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Hormel Foods Corporation (NYSE:HRL), a $17 billion market cap food company with a "FAIR" financial health rating according to InvestingPro, announced Monday that its board of directors has appointed Jeffrey M. Ettinger as interim chief executive officer and John F. Ghingo as president, both effective July 14, 2025. Based on InvestingPro's Fair Value analysis, the stock currently appears slightly undervalued. The company also said Ghingo will join the board of directors on the same date.
The appointments follow the previously announced planned retirement of current president and CEO James P. Snee, who will step down at the end of Hormel’s fiscal year 2025, which ends October 26, 2025. Snee will also leave the board when the new appointments become effective and transition to a special advisor role until his employment ends on October 26, 2025. Hormel and Snee are expected to enter into an 18-month consulting agreement starting October 27, 2025.
Ettinger, age 66, has been a board member since March 2025 and previously served as Hormel’s CEO from 2006 until his retirement in 2016. He will step down as chairman of The Hormel Foundation, which holds about 46% of Hormel’s common stock, effective July 14, 2025, but will remain on its board.
Under an employment agreement dated June 20, 2025, Ettinger will receive an annual base salary of $1.2 million, participate in the company’s annual incentive program with a $2 million target award per fiscal year (prorated as applicable), and a one-time equity grant valued at $7.2 million, with 75% in stock options and 25% in restricted stock units. The agreement expires and his service as interim CEO will end on October 25, 2026.
Ghingo, age 52, has served as Hormel’s executive vice president – retail since October 2024 and previously led Applegate Farms, a Hormel subsidiary. He will receive an annual base salary of $730,000, a target short-term incentive of 125% of base salary, participation in a long-term incentive plan with a $3.2 million target, and a grant of 100,000 operators’ shares. He will also be eligible for relocation benefits and a potential payment related to the sale of residential property. His employment agreement runs through December 31, 2026.
The information is based on a press release statement included in a filing with the Securities and Exchange Commission. For investors seeking deeper insights, InvestingPro provides comprehensive analysis of Hormel's financial metrics, including detailed profitability measures showing a return on equity of 9% and an EBITDA of $1.3 billion in the last twelve months.
In other recent news, Hormel Foods reported its second-quarter earnings for 2025, meeting earnings per share expectations at $0.35 but slightly missing revenue forecasts with $2.9 billion against the anticipated $2.92 billion. The company experienced strong performances in premium segments like Applegate and Mexican foods, maintaining leadership in the ground turkey market. In a strategic move, Hormel Foods announced John Ghingo as the new president, with Jeffrey M. Ettinger returning as interim CEO for a 15-month period. Goldman Sachs initiated coverage on Hormel Foods with a buy rating, citing the company's strong packaged food portfolio and forecasting an improving earnings outlook. Piper Sandler maintained its Neutral rating on Hormel Foods, noting that the company appears to be at an inflection point for EBIT growth after several quarters of declines. The firm highlighted Hormel's transformation and modernization program, which is expected to accelerate results above current consensus estimates. Hormel Foods continues to focus on its diversified portfolio, expecting strong growth in the second half of the year, with plans to increase advertising investments and capitalize on its Turkey portfolio and Planters brand.
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