Hershey, Smucker, Hormel and others announce executive leadership changes

S&P Global Ratings revised Hormel Foods' outlook to negative from stable, citing high leverage at 1.8x, above expectations. The firm forecasts modest improvement to 1.7x in 2027 and 1.6x in 2028. Hormel's EBITDA margins have fallen to under 11% due to rising input costs and operational issues. The company is divesting lower-margin assets, but S&P notes these have not significantly reduced debt. A lower rating is possible if leverage does not improve.

Hershey (HSY) reported strong demand for its North America Salty Snacks, with retail takeaway up 6.5% in Q2 2026, but supply constraints limited sales growth to 0.6%. Net sales rose 22.9% YoY to $387.8M, aided by the LesserEvil acquisition. Hershey is investing in automation and capacity to address issues, expecting margin improvement in H2 2026 and full optimization in 2027.

The J. M. Smucker Company (SJM) reported strong fiscal first-quarter results, with net sales up 5% and free cash flow at $337 million. Management raised full-year adjusted EPS guidance to $10.50-$11.00 and free cash flow outlook to $1.1 billion. Key brands like Uncrustables, Café Bustelo, Meow Mix, and Milk-Bone drove volume growth. The company expects coffee price deflation to pressure sales but improve margins long-term.

Hormel Foods (HRL) shares fell 12% in August after mixed earnings and revised fiscal guidance. The company reported adjusted EPS of $0.37, beating estimates, but organic net sales declined 2%. HRL raised its earnings outlook but lowered sales forecasts. The stock is seen as 29.4% undervalued with a GF Value™ of $30.51. It offers a 5.42% dividend yield, though the payout ratio is 82%, raising sustainability concerns. Insider activity shows net selling, while institutional investors have mixed sen

The Hershey Company (HSY) announced Dave Hulays as its new Chief Financial Officer, effective September 2, 2026. Hulays succeeds Steve Voskuil, who will transition to a strategic projects role. Hulays brings 30 years of financial experience, including roles at Hershey and Procter & Gamble. The company's CEO praised Hulays' leadership and thanked Voskuil for his service.

Hormel Foods (HRL) reported Q3 sales of $2.96B, down 2.4%, with volume declining 7.4%. Adjusted operating margin rose to 9.0% from 8.4%, and adjusted EPS increased to $0.37 from $0.35. Cash flow from operations rose 54% to $241M. GAAP operating margin fell to 3.7% from 7.9%, and GAAP EPS declined to $0.11 from $0.33. The company lowered fiscal 2026 sales guidance to $12.1B-$12.2B and narrowed organic net sales growth guidance to 1%-2%.