Core Insights - Hormel Foods Corporation has been recognized by Vault as having one of the top 150 internship programs in the nation, highlighting its commitment to providing quality internship experiences [1][2]. Internship Program Highlights - The company hosted nearly 100 college students from 50 different universities during the last summer, focusing on delivering a hands-on experience through managing key projects [2]. - Hormel Foods has a strong track record of converting interns into full-time employees, with at least 70% of interns typically being offered full-time positions after graduation [3]. Company Overview - Hormel Foods Corporation, based in Austin, Minnesota, generates approximately $12 billion in annual revenue and is a member of the S&P 500 Index [4]. - The company is recognized for its various brands, including PLANTERS, SKIPPY, SPAM, and HORMEL NATURAL CHOICE, among others [4]. - Hormel Foods has received multiple accolades for its corporate responsibility and community service efforts, including being named one of the best companies to work for by U.S. News & World Report [4].

Group 1 - Hormel Foods has appointed Paul Kuehneman as interim CFO following the resignation of Jacinth Smiley, effective October 27 [6][7] - Kuehneman has a long history with Hormel, having joined in 2009 and previously serving as CFO for the subsidiary Jennie-O Turkey [4][5] - The company is facing significant challenges, including persistent inflation in key commodity inputs, which has exceeded expectations [6][5] Group 2 - Hormel's interim CEO, Jeff Ettinger, has returned to lead the company for a defined 15-month period starting July 14 [3][5] - The company is implementing targeted pricing actions to address ongoing inflationary pressures, with profit recovery expected to lag into the new year [6][5] - Hormel plans to conduct a search for a permanent CFO, considering both internal and external candidates [7]

Core Insights - Hormel Foods Corporation announced the retirement of PJ Connor, group vice president of Retail sales, after a 30-year career with the company, effective in spring 2026 [1][3] - Natosha Walsh, a 26-year veteran of Hormel Foods, will succeed Connor as the new group vice president of Retail sales, bringing extensive experience in various sales and management roles [2][5] Leadership Transition - PJ Connor has been instrumental in guiding Hormel Foods through transformation initiatives and has built high-performing teams, leaving a significant impact on the company's strategy and culture [3] - Natosha Walsh has held multiple leadership positions within Hormel Foods, including vice president of Retail sales – national chains and vice president of marketing for Convenient Meals and Proteins, showcasing her broad experience [5][6] Company Overview - Hormel Foods is a global branded food company based in Austin, Minnesota, with approximately $12 billion in annual revenue and a diverse portfolio of brands including PLANTERS, SKIPPY, and SPAM [7] - The company is recognized for its corporate responsibility and has received numerous accolades, including being named one of the best companies to work for and one of America's most responsible companies [7][8]

分组1 - The 69 stocks classified as Dividend Aristocrats® have consistently outperformed the broader markets, with an average annual return of 1.59% higher than the S&P 500 since 2000 [1][2] - An initial investment of $10,000 in Dividend Aristocrats® would have grown to $84,700 compared to $58,600 in the S&P 500, highlighting the significant impact of dividend growth on total returns [2] - Companies that can maintain and increase dividends over decades tend to be resilient and well-managed, although a fall from this status can lead to significant losses for investors [3][4] 分组2 - Walgreens Boots Alliance was recently removed from the Dividend Aristocrats® list after suspending its dividend, resulting in a 15% drop in share price upon announcement [4] - Some Dividend Aristocrats® may provide inadequate dividend increases that do not keep pace with inflation, leading to potential investor losses [5] - Hormel Foods has not announced a dividend increase for 2025 and its previous increase of 2.5% in 2024 was below the 2.9% inflation rate, indicating a trend of underperformance relative to inflation [6][7] - Hormel's dividend growth has lagged behind inflation since 2021, with an 18% increase in dividends compared to a 24% rise in the Consumer Price Index [7] - The company's high payout ratio of 84% limits its ability to increase dividends in the future, especially given its recent earnings growth of only 4% [8]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Hormel Foods Corporation due to allegations of materially misleading business information issued by the company [1] Summary by Relevant Sections - **Investigation Announcement** - Rosen Law Firm has announced an investigation regarding Hormel Foods Corporation for potential securities claims [1] - **Allegations** - The investigation stems from allegations that Hormel may have provided materially misleading business information to the investing public [1] - **Shareholder Compensation** - Shareholders who purchased Hormel securities may be entitled to compensation without any out-of-pocket fees or costs through a contingency fee arrangement [1]

Core Viewpoint - Hormel Foods reported that its earnings in the latest quarter were negatively impacted by price pressures, bird flu, and a fire that damaged its peanut butter production facility in Arkansas [1] Group 1 - The company experienced earnings pressure due to various factors including price pressures [1] - Bird flu has contributed to the challenges faced by the company [1] - A fire incident at the Arkansas facility has further complicated production capabilities [1]

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]