Hormel Foods (HRL) Oppenheimer's 24th Annual Virtual Consumer Growth and E-Commerce Conference summary

Consumer trends and business environment

• Consumer resilience remains strong across income levels, with inflation and SNAP declines as headwinds but a robust job market and moderating inflation as tailwinds.

• Portfolio diversity across retail, foodservice, and international channels supports optimism for future growth.

• Retail and foodservice businesses are positioned to capture shifts in consumer behavior, with foodservice showing consistent performance.

Revenue, volume, and retail performance

• Full-year revenue guidance expects growth, with the low end of the range most likely; foodservice and international projected for high single-digit H2 growth.

• Retail performance is nuanced, with flagship brands offsetting whole bird turkey declines, while Planters disruption is a new challenge.

• Volume trends are stable year over year, with mid-single digit growth expected in foodservice and international recovery underway.

Turkey business and headwinds

• Whole bird turkey market remains weak due to oversupply, impacting results but fully accounted for in guidance.

• Growth continues in ground turkey and value-added turkey products, with efforts to regain lost business as supply normalizes.

• Uncertainty remains for whole bird headwinds into next fiscal year.