6f2db992f1461647b528bfc44359769e106a43863d7d0be32d6aeeff8d85cc2f

3c9ca4fbc1b10f7b361600cbd13975c14458d835b1034be4bddd54dc57df59c6

Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

357db7d2093d19da04299bf22e80ecc2e958083cfa8ef2a8c05d18181fea2fd2

Hormel Foods Corporation is a global manufacturer and marketer of branded food products, specializing in the processing, marketing, and sale of meat and other food products **[0000048465-24-000011_hrl-20240128.htm:22]**. The company operates through three main segments: Retail, Foodservice, and International, focusing on both domestic and international markets **[0000048465-23-000083_hrl-20231029.htm:4]** **[0000048465-24-000032_hrl-20240428.htm:24]**. Hormel Foods offers a diverse range of products, including perishable items like fresh meats and guacamole, as well as shelf-stable products such as canned luncheon meats and nut butters **[0000048465-24-000041_hrl-20240728.htm:26]** **[0000048465-23-000083_hrl-20231029.htm:105]**.

1. **Retail Segment** - Focuses on food products sold in the retail market, including contributions from the MegaMex Foods, LLC joint venture.
2. **Perishable Products** - Includes fresh meats, frozen items, refrigerated meal solutions, bacon, sausages, hams, and guacamole.
3. **Foodservice Segment** - Provides food and nutritional products for foodservice, convenience store, and commercial customers.
4. **Shelf-Stable Products** - Comprises canned luncheon meats, nut butters, snack nuts, chili, and shelf-stable microwaveable meals.
5. **International Segment** - Manages the processing, marketing, and sale of products internationally, including results from international joint ventures and royalty arrangements.

a8758d4fa675d50f196fc07632444ad37fa9c9c8305f3959ce6f669d8120c18d

6276599a05a767ad150e02b159bc64f621259d71ec68443e60c816b8a26cf2e9

| Segment/Quarter | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2024 | Q2 2024 | Q1 2024 |
|-----------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Retail Segment (USD) | **$1,983 million**  **[0000048465-23-000083_hrl-20231029.htm:34]**  | **$1,891,746,000**  **[0000048465-23-000074_hrl-20230730.htm:24]**  | **$1,916,243,000**  **[0000048465-23-000046_hrl-20230430.htm:24]**  | **$1,957,797,000**  **[0000048465-23-000014_hrl-20230129.htm:26]**  | **$934.2 million**  **[0000048465-22-000051_hrl-20221030.htm:34]**  | **$1,767,251,000**  **[0000048465-24-000041_hrl-20240728.htm:30]**  | **$1,788,556,000**  **[0000048465-24-000032_hrl-20240428.htm:31]**  | **$1,911,272,000**  **[0000048465-24-000011_hrl-20240128.htm:27]**  |
| Foodservice Segment (USD) | **$1,032 million**  **[0000048465-23-000083_hrl-20231029.htm:34]**  | **$890,949,000**  **[0000048465-23-000074_hrl-20230730.htm:24]**  | **$881,441,000**  **[0000048465-23-000046_hrl-20230430.htm:24]**  | **$834,750,000**  **[0000048465-23-000014_hrl-20230129.htm:26]**  | **$1,759.2 million**  **[0000048465-22-000051_hrl-20221030.htm:34]**  | **$954,021,000**  **[0000048465-24-000041_hrl-20240728.htm:30]**  | **$932,003,000**  **[0000048465-24-000032_hrl-20240428.htm:31]**  | **$913,087,000**  **[0000048465-24-000011_hrl-20240128.htm:27]**  |
| International Segment (USD) | **$182 million**  **[0000048465-23-000083_hrl-20231029.htm:34]**  | **$180,605,000**  **[0000048465-23-000074_hrl-20230730.htm:24]**  | **$179,955,000**  **[0000048465-23-000046_hrl-20230430.htm:24]**  | **$178,445,000**  **[0000048465-23-000014_hrl-20230129.htm:26]**  | **$198.3 million**  **[0000048465-22-000051_hrl-20221030.htm:34]**  | **$177,171,000**  **[0000048465-24-000041_hrl-20240728.htm:30]**  | **$166,794,000**  **[0000048465-24-000032_hrl-20240428.htm:31]**  | **$172,552,000**  **[0000048465-24-000011_hrl-20240128.htm:27]**  |
| Total Net Sales (USD) | **$3,198 million**  **[0000048465-23-000083_hrl-20231029.htm:34]**  | **$2,963,299,000**  **[0000048465-23-000074_hrl-20230730.htm:24]**  | **$2,977,639,000**  **[0000048465-23-000046_hrl-20230430.htm:24]**  | **$2,970,992,000**  **[0000048465-23-000014_hrl-20230129.htm:26]**  | **$3,283.5 million**  **[0000048465-22-000051_hrl-20221030.htm:34]**  | **$2,898,443,000**  **[0000048465-24-000041_hrl-20240728.htm:30]**  | **$2,887,352,000**  **[0000048465-24-000032_hrl-20240428.htm:31]**  | **$2,996,911,000**  **[0000048465-24-000011_hrl-20240128.htm:27]**  |

ea7ad6711e4a0a4cba98d9762561c97493cad2e5354b475abacb3b0f6c7b9ec2

1. You delivered $75 million in operating income benefits through your transform and modernize initiative in fiscal 2024, but to reach your target of $250 million by 2026, you'll need a significant acceleration in the next two years; what specific factors give you confidence in achieving this steep increase, especially without providing 2026 guidance?

2. You've planned to invest approximately $250 million through 2026 in your transform and modernize initiative; can you elaborate on the expected return on this investment and what risks you foresee if the anticipated benefits do not fully materialize?

3. You've taken steps to reduce complexity by divesting nonstrategic businesses like Hormel Health Labs and eliminating low volume or unprofitable SKUs; how might these actions impact your top-line revenue growth in the near term, and are you concerned about potential risks to market share?

4. You mentioned expecting near-term impacts in Q1 due to commercial impacts for Planters and wraparound impacts on the whole bird turkey business; can you provide more details on these challenges and how you plan to mitigate their effects on your earnings?

5. With plans to significantly increase brand support and investments in your transformation initiative in fiscal 2025, how do you expect to balance these higher expenses with your goal of growing top and bottom lines, and what contingencies are in place if sales volumes or margins don't improve as projected?

f69d830f49dd849d336be82d2b8f4a85df3d85e9d71ee79c22d12dcf6ba145aa

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: FY 2025
- **Guidance**:
  1. **Net Sales**: $11.9 billion to $12.2 billion, with organic net sales growth of 1% to 3%  **[HRL_3410714_4]** .
  2. **Adjusted Diluted EPS**: $1.58 to $1.72  **[HRL_3410714_4]** .
  3. **Operating Income Benefit from Transform and Modernize Initiative**: $100 million to $150 million  **[HRL_3410714_4]** .
  4. **Segment Growth**:
     - Retail: Comparable volume and low single-digit increases in net sales  **[HRL_3410714_4]** .
     - Foodservice: Mid-single-digit increases in volume and net sales  **[HRL_3410714_4]** .
     - International: Low single-digit increases in volume and high single-digit increases in net sales  **[HRL_3410714_4]** .
  5. **Tax Rate**: 22% to 23%  **[HRL_3410714_3]** .
  6. **Capital Projects**: $275 million to $300 million  **[HRL_3410714_3]** .
  7. **Advertising Investments**: Double-digit percentage increases  **[HRL_3410714_3]** .
  8. **Interest and Investment Income**: Expected to be lower compared to fiscal 2024, with comparable interest expense  **[HRL_3410714_3]** .
  9. **Key Input Costs**:
     - Pork input costs comparable to fiscal 2024  **[HRL_3410714_4]** .
     - Beef costs to continue as a headwind  **[HRL_3410714_4]** .
     - Turkey markets expected to be depressed  **[HRL_3410714_4]** .
     - Moderate benefit from favorable grain prices  **[HRL_3410714_4]** .
  10. **Unfavorable EPS Impact**: $0.04 to $0.05 in the first quarter from lower whole bird prices and Suffolk production disruption  **[HRL_3410714_4]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Net Sales**: $11.8 billion to $12.1 billion  **[HRL_3400474_3]** .
  2. **Diluted Net EPS**: $1.45 to $1.51  **[HRL_3400474_3]** .
  3. **Adjusted Diluted Net EPS**: $1.57 to $1.63  **[HRL_3400474_3]** .
  4. **Pork Input Costs**: Higher than the previous year  **[HRL_3400474_4]** .
  5. **Turkey Markets**: Expected to continue to move lower  **[HRL_3368371_6]** .
  6. **Foodservice Segment**: Continued volume and net sales growth  **[HRL_3400474_3]** .
  7. **International Segment**: Significant segment profit growth  **[HRL_3400474_3]** .
  8. **Transform and Modernize Initiative**: Strongest level of savings in the fourth quarter  **[HRL_3400474_3]** .
  9. **SG&A Expenses**: Expected to increase in fiscal 2025  **[HRL_3410714_3]** .
  10. **Advertising Investments**: Double-digit percentage increases in fiscal 2025  **[HRL_3410714_3]** .
  11. **Interest and Investment Income**: Expected to be lower in fiscal 2025  **[HRL_3410714_3]** .
  12. **Effective Tax Rate**: 22% to 23% for fiscal 2025  **[HRL_3410714_3]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Net Sales Growth**: 1% to 3%  **[HRL_3391177_4]** .
  2. **Diluted Net EPS**: $1.45 to $1.55  **[HRL_3391177_4]** .
  3. **Adjusted Diluted Net EPS**: $1.55 to $1.65  **[HRL_3391177_4]** .
  4. **Foodservice Segment**: Continued volume growth  **[HRL_3391177_4]** .
  5. **International Business**: Net sales increases  **[HRL_3391177_4]** .
  6. **Retail Segment**: Higher net sales for Bacon and emerging brands  **[HRL_3391177_4]** .
  7. **Transform and Modernize Initiative**: Strongest level of savings in the fourth quarter  **[HRL_3391177_4]** .
  8. **Impact of Unplanned Production Interruption**: Affects net sales and earnings guidance  **[HRL_3391177_4]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Net Sales Growth**: 1% to 3%  **[HRL_3375918_6]** .
  2. **Diluted Net EPS**: $1.43 to $1.57  **[HRL_3375918_6]** .
  3. **Adjusted Diluted Net EPS**: $1.51 to $1.65  **[HRL_3375918_6]** .
  4. **Effective Tax Rate**: 21% to 23%  **[HRL_3375918_7]** .
  5. **Capital Expenditures**: $280 million  **[HRL_3375918_7]** .
  6. **Net Debt-to-EBITDA**: 1.5x to 2x  **[HRL_3375918_7]** .
  7. **Earnings Headwinds from Turkey Business**: Approximately $0.15  **[HRL_3375918_8]** .
  8. **Advertising Investments**: Significant increase  **[HRL_3375918_7]** .

af7ec34f95103b977d1095c53154fa1abf5e3f0420e10bd715a067b888513d48

a3a86f3793fd5bc7512c4e8d9a6f7e71e3a10e595ef8c045d710a632a879774c

3015597434bb887f0b3c979147ae0d5875c50a64e9aa68edcac2c6fc9f896581

U.S.

- U.S. Retail

- U.S. Foodservice

- U.S. Deli

Foreign

Total Net Sales

- International

Total Revenue

145fda84698c2e6e0270c5cfabd99d44675dc21a6f63edf4af6825c9f5797f96

| Name                     | Position                                                      | Start Date       | Short Bio                                                                                                                                                                                                 |
|--------------------------|---------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| James P. Snee            | Chairman of the Board, President, and CEO                     | November 2017    | James P. Snee has been serving as the Chairman of the Board, President, and CEO of Hormel Foods since November 2017. He has a 34-year career with Hormel Foods, bringing extensive expertise in sales, marketing, supply chain, and international business  **[0001104659-23-127508_tm2328093d4_def14a.htm:10]** **[0001104659-23-124351_tm2328093-2_pre14aseq1.htm:10]** **[0000048465-24-000051_hrl-20241027.htm:25]** . |
| Jacinth C. Smiley        | Executive Vice President and Chief Financial Officer          | January 1, 2022  | Jacinth C. Smiley has been the Executive Vice President and CFO since January 1, 2022. She previously served as Group Vice President of Corporate Strategy and was the Vice President and Chief Accounting Officer at LyondellBasell Industries Holdings B.V.  **[0000048465-24-000051_hrl-20241027.htm:25]** **[0000048465-23-000083_hrl-20231029.htm:23]** . |
| John F. Ghingo           | Executive Vice President, Retail                              | October 28, 2024 | John F. Ghingo rejoined Hormel Foods as Executive Vice President, Retail on October 28, 2024. He has extensive experience in the consumer packaged goods industry, having held leadership roles at Whisps Acquisition Corporation and Applegate Farms, LLC  **[0000048465-24-000051_hrl-20241027.htm:25]** **[0000048465-24-000035_exhibit99-pressrelease.htm:0]** . |
| Mark J. Ourada           | Group Vice President, Foodservice                             | March 2018       | Mark J. Ourada has been the Group Vice President, Foodservice since March 2018  **[0000048465-24-000051_hrl-20241027.htm:25]** .                                                                                                                                                             |
| Swen Neufeldt            | Group Vice President, Hormel Foods International Corporation  | June 2020        | Swen Neufeldt has been serving as Group Vice President of Hormel Foods International Corporation since June 2020. He was previously the Vice President of Meat Products  **[0000048465-24-000051_hrl-20241027.htm:25]** **[0000048465-23-000083_hrl-20231029.htm:23]** .                                                                 |
| Steve J. Lykken          | Group Vice President, Supply Chain                            | February 2024    | Steve J. Lykken began his role as Group Vice President, Supply Chain in February 2024. He was previously the Group Vice President of Jennie-O Turkey Store  **[0000048465-24-000051_hrl-20241027.htm:25]** .                                                                                  |
| Colleen R. Batcheler     | Senior Vice President, External Affairs, and General Counsel  | June 2024        | Colleen R. Batcheler started as Senior Vice President, External Affairs, and General Counsel in June 2024. She previously held executive roles at Hertz Global Holdings, Inc. and Conagra Brands, Inc.  **[0000048465-24-000051_hrl-20241027.htm:25]** .                                      |
| Mary Katherine Clark     | Senior Vice President and Chief Communications Officer        | March 2024       | Mary Katherine Clark has been the Senior Vice President and Chief Communications Officer since March 2024. She was previously Vice President of Communications at Mattress Firm Holding Corp.  **[0000048465-24-000051_hrl-20241027.htm:25]** .                                              |
| Katherine M. Losness-Larson | Senior Vice President, Human Resources                     | October 31, 2022 | Katherine M. Losness-Larson has been serving as Senior Vice President of Human Resources since October 31, 2022. She was previously the Director of Human Resources  **[0000048465-24-000051_hrl-20241027.htm:25]** **[0000048465-22-000051_hrl-20221030.htm:22]** .                                                                     |
| Pierre M. Lilly          | Senior Vice President and Chief Compliance Officer            | October 26, 2020 | Pierre M. Lilly has been the Senior Vice President and Chief Compliance Officer since October 26, 2020. He was previously the Director of Internal Audit  **[0000048465-24-000051_hrl-20241027.htm:25]** **[0000048465-22-000051_hrl-20221030.htm:22]** .                                                                                |
| Kevin L. Myers, Ph.D.    | Senior Vice President, Research and Development and Quality Control | March 30, 2015 | Kevin L. Myers, Ph.D., has been the Senior Vice President, Research and Development and Quality Control since March 30, 2015  **[0000048465-24-000051_hrl-20241027.htm:25]** **[0000048465-23-000083_hrl-20231029.htm:23]** **[0000048465-22-000051_hrl-20221030.htm:22]** .                                                                                                         |
| Paul R. Kuehneman        | Vice President and Controller                                 | February 18, 2022| Paul R. Kuehneman has been serving as Vice President and Controller since February 18, 2022. He was previously the Assistant Controller and Vice President and CFO at Jennie-O Turkey Store, Inc.  **[0000048465-24-000051_hrl-20241027.htm:25]** **[0000048465-23-000083_hrl-20231029.htm:23]** **[0000048465-22-000051_hrl-20221030.htm:22]** .                                     |

8a303a4c2036674c79c95679fb5df1e452e07efbe57b827790eb8ac1ef675ae4

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | January 29, 2013  **[0000048465-24-000051_hrl-20241027.htm:28]** **[0000048465-24-000051_hrl-20241027.htm:47]**  |
| End Date/Duration        | No expiration date  **[0000048465-24-000051_hrl-20241027.htm:28]** **[0000048465-24-000051_hrl-20241027.htm:47]**  |
| Total additional amount  | 10,000,000 shares  **[0000048465-24-000051_hrl-20241027.htm:28]** **[0000048465-24-000051_hrl-20241027.htm:47]**  |
| Remaining authorization amount | 3,677,494 shares as of October 27, 2024  **[0000048465-24-000051_hrl-20241027.htm:28]** **[0000048465-24-000051_hrl-20241027.htm:47]**  |
| Details                  | Part of capital allocation strategy; repurchases depend on market conditions  **[0000048465-24-000041_hrl-20240728.htm:41]** **[0000048465-24-000051_hrl-20241027.htm:47]** **[0000048465-24-000011_hrl-20240128.htm:33]**  |

5799684c9480c5a38f07888025ea1e105b0f3ccdfd5e7f16d7f96b3a0c0d0fc5

**Annual guidance for FY 2025:**
- **Net Sales**: $11.9 billion to $12.2 billion  **[HRL_3410714_4]** (no prior guidance)  
- **Adjusted Diluted EPS**: $1.58 to $1.72  **[HRL_3410714_4]** (no prior guidance)  
- **Operating Income Benefit from Transform and Modernize Initiative**: $100 million to $150 million  **[HRL_3410714_4]** (no prior guidance)  
- **Segment Growth**:  
  • Retail: Comparable volume and low single-digit increases in net sales  
  • Foodservice: Mid-single-digit increases in volume and net sales  
  • International: Low single-digit increases in volume and high single-digit increases in net sales  
   **[HRL_3410714_4]** (no prior guidance)  
- **Tax Rate**: 22% to 23%  **[HRL_3410714_4]** (no change from prior guidance  **[HRL_3410714_3]** )  
- **Capital Projects**: $275 million to $300 million  **[HRL_3410714_4]** (no prior guidance)  
- **Advertising Investments**: Double-digit percentage increases  **[HRL_3410714_4]** (no change from prior guidance  **[HRL_3410714_3]** )  
- **Interest and Investment Income**: Expected to be lower compared to fiscal 2024  **[HRL_3410714_4]** (no change from prior guidance  **[HRL_3410714_3]** )  
- **Key Input Costs**:  
  • Pork input costs comparable to fiscal 2024  
  • Beef costs to continue as a headwind  
  • Turkey markets expected to be depressed  
  • Moderate benefit from favorable grain prices  
   **[HRL_3410714_4]** (no prior guidance)  
- **Unfavorable EPS Impact**: $0.04 to $0.05 in the first quarter from lower whole bird prices and Suffolk production disruption  **[HRL_3410714_4]** (no prior guidance)  

c495d48ac84996d3c48a3574c66752cf015351c43b720fe61bb7aed763bc8ff3

| Name              | Start Date | End Date | Reason for Change |
|-------------------|------------|----------|-------------------|
| Ernst & Young LLP | 1931  **[0000048465-24-000051_hrl-20241027.htm:58]**    | Present  | Current auditor   |

802636af976e26b24171a9b0d82082f96231a09a9b3cfc01977aed6ab6c91863

6fa31f8cd11badc0a7b8b8622de6f7fb6b911215ae98a024c99c78634adaf883

4a98ae24adaddd529f83e7507e4dc7672e12ed376c60b539ebd0a6ef726e3e48

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $3,138 million (-2% YoY)  **[0000048465-24-000051_hrl-20241027.htm:59]** **[0000048465-24-000051_hrl-20241027.htm:105]** **[0000048465-23-000083_hrl-20231029.htm:63]** **[0000048465-23-000083_hrl-20231029.htm:104]**   
- SG&A: $239 million (+10% YoY)  **[0000048465-24-000051_hrl-20241027.htm:59]** **[0000048465-24-000051_hrl-20241027.htm:105]** **[0000048465-23-000083_hrl-20231029.htm:63]** **[0000048465-23-000083_hrl-20231029.htm:104]**   
- Operating Income: $294 million (+9% YoY)  **[0000048465-24-000051_hrl-20241027.htm:59]** **[0000048465-24-000051_hrl-20241027.htm:105]** **[0000048465-23-000083_hrl-20231029.htm:63]** **[0000048465-23-000083_hrl-20231029.htm:104]**   
- Net Income: $220 million (**+12%** YoY)  **[0000048465-24-000051_hrl-20241027.htm:59]** **[0000048465-24-000051_hrl-20241027.htm:105]** **[0000048465-23-000083_hrl-20231029.htm:63]** **[0000048465-23-000083_hrl-20231029.htm:104]**   
- Depreciation & Amortization: $66 million (**+80%** YoY)  **[0000048465-24-000051_hrl-20241027.htm:59]** **[0000048465-24-000051_hrl-20241027.htm:105]** **[0000048465-23-000083_hrl-20231029.htm:63]** **[0000048465-23-000083_hrl-20231029.htm:104]**   

8dcb6daa55f81a690738ee08479ce4bfe3344f94765696493710993b751f765c

13f2cacd1f17523ae8716b2d5140cf678345c7fd2c8126d89259db796bc3cfca

| Year | Amount Due (in billions) | Debt Type                     | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|------------------------------------|-----------------------|------------------------------------------------------------------------------------|
| 2027     | 0.500 **[0000048465-24-000051_hrl-20241027.htm:96]**                | Senior Unsecured Notes            | 4.800 **[0000048465-24-000051_hrl-20241027.htm:96]**         | 17.2% = (0.500 / 2.9) * 100 **[0000048465-24-000051_hrl-20241027.htm:46]** **[0000048465-24-000051_hrl-20241027.htm:96]**                                       |
| 2028     | 0.750 **[0000048465-24-000051_hrl-20241027.htm:96]**                | Senior Unsecured Notes            | 1.700 **[0000048465-24-000051_hrl-20241027.htm:96]**         | 25.9% = (0.750 / 2.9) * 100 **[0000048465-24-000051_hrl-20241027.htm:46]** **[0000048465-24-000051_hrl-20241027.htm:96]**                                       |
| 2030     | 1.000 **[0000048465-24-000051_hrl-20241027.htm:96]**                | Senior Unsecured Notes            | 1.800 **[0000048465-24-000051_hrl-20241027.htm:96]**         | 34.5% = (1.000 / 2.9) * 100 **[0000048465-24-000051_hrl-20241027.htm:46]** **[0000048465-24-000051_hrl-20241027.htm:96]**                                       |
| 2051     | 0.600 **[0000048465-24-000051_hrl-20241027.htm:96]**                | Senior Unsecured Notes            | 3.050 **[0000048465-24-000051_hrl-20241027.htm:96]**         | 20.7% = (0.600 / 2.9) * 100 **[0000048465-24-000051_hrl-20241027.htm:46]** **[0000048465-24-000051_hrl-20241027.htm:96]**                                       |

23aeddb968fce2d07a8f69887bc42e84b94756f74079b26edb7056bb38dcef9e

Total Volume (Consolidated) (thousands of lbs.)

Volume for the Retail Segment (thousands of lbs.)

Volume for the Foodservice Segment (thousands of lbs.)

Volume for the International Segment (thousands of lbs.)

Organic Net Sales (thousands of USD)

51ddbec01cd4ff139a444b22a9d1044e389ecb176dee9b13f5261872873ad1d0

- **Hormel Foods is experiencing strong performance in its foodservice segment**, remaining well-positioned for continued growth due to **channel diversification**, innovation, and the competitive advantage of its **direct sales force**, which allows them to be front and center with customers and drive results.  **[HRL_3391177_13]**
- The company's **international business has rebounded strongly**, with **sales up high single digits** despite **volume down high single digits**, driven by a focus on higher-margin **branded products**, improvements in China, and successful investments in Indonesia and the Philippines.  **[HRL_3391177_20]**
- Hormel Foods is **ahead of expectations** and has delivered **stronger margins** in the second quarter and first half, demonstrating progress on key initiatives including the **transform and modernize** initiative, providing a **clear line of sight to growth** in the back half of the year.  **[HRL_3391177_23]** **[HRL_3391177_8]**

85379e36f831ff3db54b091650da3bda3c08a2f80e4d73f1c3d7c227e46d2f79

- **Production interruption at the Suffolk, Virginia Planters facility is expected to negatively impact third-quarter earnings by approximately $0.03**, affecting service levels on high-volume products.  **[HRL_3391177_23]** **[HRL_3391177_8]**
- **Pressure in the retail segment's center store canned and convenient items** due to increased competition, price elasticity from Q2 price increases, and heavier promotional activity is leading to **softer demand** in these categories.  **[HRL_3391177_15]**
- Despite strong first-half performance, the company **only modestly raised its EPS guidance**, citing headwinds including the Suffolk issue, **ongoing turkey challenges**, and **higher tax rates**, suggesting concerns about future earnings growth.  **[HRL_3391177_23]** **[HRL_3391177_8]**

2f4969f72eaeb02463cfe6c3c282ef7c662dc73bbdc3033abe8b31dd1a7e0587

- **Hormel Foods faces incremental earnings pressure from its turkey business due to a worse-than-expected outlook for whole bird turkey markets, resulting in an additional $0.05 of earnings headwinds, with most of the impact occurring in Q2.**  **[HRL_3375918_10]** **[HRL_3375918_14]**
- **The company expects earnings to decline year-over-year in the second quarter, and while it anticipates profit growth in the back half of the year, it did not commit to growth in both Q3 and Q4 individually.**  **[HRL_3375918_15]** **[HRL_3375918_11]**
- **Management acknowledges potential risks from a challenging consumer environment, with certain weak categories potentially affecting volumes, and they are monitoring these factors closely.**  **[HRL_3375918_10]**

b3844fc7b171474cd88d2914769f86cc687c7647c2536c55d173d98c84a01264

1. **EPS Guidance and First-Half Outperformance**  
   **Q:** Why isn't EPS guidance raised more despite strong first-half results?  
   **A:** Management explained that despite being ahead of expectations and delivering stronger margins in the first half, the EPS guidance increase is appropriate due to certain headwinds. The Virginia plant interruption (Suffolk issue) is expected to affect earnings by about **$0.03**  **[HRL_3391177_8]** **[HRL_3391177_22]** , there's an incremental impact of **$0.05** from turkey for the full year  **[HRL_3391177_8]** **[HRL_3391177_23]** , and a tax rate impact of **$0.01 to $0.02**.  **[HRL_3391177_8]** **[HRL_3391177_23]**  These factors offset some of the first-half outperformance, and without them, they would have raised guidance more.  **[HRL_3391177_8]** **[HRL_3391177_23]**  They remain pleased with first-half performance and have a clear line of sight to growth in the second half.  **[HRL_3391177_8]** **[HRL_3391177_23]** 

2. **Second-Half Sales Growth Drivers**  
   **Q:** What will drive the acceleration of top-line growth in the second half?  
   **A:** Management expects strong performance from foodservice and international segments, which are anticipated to provide robust growth.  **[HRL_3391177_9]** **[HRL_3391177_11]**  In retail, while some verticals like **SPAM**, refrigerated entrees, and **Skippy** are performing well  **[HRL_3391177_9]** **[HRL_3391177_10]** , challenges remain in turkey and the convenient meals and protein verticals.  **[HRL_3391177_9]** **[HRL_3391177_10]**  They acknowledge that the most likely scenario is achieving sales at the low end of the guidance range.  **[HRL_3391177_9]** **[HRL_3391177_11]** 

3. **Retail Volume Declines and Recovery Strategies**  
   **Q:** How will you address volume declines in retail, especially in turkey and center store?  
   **A:** The volume decline is primarily due to turkey, accounting for **two-thirds** of the decline in the first half.  **[HRL_3391177_10]** **[HRL_3391177_22]**  Management is implementing both short-term and long-term strategies to recover lost volumes. In the short term, they are increasing promotions, enhancing displays, and shifting dollars into advertising to support value messaging to consumers.  **[HRL_3391177_10]** **[HRL_3391177_21]**  Long-term efforts include price pack architecture work through their revenue growth management team, evaluating price points, promotions, and assortment, and investing in innovation to bring in new consumers.  **[HRL_3391177_16]** **[HRL_3391177_21]** 

4. **SG&A Growth and 'Transform and Modernize' Expenses**  
   **Q:** What's driving the SG&A growth, and how should we think about it?  
   **A:** The biggest component of SG&A growth year-over-year is expenses related to their **transform and modernize** initiatives, which will drive a **double-digit increase** in the back half of this year and into next year.  **[HRL_3391177_17]** **[HRL_3391177_23]**  Additionally, higher compensation expenses contribute to the SG&A growth.  **[HRL_3391177_17]** **[HRL_3391177_23]**  Management indicates that these investments are crucial for effectively planning, buying, making, and moving the business.  **[HRL_3391177_23]** 

5. **Strong Foodservice Performance Amid Industry Decline**  
   **Q:** How is foodservice performing strongly despite industry traffic declines?  
   **A:** The foodservice team had an excellent start to the year and is well-positioned moving forward.  **[HRL_3391177_19]**  They compete in both commercial and non-commercial segments with a broad customer base.  **[HRL_3391177_19]**  Channel diversification, including growth in the convenience channel and grab-and-go opportunities, is driving performance.  **[HRL_3391177_19]**  Their direct sales force offers a competitive advantage, and continued innovation—such as their **Bacon 1** business and new **Flash 180 sous vide fully cooked chicken** item—supports growth.  **[HRL_3391177_19]** 

6. **International Performance and China Outlook**  
   **Q:** What's driving international sales growth despite volume declines?  
   **A:** International volume is expected to be down **high single digits** due to lower fresh pork and commodity businesses, but sales are anticipated to be up **high single digits** due to improved mix and more branded business.  **[HRL_3391177_11]** **[HRL_3391177_20]**  In China, the retail business is improving with efforts to regain distribution and innovate in their shelf-stable meat snacking portfolio.  **[HRL_3391177_20]**  The foodservice business in China is strong and gaining momentum.  **[HRL_3391177_20]**  Investments in Indonesia are yielding positive results, and partners in the Philippines continue strong performance.  **[HRL_3391177_20]**  They expect acceleration in the second half, noting they will lap a weak Q4 comparison.  **[HRL_3391177_20]** 

7. **Competitive Promotional Landscape in Retail**  
   **Q:** How is the competitive promotional backdrop in retail affecting you?  
   **A:** The promotional environment varies by category, but overall, management is comfortable.  **[HRL_3391177_13]**  In some cases, they are shifting dollars from trade into advertising or other areas to support growth.  **[HRL_3391177_13]**  They acknowledge increased competition and heavier promotional activity in certain categories like convenient meals and protein, and they are adjusting promotions to support the right price points.  **[HRL_3391177_13]** **[HRL_3391177_15]** 

8. **Approach to Recovering Lost Retail Volumes**  
   **Q:** What is your approach to recovering lost volumes in retail?  
   **A:** Management highlights that flagship brands like **SPAM**, refrigerated entrees, and **Skippy** are performing well.  **[HRL_3391177_21]**  They are focusing on both short-term actions—such as promotions, displays, and activating social media—and long-term strategies like innovation and advertising.  **[HRL_3391177_21]**  Their revenue growth management team is working on price pack architecture, evaluating price points, promotions, and assortments to drive overall category growth.  **[HRL_3391177_21]** 

9. **Impact of Turkey Production on Volumes**  
   **Q:** How does lower turkey volume align with production levels?  
   **A:** There is no change in their turkey outlook.  **[HRL_3391177_18]**  They have strong internal supply and capacity, and teams are doing a great job at retail and foodservice.  **[HRL_3391177_18]**  They are gaining share with lean ground turkey and regaining lost business in foodservice.  **[HRL_3391177_18]**  They believe they have **de-risked** the turkey outlook for the rest of the year.  **[HRL_3391177_18]** 

10. **Price Elasticity and Competition in Center Store**  
    **Q:** What's causing weakness in center store categories?  
    **A:** The softness in center store is due to increased competition, heightened promotions, and expected price elasticities from price increases taken in Q2.  **[HRL_3391177_11]** **[HRL_3391177_15]**  Factors include the impact of lower SNAP benefits, softer weather affecting demand, and consumers pulling back in canned or center store areas.  **[HRL_3391177_10]** **[HRL_3391177_15]** 

11. **Retail Scanner Data vs. Reported Figures**  
    **Q:** Why is there a gap between retail scanner data and reported figures?  
    **A:** Positive trends are seen in their Circana data, with **five of six** verticals showing growth.  **[HRL_3391177_14]**  However, declines in turkey and non-tracked areas of the business—including some contract manufacturing showing declines—are driving the overall volume decline.  **[HRL_3391177_14]** 

12. **Advertising Returns and Investments**  
    **Q:** How are advertising investments performing versus expectations?  
    **A:** Advertising on flagship and rising brands like **SPAM**, **Black Label** bacon, and **Jennie-O** is yielding strong performance in both volume and market share gains.  **[HRL_3391177_12]**  Innovation accompanies advertising, and new advertising with refreshed brand positioning is contributing to positive returns.  **[HRL_3391177_12]**  They are excited about new campaigns, such as those for pepperoni.  **[HRL_3391177_12]** 

13. **Customer Pricing Pressure and Retailer Dynamics**  
    **Q:** Are you seeing pushback from retailers on price increases?  
    **A:** There's a heightened level of discussions regarding pricing, but the retail team ensures solid rationale and clarification for pricing needs.  **[HRL_3391177_16]** **[HRL_3391177_22]**  They are addressing issues both in the short term and with a long-term vision.  **[HRL_3391177_16]**  Retailers control shelf prices, but the company influences decisions with insights and analytics as a category leader.  **[HRL_3391177_13]** **[HRL_3391177_16]** 

14. **Impact of Plant Interruption on Retail Sales**  
    **Q:** What's the impact of the Suffolk plant interruption on Q3 retail sales?  
    **A:** The Suffolk plant interruption is expected to affect earnings by about **$0.03**.  **[HRL_3391177_8]** **[HRL_3391177_22]**  This translates to approximately a **3% to 4% impact** on retail sales for Q3, which management agrees is probably close.  **[HRL_3391177_22]** 

15. **Primary Drivers of Earnings Strength Despite Headwinds**  
    **Q:** What are the primary drivers of earnings strength despite turkey, tax, and Suffolk headwinds?  
    **A:** Management cites strong performance from the foodservice business and the international business rebounding.  **[HRL_3391177_23]**  Additionally, their **transform and modernize** initiatives have been effective in how they plan, buy, make, and move the business.  **[HRL_3391177_23]**  These factors help overcome the headwinds from turkey, tax rate impact, and the Suffolk issue.  **[HRL_3391177_23]** 

16. **Convenient Meals and Protein Volume Softness**  
    **Q:** What's causing softness in convenient meals and protein volumes, and what's the plan to improve?  
    **A:** Soft demand is seen in canned or center store areas, partly due to reduced SNAP benefits, softer weather, and increased competition and promotions.  **[HRL_3391177_10]** **[HRL_3391177_15]**  Seasonally, Q3 is a lower quarter for this category.  **[HRL_3391177_10]**  The team is counteracting this with promotions, displays, shifting dollars into the category, and advertising the value to consumers.  **[HRL_3391177_10]** 

0eccbee854cb13791a78b83c2c1234906704cfd2800bf832a566258a06fdac75

1. **Guidance Update**  
   **Q:** Why was sales guidance lowered but EPS guidance maintained?  
   **A:** Management reduced sales guidance by **$300 million** but maintained EPS guidance because the declines were in high-volume, low-margin, or negative-margin businesses.  **[HRL_3400474_6]**  Factors impacting sales included reduced turkey contract manufacturing, pricing impacts on convenient meals and proteins, and lapping high-volume, low-margin commodity business internationally.  **[HRL_3400474_6]**  EPS guidance remained stable due to improved profitability from focusing on core higher-margin products.  **[HRL_3400474_6]** 

2. **Planters' Performance**  
   **Q:** How are issues with Planters affecting outlook?  
   **A:** The Planters business faced production disruptions due to storm damage, resulting in a **$0.03** expected headwind in Q4.  **[HRL_3400474_13]**  Production is ramping back up, and management anticipates demand to rebound.  **[HRL_3400474_13]**  They remain confident in the original acquisition thesis and expect Planters to contribute positively to growth.  **[HRL_3400474_11]** 

3. **Storm Damage Impact**  
   **Q:** Does guidance include financial impact from storm damage?  
   **A:** Yes, the guidance includes the impact from storm damage.  **[HRL_3400474_8]**  The affected production facility is fully operational again, with costs related to repairs rather than sales.  **[HRL_3400474_8]**  There is no expected impact on the top line due to the storm.  **[HRL_3400474_8]** 

4. **Turkey Segment Outlook**  
   **Q:** What is the current outlook for the turkey segment?  
   **A:** The previously stated **$0.15** EPS headwind for fiscal '24 from the turkey segment remains unchanged.  **[HRL_3400474_10]**  It's too early to predict recovery in fiscal '25 due to dynamic market conditions, including reduced egg sets and supply uncertainties.  **[HRL_3400474_10]** 

5. **EBIT Improvement Target**  
   **Q:** Are you on track for the $250 million EBIT improvement by 2026?  
   **A:** Management affirms they are tracking well toward achieving the **$250 million** EBIT improvement target by 2026.  **[HRL_3400474_17]**  Fiscal 2024 is viewed as a year of investment, with significant ramp-up expected in 2025 and 2026, and meaningful margin expansion already seen in 2024.  **[HRL_3400474_17]** 

6. **Transform and Modernize Initiatives**  
   **Q:** What progress has been made on the transformation initiatives?  
   **A:** Progress has been made in procurement savings, enhanced logistics, and process improvements, contributing to margin expansion.  **[HRL_3400474_18]**  Specific financial details will be provided in the Q4 call, but benefits are already visible in improved margins and bottom-line growth.  **[HRL_3400474_18]** 

7. **Volume Performance**  
   **Q:** How did volumes perform versus expectations?  
   **A:** Volumes were lower than expected due to reduced sales in Planters and contract manufacturing.  **[HRL_3400474_11]**  Turkey volumes declined but were in line with expectations.  **[HRL_3400474_11]**  The core business in retail, foodservice, and international remains healthy.  **[HRL_3400474_19]** 

8. **CapEx Guidance**  
   **Q:** Why is there a big spike in Q4 capital expenditures?  
   **A:** Higher capital expenditures are anticipated in Q4, consistent with typical spending patterns.  **[HRL_3400474_14]**  The company reaffirmed the full-year CapEx guidance of **$280 million**, noting that increased spending is usual for this time of year.  **[HRL_3400474_14]** 

73ffa6d6b4b1d46c8e15abb6d32b46707c203951a750169ab0e770fb48582634

- The company’s **key retail brands**—including bacon, Jennie-O, Skippy, Applegate, and SPAM—**performed really well**, demonstrating strength in the underlying core business.  **[HRL_3400474_7]**
- The **transform and modernize initiative** is delivering **cost savings** and **margin expansion**, with the strongest contributions expected in the fourth quarter, benefiting the bottom line.  **[HRL_3400474_18]**
- The **international business continues to rebound and improve**, contributing positively to earnings, with significant segment profit growth expected in the International segment.  **[HRL_3400474_7]**

63621dd8918dfddc837bbfa469ded4f067f2cc140e5d083c47e23e75223f46b4

- **Volume growth in every business segment during Q1, driven by strong performances in retail and foodservice, with marked improvements in supply chain and highest fill rates since 2020.**  **[HRL_3375918_9]**
- **The company expects profit growth in all segments in the back half of the year, supported by continued trajectory of foodservice, ramp-up of international performance, retail benefits, and acceleration of transformation and modernization initiatives.**  **[HRL_3375918_15]** **[HRL_3375918_11]**
- **Foodservice business operates from an advantaged position, with strong Q1 results and expected continued volume growth throughout the year.**  **[HRL_3375918_22]**

11d8559a70bbd040e6470f8379ad23fe7780e96faaa36077b868f5708be6db34

- **Hormel Foods lowered its full-year net sales guidance by $300 million**, due to **lower commodity market expectations**, the **ongoing production disruption at its Suffolk, Virginia facility**, and **continued softness in its contract manufacturing business**, indicating persistent top-line challenges.  **[HRL_3400474_6]**
- The **production disruption at the Suffolk facility** resulted in a **$0.03 EPS drag in the third quarter**, with an **additional $0.03 EPS impact expected in the fourth quarter**, exceeding initial estimates and reflecting operational challenges.  **[HRL_3400474_5]**
- The company **experienced storm damage to its Papillion, Nebraska facility early in the fourth quarter** and is **assessing the financial impact**, introducing further uncertainty to its earnings outlook.  **[HRL_3400474_5]**

ab47572e2c2c8478d3c20ca83c47c5ea158a2e8df594f49df5a16e43ecd77450

1. **FY25 Earnings Guidance**  
   **Q:** Can you elaborate on variables for FY25 guidance?  
   **A:** Management expects **growth in top and bottom lines** for FY25, driven by key retail categories like bacon and Applegate, successful innovation, growth in Foodservice and International segments, and a strong value-added turkey business. They plan to make **double-digit increases in brand support** and invest in people, processes, data, and technology. While facing near-term impacts in Q1, they are confident in their ability to grow earnings.  **[HRL_3410714_13]** 

2. **Conservatism in Guidance**  
   **Q:** Is there conservatism in your EBIT guidance given underlying declines?  
   **A:** Management aims to ensure guidance is appropriate, considering recent volatility in the turkey market and the Planters rebound. The Transform and Modernize initiative is seen as interconnected with the business, creating a **flywheel to generate growth**. They believe the plan is **realistic and achievable**.  **[HRL_3410714_14]** 

3. **FY26 Operating Income Target**  
   **Q:** Are you still planning on $250 million operating income growth from '23 to '26?  
   **A:** Yes, the company reaffirms the **$250 million** target and is on track to achieve it. They are confident due to the strength of their brands, the business, and the Transform and Modernize initiative, which is creating **long-term lasting value**.  **[HRL_3410714_15]** 

4. **Bridging FY25 Profit Growth**  
   **Q:** What's limiting the flow-through of cost savings and sales growth to operating profit in FY25?  
   **A:** Investments in brand support and capabilities related to the Transform and Modernize initiative are impacting operating profit growth. They are making **double-digit investments in brand support** and investing in data, technology, and people. Additionally, they expect lower turkey prices and are planning for continued investment in capabilities.  **[HRL_3410714_16]** 

5. **Planters Recovery**  
   **Q:** What's causing the slower ramp at Suffolk, and why confidence issues will end in Q1?  
   **A:** Significant progress has been made; production concerns are largely resolved. By end of Q1, they expect to **fully meet retailer demand** across the Planters portfolio. Baseline trends are improving, and more than half of lost distribution has been recovered. Advertising and promotions will increase in Q2 to recapture momentum.  **[HRL_3410714_17]** 

6. **Turkey Business Strategy**  
   **Q:** How are you reducing exposure to commodity volatility in turkey business?  
   **A:** The company is creating a **demand-driven business**, focusing on value-added products like lean ground turkey, which is the **#1 scanned item** in the company. They've integrated the business into Foodservice, yielding positive results, and are reducing volatility caused by commodity markets.  **[HRL_3410714_19]** 

7. **Clarifying $250 Million Target**  
   **Q:** How will you achieve the $250 million EBIT growth in FY26 given the needed step up?  
   **A:** Management reaffirms the target, highlighting the Transform and Modernize initiative, recovery of Planters, and strength of the underlying business, including flagship and rising brands, Foodservice, and International segments. They expect continued acceleration in 2025 and 2026 with benefits beyond 2026.  **[HRL_3410714_20]** **[HRL_3410714_21]** 

8. **Turkey Outlook**  
   **Q:** Is turkey expected to be neutral in FY25 despite first-quarter weakness and grain benefits?  
   **A:** Turkey pricing is expected to remain at **lower levels** for 2025, with **moderate grain benefits**. The value-added turkey business is expected to grow, while the commodity side is planned to be flat to slightly down.  **[HRL_3410714_24]** 

9. **Further SKU Rationalization**  
   **Q:** Does sales guidance anticipate further SKU rationalization?  
   **A:** Yes, SKU rationalization is included in the guidance. The focus is on removing unprofitable SKUs or those adding complexity to create room for **innovative new items** and drive profitability.  **[HRL_3410714_18]** 

10. **Foodservice Growth Drivers**  
    **Q:** What are key drivers of growth within Foodservice?  
    **A:** Foodservice is expected to grow **mid-single digits** in 2025. Growth will be driven by a strong direct sales team, innovative product solutions that address operator pain points, diversified channels including restaurants, lodging, and convenience stores, and a focus on operators.  **[HRL_3410714_27]** 

f785a43cafeae54c79be656c17bd8764bf3d4c028afc8cbee77d1d270f53a3f5

1. **Profit Growth Expectations**  
   **Q:** Do you expect profit growth in all segments in the back half?  
   **A:** Yes, we expect **profit growth in all segments** in the back half of the year.  **[HRL_3375918_11]** 

2. **Key Risks to Targets**  
   **Q:** What are the key risks to delivering this year's targets?  
   **A:** The main risks are from the turkey market, where the whole bird outlook is worse, impacting us by an additional **five cents**, mostly in Q2. We're also closely watching the consumer environment, as some categories are weak, but we're supporting our brands and driving innovation.  **[HRL_3375918_10]** 

3. **Offsetting Turkey Headwinds**  
   **Q:** How will you offset incremental turkey price headwinds?  
   **A:** Strong performance in foodservice and international, which exceeded expectations in Q1, will offset additional headwinds from the turkey market. We remain confident in our guidance as it's early in the year.  **[HRL_3375918_14]** 

4. **Earnings Outlook and Guidance**  
   **Q:** Can you clarify the expected earnings outlook?  
   **A:** We expect **profit growth** in the back half, considering it as a whole. Confidence comes from foodservice's continued trajectory, international ramp-up, retail benefits, and accelerating transformation initiatives.  **[HRL_3375918_15]** 

5. **Foodservice Outlook**  
   **Q:** How do you view the foodservice situation amidst macro factors?  
   **A:** We're operating from an advantaged position in foodservice, with strong Q1 performance expected to continue throughout the year. Diversification into non-commercial segments like convenience stores, and our value-added portfolio help us mitigate macro pressures.  **[HRL_3375918_12]** **[HRL_3375918_22]** 

6. **Pricing Strategy**  
   **Q:** How are you approaching pricing for the rest of the year?  
   **A:** We're implementing very **targeted pricing** in categories where **beef costs** have increased. We've adjusted pricing in some grocery items and shifted dollars to advertising in high-ROI categories like Stew and Chili. We're also adjusting our promotional strategy to maintain consumer engagement.  **[HRL_3375918_13]** **[HRL_3375918_20]** 

7. **Volume Growth in Retail**  
   **Q:** What are your expectations for key retail categories and volume?  
   **A:** We expect continued volume growth in flagship and rising brands like **Bacon**, **Pepperoni**, **Applegate**, **Planters**, and **Skippy**. Investments in capacity, innovation, advertising, and in-store activations will support growth throughout the year.  **[HRL_3375918_17]** 

8. **Raw Material Cost Impact**  
   **Q:** Are you recognizing margin benefits from lower input costs?  
   **A:** Raw material impacts were largely in line with expectations. Commodity markets didn't have a dramatic impact on our strong Q1 performance; it's more about volatility and how each cut reacts rather than point-in-time prices.  **[HRL_3375918_19]** 

9. **Bond Repayment Plan**  
   **Q:** Are you planning to repay the bond due later this year?  
   **A:** We'll use a combination of cash on hand and issuing new debt to pay down the full **$950 million** bond.  **[HRL_3375918_18]** 

10. **Turkey Volume Impact**  
    **Q:** How much of the company's volume growth was due to turkey production recovery?  
    **A:** While turkey volumes grew as expected, we also saw growth in our value-added businesses. For foodservice, we expect **mid-single-digit** volume growth for the rest of the year.  **[HRL_3375918_23]** 

11. **Jennie-O Turkey Impact**  
    **Q:** Can you provide more details on the Jennie-O **$0.15** impact?  
    **A:** The impact will affect all remaining quarters, with most of it coming in **Q2**. We previously expected a **$0.10** impact but now estimate an additional **$0.05**, mostly in the second quarter. There was minimal impact in **Q1**.  **[HRL_3375918_21]** 

d2aedbb37c1450dc46078ca8c7aab2d138af1f85bb1178e37b6bff77deed2e1b

- **Hormel Foods is on track with their Transform and Modernize (T&M) initiative, expecting to deliver $250 million in operating income benefits by 2026**.  **[HRL_3410714_14]**  Management is confident in accelerating these benefits in 2025 and creating long-term value beyond 2026.
- **The Foodservice segment is projected to deliver strong, mid-single-digit growth in 2025**, driven by innovation, expansion into diversified channels, and a differentiated business model.  **[HRL_3410714_27]**
- **The company is investing in flagship and rising brands, with plans for double-digit increases in advertising investments in 2025**, supporting growth across key brands and product lines.  **[HRL_3410714_16]**

425ba87df76a1fef17152f23e775c2eea01ec05a5b9a53b582ea4277fa7ee4f7

- **Underlying EBIT growth is expected to decline excluding benefits from the Transform and Modernize initiative**.  **[HRL_3410714_14]**  This suggests that organic earnings growth may be weak without these savings.
- **Cost savings from the Transform and Modernize initiative are being offset by increased investments**, such as double-digit advertising increases and spending on capabilities, which may limit profit growth.  **[HRL_3410714_16]**
- **Achievement of ambitious targets in fiscal 2026 relies heavily on future cost savings and successful execution of initiatives**, raising concerns about execution risks and over-reliance on uncertain future benefits.  **[HRL_3410714_23]** **[HRL_3410714_21]**

02553d94e0f2297c8f399868ae4218a645a2eb2ed6208957ef44d3bd22d01bec

Hormel Foods Corp (HRL)

Financials