Reasons Behind Today's Decline in Hormel Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 28 2025
0mins
Should l Buy HRL?
Source: Fool
Stock Performance: Hormel's stock (HRL) fell 12.9% in Thursday trading, reaching a low of 18.3% decline shortly after the market opened.
Earnings Report: The company reported non-GAAP earnings per share of $0.35 on sales of $3.03 billion for Q3 2025, missing Wall Street estimates of $0.41 per share on $2.98 billion revenue.
Sales Growth: While organic sales increased by 6% year-over-year and total revenue rose by 4.5%, earnings per share declined by 5.4% compared to the previous year.
Future Guidance: Hormel provided disappointing forward guidance, projecting revenue between $3.15 billion and $3.25 billion for the current quarter, with expected earnings per share between $0.38 and $0.40, indicating a slowdown in growth.
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Analyst Views on HRL
Wall Street analysts forecast HRL stock price to rise
5 Analyst Rating
3 Buy
2 Hold
0 Sell
Moderate Buy
Current: 23.070
Low
26.00
Averages
27.40
High
30.00
Current: 23.070
Low
26.00
Averages
27.40
High
30.00
About HRL
Hormel Foods Corporation is a global-branded food company. The Company develops, processes, and distributes a range of food products in a variety of markets. Its segments include Retail, Foodservice, and International. The Retail segment is primarily engaged in the processing, marketing, and sale of food products sold predominantly in the retail market. This segment also includes the Company’s MegaMex Foods, LLC joint venture. The Foodservice segment consists primarily of the processing, marketing, and sale of food products to foodservice, convenience store, and commercial customers located in the United States. The International segment processes, markets, and sells its products internationally. This segment also includes the results from the Company’s international joint ventures, international equity method investments, and international royalty arrangements. It has a global presence within several major international markets, including Australia, Brazil, Canada, China, and England.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analyzing Investment Prospects for Campbell's Company Stock
- Stock Price and Valuation: As of March 24, Campbell's shares were trading at $20.91, with a trailing P/E of 11.46 and a forward P/E of 9.01, indicating a discounted valuation despite a 5.8% dividend yield and a payout ratio below 80%.
- Brand Portfolio Strength: The company boasts a robust brand portfolio, including staple soups and well-known snack brands like Pepperidge Farm and Goldfish, and while consumer preferences are shifting towards healthier options, the demand for convenient meals and snacks remains strong, supporting the resilience of its core categories.
- Sales Growth Trend: Campbell's has achieved approximately 21% cumulative sales growth since 2021, and despite recent margin pressures, its stable cash flow and brand equity provide a foundation for future growth, suggesting that the market's pessimism regarding its long-term prospects may be overstated.
- Industry Performance Comparison: Within the packaged food sector, Campbell's has underperformed, with its stock price depreciating by about 44.90% since our last coverage due to weak snack demand and inflationary pressures, yet its compressed valuation amidst sector-wide pessimism may still present an attractive opportunity for investors.
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Dividend Stocks Resilience: Dividend stocks are highlighted for their reliability during choppy market conditions, with companies that have consistently increased their dividends over the past 50 years being termed "dividend kings." These stocks provide a stable income source for investors, especially in uncertain economic times.
Procter & Gamble's Performance: Procter & Gamble (P&G) is noted for its strong financial health, boasting a significant cash reserve and a history of consistent dividend increases. The company has managed to grow its dividends even amidst inflation and market pressures, showcasing its resilience and stability.
Colgate-Palmolive's Growth: Colgate-Palmolive is recognized for its global market presence and consistent revenue growth, particularly in consumer staples. The company has diversified its revenue streams and maintained a strong dividend increase record, making it a solid investment choice.
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- Leadership Transition: Hormel Foods Corporation announced that Richard Carlson, Vice President of Global Food Safety and Quality Management, will retire on May 1, 2026, after a 35-year career, with Jeremiah Johnson, a 20-year veteran, succeeding him.
- Food Safety Strategy: Johnson will oversee all company quality, regulatory, and food safety activities, and is expected to enhance food safety standards and strengthen consumer trust through his deep expertise in food safety and quality management.
- Leadership Capability: Johnson has played a crucial role in key initiatives to strengthen food safety systems within the company, and his ability to lead cross-functional teams and drive continuous improvement is anticipated to positively impact the company's competitive position in the market.
- Company Background: Hormel Foods generates over $12 billion in annual revenue and boasts a portfolio of well-known brands, having received numerous accolades for corporate responsibility and community service, underscoring its leadership and commitment in the food industry.
See More
Hormel Foods Appoints New VP of Food Safety
- Leadership Transition: Hormel Foods Corporation announced that Richard Carlson, Vice President of Global Food Safety and Quality Management, will retire after 35 years, with Jeremiah Johnson set to succeed him on May 1, 2026, ensuring continued leadership in food safety.
- Experienced Successor: Johnson, who joined the company in 2005, has held various quality management roles and possesses deep expertise in food safety and regulatory affairs, positioning him to effectively elevate the company's food safety standards.
- Strategic Importance: During Carlson's tenure, he led critical food safety initiatives that helped expand into new product categories, and Johnson's succession is expected to further strengthen consumer trust in Hormel's brands, maintaining the company's competitive edge in a challenging market.
- Company Overview: Hormel Foods generates over $12 billion in annual revenue and boasts a portfolio of well-known brands, demonstrating a strong commitment to corporate responsibility and community service, which underscores its robust market position and social accountability.
See More
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- Columbus McKinnon Dividend Decision: Columbus McKinnon's Board approved a quarterly dividend of $0.07 per common share, expected to be paid on May 11, 2026, to shareholders of record as of May 1, 2026, reflecting the company's stable financial performance in intelligent motion solutions.
- Buckle Dividend Authorization: At its March 23, 2026, meeting, Buckle's Board authorized a quarterly dividend of $0.35 per share, set to be paid on April 29, 2026, to shareholders of record as of April 15, 2026, indicating robust operations in the retail market.
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Consumers Tighten Budgets, Food Stocks Under Pressure
- Attractive Dividend Yields: Hormel Foods and General Mills offer dividend yields of 5.2% and 6.5%, respectively, indicating their appeal to investors seeking stable income despite earnings pressures.
- Brand Refresh Strategies: Hormel focuses on protein products to counter the impact of GLP-1 drugs, while General Mills actively adjusts its brand portfolio by selling stagnant brands like Hamburger Helper to align with changing consumer preferences.
- Market Value Opportunity: Both companies have price-to-sales and price-to-book ratios below their five-year averages, confirming the value opportunity for investors, even as earnings pressures diminish the usefulness of price-to-earnings ratios.
- Investment Return Potential: A $1,000 investment allows investors to purchase approximately 26 shares of General Mills or 45 shares of Hormel, locking in high yields and demonstrating that these companies can still reward income investors during economic fluctuations.
See More
Analyzing Investment Prospects for Campbell's Company Stock
- Stock Price and Valuation: As of March 24, Campbell's shares were trading at $20.91, with a trailing P/E of 11.46 and a forward P/E of 9.01, indicating a discounted valuation despite a 5.8% dividend yield and a payout ratio below 80%.
- Brand Portfolio Strength: The company boasts a robust brand portfolio, including staple soups and well-known snack brands like Pepperidge Farm and Goldfish, and while consumer preferences are shifting towards healthier options, the demand for convenient meals and snacks remains strong, supporting the resilience of its core categories.
- Sales Growth Trend: Campbell's has achieved approximately 21% cumulative sales growth since 2021, and despite recent margin pressures, its stable cash flow and brand equity provide a foundation for future growth, suggesting that the market's pessimism regarding its long-term prospects may be overstated.
- Industry Performance Comparison: Within the packaged food sector, Campbell's has underperformed, with its stock price depreciating by about 44.90% since our last coverage due to weak snack demand and inflationary pressures, yet its compressed valuation amidst sector-wide pessimism may still present an attractive opportunity for investors.
See More
Dividend Stability: Reasons These Leaders Remain Secure Following a Turbulent Q1
Dividend Stocks Resilience: Dividend stocks are highlighted for their reliability during choppy market conditions, with companies that have consistently increased their dividends over the past 50 years being termed "dividend kings." These stocks provide a stable income source for investors, especially in uncertain economic times.
Procter & Gamble's Performance: Procter & Gamble (P&G) is noted for its strong financial health, boasting a significant cash reserve and a history of consistent dividend increases. The company has managed to grow its dividends even amidst inflation and market pressures, showcasing its resilience and stability.
Colgate-Palmolive's Growth: Colgate-Palmolive is recognized for its global market presence and consistent revenue growth, particularly in consumer staples. The company has diversified its revenue streams and maintained a strong dividend increase record, making it a solid investment choice.
Hormel Foods' Consistency: Hormel Foods is praised for its steady income from everyday demand products, with a strong portfolio of well-known brands. Despite market volatility, Hormel has continued to increase its dividends, reflecting its robust financial position and commitment to shareholder returns.
See More
Hormel Foods Appoints New VP of Food Safety
- Leadership Transition: Hormel Foods Corporation announced that Richard Carlson, Vice President of Global Food Safety and Quality Management, will retire on May 1, 2026, after a 35-year career, with Jeremiah Johnson, a 20-year veteran, succeeding him.
- Food Safety Strategy: Johnson will oversee all company quality, regulatory, and food safety activities, and is expected to enhance food safety standards and strengthen consumer trust through his deep expertise in food safety and quality management.
- Leadership Capability: Johnson has played a crucial role in key initiatives to strengthen food safety systems within the company, and his ability to lead cross-functional teams and drive continuous improvement is anticipated to positively impact the company's competitive position in the market.
- Company Background: Hormel Foods generates over $12 billion in annual revenue and boasts a portfolio of well-known brands, having received numerous accolades for corporate responsibility and community service, underscoring its leadership and commitment in the food industry.
See More
Hormel Foods Appoints New VP of Food Safety
- Leadership Transition: Hormel Foods Corporation announced that Richard Carlson, Vice President of Global Food Safety and Quality Management, will retire after 35 years, with Jeremiah Johnson set to succeed him on May 1, 2026, ensuring continued leadership in food safety.
- Experienced Successor: Johnson, who joined the company in 2005, has held various quality management roles and possesses deep expertise in food safety and regulatory affairs, positioning him to effectively elevate the company's food safety standards.
- Strategic Importance: During Carlson's tenure, he led critical food safety initiatives that helped expand into new product categories, and Johnson's succession is expected to further strengthen consumer trust in Hormel's brands, maintaining the company's competitive edge in a challenging market.
- Company Overview: Hormel Foods generates over $12 billion in annual revenue and boasts a portfolio of well-known brands, demonstrating a strong commitment to corporate responsibility and community service, which underscores its robust market position and social accountability.
See More
Multiple Companies Announce Quarterly Dividend Plans
- Concentrix Dividend Announcement: Concentrix's Board declared a quarterly dividend of $0.36 per share, payable on May 5, 2026, to shareholders of record as of April 24, 2026, demonstrating the company's commitment to shareholder returns.
- Columbus McKinnon Dividend Decision: Columbus McKinnon's Board approved a quarterly dividend of $0.07 per common share, expected to be paid on May 11, 2026, to shareholders of record as of May 1, 2026, reflecting the company's stable financial performance in intelligent motion solutions.
- Buckle Dividend Authorization: At its March 23, 2026, meeting, Buckle's Board authorized a quarterly dividend of $0.35 per share, set to be paid on April 29, 2026, to shareholders of record as of April 15, 2026, indicating robust operations in the retail market.
- Millrose Properties Dividend Declaration: Millrose Properties announced a quarterly cash dividend of approximately $126.2 million, or $0.76 per share, to be paid on April 15, 2026, to shareholders of record as of April 3, 2026, showcasing strong cash flow in the residential market.
See More
Consumers Tighten Budgets, Food Stocks Under Pressure
- Attractive Dividend Yields: Hormel Foods and General Mills offer dividend yields of 5.2% and 6.5%, respectively, indicating their appeal to investors seeking stable income despite earnings pressures.
- Brand Refresh Strategies: Hormel focuses on protein products to counter the impact of GLP-1 drugs, while General Mills actively adjusts its brand portfolio by selling stagnant brands like Hamburger Helper to align with changing consumer preferences.
- Market Value Opportunity: Both companies have price-to-sales and price-to-book ratios below their five-year averages, confirming the value opportunity for investors, even as earnings pressures diminish the usefulness of price-to-earnings ratios.
- Investment Return Potential: A $1,000 investment allows investors to purchase approximately 26 shares of General Mills or 45 shares of Hormel, locking in high yields and demonstrating that these companies can still reward income investors during economic fluctuations.
See More
