New York, May 28, 2026, 08:49 EDT
Hormel Foods (HRL.N) shares jumped before the bell Thursday after the Skippy and Spam maker beat Wall Street’s quarterly sales and profit estimates, helped by demand for chicken, turkey and other protein-heavy foods. The shares were quoted 6.8% higher at $22.39 in premarket trading, before the NYSE’s 9:30 a.m. ET core open.
The timing matters. Packaged-food investors have been looking for proof that branded staples can still grow while U.S. shoppers watch budgets, eat more meals at home and push back on higher prices. Reuters said inflation and tariff volatility have supported at-home cooking, while high-protein diets helped demand for Hormel’s meats and snacks.
Hormel reported fiscal second-quarter net sales of $2.97 billion for the period ended April 26, above the $2.95 billion average analyst estimate compiled by LSEG. Adjusted earnings, a profit measure that excludes certain items, came in at 40 cents a share, ahead of the 36 cents analysts expected.
The company said organic net sales rose 3%. Organic net sales are a non-GAAP measure, meaning they are not calculated under standard U.S. accounting rules; Hormel said the measure was used to help compare current and past operations and excluded the impact of the Justin’s divestiture.
The operating picture was better than the headline profit line. Segment profit rose 13% in retail, 11% in foodservice and 20% internationally, while foodservice sales rose 6% and international sales rose 4%. Retail sales were flat, not strong, but profit still improved.
Interim CEO Jeff Ettinger called it an “excellent quarter.” President John Ghingo pointed to “broad-based strength” across the business, with Hormel citing Jennie-O ground turkey, Applegate, Herdez, Black Label bacon, premium prepared proteins and Spam exports among the stronger spots. PR Newswire
Hormel reaffirmed its fiscal 2026 sales forecast of $12.2 billion to $12.5 billion and kept its adjusted earnings-per-share outlook at $1.43 to $1.51. It cut its GAAP EPS view to $1.28 to $1.37 from $1.37 to $1.46, reflecting the loss tied to the sale of its whole-bird turkey business.
That sale is part of the bigger turn. Hormel said the divestiture should reduce fiscal 2026 reported net sales by about $50 million but have minimal impact on adjusted EPS, as the company shifts away from more volatile commodity-driven operations and leans into value-added protein.
The protein read also gives investors a line to Tyson Foods (TSN.N), a larger meat peer. Reuters reported Thursday that Tyson had recently raised its income forecast as stronger chicken sales helped offset beef weakness, a similar signal that the better parts of U.S. food portfolios are tied to affordable protein.
But the quarter did not erase the risk case. Retail volume still fell 2%, operating margin narrowed to 7.3% from 8.6% a year earlier, and Hormel said logistics inflation partly offset retail gains. The company also flagged commodity costs, demand shifts, trade policy and tariffs as risks that could push future results away from its outlook.
The next test comes on Hormel’s 9 a.m. ET earnings call. Investors will listen for whether pricing, lower administrative costs and better turkey manufacturing can keep margins moving after the first premarket reaction fades.
