Hormel's Earnings Prove Why It's Better Than Its Rivals

About: Hormel Foods Corporation (HRL), Includes: CAG, GIS, HSY, K, KHC, PEP


Ian Bezek, Seeking Alpha

Mar. 13, 2019




         Hormel has continued to avoid the sickness that has hit so many food stocks.


         The collapse of Kraft Heinz should serve as a reminder of why you need to take debt seriously.


         As such, Hormel's debt-free balance sheet looks better than ever.


         Hormel's small repeatable M&A strategy is working far better than the blockbuster deals that its peers are going for.


         Hormel stock may look expensive, but it's worth that premium as the events of the past few years are demonstrating now.


There have been some questions and concerns about how well Hormel Foods (HRL) can do going forward. Given the carnage at Kraft Heinz (KHC), which is only the latest in a dour series of developments for the sector and it's no surprise that people are concerned. A recent Barron's article reinforced this idea recently by lumping Hormel in with struggling food companies. Seeking Alpha's news blurb covering the article stated that:


The publication warns that the big share price drop in food stocks doesn't necessarily make them appetizing. The steady growth of the old days for Hershey Foods (HSY), Hormel Foods, Kellogg (K), General Mills (GIS), and Campbell Soup (CPB) has been disrupted by "profound, durable" changes in how consumers buy food.


Let's take a look at those five stocks and how they've performed since the financial crisis... [chart]


As you can see, Hormel has crushed the field, driven by strong organic growth for several of its brands combined with smart bite-sized acquisitions...






Jennie-O makes some executive changes


By Tribune News

via Agweek - Mar 13, 2019


WILLMAR There are some changes being made at the executive level at Jennie-O Turkey Store.


Pat Solheid, the vice president of human resources and administration, will retire from the company at the end of May. She started with Jerome Foods in Faribault in 1986 as the human resources manager. In 1993, she transferred to Barron, Wisconsin, and was promoted to director of human resources in 1995. With the merger of Jennie-O and The Turkey Store Company in 2001, she became the director of employee relations and transferred to the Willmar corporate office in 2002. In 2005, she was promoted to her current position.


Taking over as the vice president of human resources and administration will be Melanie Faust, the current vice president of operations. Faust has worked for Jennie-O Turkey Store since 2017. She came from parent company Hormel Foods as the director of operations in China for Hormel Foods International Corporation. She started with Hormel Foods in 1995.


Matt Schrupp will take over as the vice president of operations...