Core Viewpoint - The article discusses the appeal of five Dividend Aristocrats as preferred retirement income stocks for Baby Boomers, emphasizing their reliability in providing consistent dividend increases over 25 years, which is crucial for investors seeking stable income during market volatility [1]. Group 1: Dividend Aristocrats Overview - Dividend Aristocrats are S&P 500 companies that have raised their dividends for 25 consecutive years, making them attractive for growth and income investors [1]. - The 69 companies on the 2026 S&P 500 Dividend Aristocrats list must meet specific criteria, including being a member of the S&P 500, having an average daily trading volume of at least $5 million, and a market capitalization of at least $3 billion [1]. Group 2: Featured Dividend Aristocrats - **Amcor PLC**: Offers a 5.18% dividend and is involved in sustainable packaging solutions across various industries, including food and healthcare. It has a Buy rating with a target price of $60 [1]. - **Eversource Energy**: Provides a 4.09% dividend and operates in energy delivery across Connecticut, Massachusetts, and New Hampshire. It has a Buy rating with a target price of $79 [1]. - **Hormel Foods Corp.**: Known for its diverse food products, it offers a 4.95% dividend and is restructuring to improve performance. It has a Buy rating with a target price of $31 [2]. - **Kimberly-Clark Corp.**: A personal care company with a 4.66% dividend, it has raised dividends for 53 consecutive years and is acquiring Kenvue Inc. in a $48.7 billion deal. It has a Buy rating with a target price of $120 [2]. - **Realty Income Corp.**: A real estate investment trust with a 4.89% monthly dividend, it invests in commercial properties and has a Buy rating with a target price of $69 [2].

Core Viewpoint - Altria offers a high yield of 6.3%, but the business faces significant challenges, making it a riskier investment compared to Hormel Foods, which has a lower yield of approximately 5% but a more stable business model [1][4][11]. Altria Overview - Altria's primary business revolves around cigarette sales, which are declining; for instance, cigarette volumes fell by 10% in 2025 [4]. - The company has managed to support revenue and earnings through price increases and stock buybacks, allowing for ongoing dividend increases, but it remains fundamentally challenged [5]. Hormel Foods Overview - Hormel Foods is a large food manufacturer focused on protein products, aligning well with current consumer trends [6]. - The company is currently facing challenges, particularly in passing rising costs onto consumers, and is refocusing on cost control and portfolio overhaul, including plans to sell its whole turkey business [7][9]. - Hormel's interim CEO, Jeff Ettinger, has implemented strategies leading to five consecutive quarters of organic sales growth, indicating positive momentum [10]. - Hormel has a 5% yield and has increased its dividend annually for over 50 years, earning the title of Dividend King, which reflects a strong commitment to returning value to investors [11].

Core Insights - Hormel Foods Corporation is selling its whole-bird turkey business to Life-Science Innovations to enhance profitability and adapt to changing consumer preferences [1][8] - The divestiture reflects Hormel's strategic shift towards value-added protein products, reducing reliance on commodity-driven operations that can lead to earnings volatility [2][5] Transaction Details - Life-Science Innovations will acquire production assets, including a Minnesota processing facility, feed mill, transportation equipment, and grower supply contracts related to the whole-bird business [3] - The transaction is expected to close by the end of the second quarter of fiscal 2026, with co-manufacturing services provided during the transition to ensure customer order fulfillment [3][5] Financial Impact - Management anticipates that the divestiture will have a limited impact on adjusted fiscal 2026 results, with further details to be discussed in the upcoming earnings call [4][8] Strategic Focus - The move is part of Hormel Foods' broader strategy to streamline turkey operations and align resources with key focus areas, ensuring continuity for employees, customers, growers, and suppliers during the transition [5] Market Performance - Hormel Foods shares have increased by 10.4% over the past three months, outperforming the S&P 500 index's growth of 3.2% during the same period [6]

Core Viewpoint - Hormel Foods is a global branded food company focused on protein and consumer understanding, emphasizing strong corporate governance and disciplined capital allocation [1][2] Group 1 - Hormel has raised its dividend for 60 consecutive years, showcasing its commitment to returning value to shareholders [2] - The company is currently navigating a dynamic food environment with a strong portfolio of market-leading brands and a well-positioned foodservice segment [2] - Hormel has an expansive global presence, which supports its competitive positioning in the food industry [2]

Hormel Foods Conference Call Summary Company Overview - Hormel Foods is a global branded food company focused on protein, with a strong emphasis on consumer understanding and corporate governance [1][3] - The company has a history of 135 years and has been publicly traded since 1927 [3] Key Financial Highlights - Hormel has raised its dividend for 60 consecutive years, qualifying as a Dividend Aristocrat [1][4] - The company reported its fifth consecutive quarter of organic net sales growth at approximately 2% [14] - Adjusted diluted earnings per share for fiscal 2026 are projected to grow in the range of 4%-10% [17] Business Segments - Hormel operates through three reporting segments: retail, food service, and international [4] - The retail segment includes well-known brands such as SPAM, Hormel chili, and Jennie-O, with a significant partnership in Mexican food valued over $800 million [5] - The food service segment has achieved 10 consecutive quarters of organic net sales growth, focusing on innovations that save labor for operators [5][6] Market Challenges and Strategic Actions - Hormel faced significant headwinds in 2025, including raw material cost increases of 20%-30%, operational challenges, and a product recall [7][8] - The company is focused on aligning its bottom line with top-line growth through several strategic initiatives, including brand prioritization and cost reduction efforts [9][12] - Hormel is implementing a "Transform and Modernize" initiative aimed at improving operational efficiency and profitability [11] Consumer Trends and Protein Demand - There is a long-term trend in consumer interest in protein, with over two-thirds of consumers intentionally increasing their protein intake [24] - The protein market is expected to double by 2033 in regions such as Europe, Latin America, and Asia Pacific [24] - Demand for protein is rising across all age cohorts, with over 50% of Gen Z consumers wanting to eat more protein [25] Strategic Focus Areas 1. **Brand Strengthening**: Hormel is focusing on its top eight brands that have strategic and financial advantages [39] 2. **Growth Platforms**: The company is building enterprise-wide growth platforms that leverage its scale across markets and channels [42] 3. **Innovation**: Hormel is committed to origination and innovation, addressing consumer pain points with new product offerings [46] 4. **Supply Chain Optimization**: The company is investing in supply chain improvements and modernization to support growth [50] 5. **Technology and Data Modernization**: Hormel is enhancing its technological capabilities to drive efficiency and growth [53] 6. **Talent and Culture Development**: The company is focusing on building a strong leadership team and enhancing its organizational culture [54] Recent Developments - Hormel announced the divestiture of its whole bird turkey business while retaining the Jennie-O brand, which is a top priority [52] - The company is modernizing its technology stack and investing in AI to accelerate growth [53] Conclusion - Hormel Foods is well-positioned to capitalize on the growing demand for protein, with a clear strategic focus on brand strength, innovation, and operational efficiency [57] - The company aims for 2%-3% organic net sales growth and 5%-7% operating income growth in the coming years [57]

Core Insights - Hormel Foods Corporation reported preliminary results for Q1 of fiscal 2026, indicating modest sales growth and stable earnings, aligning with the company's fiscal-year goals focused on profitable growth and operational execution [1][2]. Financial Performance - The company anticipates first-quarter net sales of approximately $3 billion, reflecting about 2% year-over-year organic growth, marking the fifth consecutive quarter of organic net sales growth [2][8]. - Adjusted earnings per share for the fiscal first quarter are projected to be 34 cents [2]. Long-term Outlook - Hormel Foods reaffirmed its fiscal 2026 outlook, targeting 2-3% organic revenue growth and 5-7% operating profit expansion, emphasizing its strong position in the branded foods sector [3][8]. - The company is committed to disciplined execution to achieve these objectives, supported by its well-known brands like SPAM, Skippy, and Jennie-O [3]. Strategic Focus - The growth strategy centers around a protein-centric portfolio catering to both retail and foodservice channels, with a focus on margin expansion through pricing discipline and productivity improvements from the Transform and Modernize initiative [6][10]. - Hormel Foods is enhancing its consumer-first approach by leveraging data and analytics to refine pricing and product assortment, aligning innovation with consumer trends such as convenience and rising protein consumption [7][10]. Portfolio Management - As part of its portfolio optimization, Hormel Foods has agreed to sell its whole-bird turkey business to Life-Science Innovations, with the deal expected to close by the end of Q2 fiscal 2026 and minimal impact on full-year guidance [9][10].

Core Viewpoint - Hormel Foods is divesting its whole-bird turkey business to Life-Science Innovations (LSI) as part of a strategy to refine its portfolio and focus on value-added protein products [1][2]. Group 1: Transaction Details - The agreement includes assets such as the Melrose, Minnesota whole-bird production facility, the Swanville, Minnesota feed mill, and associated transportation assets, but excludes the Jennie-O brand and its products [1]. - Financial terms of the transaction were not disclosed [2]. - The transaction is expected to close by the end of Hormel Foods' second quarter of fiscal 2026, pending customary closing conditions [4]. Group 2: Strategic Rationale - Hormel Foods' interim CEO emphasized the company's strategy for sustainable growth, focusing on expanding value-added protein offerings while reducing exposure to volatile commodity-driven businesses [2]. - The divestment aligns with previous comments about simplifying the company's portfolio [2]. Group 3: Future Plans - Hormel Foods plans to strengthen the value-added aspects of its Jennie-O business following the sale [4]. - LSI will assume supply contracts with third-party turkey growers and provide co-manufacturing services to Hormel Foods until the end of fiscal 2026 to ensure a smooth transition [5]. Group 4: Financial Performance - Hormel Foods reported preliminary first-quarter fiscal 2026 results, expecting organic net sales to increase by 2% year-on-year to approximately $3 billion, marking the fifth consecutive quarter of organic net sales growth [6].

Investor Contact: IR@hormel.com Media Contact: Media@hormel.com Hormel Foods Announces Preliminary First Quarter 2026 Results and Reaffirms Full-Year Adjusted Guidance Expects Q1 Net Sales of $3 billion; Organic Net Sales Growth of 2% 1 Expects Q1 Diluted EPS of $0.33; Adjusted Diluted EPS of $0.34 1 Separately Announces Definitive Agreement to Sell Its Whole-Bird Turkey Business Presenting at the 2026 Consumer Analyst Group of New York (CAGNY) Conference AUSTIN, Minn. (Feb. 17, 2026) — Hormel Foods Corpora ...

Core Insights - Hormel Foods Corporation announced preliminary first quarter fiscal 2026 results, expecting net sales of approximately $3 billion, reflecting a 2% organic net sales growth compared to the first quarter of fiscal 2025 [1] - The company reaffirmed its fiscal 2026 guidance for organic net sales and adjusted diluted earnings per share, with expected diluted EPS of $0.33 and adjusted diluted EPS of $0.34 [1] - Hormel Foods entered into a definitive agreement to sell its whole-bird turkey business to Life-Science Innovations, with minimal impact anticipated on net sales and adjusted diluted EPS guidance for fiscal 2026 [1] Preliminary First Quarter Fiscal 2026 Results - Expected net sales of approximately $3 billion, marking the fifth consecutive quarter of year-over-year organic net sales growth [1] - Anticipated diluted EPS of $0.33 and adjusted diluted EPS of $0.34 for the first quarter [1] - The results indicate a solid start to the year, aligning with the company's expectations for profitable growth [1] Portfolio Shaping - The sale of the whole-bird turkey business is part of Hormel Foods' ongoing portfolio shaping efforts [1] - The transaction is expected to close by the end of the second quarter of fiscal 2026, with financial details not disclosed [1] - The company will provide additional information regarding the transaction during its first quarter earnings announcement [1] Upcoming Presentations - Hormel Foods will present at the 2026 Consumer Analyst Group of New York (CAGNY) conference on February 18, 2026, at 4 p.m. ET [1] - A comprehensive review of the first quarter results and fiscal 2026 guidance will be provided during the earnings conference call on February 26, 2026, at 7 a.m. CT [1]

Core Viewpoint - Hormel Foods Corporation has entered into a definitive agreement to sell its whole-bird turkey business to Life-Science Innovations, marking a strategic shift towards more value-added protein offerings while maintaining the JENNIE-O brand as a source of profitable growth [1] Group 1: Transaction Details - The transaction is expected to close by the end of the second quarter of fiscal 2026, subject to customary closing conditions [1] - Life-Science Innovations will acquire assets including the Melrose, Minnesota whole-bird production facility, Swanville, Minnesota feed mill, and associated transportation assets [1] - LSI will assume supply contracts with third-party turkey growers dedicated to the whole-bird business and provide co-manufacturing services to Hormel Foods through the end of fiscal 2026 [1] Group 2: Strategic Implications - Hormel Foods aims to reduce exposure to volatile, commodity-driven businesses and focus on expanding its value-added protein portfolio [1] - The sale is seen as an important step in Hormel's evolution, allowing for a more focused turkey portfolio and strengthening the value-added aspects of the JENNIE-O business [1] - Hormel expects the sale to have a minimal impact on its adjusted fiscal 2026 financial results, with further details to be discussed in the upcoming earnings call [1] Group 3: Company Background - Hormel Foods Corporation is a global branded food company with over $12 billion in annual revenue, known for brands such as PLANTERS®, SKIPPY®, SPAM®, and JENNIE-O® [1] - The company is a member of the S&P 500 Index and has received numerous accolades for corporate responsibility and community service efforts [1] - Life-Science Innovations has over 80 years of experience in the turkey industry, enhancing its capability to manage the acquired business effectively [1]