HORMEL FOODS CORP /DE/

Hormel Foods Corporation announced a definitive agreement to acquire Brakebush Brothers, LLC, a leading value-added chicken company, for approximately $1.055 billion in cash. The acquisition is expected to strengthen Hormel Foods' position in the growing protein category and enhance its foodservice capabilities. The transaction is anticipated to close in the first quarter of Hormel Foods' fiscal year 2027, pending customary closing conditions and regulatory approvals. Brakebush generated approximately $1.2 billion in net sales over the last 12 months and operates five production facilities. Hormel Foods expects the acquisition to be accretive to adjusted earnings per share beginning in fiscal 2028 and anticipates run-rate cost synergies of approximately $20 million by the end of fiscal 2028.

Hormel Foods Corporation announced the appointment of John F. Ghingo as its new President and Chief Executive Officer, effective October 26, 2026. Mr. Ghingo, currently the Company's President, will also continue to serve on the Board. Jeffrey M. Ettinger's service as Interim Chief Executive Officer will conclude on October 25, 2026. In connection with his new role, Mr. Ghingo's annual base salary will be $1.28 million, with a target annual short-term incentive of 150% of his base salary and an annual long-term incentive target of $6.8 million.

Hormel Foods Corporation announced that Swen Neufeldt, Group Vice President, International, will begin an international assignment in Singapore with Hormel Foods Asia Pacific Pte. Ltd. starting around July 27, 2026, for an indefinite term. He will continue in his current role and receive his base salary of $526,400, a cost-of-living adjustment of $56,103, and various relocation and housing benefits. The assignment includes a $20,000 special relocation payment and an annual housing allowance of $90,566.

Hormel Foods reported second-quarter net sales of $2.97 billion, an increase from the prior year, but net earnings attributable to the company decreased to $157.5 million, or $0.29 per diluted share. For the six months, net sales rose to $6.00 billion, while net earnings declined to $339.3 million, or $0.62 per diluted share. The company completed the sale of its whole-bird turkey business and a majority stake in Justin's, LLC, impacting results and strategic focus.

Hormel Foods Corporation reported strong second quarter fiscal 2026 results, achieving its sixth consecutive quarter of organic top-line growth. The company delivered GAAP diluted EPS of $0.29 and double-digit growth in adjusted diluted EPS to $0.40. Hormel Foods reaffirmed its full-year net sales and adjusted diluted EPS guidance, reflecting confidence in its performance, and completed the strategic divestment of its whole-bird turkey business.