Hormel Foods Corporation
- Open
- 25.32
- Day high
- 25.32
- Day low
- 24.89
- Prev close
- 25.30
- Volume
- 440K
- Mkt cap
- $13.8B
- P/E (TTM)
- 29.5
- EPS (TTM)
- $0.85
- P/B
- 1.7
- P/S
- 1.1
- Yield
- 4.66%
- Per share
- $1.17
- ▼Insiders net selling -$495K over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions accumulating (13F)
Hormel Foods Corporation (HRL) is a Consumer Defensive company listed on NYSE. The stock is down 13% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4).
Hormel Foods Corporation (HRL) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
HRL earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 28, 2026 | $0.35 | $0.40 | +14.3% | $3.0B | +0.3% |
| Feb 26, 2026 | $0.32 | $0.34 | +6.3% | $3.0B | +1.2% |
| Dec 4, 2025 | $0.30 | $0.32 | +6.1% | $3.2B | -1.2% |
| Aug 28, 2025 | $0.40 | $0.35 | -12.8% | $3.0B | +1.6% |
| May 29, 2025 | $0.34 | $0.35 | +2.4% | $2.9B | -0.2% |
| Feb 27, 2025 | $0.38 | $0.35 | -7.0% | $3.0B | +1.4% |
| Dec 4, 2024 | $0.43 | $0.42 | -2.3% | $3.1B | -0.1% |
| Sep 4, 2024 | $0.36 | $0.37 | +2.8% | $2.9B | -1.6% |
| May 30, 2024 | $0.36 | $0.38 | +5.6% | $2.9B | -2.7% |
| Feb 29, 2024 | $0.33 | $0.41 | +24.2% | $3.0B | +3.0% |
| Nov 29, 2023 | $0.44 | $0.42 | -4.5% | $3.2B | -1.9% |
| Aug 31, 2023 | $0.41 | $0.40 | -2.4% | $3.0B | -2.8% |
HRL insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 10, 2026 | Bhojwani Gary C.director | Sell | 20,200 | $24.51 |
| Jun 11, 2026 | Borrelli Domenicofficer: EVP, Retail | Grant | 50,800 | $23.98 |
| Jun 11, 2026 | Borrelli Domenicofficer: EVP, Retail | Grant | 8,341 | — |
| Jun 11, 2026 | Bonifant William W.officer: GVP, Chief Supply Chain Ofc. | Grant | 34,900 | $23.98 |
| Jun 11, 2026 | Bonifant William W.officer: GVP, Chief Supply Chain Ofc. | Grant | 5,734 | — |
| Apr 29, 2026 | Aakre D Scottdirector | Tax | 1,722 | $21.47 |
| Apr 16, 2026 | Bonifant William W.officer: GVP, Chief Supply Chain Ofc. | Grant | 87,700 | $20.76 |
| Apr 16, 2026 | Bonifant William W.officer: GVP, Chief Supply Chain Ofc. | Grant | 12,043 | — |
| Apr 2, 2026 | White Steven Andrewdirector | Grant | 2,666 | $22.65 |
| Apr 2, 2026 | Policinski Christopher J.director | Grant | 2,492 | $22.65 |
| Apr 2, 2026 | Schoneman Debbra L.director | Grant | 1,333 | $22.65 |
| Apr 2, 2026 | Newlands William Adirector, other: Chairman of the Board | Grant | 6,722 | $22.65 |
| Apr 2, 2026 | Bhojwani Gary C.director | Grant | 2,666 | $22.65 |
| Feb 4, 2026 | Bhojwani Gary C.director | Grant | 6,541 | — |
| Feb 4, 2026 | Zechmeister Michael Pauldirector | Grant | 6,541 | — |
Source: HRL SEC Form 4 filings, latest Jul 10, 2026. For informational purposes only — not investment advice.
See the full HRL insider & 13F page →Hormel Foods Corporation company profile
Overview
Hormel Foods Corporation (NYSE:HRL) is a multinational food processing company founded in 1891 and headquartered in Austin, Minnesota. Originally established as Geo. A. Hormel & Company, the company changed its name to Hormel Foods Corporation in 1995. With over 130 years of history, Hormel has evolved from a small-town meat packer into a diversified food company that develops, processes, and distributes various meat, nuts, and food products to retail, foodservice, deli, and commercial customers across the United States and internationally. The company is known for iconic brands like SPAM, SKIPPY, Planters, and Jennie-O, and has maintained a remarkable track record of 59 consecutive years of dividend increases.
Business
Hormel Foods operates in the packaged foods industry, which encompasses the processing, packaging, and distribution of shelf-stable and refrigerated food products. The company's business is organized into four main segments that collectively generated approximately $11.9 billion in revenue in fiscal 2024. The Grocery Products segment represents the largest portion of Hormel's business, focusing on shelf-stable products sold primarily through retail channels. This segment includes iconic brands like SPAM canned meat, SKIPPY peanut butter, Planters nuts, Hormel chili, and various other shelf-stable items. These products are designed for long-term storage and convenience, appealing to consumers seeking quick meal solutions and snack options. The Refrigerated Foods segment encompasses fresh and frozen meat products that require cold storage throughout the supply chain. This includes fresh meats, sausages, bacon (particularly the popular Hormel Black Label brand), deli meats, and refrigerated meal solutions. The segment also features premium brands like Applegate, which focuses on natural and organic meat products, and Columbus craft meats. The Jennie-O Turkey Store segment is dedicated entirely to turkey products, ranging from whole birds to processed turkey items like ground turkey, turkey bacon, and turkey sausages. This segment operates as a vertically integrated business, managing everything from turkey breeding and raising to processing and marketing. The International & Other segment handles the company's global operations outside the United States, including manufacturing facilities in China and Brazil, as well as export operations. This segment also includes specialty businesses like nutritional supplements and industrial gelatin products. The company serves multiple customer channels: retail grocery stores represent the largest customer base, while foodservice operations (restaurants, schools, healthcare facilities) provide significant growth opportunities. The business model spans both branded consumer products and private-label manufacturing for other companies.
Revenue model
Hormel Foods generates revenue primarily through product sales across its four business segments, with different margin profiles and growth characteristics for each channel. The company's retail business operates on a traditional manufacturer-to-retailer model, where Hormel sells branded products to grocery chains, convenience stores, and mass merchandisers. Revenue comes from wholesale prices charged to retailers, with margins dependent on brand strength, promotional activities, and commodity input costs. Strong brands like SPAM and SKIPPY command premium pricing due to consumer loyalty and market positioning. The foodservice channel involves selling directly to restaurants, institutional customers, and food distributors. This segment typically offers higher margins than retail due to larger order sizes, reduced promotional spending, and custom product formulations. The foodservice business has shown consistent growth, with five consecutive quarters of volume increases as of the most recent earnings. International operations generate revenue through both exports of U.S.-manufactured products and local production in key markets like China and Brazil. The international segment has experienced volatility due to trade relationships, currency fluctuations, and local market conditions, but represents a significant long-term growth opportunity. Several factors influence Hormel's profitability margins. Commodity price volatility in key inputs like pork, beef, turkey, nuts, and grains can significantly impact costs, though the company uses pricing mechanisms and hedging strategies to mitigate these risks. Labor costs and availability affect manufacturing efficiency, while transportation and logistics expenses impact the cost of getting products to market. The company's "Transform and Modernize" initiative, launched in recent years, aims to reduce costs and improve efficiency across procurement, manufacturing, and distribution. Brand strength and innovation serve as key margin drivers, allowing premium pricing for established products while new product launches can capture higher-margin market segments. The company's shift toward value-added products and away from commodity businesses helps insulate margins from raw material price swings. Scale economies in manufacturing and distribution provide cost advantages, while the company's diverse portfolio helps balance performance across different market conditions and consumer trends.
Competitive moat
Hormel Foods possesses a moderate economic moat built primarily on brand recognition and customer loyalty rather than structural competitive advantages. The company's strongest moat elements center around iconic brands like SPAM, which has achieved cult-like status and cultural significance, particularly in certain geographic markets and demographic segments. SKIPPY peanut butter and Planters nuts also benefit from strong brand recognition and shelf space advantages in retail environments. The company's distribution network and retailer relationships provide some defensive characteristics, as established brands often receive preferential shelf placement and promotional support. Hormel's scale in manufacturing and procurement offers cost advantages over smaller competitors, while its diverse product portfolio provides stability across different market conditions and consumer preferences. However, the company's moat is not particularly deep. The packaged foods industry faces intense competition from both large multinational corporations and smaller, innovative brands. Private label competition poses a constant threat, especially during economic downturns when consumers become more price-sensitive. The rise of health-conscious consumers and clean-label trends challenges traditional processed food companies, though Hormel has responded with acquisitions like Applegate and investments in natural/organic product lines. Commodity exposure in key input costs creates margin volatility that competitors with different cost structures can exploit. The company's turkey business, in particular, faces challenges from disease outbreaks (like avian flu) and commodity pricing cycles that can significantly impact profitability. The most significant competitive threat comes from changing consumer preferences toward fresh, minimally processed foods and plant-based alternatives. While Hormel has made strategic moves to address these trends, the company's core business remains tied to traditional processed meat and packaged food categories that face long-term headwinds. The moat is sufficient to protect market share in the near term but may weaken over time without continued innovation and portfolio evolution.
Risks & safety
Hormel Foods demonstrates a strong financial position with solid margins of safety across multiple metrics, though valuation appears somewhat elevated relative to historical norms. • Liquidity and Solvency: The company maintains excellent liquidity with $741 million in cash and short-term investments as of Q1 2025, representing strong financial flexibility. Current ratio of 2.45 indicates robust ability to meet short-term obligations. Debt-to-equity ratio of 0.36 reflects conservative leverage, with manageable debt levels relative to equity base. • Cash Generation: Strong operational cash flow of $1.27 billion in fiscal 2024 and free cash flow of $1.01 billion demonstrate the business's ability to generate substantial cash. The company has consistently produced positive free cash flow, supporting dividend payments and strategic investments. • Valuation Metrics: Current P/E ratio of 25.3x appears elevated relative to the consumer staples sector average, suggesting limited valuation-based margin of safety. EV/EBITDA of 15.9x also indicates premium valuation. Price-to-book ratio of 2.15x reflects market confidence but offers little downside protection. • Dividend Sustainability: The company's 59-year dividend growth streak is supported by consistent cash generation and conservative payout ratios, providing income-focused investors with reliability. • Other Considerations: The Transform and Modernize initiative targeting $200+ million in operating income improvements by 2026 provides potential upside, while diversified product portfolio and established brands offer some recession resistance.
Recent development
Over the past several years, Hormel Foods has undergone significant strategic transformation focused on portfolio optimization and operational efficiency. The company's most significant initiative is the "Transform and Modernize" program, launched to drive $200+ million in operating income growth by fiscal 2026 through approximately $250 million in investments. This initiative focuses on five key pillars: Plan, Buy, Make, Move, and Portfolio Optimization, with the company already delivering $75 million in benefits during fiscal 2024 and expecting $100-$150 million in additional benefits for fiscal 2025. The company has made strategic portfolio adjustments to focus on higher-margin, value-added products while reducing exposure to commodity businesses. Most notably, Hormel divested its last connection to vertically integrated pork production, signaling a shift away from commodity-exposed operations. The company has also worked to optimize its product mix by reducing low-margin SKUs and creating space for innovative, higher-margin products. Brand investment and innovation have been key priorities, with the company increasing advertising investments by 27% in Q2 2024 to support flagship brands like SPAM, Hormel Black Label Bacon, and Applegate. The Planters brand, acquired from Kraft Heinz, has undergone a recovery process following initial integration challenges and production disruptions, with management expecting stronger performance in the second half of fiscal 2025. The foodservice segment has emerged as a significant growth driver, delivering five consecutive quarters of volume growth and positioning for record performance. The company has focused on premium prepared proteins and custom solutions for restaurant and institutional customers, leveraging its scale and innovation capabilities. International expansion has been another focus area, with particular emphasis on recovering the China business and expanding branded exports of products like SPAM and SKIPPY. The company has also strengthened partnerships in Southeast Asian markets including Indonesia and the Philippines. Leadership transition is underway with CEO Jim Snee announcing his retirement, though he remains committed to completing 2025 strategic goals while the board conducts a succession search.
HRL company profile · for informational purposes only — not investment advice.
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