Tom Palmer's questions to HORMEL FOODS CORP /DE/ (HRL) leadership • Q3 2025
Question
Tom Palmer from JPMorgan Chase & Co. questioned if referencing the long-term growth algorithm implies that 2026 will not be an above-average year. He also asked about the Q4 outlook for pork costs and the rationale for building inventory amid elevated commodity prices.
Answer
Interim CEO Jeffrey Ettinger clarified that the long-term algorithm represents appropriate future goals but is not official 2026 guidance, which will come in Q4. CFO Jacinth Smiley stated that the Q4 outlook assumes markets remain elevated and that inventory was intentionally built for back-to-school demand and to improve customer service fill rates, with the balance also inflated by higher costs.