Hormel Foods: A Consistent Performer That Rewards Its Shareholders $HRL

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Hormel Foods (NYSE:HRL) is much more than their well-known packaged meats and of course the iconic SPAM and Hormel Brand Chili. Hormel has spent much of the last decade transforming their business into healthier food options including Justin's Nut Butter, Wholly Guacamole, Jennie-O turkey, and most recently acquired the Planters nut business.

That transition has served the business, and investors, well as it's led to some higher growth and higher margin subsidiaries coming into the fold. As consumers continue to search out healthier alternatives, Hormel is now positioned to continue to serve their customers.

Many consumer staples and consumer packaged goods companies have struggled with inflationary pressures. However, Hormel has combated that quite well with continued revenue growth that was driven largely from increased pricing. That led to Q2 sales showing an impressive 19% increase year-over-year with operating margins seeing just slight compression over that time.

Hormel reached a new all-time high back in April of this year; however, since then shares have pulled back nearly 14%. Hormel is a wonderful, defensive business that can allow investors to have a strong ballast to their portfolio compared to the high-flyers, and sometimes fast-fallers.

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