Hormel Foods Corporation (HRL)

Hormel Foods reported third-quarter fiscal 2026 net sales of $2.96 billion on 27 August 2026, with organic net sales down 2 percent 2. Diluted earnings per share were $0.11, against adjusted diluted earnings per share of $0.37 2.

The company's adjusted figures leave out one-time items such as the Brazil sale 1. The gap came from a $56 million loss on the Brazil sale, a $48 million non-cash write-down of a minority investment in Indonesia and a $38 million litigation settlement 1.

On 29 September 2026 the company agreed to acquire Brakebush Brothers, a chicken processor, for a base price of $1.055 billion in cash 3. It expects to close in the first quarter of its 2027 fiscal year, subject to antitrust review 3.

The top team is also changing 67. John Ghingo becomes president and chief executive on 26 October 2026, replacing interim chief executive Jeffrey Ettinger 6. Ash Bhumbla took over as chief financial officer on 8 September 2026 7.

Together these moves show a company trimming parts of its portfolio while adding a large chicken business to its foodservice arm 13.

George Hormel founded the company in 1891 in Austin, Minnesota, as a processor of meat and food products 5. In 1926 it developed what it calls the world's first canned ham, and it became a public company in 1928 9.

Between 1935 and 1941, under Jay Hormel, it introduced Dinty Moore beef stew, Hormel chili and SPAM 9. Canned meat became a wartime staple: after the Lend-Lease Act of 1941 it shipped up to 15 million cans a week overseas, mostly SPAM 9.

Annual sales first topped $1 billion in 1976, and the stock began trading on the New York Stock Exchange in 1990 9. In 1993 the company was renamed Hormel Foods Corporation to reflect its place in the wider food industry 9.

From 2000 to 2013, under Jeff Ettinger, it made more than 10 acquisitions, including Skippy peanut butter, Muscle Milk maker CytoSport and Applegate Farms, and it formed the MegaMex Foods joint venture 9. That venture, set up in 2009, jointly controls Herdez, Chi-Chi's and La Victoria salsas and Wholly Guacamole 10.

In 2021 it added Planters and Corn Nuts 9. The $3.35 billion purchase from Kraft Heinz was the largest deal in its 131-year history and made Planters its biggest brand, giving it an anchor in snacking 10.

Fiscal 2022 net sales reached a record $12.46 billion, up 9.4 percent from $11.39 billion, driven by Planters and by foodservice, with price increases against inflation 15. The next year they slipped 2.8 percent to $12.11 billion, as lower Retail and International volumes outweighed pricing 16.

In fiscal 2023 it moved to three segments: Retail, Foodservice and International 16. Volume also fell on a new pork supply agreement and on bird flu, which cut turkey supply in the first half of that year 16.

Fiscal 2025 was harder: net sales rose 2 percent to $12.1 billion, but net earnings fell 41 percent 5. The company blamed higher pork belly, beef and nut costs and non-cash impairment charges in International and Retail 5.

In 2025 Ettinger returned as interim chief executive, and in November it announced a restructuring that cut about 250 corporate and sales positions 513.

Fiscal 2026 brought sales of businesses 1. On 15 December 2025 it sold 51 percent of Justin's to Forward Consumer Partners for $75.8 million, and on 24 April 2026 it sold its whole-bird turkey business for $61.2 million 1. The Brazil business was sold on 31 July 2026 1.

Retail

Retail supplies grocery stores, mass merchandisers, club stores and e-commerce, and includes the MegaMex Foods joint venture 5. Its net sales were $5.42 billion in the nine months to 26 July 2026, down 2.1 percent 1.

Strong Jennie-O ground turkey sales were mostly offset by the exit from select non-core private label snack nut items 1. Priority brands that grew in the third quarter included the SPAM family, Applegate natural and organic meats and Hormel chili 1.

Foodservice

Foodservice supplies restaurants, hospitality, healthcare, schools and convenience stores 5. Net sales were $3.00 billion in the same nine months, up 5.1 percent, and segment profit rose 8.7 percent to $457 million 1.

Growth came from premium prepared proteins, branded pepperoni and Jennie-O turkey 1. Brakebush, the chicken processor it agreed to acquire, makes mostly cooked products, mostly for foodservice, and has five production facilities 144.

International

International sells the company's products abroad and includes joint ventures, royalty deals and operations in China 5. Net sales were $546 million in the nine months, up 2.2 percent 1.

In the third quarter the segment lost $29 million, mainly on the Indonesian write-down 1.

People, plants and customers

Ghingo, 53, was president from July 2025, led Applegate Farms earlier and ran a snack company before returning 6. Bhumbla, 39, comes from Tyson Foods, where he was chief financial officer of its Chicken segment 7.

At the end of fiscal 2025 it had about 20,000 active employees, about 20 percent covered by union contracts 5. Its facilities total about 15.7 million square feet, 4.5 million of it in Minnesota 5.

Walmart accounted for 15.6 percent of fiscal 2025 gross sales, and the top five customers about 38 percent 5. Its main raw materials are pork, turkey, beef, chicken and nuts 5.

Current pressures

The company says weaker commodity turkey and bacon sales and the exit from some private label snack nuts weighed on third-quarter organic sales 1. It also settled a lawsuit for $38 million 1.

The umbrella, in words

Its main brands are Planters, SPAM, Jennie-O, Skippy, Applegate, Wholly, Hormel Black Label, Fontanini and Hormel pepperoni, plus more than 30 others 5.

Exhibit 21 lists wholly owned units such as Applegate Farms, Jennie-O Turkey Store and Skippy Foods, and part-owned ones such as Beijing Hormel Foods (80 percent) and PT Hormel Pronas Nusantara (60 percent) 12.

It owns a minority interest in MegaMex Foods, 40 percent of The Purefoods-Hormel Company in the Philippines and about 30 percent of Garudafood in Indonesia 5. After the December sale it keeps an influence stake in Justin's 1.

The Hormel Foundation reported owning 46.62 percent of the common stock, or 256,433,116 shares, as of 28 November 2025; it votes the shares held in trust 11. Vanguard reported 6.33 percent and State Street 5.02 percent 11.

Ettinger, a director of the company, also remains on the board of the Foundation, a seat that is his own 11.

For fiscal 2026 the company expects net sales of $12.1 billion to $12.2 billion and adjusted diluted earnings per share of $1.45 to $1.51 2. It expects diluted earnings per share of $1.06 to $1.12 2. It expects adjusted operating income of $1.08 billion to $1.12 billion 2.

It also expects advertising investment in fiscal 2026 to be comparable to the prior year 1. The company warns that outside pressure greater than expected could hurt results 1.

The Brakebush deal is expected to close in the first quarter of fiscal 2027 3. Either side may end it if it is not complete by 29 March 2027, with an automatic three-month extension in some cases 3. The company expects it to add to adjusted earnings per share from fiscal 2028 4.

It expects to report Brakebush mainly in Foodservice 4. Sally Smith has told the company she will retire from the board at its 2027 annual meeting 8.

On costs, the company expects beef and nut prices to stay above historical averages in fiscal 2026 5. It describes its implied annual dividend rate for 2026 as $1.17 per share, the 60th straight year of increases 5.