Hormel Foods Corporation (HRL)

S&D dynamics should remain favorable for much of our coverage in 2026, but we continue to believe full-year conditions will be looser than last year in both the U.S. and ROW. Given disease and weather,…

Hormel’s Q4 results ($0.32) were materially below the prior year, but exceeded HJR/consensus estimates. Excluding the plant fire/recall impact, EPS were $0.35. The primary focus for investors into the quarter, however, was guidance. In previous…

Hormel once more revised its guidance lower ($0.08-$0.09), citing higher-than-expected raw material costs, a plant fire, recall and HPAI; we estimate that ~5% of its annualized turkey supply has been hit by bird flu in…

Total domestic meat supply conditions have begun to ease in recent weeks despite tighter beef conditions. That largely reflects expanded chicken production, but is compounded by continued yr/yr deterioration in total net exports (exports less…

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…