Hormel Foods shifts focus to core brands, expects 6.6% EPS growth and 33% total return by 2027

Hormel Foods is undergoing a strategic turnaround by exiting low-margin businesses to concentrate on its core brands like Planters and Jennie-O. The company projects a 6.6% forward earnings per share (EPS) growth, a notable improvement from its past 10-year growth of 0.4%, with consensus expecting 8% EPS growth by fiscal year 2026. Shares currently trade at a 19% discount to fair value, offering a 5.3% dividend yield and potential for a 33% total return by April 2027. Key risks include potential weakness in retail demand and ongoing meat inflation, but Hormel's disciplined capital allocation and strong branded product focus support its status as a Dividend King.