Hormel Foods stock gained 1.45 percent on October 2

Published on 10/04/2026 at 22:25 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Hormel Foods stock was last at USD 20.25 on October 2, 2026, after the company agreed to buy Brakebush for USD 1.055 billion. Fiscal 2026 adjusted EPS guidance stands at USD 1.45-1.51.

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Hormel Foods (ISIN US4404521001) stock was last at USD 20.25 on the NYSE on October 2, 2026, up 1.45 percent from the prior close. The company announced on September 30, 2026, that it would acquire Brakebush Brothers for USD 1.055 billion in cash, making the transaction the central issue for Hormel's next growth phase. The deal adds scale in value-added chicken, but it also brings higher financing and integration demands.

Brakebush adds USD 1.2 billion in sales

According to Hormel Foods on September 30, 2026, Brakebush generated USD 1.2 billion in net sales over the last 12 months and operates five production facilities plus two research and development labs. Hormel expects to report the business primarily in its Foodservice segment.

The acquisition is expected to close in the first quarter of fiscal 2027, subject to regulatory approval, and become accretive to adjusted earnings per share beginning in fiscal 2028, according to StockTitan. The purchase price equals 87.9 percent of Hormel's USD 11.1 billion market capitalization as of October 2, 2026, underscoring the size of the capital allocation decision.

Fiscal Q3 showed the tradeoff

Hormel reported USD 2.961 billion in net sales for the third quarter of fiscal 2026, compared with USD 2.973 billion in the second quarter, while GAAP diluted EPS was USD 0.11 versus USD 0.29 in the prior quarter. Operating cash flow reached USD 240.6 million in Q3, giving the company an important funding source as it prepares for the acquisition.

Third-quarter adjusted diluted EPS was USD 0.37, up 6 percent from the prior year, while full-year adjusted EPS guidance was raised to USD 1.45-1.51 from USD 1.43-1.51, according to TradingView. The contrast is clear: earnings are improving, while sales growth remains constrained and the Brakebush deal adds leverage before its expected fiscal 2028 earnings contribution.

Credit rating adds a risk marker

S&P Global Ratings lowered Hormel's issuer rating to BBB+ from A- on September 30, 2026, after the acquisition announcement. The agency estimated adjusted leverage at 2.3 times in fiscal 2027 and 2.1 times in fiscal 2028, compared with previous expectations of 1.7 times and 1.6 times.

For the stock, the valuation debate is visible in the analyst spread. MarketBeat reported a Hold consensus from nine analysts, including two Buy ratings, six Holds and one Sell, with an average target of USD 26.14. The target lies 29.1 percent above the October 2 price, placing execution of the acquisition and debt reduction at the center of the investment case.

Hormel Foods stock stays near its yearly low

Hormel Foods stock was last at USD 20.25 on the NYSE at 4:00 p.m. ET on October 2, 2026, with a 52-week range of USD 19.42 to USD 31.86. Market capitalization stood at USD 11.1 billion and trading volume reached 6,509,323 shares, leaving the stock 36.4 percent below its 52-week high.