Quick Facts / Company Snapshot
- Company Name: Hormel Foods Corporation
- Headquarters: 1 Hormel Place, Austin, Minnesota 55912-3680
- Founded: 1891 (by George A. Hormel)
- Total Net Sales (2025): $12.1 billion
- Global Team Members: Approximately 20,000
- Retail Segment Sales: $7.46 billion
- Foodservice Segment Sales: $3.94 billion
- International Segment Sales: $709 million
- Total Assets: $13.39 billion
- Net Earnings: $478.2 million
- Diluted Earnings Per Share (EPS): $0.87
- Adjusted Diluted EPS: $1.37
- Dividends Paid (2025): $633 million
- Dividend Track Record: 60 consecutive years of increases
- Capital Expenditures (2025): $311 million
- Production Facilities: 30+ across the globe
- Key Brands: Planters®, SPAM®, Jennie-O®, Skippy®, Applegate®
- Stock Symbol: HRL (New York Stock Exchange)
- Leadership: Jeff Ettinger (Interim Chief Executive Officer)
Company Overview
Hormel Foods Corporation is a global branded food company built on a foundation of innovation and integrity. Headquartered in Austin, Minnesota, the company has evolved from a processor of meat and food products into a diverse global enterprise generating over $12 billion in annual net sales. The company creates value for stakeholders through a balanced business model and a commitment to delivering high-quality, trusted food products.
The company focuses on producing and marketing a wide array of food products, primarily consisting of meat, nuts, and other food solutions. These products are sold across multiple distribution channels, including United States retail, United States foodservice, and international markets. Hormel Foods operates as an integrated enterprise characterized by substantial intersegment cooperation, cost allocations, and the sharing of assets.
Hormel Foods serves customers in all 50 United States and maintains a global presence in major international markets such as Australia, Brazil, Canada, China, England, Indonesia, Japan, Mexico, the Philippines, Singapore, and South Korea. The company’s operations are supported by a dedicated network of direct and indirect sales personnel, robust quality assurance programs, and a supply chain designed to ensure people and food safety.
The company’s strategic initiatives, such as the “Transform and Modernize” program, are designed to achieve a profitable cost structure, operate more efficiently, and better serve customers. Hormel Foods is also a member of the S&P 500 Index and is recognized as an S&P 500 Dividend Aristocrat, underscoring its long-term financial stability and commitment to returning capital to shareholders.
Business Segments
Hormel Foods Corporation manages its operations through three distinct reportable segments: Retail, Foodservice, and International. These segments are strategic business units that offer different products and services tailored to specific customer bases and distribution channels.
Retail
The Retail segment is the largest contributor to the company’s total net sales. This segment focuses on the processing, marketing, and sale of food products sold predominantly in retail channels.
- Operational Scope: The Retail segment serves grocery stores, mass merchandisers, club stores, natural food chains, drug stores, dollar and discount chains, and e-commerce providers throughout the United States. It leverages a diverse, protein-centric portfolio to drive consumer connection through brand investment and innovation.
- Key Activities: This segment includes the results from the MegaMex Foods, LLC joint venture. It focuses on meeting evolving consumer needs such as variety, value, and high-quality protein options. Brands within this segment include Jennie-O®, Applegate®, Wholly®, Planters®, and the SPAM® family of products.
- 2025 Performance: In fiscal 2025, the Retail segment generated $7,455,218,000 in net sales, representing approximately 61.6% of total company revenue. Segment profit for the year was $425,245,000.
Foodservice
The Foodservice segment is a highly differentiated business dedicated to helping operators thrive by delivering high-quality, innovative solutions.
- Operational Scope: This segment processes, markets, and sells food products to distributors and operators across a wide range of providers of food away from home. This includes restaurants, hospitality venues, healthcare facilities, K-12 schools, colleges and universities, and convenience stores in the United States.
- Core Principles: The segment is built on a direct selling organization, diverse channel presence, and a solutions-based portfolio. It provides labor-saving products like pre-cooked bacon and prepared proteins to streamline back-of-house operations.
- 2025 Performance: The Foodservice segment delivered $3,941,795,000 in net sales during fiscal 2025, accounting for approximately 32.6% of total revenue. Segment profit was $554,574,000, making it a significant profit driver for the enterprise.
International
The International segment positions the company to meet growing global demand for protein and convenient food solutions.
- Operational Scope: This segment processes, markets, and sells products through retail and foodservice channels internationally. It includes the results from international joint ventures, equity method investments, and royalty arrangements, as well as owned operations in China and Brazil.
- Strategic Approach: The segment utilizes three go-to-market approaches: exports, partnerships, and multinational business operations. It leverages global brands like SPAM® and Skippy® while expanding its footprint in priority markets.
- 2025 Performance: The International segment generated $709,146,000 in net sales in fiscal 2025, contributing 5.9% to the total company revenue. The segment reported a loss of $80,418,000 for the year, largely impacted by impairment charges.
History and Evolution
Hormel Foods Corporation was founded by George A. Hormel in 1891 in Austin, Minnesota, originally established as Geo. A. Hormel & Company. From its inception, the company operated as a processor of meat and food products, a core business line that continues to define its operations today.
Over more than 130 years, the company has expanded its product portfolio through a combination of organic growth and strategic acquisitions. This evolution has transformed Hormel Foods from a local meat processor into a global branded food company. The company has built a reputation on a foundation of innovation and integrity, consistently adapting to changing consumer preferences.
Throughout its history, Hormel Foods has introduced numerous iconic brands and products. Notable milestones include the launch of the SPAM® brand, which has become a global staple, and the acquisition of major brands such as Skippy® peanut butter and Planters® nuts. The company has also expanded into the turkey industry with the Jennie-O® brand and the natural and organic meat sector with Applegate®.
In recent years, the company has focused on modernizing its operations. In fiscal 2025, the company celebrated the 30th anniversary of its in-country China business and marked the 60th consecutive year of dividend increases, a testament to its sustained financial discipline and growth. The company continues to honor its heritage while embracing future opportunities through initiatives like “Transform and Modernize.”
Products and Services
Hormel Foods offers a vast array of food products categorized principally into perishable and shelf-stable classes. The portfolio is designed to meet diverse consumer needs for convenience, flavor, and high-quality protein.
Perishable Products
This category includes products that require refrigeration, such as fresh meats, frozen items, refrigerated meal solutions, bacon, sausages, hams, guacamole, and premium prepared proteins.
- Key Offerings: Fresh pork and turkey, pre-cooked bacon (Hormel® Bacon 1™), refrigerated entrees (Hormel® Square Table™), natural and organic deli meats (Applegate®), and premium Italian meats (Fontanini®).
- Revenue Contribution: In fiscal 2025, Perishable products generated $8,823,022,000 in net sales.
- Percentage of Total Revenue: 72.9%
Shelf-Stable Products
This category encompasses products that do not require refrigeration, providing convenience and long shelf life.
- Key Offerings: Canned luncheon meats (SPAM®), nut butters (Skippy®), snack nuts (Planters®, Corn Nuts®), chili (Hormel® Chili), microwaveable meals (Hormel® Compleats®), hash, stews, tortillas, salsas, and tortilla chips (Herdez®, Chi-Chi’s®).
- Revenue Contribution: In fiscal 2025, Shelf-stable products generated $3,283,138,000 in net sales.
- Percentage of Total Revenue: 27.1%
Detailed Product Profiles:
- Turkey Products: Under the Jennie-O® brand, the company offers a wide range of turkey products, including ground turkey, whole birds, and deli meat. The company raises the majority of its turkeys to ensure raw material supply.
- Nuts and Nut Butters: The Planters® brand offers a variety of snack nuts, including dry roasted peanuts, cashews, and mixed nuts. Skippy® offers peanut butter products globally.
- Mexican Foods: Through the MegaMex Foods joint venture, the company offers salsas, sauces, and tortillas under brands like Herdez® and Wholly®.
- Bacon and Meats: The company is a leader in branded bacon with Hormel® Black Label® and offers premium deli meats through brands like Columbus® and Di Lusso®.
Brand Portfolio
Hormel Foods manages a portfolio of more than 40 beloved brands that hold leadership positions in retail categories.
Planters®
A leading snack nut brand offering dry roasted peanuts, cashews, mixed nuts, and trail mixes. In fiscal 2025, the brand faced intangible asset impairments but remains a key part of the portfolio.
SPAM®
An iconic global brand known for its canned luncheon meat. It continues to be a key growth driver, particularly in international markets and export sales. The brand recently celebrated selling 100 million musubis in Japan.
Jennie-O®
A leading turkey brand offering ground turkey, whole turkeys, and deli products. In 2025, the brand led category sales growth in ground turkey, capitalizing on rising demand for lean protein.
Skippy®
A global peanut butter brand with strong market presence in the U.S. and China. It continues to launch new snacking formats and expand distribution.
Applegate®
A premier brand in the natural and organic meat sector. The brand expanded its portfolio in 2025 with premium breakfast items and continues to perform well with consumers seeking simple ingredients.
Hormel® Black Label®
A leading premium bacon brand known for innovation and quality.
Wholly®
The maker of Wholly® Guacamole, offering convenient, ready-to-eat avocado products.
Fontanini®
A premium Italian meat brand serving the foodservice industry with products like meatballs and sausages.
Other Key Brands
- Herdez®: A leading brand of salsas and Mexican food products.
- Columbus®: Premium craft meats and charcuterie.
- Hormel® Bacon 1™: Fully cooked bacon designed for foodservice operators.
- Corn Nuts®: Crunchy corn kernel snacks.
- Justin’s®: Nut butter cups and spreads (Note: A definitive agreement to sell a controlling position was announced subsequent to fiscal year-end).
Geographical Presence
Hormel Foods has a robust operational footprint, with production facilities and sales offices located strategically to serve customers worldwide.
United States
The domestic market is the primary driver of the company’s revenue. Operations include processing plants, warehouses, and sales offices across the country.
- Key Locations:
- Austin, Minnesota: Global Headquarters and flagship manufacturing facility.
- Facilities: 30+ production facilities across states including Minnesota, Iowa, Wisconsin, Arkansas, Nebraska, and California.
- Revenue Contribution: Net sales in the U.S. totaled $11,437,051,000 in fiscal 2025.
- Percentage of Total Revenue: 94.5%
International
The company operates in major international markets through wholly-owned subsidiaries, joint ventures, and export agreements.
- Key Markets: China, Brazil, Australia, Japan, South Korea, Philippines, and Mexico.
- Facilities:
- China: Manufacturing facility in Jiaxing serving the local market.
- Brazil: Dedicated production facilities.
- Revenue Contribution: Net sales in foreign markets totaled $669,109,000 in fiscal 2025.
- Percentage of Total Revenue: 5.5%
Regional Footprint Analysis:
- China: Celebrated 30 years of operations in 2025. A growth engine for SPAM® and Skippy® brands.
- Brazil: Operations faced competitive pressures in 2025, impacting segment profit.
- Exports: U.S.-made products like SPAM® are exported to over 80 countries.
Financial Performance Analysis
Hormel Foods faced a challenging fiscal 2025, characterized by strong top-line growth but pressured bottom-line results due to inflation, impairments, and operational challenges.
Consolidated Performance (3-Year Trend)
| Metric | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Net Sales | $12,106,160,000 | $11,920,797,000 | $12,110,010,000 |
| Gross Profit | $1,891,816,000 | $2,022,138,000 | $1,999,841,000 |
| Operating Income | $718,603,000 | $1,067,932,000 | $1,072,046,000 |
| Net Earnings | $478,197,000 | $805,038,000 | $793,572,000 |
| Diluted EPS | $0.87 | $1.47 | $1.45 |
Analysis:
- Net Sales: Increased by 1.6% in 2025 compared to 2024, driven by growth in all three segments.
- Operating Income: Decreased by 32.7% due to non-cash impairment charges and higher input costs.
- Net Earnings: Declined by 40.6%, reflecting the impact of legal settlements, impairments, and restructuring costs.
Profit and Loss Analysis
Revenue
Total net sales for fiscal 2025 were $12.1 billion. The 1.6% increase was supported by the Jennie-O® turkey portfolio, Planters® snack nuts, and the SPAM® family of products. Organic net sales increased by 2.5%.
Operating Profit & Margin
- Operating Income: $718.6 million in 2025 vs. $1.07 billion in 2024.
- Operating Margin: The margin contracted significantly due to elevated commodity costs (pork bellies, beef) and impairment charges totaling $234.5 million related to the International and Retail segments.
Net Profit
Net earnings attributable to Hormel Foods Corporation were $478.2 million. The effective tax rate increased to 28.0% in 2025 from 22.3% in 2024, primarily due to the tax impact of impairment charges.
Expenses
- Cost of Products Sold: Increased to $10.21 billion (+3.2%), driven by higher commodity input costs.
- Selling, General, and Administrative (SG&A): Decreased to $996.6 million (-0.9%), benefiting from lower advertising spend and the lapping of prior-year antitrust settlements.
- Advertising Spend: $147.9 million (down from $163.3 million in 2024).
Balance Sheet Analysis
Assets
- Total Assets: $13.39 billion as of October 26, 2025.
- Cash and Cash Equivalents: $671 million.
- Inventories: Increased to $1.75 billion, reflecting higher raw material costs and strategic inventory builds.
- Goodwill: Remains significant at $4.92 billion.
Liabilities
- Total Current Liabilities: $1.38 billion.
- Long-Term Debt: $2.85 billion, consisting of senior unsecured notes.
- Accounts Payable: $732 million.
Equity
- Total Shareholders’ Investment: $7.92 billion.
- Retained Earnings: $7.52 billion, supporting continuous dividend payments.
Liquidity Position
The company maintains a strong liquidity position with $671 million in cash and a $750 million unsecured revolving credit facility, which had no outstanding borrowings at fiscal year-end.
Cash Flow Analysis
Operating Activities
Net cash provided by operating activities was $845.3 million in fiscal 2025, down from $1.27 billion in 2024. The decrease was primarily due to lower net earnings and an increase in working capital requirements, specifically inventory.
Investing Activities
Net cash used in investing activities was $298.6 million.
- Capital Expenditures: $311 million invested in capacity expansions, automation, and technology.
- Proceeds from Sale of Business: $13.1 million, mainly from the sale of Mountain Prairie, LLC.
Financing Activities
Net cash used in financing activities was $614.0 million.
- Dividends Paid: A record $633 million returned to shareholders.
- Debt Repayments: $7.8 million.
Free Cash Flow Insights
The company prioritizes operating cash flow to fund dividends and capital expenditures. Despite lower earnings, cash flow remained sufficient to cover the company’s capital allocation priorities, including its 60th consecutive annual dividend increase.
Board of Directors and Leadership Team
Leadership Team
- Jeff Ettinger: Interim Chief Executive Officer.
- John Ghingo: President.
- Paul Kuehneman: Interim Chief Financial Officer and Controller.
- Colleen Batcheler: Senior Vice President, External Affairs, General Counsel & Corporate Secretary.
- Katie Clark: Senior Vice President and Chief Communications Officer.
- Pierre Lilly: Senior Vice President and Chief Compliance Officer.
- Katie Larson: Senior Vice President, Human Resources.
- Kevin Myers, Ph.D.: Interim Group Vice President, Supply Chain.
- Swen Neufeldt: Group Vice President, Hormel Foods International Corporation.
- David Weber: Group Vice President, Foodservice.
Board of Directors
- William A. Newlands: Chairman of the Board. President and CEO, Constellation Brands, Inc.
- Christopher J. Policinski: Former President and CEO, Land O’Lakes, Inc.
- Sally J. Smith: Former President and CEO, Buffalo Wild Wings, Inc.
- Steven A. White: Former President, Comcast West Division.
- Stephen M. Lacy: Former Chairman and CEO, Meredith Corporation.
- Elsa A. Murano, Ph.D.: Director of Norman Borlaug Institute, Texas A&M University.
- Gary C. Bhojwani: CEO, CNO Financial Group, Inc.
- Michael P. Zechmeister: Former CFO, C.H. Robinson Worldwide, Inc.
- Debbra L. Schoneman: President, Piper Sandler Companies.
- D. Scott Aakre: Group Vice President and Chief Marketing Officer – Retail.
- John F. Ghingo: President, Hormel Foods.
- Jeff Ettinger: Interim CEO, Hormel Foods.
Subsidiaries, Associates, and Joint Ventures
Hormel Foods participates in several strategic joint ventures and investments that expand its market reach.
MegaMex Foods, LLC
- Ownership: 50%
- Contribution: A joint venture in the Retail segment offering Mexican food products like Herdez® salsas and Wholly® Guacamole. It is a key profit driver for the Retail segment.
The Purefoods-Hormel Company, Inc.
- Ownership: 40%
- Contribution: Operates in the Philippines, manufacturing and marketing Hormel branded products.
PT Garudafood Putra Putri Jaya Tbk (Garudafood)
- Ownership: Approximately 30%
- Contribution: An equity investment in Indonesia. In 2025, the company recorded a $163.7 million impairment charge related to this investment due to a sustained decline in market value.
Corporate Venturing Investments
- Ownership: 26% – 43%
- Contribution: Various investments in emerging food companies.
Physical Properties
The company’s physical footprint includes processing plants, warehouses, and offices essential for its global operations.
Key Property Statistics:
- Total Domestic Square Footage: 14,384,000 sq. ft. (11,410,000 owned / 2,974,000 leased).
- Total International Square Footage: 1,293,000 sq. ft. (759,000 owned / 534,000 leased).
- Total Global Square Footage: 15,677,000 sq. ft.
Primary Locations:
- Minnesota: 4.5 million sq. ft. (Includes Austin HQ and flagship plant).
- Iowa: 2.1 million sq. ft.
- Wisconsin: 1.4 million sq. ft.
- China: 830,000 sq. ft. (Includes Jiaxing facility).
- Brazil: 443,000 sq. ft.
The majority of production facilities are owned, ensuring direct control over manufacturing quality and safety.
Segment-Wise Performance
Retail Segment Performance
- Net Sales: $7.46 billion (+1.1% YoY).
- Segment Profit: $425.2 million (-24.4% YoY).
- Drivers: Volume declined by 1.4%. Growth in Jennie-O® turkey and Applegate® was offset by lower contract manufacturing volume. Profit was impacted by non-cash impairment charges totaling $70.8 million for Planters® and Chi-Chi’s® trade names.
Foodservice Segment Performance
- Net Sales: $3.94 billion (+2.5% YoY).
- Segment Profit: $554.6 million (-7.0% YoY).
- Drivers: Organic volume grew 0.6%. Sales growth was driven by Bacon 1™, pepperoni, and turkey products. Profit declined due to higher input costs and a voluntary recall of certain chicken products.
International Segment Performance
- Net Sales: $709.1 million (+1.1% YoY).
- Segment Profit: Loss of $80.4 million (-187.3% YoY).
- Drivers: Sales growth in China and SPAM® exports was offset by weakness in Brazil. The segment recorded a massive $163.7 million impairment charge for the Garudafood investment, driving the segment into a loss.
Founders
George A. Hormel founded the company in 1891 in Austin, Minnesota. He established the business as Geo. A. Hormel & Company with a focus on meat processing. His legacy of innovation and integrity remains the cornerstone of the company’s culture and operations today.
Shareholding Pattern
As of October 26, 2025, Hormel Foods had 1.6 billion authorized shares of common stock.
- Outstanding Shares: 550,107,295 shares.
- The Hormel Foundation: A significant shareholder that controls a substantial portion of the voting stock, ensuring the company remains independent and rooted in Austin, Minnesota. (Note: Specific ownership percentages for all categories are not explicitly detailed in the provided text beyond the share count).
Parent Company
Hormel Foods Corporation is an independent, publicly traded company (NYSE: HRL) and does not have a parent company.
Investments and Capital Expenditure Plans
Capital Expenditures (Capex)
In fiscal 2025, the company invested $311 million in capital expenditures.
- Key Projects: Capacity expansions for Hormel® Fire Braised™ and Applegate® products, data and technology upgrades, and safety initiatives.
- Future Plans: Capex for fiscal 2026 is estimated to be between $260 million and $290 million, focusing on infrastructure, automation, and equipment upgrades.
Strategic Priorities
The company continues to invest in its “Transform and Modernize” initiative to optimize its supply chain and portfolio. Investments are also directed toward digital experience and analytics to drive efficiency.
Future Strategy
Hormel Foods has outlined a clear strategy for fiscal 2026 and beyond, focusing on sustainable growth and margin expansion.
- 2026 Outlook: The company expects organic net sales growth of 1% to 4%.
- Earnings Guidance: Fiscal 2026 Diluted EPS is projected to be $1.29 to $1.39. Adjusted Diluted EPS is expected to be $1.43 to $1.51.
- Strategic Pillars:
- Portfolio Optimization: Continuing to simplify the portfolio, as evidenced by the divestiture of the mountain prairie sow operation.
- Brand Support: Increasing marketing and advertising investments to support leading brands.
- Innovation: Launching new products that meet consumer needs for convenience and protein.
- Corporate Restructuring: A plan commenced in late 2025 to reduce administrative expenses and align the workforce with future needs.
Key Strengths
- Diverse Portfolio: Leader in over 40 retail categories with a mix of perishable and shelf-stable products.
- Financial Stability: An S&P 500 Dividend Aristocrat with 60 consecutive years of dividend increases.
- Foodservice Leadership: A differentiated direct-selling model that outperforms broader industry trends.
- Global Brands: Iconic brands like SPAM® and Skippy® with strong international recognition.
- Operational Excellence: Achieved the second-safest year on record in 2025.
Key Challenges and Risks
- Commodity Price Volatility: Significant exposure to fluctuations in pork, beef, turkey, and feed grain prices. In 2025, high pork belly and beef prices pressured margins.
- Inflation: Persistent inflationary pressures on labor, packaging, and logistics costs.
- Impairments: Risks associated with the valuation of intangible assets and investments, evidenced by the $163.7 million charge in 2025.
- Consumer Behavior: Shifts toward private label products or lower-priced alternatives due to economic uncertainty.
- Operational Disruptions: Risks of disease outbreaks (e.g., Avian Influenza) and supply chain interruptions.
Conclusion and Strategic Outlook
Hormel Foods Corporation remains a resilient global food company with a portfolio built for the long term. Despite a challenging fiscal 2025 marked by inflationary headwinds and significant impairment charges, the company delivered top-line growth and returned record cash to shareholders. With a strategic focus on transformation, modernization, and brand investment, Hormel Foods is positioned to navigate the dynamic operating environment. The fiscal 2026 outlook projects a return to earnings growth, supported by a strong balance sheet and a commitment to operational excellence.
Official Site: https://www.hormelfoods.com
FAQ Section:
- What was Hormel Foods’ total revenue in 2025?Hormel Foods reported total net sales of $12.1 billion for the fiscal year ended October 26, 2025.
- How much does the Retail segment contribute to Hormel Foods’ sales?The Retail segment generated $7.46 billion in net sales, accounting for approximately 61.6% of the company’s total revenue in fiscal 2025.
- What are Hormel Foods’ key brands?Key brands include Planters®, SPAM®, Jennie-O®, Skippy®, Applegate®, Hormel® Black Label®, and Wholly®.
- Is Hormel Foods a Dividend Aristocrat?Yes, Hormel Foods is an S&P 500 Dividend Aristocrat, having increased its dividend for 60 consecutive years as of fiscal 2025.
- Who is the CEO of Hormel Foods?As of the fiscal 2025 report, Jeff Ettinger serves as the Interim Chief Executive Officer.
- What is the “Transform and Modernize” initiative?It is a strategic program aimed at optimizing the supply chain, modernizing technology, and reducing costs to drive long-term profitable growth.
- Does Hormel Foods have international operations?Yes, the company operates in countries like China and Brazil and exports products to over 80 countries. International sales were $709 million in 2025.
Source: Content on FirmsWorld.com is based on publicly available corporate filings, regulatory disclosures, annual reports, SEC 10-K filings, investor relations materials, and, where applicable, direct communications with the company.
