Core Viewpoint - Hormel is divesting its whole-bird turkey business, which is expected to reduce annual net sales by approximately $50 million, with minimal impact on net income [1] Group 1: Divestiture Details - The divestiture involves the sale of Hormel's whole-bird turkey business to Life-Science Innovations, with financial terms undisclosed [1] - The transaction is anticipated to close in the second quarter of Hormel's current fiscal year [1] - The divestiture aligns with Hormel's strategy to focus on protein offerings, while the Jennie-O ground turkey brand remains a strategic component of the portfolio [3] Group 2: Financial Performance - Hormel's company-wide net sales rose 1.3% to $3.03 billion, slightly below Wall Street expectations of $3.07 billion [5] - Adjusted earnings per share were $0.35, unchanged from the previous year and above Bloomberg consensus estimates of $0.32 [5] Group 3: Market Challenges - Hormel has faced pressure from rising raw material and logistics costs, affecting profitability in its core retail segment [4] - A bird flu outbreak disrupted poultry supply chains last year, and U.S. tariffs on Brazil contributed to higher beef prices [4] - In response to these cost pressures, Hormel, along with competitor Tyson Foods, implemented price increases on select products [4]

Core Viewpoint - Hormel Foods, the maker of Skippy peanut butter, missed quarterly sales estimates, indicating a shift in U.S. consumer behavior towards cheaper alternatives due to economic uncertainty [1] Company Summary - Hormel Foods reported lower-than-expected sales for the quarter, reflecting challenges in maintaining market share amid changing consumer preferences [1] Industry Summary - The food industry is experiencing a trend where consumers are opting for more affordable products, which may impact premium brands like Hormel Foods [1]

This story was originally published on CIO Dive. To receive daily news and insights, subscribe to our free daily CIO Dive newsletter. Dive Brief:  Hormel Foods named Donald Monk as its first chief technology officer and most senior technology leader effective March 23, the company said Tuesday. Monk will report to Hormel Foods President John Ghingo, a spokesperson said via email.  Monk led global technology strategy and operations at General Mills during his 33-year tenure with the company, serving as CI ...

Core Viewpoint - The article highlights two dividend stocks, Hormel and McCormick, which are positioned well for potential market corrections due to their strong dividend histories and consumer staple products [6][10]. Company Analysis - Hormel, known for products like Spam and Skippy peanut butter, has a strong track record of outperforming the S&P 500 during market downturns, particularly since 2008 [6][7]. - McCormick, a spice manufacturer, also shows resilience during economic slowdowns, as consumers tend to cook at home more and use spices to enhance basic meals [8][10]. Dividend Performance - Hormel is classified as a Dividend King, having increased its dividend for 59 consecutive years, with a current yield of 4.69% [10]. - McCormick has raised its dividend for 39 straight years, offering a yield of 2.85% [10]. Market Outlook - Analysts project a median price target of $27.50 for Hormel, indicating a potential upside of 12%, while McCormick has a target of $73, suggesting an 8% return over the next 12 months [11].

Core Insights - Hormel Foods Corporation reported earnings per share (EPS) of $0.32, exceeding estimates of $0.30, but down from $0.42 in the same quarter last year, indicating a need for further analysis of year-over-year performance and analyst estimates [2][6] - The company's revenue for the quarter ending October 2025 was approximately $3.19 billion, slightly below the estimated $3.22 billion, but representing a 1.5% increase from the previous year, showing resilience in a competitive market [3][6] - Strategic cost-cutting measures, increased pricing, and steady demand for turkey products are expected to drive future profits, helping to offset high input costs associated with beef and pork [4][6] Financial Metrics - Hormel's price-to-earnings (P/E) ratio is approximately 27.47, indicating investors are willing to pay $27.47 for each dollar of earnings [5] - The price-to-sales ratio is about 1.08, and the enterprise value to sales ratio is around 1.03, reflecting the company's valuation relative to its sales [5] - The current ratio of 2.47 indicates a strong ability to cover short-term liabilities with short-term assets [5]

Group 1 - Hormel Foods forecasts annual profit above estimates, driven by a cost-cutting plan, higher prices, and sustained demand for turkey [1] - The company is betting that these strategies will help overcome high input costs [1]

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]

Company Highlights - Nvidia's shares reached a new high, pushing its market capitalization above $5 trillion, making it the first company to achieve this milestone [2][6] - Caterpillar's shares surged to an all-time high due to strong sales of AI power-generation equipment, exceeding earnings and revenue estimates [2] - Teradyne's shares increased after the semiconductor and robotics firm reported better-than-expected results and provided an optimistic outlook driven by AI demand [3] Market Performance - Major U.S. equity indexes, including the Dow, S&P 500, and Nasdaq, reached all-time highs ahead of an anticipated Federal Reserve decision to cut interest rates [1][6] - Fiserv's shares fell significantly after the financial tech provider missed profit and sales estimates, revised its outlook downward, and announced changes in its executive team [3][6] - Etsy's shares declined following the announcement of a leadership change, with CEO Josh Silverman set to step down [4] Commodity and Currency Trends - Oil and gold futures advanced, while the yield on the 10-year Treasury note remained relatively unchanged [5] - The U.S. dollar strengthened against the euro and pound but weakened against the yen [5] - Most major cryptocurrencies experienced a decline in prices [5]

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].

Core Insights - High-yield dividends that consistently increase are attractive investment opportunities, particularly those that tend to raise payouts in October and November [1] Company Summaries Hormel - Hormel is a well-known food company with popular products like Spam, Skippy peanut butter, and Planters nuts, making it a staple in supermarkets [4] - In the third quarter, Hormel reported net sales exceeding $3 billion and GAAP net income of nearly $184 million, both showing year-over-year growth, although profits fell short of analyst expectations [5] - The company has a strong history of dividend payments, having initiated quarterly payouts in 1928, and is recognized as a Dividend King with 59 consecutive years of dividend increases, currently yielding 4.8% with a quarterly distribution of $0.29 per share [7] McCormick - McCormick specializes in spices and seasonings, maintaining a significant presence in grocery stores, with consistent demand for its products [8] - The company reported net sales of just over $1.7 billion, with year-over-year growth of less than 3%, and net income increased marginally to nearly $226 million, both figures surpassing analyst expectations [9]