Hormel buys Brakebush for USD 1.055 billion. Goldman Sachs keeps Buy for Hormel Foods stock

Published on 10/06/2026 at 10:10 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Fiscal third-quarter adjusted earnings per share rose 6.00 percent to USD 0.37. Hormel Foods stock costs EUR 17.98 on October 6, 2026 versus EUR 17.88.

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Hormel Foods announced on September 30, 2026, that it will acquire Brakebush Brothers for USD 1.055 billion. PR Newswire reported that the transaction is expected to close during the first quarter of fiscal 2027, subject to regulatory approval. Goldman Sachs analyst Leah Jordan maintained a Buy rating and a USD 29.00 price target on October 2, 2026, according to Robinhood.

Brakebush expands foodservice reach

The acquisition is designed to deepen Hormel Foods' position in value-added chicken and strengthen its Foodservice platform. Brakebush generated USD 1.2 billion in net sales over the last 12 months, while Hormel expects the deal to add to adjusted earnings per share beginning in fiscal 2028, according to PR Newswire. The strategic logic is clear: Foodservice delivered Hormel's 12th consecutive quarter of organic net sales growth in fiscal 2026 third quarter.

Fiscal third-quarter margins improved

Hormel's fiscal 2026 third-quarter revenue was USD 2.96 billion, while adjusted earnings per share reached USD 0.37, up 6.00 percent from the prior-year quarter. The adjusted operating margin was 9.00 percent, 60 basis points higher than a year earlier, and operating cash flow rose 54.00 percent year over year to USD 241.0 million, according to the fiscal third-quarter call transcript published by Yahoo Finance.

Management raised fiscal 2026 adjusted earnings per share guidance to USD 1.45-1.51 from USD 1.43-1.51, but narrowed expected organic net sales growth to 1.00-2.00 percent from 1.00-4.00 percent. That contrast leaves Brakebush as a growth investment against a consumer environment that management described as strained.

Dividend date approaches

Hormel declared a quarterly dividend of USD 0.2925 per share on September 28, 2026, payable November 16, 2026, to holders of record on October 13, 2026. The company described it as its 393rd consecutive quarterly dividend in the release carried by PR Newswire.

Hormel Foods stock stays below its yearly high

Hormel Foods stock was trading at EUR 17.98 at Lang & Schwarz on October 6, 2026, at 10:05 a.m. CEST, up 0.56 percent versus the prior close of EUR 17.88 on October 5, 2026. On the NYSE, the primary listing, the stock was last quoted at USD 20.08 on October 5, 2026, against a 52-week range of USD 19.42 to USD 26.60; market capitalization was USD 11.1 billion on that date.

The further course of trading is shown by the continuously updated real-time quote of Hormel Foods stock.