initiatives to support fiscal 2026 earnings [5] - Hormel Foods' shares have decreased by 1.8% over the past month, underperforming the broader Consumer Staples sector, which grew by 9.8%, while still outperforming the S&P 500 index's decline of 1.9% [6] Valuation - Hormel Foods currently trades at a forward 12-month P/E ratio of 15.94, which is higher than the industry average of 13.18, indicating market expectations regarding its business stability and ability to manage current cost and demand dynamics [10]

Core Insights - The food and beverage industry is experiencing volatility, prompting companies to rehire former CEOs who previously led them during growth periods [1][2] - The return of familiar executives like Jim Koch, Joe Scalzo, and Jeffrey Ettinger indicates a preference for stability amid uncertainty [2][3] Company Strategies - Companies are bringing back former CEOs to navigate challenges, with examples including Boston Beer, Simply Good Foods, and Hormel Foods [2][4] - Simply Good Foods highlighted Joe Scalzo's instrumental role in the company's growth, emphasizing his familiarity with the brand and organization [5] Market Conditions - The food and beverage sector is facing significant challenges as consumer spending declines, leading to lower product volumes and increased pressure on sales and margins [3] - The trend of rehiring former CEOs may reflect underlying struggles with recent leadership, although some transitions are planned, such as Hormel's CEO retirement after 36 years [4]

Group 1 - Hormel Foods Corporation is recognized as one of the 13 Cheapest Dividend Aristocrats to invest in [1] - Stephens has reduced its price target for Hormel Foods to $25 from $27, maintaining an Equal Weight rating due to near-term margin pressures [2] - The company's gross profit margin is reported at 15.7%, indicating ongoing pressure despite expectations for earnings improvement this year [2][3] Group 2 - Analysts have raised earnings estimates for Hormel for the upcoming period, with guidance suggesting earnings improvement as 2026 approaches [3] - USDA data indicates higher hog slaughter levels and heavier weights in the spring and summer, which may alleviate some input cost pressures [3] - Hormel's scale provides a competitive advantage, with net sales exceeding $3 billion and GAAP net income around $184 million in the third quarter, although profits fell short of Wall Street expectations [4]

Core Viewpoint - The article highlights two dividend stocks, Hormel and McCormick, which are positioned well for potential market corrections due to their strong dividend histories and consumer staple products [6][10]. Company Analysis - Hormel, known for products like Spam and Skippy peanut butter, has a strong track record of outperforming the S&P 500 during market downturns, particularly since 2008 [6][7]. - McCormick, a spice manufacturer, also shows resilience during economic slowdowns, as consumers tend to cook at home more and use spices to enhance basic meals [8][10]. Dividend Performance - Hormel is classified as a Dividend King, having increased its dividend for 59 consecutive years, with a current yield of 4.69% [10]. - McCormick has raised its dividend for 39 straight years, offering a yield of 2.85% [10]. Market Outlook - Analysts project a median price target of $27.50 for Hormel, indicating a potential upside of 12%, while McCormick has a target of $73, suggesting an 8% return over the next 12 months [11].

Core Insights - Hormel Foods Corporation has appointed Will Bonifant as group vice president and chief supply chain officer, effective March 9, 2026, to lead its global supply chain operations [1][1][1] Company Overview - Hormel Foods is a Fortune 500 global branded food company based in Austin, Minnesota, with approximately $12 billion in annual revenue [1][1][1] - The company’s brand portfolio includes well-known names such as PLANTERS®, SKIPPY®, SPAM®, and HORMEL® NATURAL CHOICE®, among others [1][1][1] Leadership Appointment - Will Bonifant brings over 15 years of experience from The Hershey Company, where he led supply chain strategy and operations across a 20-plant network [1][1][1] - His previous roles include management consulting at The Boston Consulting Group and service as a U.S. Navy submarine officer, providing him with a diverse background in leadership and operational management [1][1][1] Strategic Importance - Bonifant's leadership is expected to drive transformation and strengthen Hormel's global supply chain, aligning with the company's long-term strategy [1][1][1] - His expertise in scaling complex operations and building modern capabilities will be crucial for Hormel's ongoing growth and innovation [1][1][1]

Core Viewpoint - Hormel Foods (HRL) is expected to report quarterly earnings of $0.33 per share, reflecting a 5.7% decline year-over-year, while revenues are forecasted to increase by 2.4% to $3.06 billion [1] Group 1: Earnings and Revenue Estimates - Analysts project quarterly earnings of $0.33 per share for Hormel Foods, indicating a decline of 5.7% compared to the same period last year [1] - Revenue estimates for Hormel Foods are set at $3.06 billion, which represents a year-over-year increase of 2.4% [1] - There has been no revision in the consensus EPS estimate over the past 30 days, indicating stability in analysts' projections [1] Group 2: Segment Sales Projections - 'Net Sales- Retail' is projected to reach $1.94 billion, reflecting a year-over-year increase of 2.5% [4] - 'Net Sales- International' is estimated at $179.20 million, indicating a 6.4% increase from the previous year [4] - 'Net Sales- Foodservice' is forecasted to be $981.56 million, showing a year-over-year change of 5.5% [4] Group 3: Segment Profit Estimates - The estimated 'Segment Profit- Foodservice' is $137.30 million, down from $138.83 million in the same quarter last year [5] - 'Segment Profit- International' is projected at $21.72 million, an increase from $20.85 million reported in the previous year [5] - Analysts forecast 'Segment Profit- Retail' to be $106.80 million, a decrease from $119.15 million in the same quarter last year [5] Group 4: Stock Performance - Over the past month, shares of Hormel Foods have returned -2.2%, compared to a -0.3% change in the Zacks S&P 500 composite [6] - Hormel Foods currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [6]

Austin, Minnesota-based Hormel Foods Corporation (HRL) develops, processes, and distributes various meat, nuts, and other food products to foodservice, convenience store, and commercial customers. Valued at $13.2 billion by market cap, the company markets its products around the world under a variety of branded names like HORMEL, ALWAYS TENDER, APPLEGATE, AUSTIN BLUES, BLACK LABEL, BURKE, CAFÉ H, CHI-CHI'S, and more. Shares of this diversified food giant have underperformed the broader market over the pa ...

Group 1: Investment Moves - The company increased its stakes in three dividend stocks, specifically Brookfield Renewable Partners, Hormel Foods, and Clorox, during late 2025 and early 2026 [1] - The decision to invest in Brookfield Renewable was driven by its diversification into energy storage and nuclear power, alongside its core renewable energy business [2][3] - Hormel Foods and Clorox were initially sold to offset gains but were repurchased with increased positions due to their potential for growth and restructuring efforts [4][5] Group 2: Company Performance and Dividends - Brookfield Renewable Partners operates in key clean energy segments and has significant partnerships with major companies like Microsoft and Google, contributing to its appeal [3] - Hormel Foods has a historically high dividend yield of 4.7% and is expected to return to growth with new leadership and restructuring [6] - Clorox also has a strong dividend yield of 4.5% and is pursuing growth through the acquisition of Gojo, the owner of Purell [5][6] Group 3: Market Dynamics - The consumer staples sector has been underperforming due to changing consumer preferences and economic conditions, prompting strategic selling of certain stocks [4] - The long-term investment strategy focuses on high-yield dividend stocks, suggesting a preference for stability and reliable income [7]

Core Thesis - Hormel Foods Corporation is presented as a strong investment opportunity due to its resilient cash flows, consistent dividend growth, and operational efficiency, making it an attractive option for long-term investors seeking stability and predictable returns [1][6]. Company Overview - Hormel Foods Corporation develops, processes, and distributes a variety of food products, including meat and nuts, to various customers in the U.S. and internationally [3]. - The company has a strong track record, having raised its dividend for 59 consecutive years, showcasing its consistency through market fluctuations and changing consumer preferences [3]. Dividend and Financial Performance - As of October 2025, Hormel pays a quarterly dividend of $0.29, yielding 4.85%, which provides investors with reliable income that exceeds inflation [4]. - The dividend is supported by a payout ratio of approximately 84%, which is comfortably covered by the free cash flow generated from well-known brands like Spam, Jennie-O, and Skippy [4]. Operational Resilience - Hormel consistently generates cash flow even in challenging market conditions, reinforcing its reputation as a dependable cash-flow generator [5]. - The company anticipates annual dividend growth of 3-4%, driven by efficiency improvements and international expansion initiatives, which are expected to support long-term shareholder value [5]. Market Position and Strategy - Hormel's diversified protein portfolio and solid balance sheet help maintain stable margins, providing a buffer against volatility in commodity markets [5]. - The combination of resilient demand, operational efficiency, and disciplined capital allocation positions Hormel as a foundational income stock for investors seeking low-risk, inflation-resistant returns [6].