In this file:
· Hormel Foods deceptive advertising lawsuit goes to trial
· Hormel: Inflationary Pressures Are Transient
Hormel Foods deceptive advertising lawsuit goes to trial
By Erica Shaffer, Supermarket Perimeter
WASHINGTON – The Animal Legal Defense Fund (ALDF) can pursue claims of false advertising against Hormel Foods Corp., the US Court of Appeals – DC Circuit ruled on Sept. 2. The latest ruling sends the lawsuit to trial.
The appeals court reversed a lower court ruling that the ALDF lacked standing to pursue the claims as required under the DC Consumer Protection Procedures Act (DCCPPA).
In its opinion, the court said, “The CPPA confers standing upon ‘public interest organization[s]’” bringing suit “on behalf of the interests of a consumer or a class of consumers,” so long as they have a “sufficient nexus” to “adequately represent those interests.” The court agreed that ALDF meets that statutory test.
The court also ruled that the ALDF’s claims are not preempted by federal meat and poultry labeling laws, because the federal laws address only labeling.
“…we conclude that federal labeling laws do not preempt ALDF’s claims, which attack only Hormel’s advertisements beyond its product labels (and not the labels themselves),” the court said. “We reverse the trial court’s judgment and remand for further proceedings.”
more, including links
Hormel: Inflationary Pressures Are Transient
Hormel Foods Corporation (HRL)
By Dividend Power
via Seeking Alpha - Sep. 08, 2021
· Hormel is facing inflationary pressures and labor shortages that are impacting margins and volumes.
· The company is acquiring Planters adding another $1+ billion brand and a growth platform in snacks and nuts. The business complements Skippy and Justin's nut butters.
· The company is a Dividend King, and the dividend yield is the highest in a decade. Dividend safety is still decent based on earnings, free cash flow, and debt.
· The food service business is recovering after a challenging 2020.
· The stock is fairly valued.
Hormel (HRL) is being hit with input inflation along with most other consumer defense food stocks. The company mentioned inflation 28 times in its most recent earnings transcript. Prices are rising for freight, labor, commodities, and other inputs. The company reduced earnings guidance as margins dropped considerably and consequently the stock price plunged. Hormel will raise prices, and this should restore margins. In the meantime, this may be an opportune time to buy Hormel. The dividend yield is the highest it has been in the past decade, the payout ratio is still acceptable suggesting that the dividend will continue to grow, and Hormel is a Dividend King. Furthermore, the Planters acquisition gives Hormel another leading product line adding to the company's portfolio of No. 1 and No. 2 products. Despite inflationary pressures and margin headwinds, I outline reasons why Hormel is a long-term buy.
Hormel Hit by Inflation and Labor Shortages ...
Hormel Has Market Leading Brands ...
Hormel Is Growing in Deli Meats and Food Service
Balance Sheet is Solid ...
Hormel Dividend Yield and Dividend Safety ...
Valuation of Hormel ...
Final Thoughts on Hormel ...
more, including links, charts