We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hormel Foods International Sales: Still a Growth Engine?
Read MoreHide Full Article
Key Takeaways
HRL's international segment posted mixed Q4 2025 results, with net sales down 6% year over year.
HRL posted volume and net sales growth in select markets, led by strength in SPAM and refrigerated products.
Hormel Foods saw profitability pressured by Brazil softness and higher input costs.
Hormel Foods Corporation’s (HRL - Free Report) international business remains an important part of its growth. However, in the fourth quarter of fiscal 2025, the International segment delivered mixed results. Although International net sales fell 6% year over year, the performance varied widely by region and product, shaping the segment’s overall direction.
Despite the downturn, not all regions underperformed. China remained a notable area of strength, with management pointing to ongoing volume and net sales growth for SPAM luncheon meat and refrigerated products. This performance reflects sustained brand relevance and growing demand for convenient protein options in urban markets, reinforcing China’s role as a long-term demand driver within Hormel Foods’ international portfolio.
However, these gains were more than offset by weakness elsewhere. Fresh pork exports declined meaningfully, reflecting both market softness and trade-related pressures. In Brazil, competitive intensity weighed on volumes and pricing, limiting HRL’s ability to translate brand strength into top-line expansion. As a result, the International segment’s volumes fell 8% in the quarter, reflecting the sensitivity of HRL’s overseas business to regional market dynamics. Profitability trends further complicated the picture. On an adjusted basis, profitability declined due to elevated commodity input costs and ongoing softness in Brazil.
Overall, Hormel Foods’ international operations continue to present targeted growth opportunities alongside near-term challenges. While performance remains highly market-specific, the company’s established brands, particularly in higher-growth regions like China, provide a foundation for longer-term expansion.
Shares of this Zacks Rank #2 (Buy) company have gained 1.8% in the past month compared with the broader Consumer Staples sector and the S&P 500 index’s growth of 2% and 1.1%, respectively. HRL has outperformed the industry’s decline of 0.3% during the same period.
HRL Stock's Past Month Performance
Image Source: Zacks Investment Research
Is Hormel Foods a Value Play Stock?
Hormel Foods currently trades at a forward 12-month P/E ratio of 16.52 compared with the industry average of 12.98. This valuation places the stock at a premium relative to peers, indicating broader market expectations around its business stability and ability to navigate current cost and demand dynamics.
HRL Valuation Picture
Image Source: Zacks Investment Research
Other Stocks to Consider
United Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for United Natural’s current fiscal-year sales and earnings implies growth of 1.4% and 197.2%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 52.1%, on average.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA sports a Zacks Rank of 1. Mama's Creations delivered a trailing four-quarter earnings surprise of 133.3%, on average.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago figures.
McCormick & Company, Incorporated (MKC - Free Report) manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the food industry. It holds a Zacks Rank #2 at present. McCormick delivered a trailing four-quarter earnings surprise of 2.2%, on average.
The Zacks Consensus Estimate for McCormick’s current fiscal-year sales and earnings implies growth of 1.6% and 2.4%, respectively, from the year-ago figures.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Hormel Foods International Sales: Still a Growth Engine?
Key Takeaways
Hormel Foods Corporation’s (HRL - Free Report) international business remains an important part of its growth. However, in the fourth quarter of fiscal 2025, the International segment delivered mixed results. Although International net sales fell 6% year over year, the performance varied widely by region and product, shaping the segment’s overall direction.
Despite the downturn, not all regions underperformed. China remained a notable area of strength, with management pointing to ongoing volume and net sales growth for SPAM luncheon meat and refrigerated products. This performance reflects sustained brand relevance and growing demand for convenient protein options in urban markets, reinforcing China’s role as a long-term demand driver within Hormel Foods’ international portfolio.
However, these gains were more than offset by weakness elsewhere. Fresh pork exports declined meaningfully, reflecting both market softness and trade-related pressures. In Brazil, competitive intensity weighed on volumes and pricing, limiting HRL’s ability to translate brand strength into top-line expansion. As a result, the International segment’s volumes fell 8% in the quarter, reflecting the sensitivity of HRL’s overseas business to regional market dynamics. Profitability trends further complicated the picture. On an adjusted basis, profitability declined due to elevated commodity input costs and ongoing softness in Brazil.
Overall, Hormel Foods’ international operations continue to present targeted growth opportunities alongside near-term challenges. While performance remains highly market-specific, the company’s established brands, particularly in higher-growth regions like China, provide a foundation for longer-term expansion.
Hormel Foods’ Zacks Rank & Share Price Performance
Shares of this Zacks Rank #2 (Buy) company have gained 1.8% in the past month compared with the broader Consumer Staples sector and the S&P 500 index’s growth of 2% and 1.1%, respectively. HRL has outperformed the industry’s decline of 0.3% during the same period.
HRL Stock's Past Month Performance
Image Source: Zacks Investment Research
Is Hormel Foods a Value Play Stock?
Hormel Foods currently trades at a forward 12-month P/E ratio of 16.52 compared with the industry average of 12.98. This valuation places the stock at a premium relative to peers, indicating broader market expectations around its business stability and ability to navigate current cost and demand dynamics.
HRL Valuation Picture
Image Source: Zacks Investment Research
Other Stocks to Consider
United Natural Foods, Inc. (UNFI - Free Report) distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for United Natural’s current fiscal-year sales and earnings implies growth of 1.4% and 197.2%, respectively, from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 52.1%, on average.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA sports a Zacks Rank of 1. Mama's Creations delivered a trailing four-quarter earnings surprise of 133.3%, on average.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago figures.
McCormick & Company, Incorporated (MKC - Free Report) manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the food industry. It holds a Zacks Rank #2 at present. McCormick delivered a trailing four-quarter earnings surprise of 2.2%, on average.
The Zacks Consensus Estimate for McCormick’s current fiscal-year sales and earnings implies growth of 1.6% and 2.4%, respectively, from the year-ago figures.