Hormel Foods’ president John Ghingo takes CEO seat from Jeff Ettinger

Hormel Foods named insider John Ghingo as CEO, effective Oct. 26, succeeding interim executive Jeffrey Ettinger. Ghingo has led as president and board member since July 2025 and previously ran Hormel’s retail business. The company said it aims to drive growth and modernize operations; it beat Q2 estimates in May and cited resilient demand, especially protein.

Hormel Foods (HRL) agreed to sell its Brazilian Ceratti operations to Zanchetta Alimentos LTDA, with terms undisclosed. Hormel said the divestiture simplifies its portfolio and targets markets with stronger growth. The deal is expected to close in coming weeks, subject to approvals, and is expected to have minimal impact on adjusted fiscal 2026 results.

Hormel reported Q2 progress on its Transform & Modernize (T&M) program, citing improved turkey manufacturing performance, lower Retail selling, general and administrative expenses, and a favorable product mix. The Jennie-O whole-bird turkey sale closed this quarter, causing a $61 million GAAP loss excluded from adjusted results. Hormel kept FY net sales guidance at $12.2–$12.5B and adjusted EPS at $1.43–$1.51, while GAAP EPS guidance fell to $1.28–$1.37.

On May 29, Stephens raised its price objective for Hormel Foods (HRL) to $25 from $22 but kept an Equal Weight rating, citing a Q2 adjusted EPS beat without guidance increases or clearer second-half execution. On the same day, BofA lifted its price target to $25 from $23 and maintained Neutral, saying the stock’s reaction reflected relief and that execution confidence is improving.

US Q1 GDP was revised to +1.6% (q/q annualized) from +2.0% expected; Q1 personal consumption was cut to +1.4%, while core PCE rose to a 3-year high of +4.4%. Apr new home sales fell 6.2% m/m to 622k. Stocks rebounded after Axios reported a preliminary US-Iran deal to extend the ceasefire 60 days and begin nuclear talks. Fed hawkishness weighed; markets priced a 3% chance of a 25 bp June cut.

Australian shares rose 1.6% to 8,731.70, their best day in seven weeks, after Reuters reported the U.S. and Iran agreed to extend their ceasefire and ease Strait of Hormuz shipping restrictions. The S&P/ASX 200 gained the most since April 8. Crude fell over 1%, while financials rose 1.2% but fell 3.9% in May.