Hormel Foods Corporation (NYSE:HRL) shares fell 3.4% in premarket trading Wednesday after the packaged food maker announced a key leadership change and cautioned investors about lower-than-expected fourth-quarter earnings.
The company — known for its SPAM and PLANTERS brands — said that Chief Financial Officer Jacinth Smiley will leave the company “to pursue other opportunities.” Paul Kuehneman, currently the company’s controller and a 30-year Hormel veteran, will assume the role of interim CFO effective October 27, reporting to interim CEO Jeff Ettinger.
Hormel said it expects fourth-quarter sales growth to come in toward the top end of its previous guidance range. However, adjusted earnings per share are projected to be $0.08 to $0.09 below earlier expectations, reflecting “persistent inflation in key commodity inputs” and the impact of avian influenza on the poultry business.
The company also cited additional operational disruptions late in the quarter, including a fire at its Little Rock, Arkansas peanut butter plant and a voluntary Class 1 recall of certain chicken products distributed through foodservice channels. Hormel expects the Arkansas facility to return to full production in early fiscal 2026.
In addition, Hormel anticipates recording non-cash impairment charges, primarily linked to its International operations and snack nuts division, when it releases full fourth-quarter results in early December.
Despite the earnings warning, Ettinger emphasized optimism about the company’s diversified portfolio, citing “continued top-line momentum” across its retail, foodservice, and international segments, driven by strong demand for its turkey products and the PLANTERS brand.