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Can Hormel Foods' Protein Portfolio Win Over Value-Seeking Consumers?
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Key Takeaways
HRL's Jennie-O ground turkey and Applegate brands posted sales growth on demand for protein-rich products.
HRL saw mid to high-single-digit consumption growth in Jennie-O ground turkey and Hormel entrees.
Foodservice delivered 12th straight quarter of organic sales growth, led by premium proteins and pepperoni.
Hormel Foods Corp. (HRL - Free Report) highlighted that its protein-centric portfolio is well positioned to address evolving consumer needs across breakfast, lunch, dinner, snacking and convenience, while offering value and affordability. As consumers become increasingly deliberate and value-focused in their choices, the company is focused on evolving its portfolio to ensure it has the right offerings, messaging, point of purchase, pack and price. This effort reflects the company’s focus on evolving its portfolio in response to changing consumer preferences and value considerations.
Hormel Foods’ protein-centric portfolio continued to show marketplace momentum across several priority Retail brands. Jennie-O ground turkey and Applegate both posted sales growth, supported by continued demand for protein-rich products. Jennie-O ground turkey and Hormel entrées also recorded mid- to high-single-digit consumption growth. Consumption also grew across Applegate, the center-store canned portfolio, HERDEZ, Hormel Black Label Bacon and Planters, with management noting strong consumption momentum across several priority Retail businesses.
Foodservice delivered its 12th consecutive quarter of organic net sales growth, continuing to outperform an industry facing softer traffic trends and ongoing macro pressure. Growth remained broad-based across channels, customers and product platforms, reflecting the breadth of the portfolio and strength of its category positions. Premium prepared proteins and branded pepperoni were particularly strong contributors, supported by operator demand for differentiated, value-added solutions.
Overall, Hormel Foods’ protein-focused portfolio is being positioned around affordability, convenience and versatility across a broad range of consumption occasions. Momentum across several priority Retail brands, together with continued Foodservice growth, highlights the breadth of the portfolio as the company responds to evolving consumer preferences.
The Zacks Rundown for HRL
The company’s shares have lost 13.9% in the past three months compared with the industry’s 18.3% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, HRL trades at a forward price-to-earnings ratio of 12.92, higher than the industry’s average of 12.83. HRL currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HRL’s current and next fiscal year earnings implies a year-over-year increase of 8.8% and 3.6%, respectively.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
The Chef’s Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. CHEF currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CHEF’s current fiscal-year sales and earnings indicates growth of 10.6% and 33.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Medifast, Inc. (MED - Free Report) operates as a health and wellness company that provides habit-based and coach-guided lifestyle solutions to address obesity and support a healthy life in the United States. MED currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for MED's current fiscal-year sales and earnings implies a decline of 27.3% and 26.8%, respectively, from the year-ago actuals. MED delivered a trailing four-quarter negative earnings surprise of 462.2%, on average.
Utz Brands, Inc. (UTZ - Free Report) , together with its subsidiaries, markets, sells and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. UTZ currently carries a Zacks Rank 2.
The Zacks Consensus Estimate for UTZ’s current fiscal-year sales implies growth of 3.7%, and the same for earnings implies a decline of 2.4% from the year-ago actuals. UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average.
View the Zacks #1 Rank List
Image: Bigstock
Can Hormel Foods' Protein Portfolio Win Over Value-Seeking Consumers?
Key Takeaways
Hormel Foods Corp. (HRL - Free Report) highlighted that its protein-centric portfolio is well positioned to address evolving consumer needs across breakfast, lunch, dinner, snacking and convenience, while offering value and affordability. As consumers become increasingly deliberate and value-focused in their choices, the company is focused on evolving its portfolio to ensure it has the right offerings, messaging, point of purchase, pack and price. This effort reflects the company’s focus on evolving its portfolio in response to changing consumer preferences and value considerations.
Hormel Foods’ protein-centric portfolio continued to show marketplace momentum across several priority Retail brands. Jennie-O ground turkey and Applegate both posted sales growth, supported by continued demand for protein-rich products. Jennie-O ground turkey and Hormel entrées also recorded mid- to high-single-digit consumption growth. Consumption also grew across Applegate, the center-store canned portfolio, HERDEZ, Hormel Black Label Bacon and Planters, with management noting strong consumption momentum across several priority Retail businesses.
Foodservice delivered its 12th consecutive quarter of organic net sales growth, continuing to outperform an industry facing softer traffic trends and ongoing macro pressure. Growth remained broad-based across channels, customers and product platforms, reflecting the breadth of the portfolio and strength of its category positions. Premium prepared proteins and branded pepperoni were particularly strong contributors, supported by operator demand for differentiated, value-added solutions.
Overall, Hormel Foods’ protein-focused portfolio is being positioned around affordability, convenience and versatility across a broad range of consumption occasions. Momentum across several priority Retail brands, together with continued Foodservice growth, highlights the breadth of the portfolio as the company responds to evolving consumer preferences.
The Zacks Rundown for HRL
The company’s shares have lost 13.9% in the past three months compared with the industry’s 18.3% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, HRL trades at a forward price-to-earnings ratio of 12.92, higher than the industry’s average of 12.83. HRL currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HRL’s current and next fiscal year earnings implies a year-over-year increase of 8.8% and 3.6%, respectively.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
The Chef’s Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. CHEF currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CHEF’s current fiscal-year sales and earnings indicates growth of 10.6% and 33.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Medifast, Inc. (MED - Free Report) operates as a health and wellness company that provides habit-based and coach-guided lifestyle solutions to address obesity and support a healthy life in the United States. MED currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for MED's current fiscal-year sales and earnings implies a decline of 27.3% and 26.8%, respectively, from the year-ago actuals. MED delivered a trailing four-quarter negative earnings surprise of 462.2%, on average.
Utz Brands, Inc. (UTZ - Free Report) , together with its subsidiaries, markets, sells and distributes fresh, frozen, and dry food and non-food products to foodservice customers in the United States. UTZ currently carries a Zacks Rank 2.
The Zacks Consensus Estimate for UTZ’s current fiscal-year sales implies growth of 3.7%, and the same for earnings implies a decline of 2.4% from the year-ago actuals. UTZ delivered a trailing four-quarter earnings surprise of 1.8%, on average.