Food Safety and Quality Auditor

Foodservice becoming more important to Hormel Foods. Sep 21, 2026 BOSTON - Hormel Foods Corp.'s Foodservice business unit accounts for approximately one-third of company-wide sales and half of its profits. The ascension of the business unit within the organization reflects the pressures foodservice operators are under to better manage costs and streamline operations. "I think if you step back and look at our Foodservice performance over time, we have proven the business model we have to be very unique and durable to grow even in down markets when industry challenges persist," said John Ghingo, president of the company, during a Sept. 9 presentation at the Barclays Global Consumer Staples Conference. During the third quarter of fiscal 2026, ended July 26, Hormel's Foodservice business segment profit rose 3% to $144.5 million from $141 million the year before. Quarterly sales rose 2% to $1 billion from $987 million the year before. Ghingo identified three attributes of the business unit he sees fueling additional growth. "One is our value-added portfolio and the innovation we continue to bring to that portfolio," he said. "We need to continue to create more value." Second is the company's direct sales team that works with operators to communicate the strengths of the Foodservice unit to operators. "Our direct sales force is truly a unique engine of culture, talent, capability, and the work they do with our operator partners is critical," Ghingo said. "They're gathering insights. They're building relationships. They're being creative and solving problems in the kitchen with the operator partners and then bringing back solutions. "And, so, when you're doing that even in a challenged environment, you can grow the top line because those operators will gravitate to the partner who's solving the problems they're dealing with." Hormel Foods' Flash 180 chicken platform is an example of how the Foodservice business unit is serving its customers. | Photo: (C) EXQUISINE - STOCK.ADOBE.COM Finally, Ghingo said Hormel's diversified foodservice customer base is an opportunity for the company. "So, whether you're talking commercial, noncommercial, independence chains, geographic diversity, channel diversity," he said. "So, that gives us the opportunity to play different channels where we see pockets of growth and pockets of opportunity to keep the growth engine going." An effective foodservice solution identified by Ghingo is Hormel's Flash 180 chicken platform. "If you look at the demand space in foodservice around breaded chicken, it's one of the fastest-growing areas," he said. "Consumers, diners want more breaded chicken, whether it be chicken tenders, whether it be fried chicken sandwiches, but if you're an operator... (and) you want to sell more chicken, it gets difficult. "You're bringing raw chicken (and) it takes time; you have to handle it; you have to batter/bread in the fryer, 10 to 12 minutes. So, we're bringing through our Flash 180 chicken platform. One-hundred and eighty seconds from package to plate, pre-prepped. So, it's super simple to execute (that) saves time... So, that's an example of a solution." Get better food industry search results. Adding us tells Google to prioritize Food Business News stories.

Hormel Foods has made SPAM Hot Honey a permanent flavour and partnered with Brooklyn's Win Son Bakery on limited-time menu items, co-branded merchandise, and expanded US retail distribution. The collaboration aims to refresh the SPAM brand through flavour innovation and foodservice partnerships that extend beyond traditional retail. However, the launch does not materially change Hormel's near-term investment case, which centres on restoring margins amid cost pressures. The company has lowered its 2026 guidance following weaker profitability. Hormel recently appointed Paul Kuehneman as chief accounting officer. Investors are focused on whether management can execute cost control and pricing discipline rather than product launches alone. Persistent commodity inflation and delayed pricing responses remain key risks for the company's earnings recovery.

Hormel Foods reported third-quarter sales of $2.96 billion, down 2.4%, with volume declining 7.4%. Despite the drop, adjusted operating margin expanded to 9.0% from 8.4%, whilst adjusted diluted earnings per share rose to $0.37 from $0.35. Cash flow from operations increased 54% to $241 million. However, GAAP operating margin fell to 3.7% from 7.9%. The company lowered its fiscal 2026 sales guidance to $12.1 billion to $12.2 billion from $12.2 billion to $12.5 billion. Organic net sales growth guidance narrowed to 1% to 2% from 1% to 4%. Foodservice remained the strongest segment, recording its 12th consecutive quarter of organic net sales growth. Retail volume dropped 9%, whilst international volume declined 11%.