Hormel Foods Corporation (HRL)

We had acknowledged the challenge related to input costs (esp bellies), but given pricing had begun to trend lower and HRL has firmly entrenched, timely pricing passthrough programs for the vast majority of its belly-related…

New World Screwworm (NWS) has garnered significant media attention over the past weeks, particularly following the second closure of US-Mexico livestock crossings in early July. The lack of live cattle entering the US has exacerbated…

We believe Hormel’s earnings recovery is very much intact. The company’s T&M initiative has yielded material savings and has helped blunt some of the impact from the Planters recall and very weak turkey fundamentals. Still,…

For multiple oft-discussed reasons, U.S. protein availability has been constrained which, combined with robust demand, has driven extremely strong pricing (and margins for chicken companies and hog producers). In recent months, supply conditions have loosened…

With the exception of Q1’24, Hormel’s EBIT has declined on a yr/yr basis for the past 10 quarters, while the consolidated drop in volumes goes back even further. Q2’25 volumes fell ~4% on an organic…

Brazil’s farmers have long benefited from both the ability to produce 2-3 crops per year and relatively low land conversion costs. Technological improvements have fostered higher yields that have improved its cost profile further (BZ…

Overall domestic consumer demand has been broadly weak, but meat has fared better due to diet changes. Recently, there are even indications meat demand is slowing in response to torrid price gains, as well as…

Hormel’s full-year fundamentals are largely intact, in our view, but we are somewhat more cautious on full-year earnings from its turkey business. Both breast meat and whole bird pricing has responded strongly to an increasingly…

Just three years ago, U.S. beef processors generated very robust margins that easily surpassed previous records. Now, the industry is beset by anemic cattle numbers, increased capacity and competitive threats on both the domestic and…

Our coverage universe never wants for drama, but the recent backdrop has been particularly tumultuous from supply backdrop to export prospects. YTD production has materially lagged expectations, but with the exception of turkey, the production…