Hormel Foods Sells Turkey Business to Life-Science Innovations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy HRL?
Source: PRnewswire
- Strategic Shift: Hormel Foods Corporation has announced the sale of its whole-bird turkey business to Life-Science Innovations (LSI), with the transaction expected to close by the end of the second quarter of fiscal 2026, aiming to reduce reliance on volatile commodity-driven businesses and pivot towards more value-added protein offerings.
- Asset Transfer: LSI will acquire Hormel's Melrose whole-bird production facility, Swanville feed mill, and associated transportation assets, while also assuming supply contracts with third-party turkey growers, ensuring uninterrupted customer order fulfillment during the transition, highlighting a commitment to customer service.
- Brand Impact: The transaction will not affect Hormel's JENNIE-O® brand or its broader product lineup, as Hormel continues to focus on enhancing the value-added aspects of its JENNIE-O® business, ensuring long-term growth potential for the brand.
- Financial Outlook: Although financial details of the transaction have not been disclosed, Hormel expects the sale to have a minimal impact on its adjusted fiscal 2026 financial results, with further details to be discussed during the first quarter earnings call on February 26, 2026.
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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: 23.780
Low
26.00
Averages
27.40
High
30.00
Current: 23.780
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.
Hormel Foods Announces Q1 2026 Preliminary Results and Business Sale
- Sales Growth Expectation: Hormel Foods anticipates approximately $3 billion in net sales for Q1 2026, reflecting a 2% increase compared to Q1 2025, marking the company's fifth consecutive quarter of organic sales growth, indicating stable market demand and ongoing business growth potential.
- Earnings Per Share Forecast: The company expects a diluted EPS of $0.33 and an adjusted diluted EPS of $0.34 for the first quarter, demonstrating effective cost control and profitability measures that lay a solid foundation for future financial performance.
- Business Restructuring Progress: Hormel Foods announced a definitive agreement to sell its whole-bird turkey business to Life-Science Innovations, with the transaction expected to close by the end of Q2 2026, aimed at optimizing its product portfolio and focusing resources on higher-growth potential areas.
- Investor Conference Arrangement: The company will reaffirm its fiscal 2026 organic sales and adjusted EPS guidance at the 2026 CAGNY conference, discussing key initiatives for success, thereby enhancing investor confidence in the company's future growth trajectory.
See More
Hormel Foods Sells Turkey Business to Life-Science Innovations
- Strategic Shift: Hormel Foods Corporation has announced the sale of its whole-bird turkey business to Life-Science Innovations (LSI), with the transaction expected to close by the end of the second quarter of fiscal 2026, aiming to reduce reliance on volatile commodity-driven businesses and pivot towards more value-added protein offerings.
- Asset Transfer: LSI will acquire Hormel's Melrose whole-bird production facility, Swanville feed mill, and associated transportation assets, while also assuming supply contracts with third-party turkey growers, ensuring uninterrupted customer order fulfillment during the transition, highlighting a commitment to customer service.
- Brand Impact: The transaction will not affect Hormel's JENNIE-O® brand or its broader product lineup, as Hormel continues to focus on enhancing the value-added aspects of its JENNIE-O® business, ensuring long-term growth potential for the brand.
- Financial Outlook: Although financial details of the transaction have not been disclosed, Hormel expects the sale to have a minimal impact on its adjusted fiscal 2026 financial results, with further details to be discussed during the first quarter earnings call on February 26, 2026.
See More
Hormel Foods Projects Q1 2026 Sales of $3 Billion with Strategic Business Sale
- Sales Expectations: Hormel Foods anticipates approximately $3 billion in net sales for Q1 2026, reflecting a 2% organic growth compared to Q1 2025, marking the company's fifth consecutive quarter of organic sales growth, which underscores its resilience and stable market demand.
- Earnings Projections: The company expects diluted earnings per share of $0.33 and adjusted diluted EPS of $0.34 for the first quarter, aligning with its confidence in future profitability and reflecting ongoing efforts in cost control and operational efficiency.
- Business Restructuring: Hormel Foods announced a definitive agreement to sell its whole-bird turkey business to Life-Science Innovations, with the transaction expected to close by the end of Q2 2026, aimed at optimizing its product portfolio and focusing resources on higher-growth potential areas.
- Investor Presentation: The company will reaffirm its fiscal 2026 organic sales and adjusted EPS guidance at the 2026 CAGNY conference, showcasing its unique position in the food industry and strategic plans to achieve long-term growth objectives.
See More
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- Market Overview: Stock futures experienced a decline on Tuesday.
- Investor Behavior: Investors are continuing to sell off tech stocks.
- Trend Continuation: The selloff in tech stocks is part of a recent trend.
- Market Sentiment: Overall investor sentiment appears to be negative.
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Tech Stocks Volatility Rises, Strong Dividend Stocks Preferred
- Increased Market Volatility: Large-cap tech stocks have reached near 25-year high valuations after a three-year bull market, prompting market watchers to warn of a potential correction, necessitating investors to prepare for possible volatility.
- Recommended Strong Stocks: Hormel and McCormick, as consumer staples companies, have historically outperformed during market downturns, with Hormel boasting a 59-year streak of dividend increases and a current yield of 4.69%.
- Stable Dividend Yields: Despite Hormel and McCormick posting negative returns over the past one and five years, their dividends remain robust, with McCormick achieving 39 consecutive years of dividend growth and a yield of 2.85%.
- Analysts Favorable Outlook: Hormel has a price target of $27.50, suggesting a 12% upside, while McCormick's target is $73, indicating an expected 8% return over the next 12 months, making them suitable for providing stable income and protection in a volatile market.
See More
Quality Dividend Stocks Amid Market Volatility
- Dividend Stock Performance: Both Hormel and McCormick have historically outperformed during economic downturns, with Hormel exceeding the S&P 500 since 2008 in years of negative or minimal returns, demonstrating resilience amid market volatility.
- Dividend Growth History: Hormel, known as a 'Dividend King', has increased its dividend for 59 consecutive years with a current yield of 4.69%, while McCormick boasts 39 years of dividend increases at a yield of 2.85%, providing investors with a reliable income stream.
- Future Growth Potential: Analysts set a median price target of $27.50 for Hormel, suggesting a 12% upside, while McCormick's target is $73, indicating an expected 8% return over the next 12 months, highlighting their investment appeal.
- Market Environment Impact: With increasing volatility expected in 2026, these dividend stocks may offer stable income and downside protection for growth-oriented portfolios, although Hormel was not included in the latest Motley Fool recommendations, its long-term performance remains noteworthy.
See More
Hormel Foods Announces Q1 2026 Preliminary Results and Business Sale
- Sales Growth Expectation: Hormel Foods anticipates approximately $3 billion in net sales for Q1 2026, reflecting a 2% increase compared to Q1 2025, marking the company's fifth consecutive quarter of organic sales growth, indicating stable market demand and ongoing business growth potential.
- Earnings Per Share Forecast: The company expects a diluted EPS of $0.33 and an adjusted diluted EPS of $0.34 for the first quarter, demonstrating effective cost control and profitability measures that lay a solid foundation for future financial performance.
- Business Restructuring Progress: Hormel Foods announced a definitive agreement to sell its whole-bird turkey business to Life-Science Innovations, with the transaction expected to close by the end of Q2 2026, aimed at optimizing its product portfolio and focusing resources on higher-growth potential areas.
- Investor Conference Arrangement: The company will reaffirm its fiscal 2026 organic sales and adjusted EPS guidance at the 2026 CAGNY conference, discussing key initiatives for success, thereby enhancing investor confidence in the company's future growth trajectory.
See More
Hormel Foods Sells Turkey Business to Life-Science Innovations
- Strategic Shift: Hormel Foods Corporation has announced the sale of its whole-bird turkey business to Life-Science Innovations (LSI), with the transaction expected to close by the end of the second quarter of fiscal 2026, aiming to reduce reliance on volatile commodity-driven businesses and pivot towards more value-added protein offerings.
- Asset Transfer: LSI will acquire Hormel's Melrose whole-bird production facility, Swanville feed mill, and associated transportation assets, while also assuming supply contracts with third-party turkey growers, ensuring uninterrupted customer order fulfillment during the transition, highlighting a commitment to customer service.
- Brand Impact: The transaction will not affect Hormel's JENNIE-O® brand or its broader product lineup, as Hormel continues to focus on enhancing the value-added aspects of its JENNIE-O® business, ensuring long-term growth potential for the brand.
- Financial Outlook: Although financial details of the transaction have not been disclosed, Hormel expects the sale to have a minimal impact on its adjusted fiscal 2026 financial results, with further details to be discussed during the first quarter earnings call on February 26, 2026.
See More
Hormel Foods Projects Q1 2026 Sales of $3 Billion with Strategic Business Sale
- Sales Expectations: Hormel Foods anticipates approximately $3 billion in net sales for Q1 2026, reflecting a 2% organic growth compared to Q1 2025, marking the company's fifth consecutive quarter of organic sales growth, which underscores its resilience and stable market demand.
- Earnings Projections: The company expects diluted earnings per share of $0.33 and adjusted diluted EPS of $0.34 for the first quarter, aligning with its confidence in future profitability and reflecting ongoing efforts in cost control and operational efficiency.
- Business Restructuring: Hormel Foods announced a definitive agreement to sell its whole-bird turkey business to Life-Science Innovations, with the transaction expected to close by the end of Q2 2026, aimed at optimizing its product portfolio and focusing resources on higher-growth potential areas.
- Investor Presentation: The company will reaffirm its fiscal 2026 organic sales and adjusted EPS guidance at the 2026 CAGNY conference, showcasing its unique position in the food industry and strategic plans to achieve long-term growth objectives.
See More
Market Movers: Norwegian Cruise Line, Masimo, Paramount Skydance, Infosys, ZIM, and Others
- Market Overview: Stock futures experienced a decline on Tuesday.
- Investor Behavior: Investors are continuing to sell off tech stocks.
- Trend Continuation: The selloff in tech stocks is part of a recent trend.
- Market Sentiment: Overall investor sentiment appears to be negative.
See More
Tech Stocks Volatility Rises, Strong Dividend Stocks Preferred
- Increased Market Volatility: Large-cap tech stocks have reached near 25-year high valuations after a three-year bull market, prompting market watchers to warn of a potential correction, necessitating investors to prepare for possible volatility.
- Recommended Strong Stocks: Hormel and McCormick, as consumer staples companies, have historically outperformed during market downturns, with Hormel boasting a 59-year streak of dividend increases and a current yield of 4.69%.
- Stable Dividend Yields: Despite Hormel and McCormick posting negative returns over the past one and five years, their dividends remain robust, with McCormick achieving 39 consecutive years of dividend growth and a yield of 2.85%.
- Analysts Favorable Outlook: Hormel has a price target of $27.50, suggesting a 12% upside, while McCormick's target is $73, indicating an expected 8% return over the next 12 months, making them suitable for providing stable income and protection in a volatile market.
See More
Quality Dividend Stocks Amid Market Volatility
- Dividend Stock Performance: Both Hormel and McCormick have historically outperformed during economic downturns, with Hormel exceeding the S&P 500 since 2008 in years of negative or minimal returns, demonstrating resilience amid market volatility.
- Dividend Growth History: Hormel, known as a 'Dividend King', has increased its dividend for 59 consecutive years with a current yield of 4.69%, while McCormick boasts 39 years of dividend increases at a yield of 2.85%, providing investors with a reliable income stream.
- Future Growth Potential: Analysts set a median price target of $27.50 for Hormel, suggesting a 12% upside, while McCormick's target is $73, indicating an expected 8% return over the next 12 months, highlighting their investment appeal.
- Market Environment Impact: With increasing volatility expected in 2026, these dividend stocks may offer stable income and downside protection for growth-oriented portfolios, although Hormel was not included in the latest Motley Fool recommendations, its long-term performance remains noteworthy.
See More
