Hormel Foods misses quarterly profit estimates on higher input costs
(Reuters) - Skippy peanut butter maker Hormel Foods on Thursday missed first-quarter profit estimates, hurt by higher input costs and the persistent effects of a supply issue at its Planters brand's distribution facility from last year.
Hormel Foods, which sells snacking and packaged meat products, has also taken a hit due to lower whole turkey prices and increased advertising expenses.
The company has been struggling to boost demand for its turkey products as consumers preferred affordable meat alternatives such as beef and chicken amid high inflation.
Meanwhile, demand for certain packaged products suffered as the company kept the prices elevated to protect its margins from inflated input costs.
Hormel's Planters nut brand faced a supply disruption at its Suffolk, Virginia-based distribution facility due to an unspecified food safety issue last April, which continued to impact the company's margins in the first quarter.
"As anticipated, the first quarter was pressured as we continued to recover from the snack nuts supply disruption and lapped a full year of whole bird turkey market compression," CEO Jim Snee said.
The company's selling, general and administrative costs rose about 7% to $475.232 million in the quarter ended January 26 from a year ago.
Hormel earned 35 cents per share on an adjusted basis in the first quarter, missing analysts' average estimate of 38 cents, according to data compiled by LSEG.
Its first-quarter sales came in at $2.99 billion, compared with estimates of $2.94 billion.
The company reaffirmed its full-year adjusted earnings forecast of $1.58 to $1.72 per share.
It expects its annual net sales to be between $11.9 billion and $12.2 billion, as previously projected.
In contrast, larger peer Tyson Foods earlier this month raised its annual sales forecast on the back of strong demand for its beef and chicken products.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
9 minutes ago
- Yahoo
Serbian farmers vow to oppose Rio Tinto lithium project even after EU labels it strategic
GORNJE NEDELJICE, Serbia (Reuters) -Zlatko Kokanovic, a farmer from Serbia's Jadar region, is determined to stop development of a Rio Tinto lithium project, identified this week as strategic by the European Commission as it aims to cut dependency on China for mineral resources. Lithium is a key component in batteries for electric vehicles and mobile devices. The mine in the Jadar valley would eventually meet 90% of Europe's lithium needs should it go ahead. But like thousands of protesters, including many other farmers, who have sought to block development of the project in recent years, Kokanovic is worried about pollution of farmland in a region where a majority of people live off agriculture. "There are some things the money cannot buy," Kokanovic, a father of five children who is one of the largest milk producers in Gornje Nedeljice and a leading activist in the region, told Reuters. "I want to tell them (Rio Tinto) not to try to develop the mine or there will be unrest," he added. Rio Tinto has not given a start date for the project, which is expected to produce 58,000 metric tons of lithium carbonate annually, but has pledged to develop the mine cleanly. "The project will be delivered to the highest levels of transparency, to the highest levels of environmental protection and human rights standards," said Chad Blewitt, Rio Tinto's managing director for the Jadar project. "The European Union and European Commission never substitute, they never sacrifice those high standards." Blewitt had told Reuters on Wednesday that the company is revising the cost of the project. Rio Tinto's lithium project has been contested by green groups for years and sparked massive street protests in EU-candidate Serbia in 2022. In 2021 and 2022, Serbian environmentalists collected 30,000 signatures in a petition demanding that parliament enact legislation to halt lithium exploration in the country. The government revoked all Rio Tinto's exploration licences in 2022, before the Constitutional Court overturned the decision last year and reinstated them. Government officials say the mine will boost Serbia's economy. How protesters can stop a project that has domestic and international approval is unclear. But recent student protests in Serbia, where hundreds of thousands have taken to the streets and succeeded in collapsing the government, show the strength of civil society in the Balkan country. Kokanovic remains determined. 'My message to them is not to even try (to excavate lithium in Jadar), unless they want this government to be toppled fast."
Yahoo
9 minutes ago
- Yahoo
2 Michigan Hooters abruptly close. Are any left after latest closures?
Hooters is near the end of an era in Michigan — abrupt closures this week have left just one location open in the state. The sports bar and grill chain closed more than 30 locations across multiple states Wednesday, June 4, including two in Michigan, USA TODAY reported. The restaurants in Flint and Taylor were among the closings. A Saginaw location is Michigan's last one remaining restaurant. The move comes several months after the restaurant chain filed for bankruptcy in late March 2025, though it had said no locations would close at the time. Here's what to know. In Michigan, the Flint and Taylor Hooters closed June 4, USA TODAY reported, leaving just one Hooters location open in the state. The restaurant chain, known for its chicken wings and servers wearing orange shorts and low-cut tank tops, began in 1983 and expanded to 29 countries before its decline, closing numerous locations in recent years. The following Hooters in other states also closed, per USA TODAY: Sanford, Florida Orlando, Florida - Kirkman Road Kissimmee, Florida - Osceola Parkway Melbourne, Florida Atlanta, Georgia - Downtown Douglasville, Georgia Gwinnett, Georgia Valdosta, Georgia Greenwood, Indiana Rockford, Illinois Newport, Kentucky St. Louis, Missouri - Downtown Charlotte, North Carolina - South Boulevard Columbia, South Carolina Rock Hill, South Carolina Murfreesboro, Tennessee Memphis, Tennessee - Downtown Nashville, Tennessee - Harding Place Grapevine, Texas Houston, Texas San Marcos, Texas Hooters said in a statement to USA TODAY that the closed stores were company owned and called the closures a "difficult decision." "Hooters will be well-positioned to continue our iconic legacy under a pure franchise business model," the company said. "We are committed to supporting our impacted team members throughout this process and are incredibly grateful to our valued customers for their loyalty and dedication to the Hooters brand." The company did not respond to a followup inquiry on a list of closed locations or when employees were notified of the closures. There were 305 Hooters locations, including 151 owned and operated by the company itself and a separate 154 operated by franchisees. The company has been closing locations suddenly since at least 2024. The company filed for bankruptcy in late March 2025 amid financial challenges. The Atlanta-based restaurant chain was then $376 million in debt and looking to sell 151 of its corporate-owned restaurants to a buyer group comprised of two existing Hooters franchises. At the time, no locations were expected to close and Hooters said it would "continue providing customers with the guest-obsessed hospitality experience and delicious food they have come to expect over the past 40 years." The closures leave one Hooters open in Michigan, at 5538 Bay Road in Saginaw. USA TODAY contributed. Contact Jenna Prestininzi: jprestininzi@ This article originally appeared on Detroit Free Press: What to know as Hooters locations close in Michigan
Newsweek
10 minutes ago
- Newsweek
Delta Says Trump's Tariffs Could Impact Millions Of Customers
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Delta Air Lines said Thursday that the Trump administration's tariffs could negatively affect millions of customers, Reuters reported. According to Reuters, the travel giant told the U.S. Commerce Department that in 2023 and 2024, if it hadn't been able to get planes that were made in Canada, Germany and France, it would have been forced to cancel flights impacting as many as 10 million customers. A "similar impact could be expected going forward" if the Trump administration implements new tariffs affecting the airline, according to Reuters. A Boeing 757 (757-200) jetliner, belonging to Delta Air Lines, lands at McCarran International Airport in Las Vegas, Nv., on Sun., Feb. 23, 2020. A Boeing 757 (757-200) jetliner, belonging to Delta Air Lines, lands at McCarran International Airport in Las Vegas, Nv., on Sun., Feb. 23, 2020. Larry MacDougal via AP This story is developing and will be updated as more information becomes available.
