Financial Data and Key Metrics Changes - First quarter net sales increased by $5 million, including a $24 million favorable impact from foreign currency translation, but declined 1% on a constant currency basis [13] - Volume increased by 6%, driven by customer wins and retention, primarily in North America and Asia [13] - Adjusted EBITDA was essentially flat at $302 million, with the favorable impact from currency translation offset by higher local currency expenses [19] Business Line Data and Key Metrics Changes - North America net sales declined 2% compared to the prior year, primarily due to lower net selling prices, with price/mix declining 7% and volume increasing 5% [16] - International segment net sales increased 4%, including a favorable $24 million impact from foreign currency translation, with volume growing 6% and price/mix declining 6% [16][20] - Adjusted EBITDA in North America declined 6% to $260 million, while the international segment's adjusted EBITDA increased by $6 million to $57 million [20] Market Data and Key Metrics Changes - Restaurant traffic in the U.S. was flat, with QSR hamburger traffic down low single digits, while QSR chicken traffic was up [14][72] - Internationally, traffic was mixed, with the U.K. down 4% but other markets like France and Germany showing slight increases [15][72] Company Strategy and Development Direction - The company is executing its new strategic plan, "Focus to Win," aimed at driving profitable growth and enhancing customer partnerships [4][7] - The company is prioritizing specific markets and products where it believes it has a sustainable competitive advantage [5] - New innovative products are set to launch in the fall, aligning with customer trends [10] Management's Comments on Operating Environment and Future Outlook - Management noted that while the first quarter results exceeded expectations, the outlook remains cautious due to potential pressures from soft restaurant market demand and increased competition [25][29] - The company expects unfavorable price/mix to continue in the first half of the year, moderating in the second half [25][27] - Management reaffirmed the fiscal 2026 revenue outlook, expecting a range of $6.35 billion to $6.55 billion [24] Other Important Information - The company ended the quarter with approximately $1.4 billion of liquidity and generated $352 million of cash from operations [22] - Capital expenditures for the quarter declined to $79 million, with expectations of approximately $500 million for fiscal 2026 [23] Q&A Session Summary Question: Restarting a curtailed production line and industry capacity - Management indicated the restart was necessary to meet demand signals and maintain customer fill rates, noting that some announced industry capacity may be delayed or canceled [34] Question: Price/mix expectations for the first half of the year - Management expects a mid to high single-digit decrease in price/mix for the first half, moderating in the back half of the year [36] Question: Gross margin commentary for North America - Management confirmed that the increase in gross margin is expected to be seasonal, with input cost inflation anticipated in the second quarter [42] Question: Tariff exposure and guidance - Most tariff exposure relates to imports of palm oil and is expected to be about $25 million annually, with full amounts included in guidance [44] Question: Customer win growth in North America - Management noted that new customer wins have materialized quicker than anticipated, contributing to volume growth [55] Question: Impact of restarting the curtailed line - Management stated that restarting the line would not incur significant costs and is expected to maintain production based on demand signals [63] Question: Phasing of cost savings in fiscal 2026 - Management confirmed that they are on track to deliver the $100 million target for fiscal 2026, with two-thirds of the benefits expected in the back half of the year [67] Question: Drivers of business wins with QSR customers - Management emphasized a renewed focus on service quality and consistency, alongside joint business planning with customers [70]

Group 1: Hormel Foods Corporation Overview - Hormel Foods Corporation is focusing on the multi-year Transform and Modernize (T&M) initiative to enhance long-term profitability, with approximately 90 projects contributing to measurable bottom-line results in the fiscal third quarter [1][8] - The T&M initiative includes modernizing the supply chain and brand renovations, such as the update of Hormel pepperoni to align with consumer tastes [2][8] - Financially, T&M is projected to deliver $100-$150 million in incremental benefits in fiscal 2025, helping to mitigate the impact of rising pork and beef costs [3][8] Group 2: Industry Comparisons - Pilgrim's Pride Corporation reported a 4.3% increase in net sales to $4.76 billion in Q2 2025, driven by strong consumer demand and operational efficiencies [5] - Tyson Foods, Inc. achieved a 4% revenue increase to $13.9 billion in Q3 2025, with notable performance in the Chicken segment, which generated $4.22 billion in sales [6] - Smithfield Foods, Inc. recorded a 20% year-over-year increase in adjusted operating profit to $298 million in Q2 2025, supported by strong demand in Packaged Meats and improved profitability in Fresh Pork and Hog Production [7]

Lamb Weston Holdings Inc. jumped after reporting sales and profit that beat expectations, in part due to improved restaurant foot traffic https://t.co/kFMW8rpiog ...

Financial Performance - Net sales were $1659 million, flat compared to Q1 F25, but down 1% at constant currency[14, 26] - Adjusted diluted EPS was $074, a decrease of 5% compared to Q1 F25[14] - Adjusted EBITDA increased by 1% to $302 million[14, 15] - Free cash flow was $273 million[14] Volume and Pricing - Overall volume increased by 6%[15] - Price/mix decreased by 7% in constant currency[15] - North America volume increased by 5%, while price/mix decreased by 7%[28] - International volume increased by 6%, while price/mix decreased by 6% in constant currency[28] Strategic Initiatives and Outlook - The company is implementing "Focus to Win" program, including a Cost Savings Program[11] - Capital expenditures for FY26 are forecasted to be approximately $500 million[40] - The company reaffirms its fiscal 2026 outlook, with net sales projected between $635 billion and $655 billion, and adjusted EBITDA between $10 billion and $12 billion[11, 47] Cash Flow and Capital Allocation - The company has approximately $99 million in cash and equivalents and $13 billion available under its revolving credit facility[39] - Net debt is approximately $39 billion, with a net debt to adjusted EBITDA leverage ratio of 31x[39] - The company returned $62 million to shareholders, including $52 million in dividends and $10 million in share repurchases[40]

Romanian food business Cris-Tim plans to launch an initial public offering (IPO) on the Bucharest Stock Exchange. The company, which produces cold cut meats and ready meals, said in a statement yesterday (29 September) that the offer will comprise a sale of shares by the majority shareholder alongside newly issued stock. Full terms will be disclosed in a prospectus once approved by the Romanian Financial Supervisory Authority, the group added. Cris-Tim is 99.97% owned by Rangeglow, a Cyprus-based holdin ...

While reporting financial results for the first quarter on Tuesday, frozen potato products supplier Lamb Weston Holdings, Inc. (LW) reaffirmed its net sales guidance for the full-year 2026.For fiscal 2026, the company continues to project net sales between $6.35 billion and $6.55 billion at constant currency. On average, analysts polled expect the company to report net sales of $6.49 billion for the year.The Company said the guidance includes its current view of the anticipated impact of enacted tariffs by ...

Beyond Meat (BYND) shares closed down more than 36% on Monday after management announced a major debt restructuring initiative aimed at eliminating over $800 million in debt. The restructuring includes an exchange offer for its $1.15 billion convertible notes due 2027, the El Segundo-headquartered producer of plant-based meat alternatives said in a press release on Monday. More News from Barchart During the Monday selloff, Beyond Meat stock touched new all-time lows of $1.23. www.barchart.com Why Did ...

Market Overview - U.S. stock futures declined on Tuesday following gains on Monday, with major indices showing lower futures as a potential government shutdown looms [1][2] - The Dow Jones, S&P 500, Nasdaq 100, and Russell 2000 futures fell by 0.20%, 0.16%, 0.14%, and 0.19% respectively [3] Economic Indicators - The 10-year Treasury bond yielded 4.13%, while the two-year bond was at 3.60%, indicating market expectations for interest rate cuts [2] - U.S. pending home sales surged by 4% in August, marking the largest increase in five months, contrasting with a 0.4% decline in the previous month [6] Sector Performance - Information technology, financial, and consumer discretionary sectors saw the most significant gains on Monday, while energy and communication services sectors closed lower [4] - Nvidia Corp. shares rose by approximately 2%, with other AI-related stocks like AMD and Micron also experiencing gains [5] Company Highlights - Robinhood Markets Inc. surged 12% after announcing over four billion event contracts traded on its platform since launch [5] - Lamb Weston Holdings Inc. is expected to report earnings of 55 cents per share on revenue of $1.62 billion [18] - Paychex Inc. is projected to report earnings of $1.21 per share on revenue of $1.54 billion [18] Analyst Insights - Economist Jeremy Siegel noted that recent inflation data supports the Federal Reserve's potential for further rate cuts, projecting two 25 basis point cuts by year-end [10][13] - Siegel emphasized that the economy is healthy but not overheating, with full-year growth estimates around 2.4%-2.5% [12][13] - Goldman Sachs identified potential risks including a growth shock, rate shock, and a significant dollar devaluation that could impact market stability [15]

With U.S. stock futures trading mixed this morning on Tuesday, some of the stocks that may grab investor focus today are as follows:Wall Street expects Lamb Weston Holdings Inc. (NYSE:LW) to report quarterly earnings at 55 cents per share on revenue of $1.62 billion before the opening bell, according to data from Benzinga Pro. Lamb Weston shares gained 0.1% to $55.72 in after-hours trading.Progress Software Corp. (NASDAQ:PRGS) reported better-than-expected financial results for the third quarter. Progress S ...

Plant-based meat producer Beyond Meat shares are plunging after making debtholders an offer that will erase more than $800 million of debt, but also most of the stock’s value https://t.co/UW0R3ABNOZ ...