Hormel Foods Corporation is a global branded food company operating in the highly competitive meat and food products industry, with a portfolio that includes meat, nuts, and other food products sold across U.S. retail, U.S. foodservice, and international channels. The company competes with manufacturers of pork and turkey products as well as national and regional producers of other meat and protein sources such as beef, chicken, fish, nuts, and plant-based proteins, competing on the basis of price, product quality and attributes, brand identification, breadth of product line, and customer service.

The company's primary competitors include manufacturers of pork and turkey products as well as national and regional producers of other meat and protein sources. The company's strategy to maintain its competitive position focuses on meeting customer and consumer preferences, delivering product innovation, and maintaining long-term and lasting relationships with industry partners, supported by a dedicated network of direct and indirect sales personnel and robust quality assurance programs.

The company generates revenue through the processing, marketing, and sale of branded, value-added food products across three reportable segments: Retail, Foodservice, and International. Revenue is recognized at the point in time when control of the product has transferred to the customer, typically upon receipt or pickup, and the company's payment terms generally range between seven to 60 days. The company's largest customer, Walmart Inc. and its subsidiaries, accounted for 15.6 percent ¹ of consolidated gross sales less returns and allowances during fiscal 2025, and the top five customers collectively represented approximately 38 percent ² of consolidated gross sales less returns and allowances during the same period.

The Retail segment consists primarily of the processing, marketing, and sale of food products sold predominantly in retail channels including grocery stores, mass merchandisers, club stores, natural food chains, drug, dollar and discount chains, and e-commerce providers in the United States, and also includes the results from the MegaMex Foods, LLC joint venture. For fiscal 2025, the Retail segment reported net sales of $7,455,218 thousand ³ and segment profit of $425,245 thousand ⁴, with adjusted segment profit of $495,995 thousand ⁵. The Foodservice segment consists primarily of the processing, marketing, and sale of food products to distributors and operators across a wide range of providers of food away from home, including restaurants, hospitality, healthcare, K-12, college and universities, and convenience stores in the U.S., reporting net sales of $3,941,795 thousand ⁶ and segment profit of $554,574 thousand ⁷ for fiscal 2025.

The International segment processes, markets, and sells the company's products through retail and foodservice channels internationally, including results from international joint ventures, equity method investments, and royalty arrangements, as well as operations in China and Brazil. For fiscal 2025, the International segment reported net sales of $709,146 thousand ⁸ and a segment loss of $(80,418) thousand ⁹, with adjusted segment profit of $83,293 thousand ¹⁰. The company's products primarily consist of meat, nuts, and other food products, with key brands including Planters, SPAM, Jennie-O, Skippy, Applegate, Wholly, Hormel Black Label, Fontanini, Bacon1, and Hormel pepperoni, among more than 30 other brands.

During fiscal 2025, the company recognized a $163.7 million ¹¹ impairment charge related to its minority investment in PT Garudafood Putra Putri Jaya Tbk (Garudafood) in the International segment, and $70.8 million ¹² of intangible asset impairments in the Retail segment, including $59.1 million ¹³ for the Planters trade name, $2.9 million ¹⁴ for the Chi-Chi's trade name, and $8.8 million ¹⁵ for a private label customer relationship. The company also commenced a corporate restructuring plan in the fourth quarter of fiscal 2025, sold its equity interests in Mountain Prairie, LLC for $13.6 million ¹⁶ resulting in a pre-tax loss of $11.3 million ¹⁷, and entered into a definitive agreement to sell a 51% ¹⁸ controlling position in the Justin's business. Dividends paid to shareholders were a record $633 million ¹⁹, and capital expenditures were $311 million ²⁰.

For fiscal 2025, net sales totaled $12,106,160 thousand ²¹, an increase of 1.6 percent ²² compared to $11,920,797 thousand ²³ in fiscal 2024. Net earnings attributable to Hormel Foods Corporation were $478,197 thousand ²⁴, a decrease of 40.6 percent ²⁵ from $805,038 thousand ²⁶ in the prior year. Diluted earnings per share were $0.87 ²⁷ compared to $1.47 ²⁸ in fiscal 2024, and adjusted diluted earnings per share were $1.37 ²⁹ compared to $1.58 ³⁰ in the prior year. Operating income decreased 33 percent ³¹ to $718,603 thousand ³² from $1,067,932 thousand ³³ in fiscal 2024.

For fiscal 2026, the company expects organic net sales growth of 1 percent to 4 percent ³⁴, diluted earnings per share in the range of $1.29 to $1.39 ³⁵, and adjusted diluted earnings per share in the range of $1.43 to $1.51 ³⁶. The company anticipates segment profit growth from all three segments in fiscal 2026, with earnings expected to decline in the first quarter followed by growth in each of the remaining three quarters. The effective tax rate for fiscal 2026 is expected to be between 21.5 and 22.5 percent ³⁷.

The company's growth strategy is centered on its multi-year Transform and Modernize (T&M) initiative, which began in the second half of fiscal 2023 with a goal of contributing meaningful operating profit growth through fiscal 2026. The company expects the T&M initiative to continue delivering cost savings in fiscal 2026, with a focus on procurement of ingredients and supplies, production-related costs, and logistics. Net sales growth in fiscal 2026 is expected to be driven by growth across a broad range of categories, increased brand support and innovation, market-based pricing actions, and the company's current assumptions for raw material costs.

The company's International segment growth is expected to be driven by year-over-year growth for volume, net sales, and segment profit, with risks including macroeconomic conditions in multinational markets, cost inflation, and global trade dynamics. The Foodservice segment anticipates year-over-year growth for volume, net sales, and segment profit, with risks including a softening of foodservice industry demand, lower-than-expected raw material markets which through market-based pricing can negatively impact net sales, and higher-than-expected operating costs. The Retail segment expects modest net sales growth from a broad range of categories, higher brand support, and market-based pricing actions, with segment profit expected to grow compared to the prior year.

The company expects gross profit as a percent of net sales to increase in fiscal 2026 compared to the prior year, with incremental cost inflation and unfavorable sales mix posing the largest risks to this outlook. Raw material costs for beef and nuts are expected to remain above historical averages, while pork costs are anticipated to be lower than fiscal 2025 levels but remain elevated compared to long-term averages. Inflationary pressures on employee-related, packaging, and production expenses are expected to persist at normalized levels. The company intends to continue investing in its leading brands, with full year advertising expense expected to increase compared to the prior year.

Capital expenditures for fiscal 2026 are estimated to be $260 million to $290 million ³⁸, with a focus on projects related to infrastructure, new data and technology, and equipment upgrades. The implied annualized dividend rate for 2026 is $1.17 per share ³⁹, representing an increase of 1 percent ⁴⁰ and marking the 60th consecutive year of dividend increases. The company expects to make $73 million ⁴¹ of interest payments in fiscal 2026 on its outstanding unsecured senior notes. The company expects pension benefit costs of $32.3 million ⁴² and postretirement benefit costs of $7.7 million ⁴³ for fiscal 2026.

Major risks to the fiscal 2026 outlook include incremental inflationary pressures and the impact of deteriorating macroeconomic conditions on the company's customers, consumers, and operators. Risks to the Retail segment outlook include slowing consumer demand, unfavorable sales mix, and higher-than-expected operating costs. Risks to the Foodservice segment outlook include a softening of foodservice industry demand, lower-than-expected raw material markets which through market-based pricing can negatively impact net sales, and higher-than-expected operating costs. Risks to the International segment outlook include macroeconomic conditions in multinational markets, cost inflation, and global trade dynamics.

Management characterized fiscal 2025 as a challenging year, noting that strong net sales performance did not translate into net earnings growth due to persistent input cost inflation primarily related to commodity markets, with pork belly, beef, and nut input costs causing the most earnings pressure. The company made meaningful progress on its multi-year Transform and Modernize initiative, which is expected to deliver long-term value, and recognized expenses associated with a corporate restructuring plan designed to reduce administrative expenses, improve efficiencies, and align the workforce to the company's future needs. For fiscal 2026, management provided guidance for organic net sales growth of 1 percent to 4 percent ⁴⁹, diluted earnings per share of $1.29 to $1.39 ⁵⁰, and adjusted diluted earnings per share of $1.43 to $1.51 ⁵¹, with segment profit growth expected from all three segments and earnings expected to decline in the first quarter followed by growth in each of the remaining three quarters.

For fiscal 2025, total net sales were $12,106,160 thousand ⁵² compared to $11,920,797 thousand ⁵³ in fiscal 2024. Net earnings attributable to Hormel Foods Corporation were $478,197 thousand ⁵⁴ compared to $805,038 thousand ⁵⁵ in the prior year. Diluted earnings per share were $0.87 ⁵⁶ versus $1.47 ⁵⁷ in fiscal 2024. Operating income was $718,603 thousand ⁵⁸ compared to $1,067,932 thousand ⁵⁹ in the prior year. Gross profit as a percentage of net sales was 15.6 percent ⁶⁰ compared to 17.0 percent ⁶¹ in fiscal 2024. The effective tax rate was 28.0 percent ⁶² compared to 22.3 percent ⁶³ in the prior year, reflecting a detriment related to non-cash impairment charges on a minority investment. Cash and cash equivalents at end of period were $670,679 thousand ⁶⁴ compared to $741,881 thousand ⁶⁵ in fiscal 2024. The Retail segment reported segment profit of $425,245 thousand ⁶⁶ compared to $562,768 thousand ⁶⁷ in the prior year, the Foodservice segment reported segment profit of $554,574 thousand ⁶⁸ compared to $596,292 thousand ⁶⁹, and the International segment reported a segment loss of $(80,418) thousand ⁷⁰ compared to segment profit of $92,084 thousand ⁷¹ in fiscal 2024.

The company faces material risks from its significant customer concentration, as sales to Walmart accounted for 15.6 percent ⁴⁴ of consolidated gross sales less returns and allowances in fiscal 2025, and the top five customers collectively represented approximately 38 percent ⁴⁵. The company is exposed to impairment risk on its intangible assets, with the International reporting unit carrying goodwill of $258.9 million ⁴⁶ identified as at heightened risk of impairment, and indefinite-lived intangible assets at heightened risk totaling $683.3 million ⁴⁷ as of October 26, 2025. The company's operations are subject to food safety risks, as evidenced by a voluntary class 1 recall related to certain chicken products in the fourth quarter of fiscal 2025 and a voluntary recall of Planters products in the third quarter of fiscal 2024 due to potential Listeria monocytogenes contamination. The company also faces risks from commodity price fluctuations, as a 10 percent decrease in market prices for its cash flow commodity contracts would have negatively impacted fair value by $29.3 million ⁴⁸ as of October 26, 2025.