Hormel's profit growth exceeds expectations, optimistic targets set for 2016
The packaged food industry is in the doldrums, but Hormel Foods still served investors an appetizing outlook Tuesday.
The Austin-based company, maker of everything from canned chili to organic meats, topped Wall Street’s fourth-quarter profit expectations. And Hormel raised the bar for its new fiscal year, forecasting profits comfortably above what stock analysts had anticipated.
Lower ingredient prices — for pork and beef, particularly — account for part of the rosier picture. Increased production efficiency does, too. And many of Hormel’s products fit well into a key consumer trend: the increasing demand for protein products.