Hormel pays $1.06 billion for restaurant chicken, pushing debt above its target

Hormel is the Austin, Minnesota company behind Planters, Skippy and Spam. It has over $12 billion in yearly revenue and expects $12.1 billion to $12.2 billion this fiscal year. [C45][C45] Press release, about Hormelbased in Austin, Minnesota, is a global branded food company with over $12 billion in annual revenue. Its brands include Planters ® , Skippy ® , SPAM ®Hormel Foods press release on the Brakebush agreement, Exhibit 99.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-1.htm [C33][C33] Results release, fiscal 2026 guidanceExpects net sales to be in the range of $12.1 billion to $12.2 billionHormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm Its grocery business is shrinking: Retail volume fell 9% last quarter. Its strongest part sells to restaurants and other food-service buyers. Foodservice profit rose 8.7% in the first nine months. [C35][C35] Results release, segment highlightsRetail • Volume down 9%Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm [C34][C34] Results release, segment dataFoodservice 144,475 140,711 2.7 456,800 420,170 8.7Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm

The company is changing leaders. John Ghingo, now president, becomes chief executive on October 26, 2026. [C39][C39] Form 8-K, Item 5.02appointed John F. Ghingo, the Company’s current President and a member of the Board, as the Company’s President and Chief Executive Officer, effective October 26, 2026.Hormel Foods Form 8-K naming John Ghingo chief executive, filed July 28, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000047/hrl-20260727.htm The new finance chief, Ash Bhumbla, ran the numbers for Tyson Foods' chicken business from September 2023 to August 2026. [C40][C40] Form 8-K, Item 5.02Prior to joining the Company, Mr. Bhumbla, age 39, served Tyson Foods, Inc., a food company, as Senior Vice President and Chief Financial Officer, Chicken segment, from September 2023 to August 2026Hormel Foods Form 8-K naming Ash Bhumbla chief financial officer, filed August 24, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000049/hrl-20260824.htm This year's results include a $56 million loss on selling its Brazil business and a $48 million write-down of a stake in Indonesia. They also include a $37.5 million settlement in a turkey price-fixing suit. [C32][C32] Results release, third quarterSignificant discrete pre-tax items included: a loss of $56 million related to the Brazil divestiture, a non-cash impairment charge related to a minority investment in Indonesia of $48 million and a litigation settlement of $38 million.Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm [C52][C52] Form 10-Q, Note K, legal proceedingsTurkey Antitrust Litigation ... in the total settlement amount of $ 37.5 millionHormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm The Indonesian stake was already written down by $164 million last year. Hormel also wrote down the Planters name by $59.1 million, so past purchases have not all held their value. [C37][C37] Form 10-K, equity in earnings of affiliatesa $164 million non-cash impairment charge related to a minority investment in Indonesia.Hormel Foods annual report on Form 10-K for the fiscal year ended October 26, 2025, filed December 5, 2025Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/hrl-20251026.htm [C36][C36] Form 10-K, risk factors, intangible assetsimpairments were recognized on the Planters ® and Chi-Chi's ® trade names for $59.1 million and $2.9 million, respectivelyHormel Foods annual report on Form 10-K for the fiscal year ended October 26, 2025, filed December 5, 2025Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/hrl-20251026.htm

Investors have marked the stock down hard. It traded as low as $19.42 on September 25, when the dividend yield was above 6%. It closed at $29.70 in April 2025 and at $20.97 on September 16. [C43][C43] Nasdaq / Dividend Channel, September 25, 2026shares of Hormel Foods Corp. (Symbol: HRL) were yielding above the 6% mark based on its quarterly dividend (annualized to $1.17), with the stock changing hands as low as $19.42 on the day.Nasdaq · Read October 1, 2026Open source ↗https://www.nasdaq.com/articles/hormel-foods-hrl-shares-cross-6-yield-mark [C41][C41] Form 10-K coveras of April 27, 2025, was $ 8,637,339,615 based on the closing price of $29.70 on the last business day of the registrant’s most recently completed second fiscal quarter.Hormel Foods annual report on Form 10-K for the fiscal year ended October 26, 2025, filed December 5, 2025Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/hrl-20251026.htm [C78][C78] IEX closing pricesHRL closed at $20.97 on September 16, 2026 (IEX)IEX closing prices for HRL, XLP, GIS and KHC, September 16 to September 30, 2026Open source ↗https://iextrading.com/trading/market-data/ The market took the news calmly. Hormel closed at $19.85 on September 29 and at $19.95 on September 30, up about 0.5%. [C76][C76] IEX closing pricesHRL closed at $19.85 on September 29, 2026 (IEX)IEX closing prices for HRL, XLP, GIS and KHC, September 16 to September 30, 2026Open source ↗https://iextrading.com/trading/market-data/ [C77][C77] IEX closing pricesHRL closed at $19.95 on September 30, 2026 (IEX)IEX closing prices for HRL, XLP, GIS and KHC, September 16 to September 30, 2026Open source ↗https://iextrading.com/trading/market-data/ XLP, the big consumer staples fund, fell about 1.5% that day. General Mills fell about 4.9% and Kraft Heinz about 3.1%. [C83][C83] IEX closing pricesXLP closed at $81.84 on September 29, 2026 (IEX)IEX closing prices for HRL, XLP, GIS and KHC, September 16 to September 30, 2026Open source ↗https://iextrading.com/trading/market-data/ [C84][C84] IEX closing pricesXLP closed at $80.58 on September 30, 2026 (IEX)IEX closing prices for HRL, XLP, GIS and KHC, September 16 to September 30, 2026Open source ↗https://iextrading.com/trading/market-data/ [C85][C85] IEX closing pricesGIS closed at $33.82 on September 29, 2026 (IEX)IEX closing prices for HRL, XLP, GIS and KHC, September 16 to September 30, 2026Open source ↗https://iextrading.com/trading/market-data/ [C86][C86] IEX closing pricesGIS closed at $32.17 on September 30, 2026 (IEX)IEX closing prices for HRL, XLP, GIS and KHC, September 16 to September 30, 2026Open source ↗https://iextrading.com/trading/market-data/ [C87][C87] IEX closing pricesKHC closed at $23.46 on September 29, 2026 (IEX)IEX closing prices for HRL, XLP, GIS and KHC, September 16 to September 30, 2026Open source ↗https://iextrading.com/trading/market-data/ [C88][C88] IEX closing pricesKHC closed at $22.725 on September 30, 2026 (IEX)IEX closing prices for HRL, XLP, GIS and KHC, September 16 to September 30, 2026Open source ↗https://iextrading.com/trading/market-data/ At that close Hormel's 550,350,800 shares were worth about $11.0 billion. So the Brakebush price is about 10% of the whole company. [C42][C42] Form 10-Q cover550,350,800Hormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm [C77][C77] IEX closing pricesHRL closed at $19.95 on September 30, 2026 (IEX)IEX closing prices for HRL, XLP, GIS and KHC, September 16 to September 30, 2026Open source ↗https://iextrading.com/trading/market-data/ [C2][C2] Form 8-K, Item 1.01The purchase price consists of a base purchase price of $1.055 billion in cash, subject to customary adjustments.Hormel Foods Form 8-K on the agreement to buy Brakebush Brothers, filed September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_8k.htm

The day before the deal was signed, the board declared a quarterly dividend of $0.2925 a share, payable November 16, 2026. That is the same as earlier this year. [C44][C44] PR Newswire, September 28, 2026today announced its quarterly dividend on the common stock, authorized by the Board of Directors at $0.2925 per share. The dividend will be paid on November 16, 2026, to stockholders of record at the close of business on October 13, 2026.PR Newswire · Read October 1, 2026Open source ↗https://www.prnewswire.com/news-releases/hormel-foods-corporation-declares-quarterly-dividend-302892098.html It is not a freeze. Hormel raises its payout once a year, and its annual report said the 2026 rate marked the 60th straight increase. The real test is the first-quarter declaration that our call is about. [C26][C26] Form 10-K, Item 5, dividendsThe implied annualized dividend rate for 2026 is $1.17 per share, representing an increase of 1 percent and marking the 60th consecutive year of dividend increases.Hormel Foods annual report on Form 10-K for the fiscal year ended October 26, 2025, filed December 5, 2025Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/hrl-20251026.htm

Brakebush makes chicken products but does not raise its own birds. It sells mostly to restaurant chains and other food-service buyers. [C6][C6] Press release, about Brakebusha leading, value-added, non-vertically integrated chicken provider, serving a diverse foodservice customer base across national and regional operators.Hormel Foods press release on the Brakebush agreement, Exhibit 99.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-1.htm [C49][C49] Investor presentation, slide 4Comprehensive portfolio of fully cooked, par-fried and raw portioned productsHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm Hormel puts its sales at about $1.2 billion. The press release calls that the last 12 months, but the investor slides call it a 2026 estimate, and neither explains the gap. [C4][C4] Press release, about BrakebushBrakebush generated approximately $1.2 billion in net sales over the last 12 months and operates five production facilities and two research and development labs.Hormel Foods press release on the Brakebush agreement, Exhibit 99.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-1.htm [C60][C60] Investor presentation, slide 3, transaction detailsBased on CY2026 estimate for Brakebush ... Net sales of approximately $1.2 billion2Hormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm Either way it would add about 10% to Hormel's sales. [C33][C33] Results release, fiscal 2026 guidanceExpects net sales to be in the range of $12.1 billion to $12.2 billionHormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm

Working back from Hormel's 10.7 times figure, Brakebush's expected 2026 adjusted EBITDA is about $99 million. That is a margin of a little over 8% of sales. It rises to about $119 million if the planned savings arrive. [C7][C7] Investor presentation, slide 3, transaction detailsImplied adjusted EBITDA multiple1 of 10.7x and 8.9x after synergiesHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm [C59][C59] Investor presentation, slide 3, footnote 1Adjusted EBITDA multiple based on adjusted EBITDA estimate for Brakebush for CY2026 and the transaction purchase price.Hormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm [C2][C2] Form 8-K, Item 1.01The purchase price consists of a base purchase price of $1.055 billion in cash, subject to customary adjustments.Hormel Foods Form 8-K on the agreement to buy Brakebush Brothers, filed September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_8k.htm [C8][C8] Investor presentation, slide 3, transaction detailsExpected run-rate cost synergies of ~$20 million by the end of fiscal 2028Hormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm The price is about 1.9 times the $549 million of cash Hormel had left after plant spending in the first nine months. [C27][C27] Results release, cash flow statementNet Cash Provided by (Used in) Operating Activities 240,599 156,698 768,752 522,345Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm [C28][C28] Results release, cash flow statementPurchases of Property, Plant, and Equipment (68,163) (72,194) (219,331) (219,444)Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm Hormel's own slides put its net debt at 1.5 times adjusted EBITDA. That implies about $1.3 billion of adjusted EBITDA for Hormel. [C67][C67] Investor presentation, slide 8Net Debt to Adj. EBITDA1 Acquired Planters F’21 F’22 F’23 F’24 F’25 LTM Q3F’26 2.0x 1.5x 1.8x 1.5x 1.7x 1.5xHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm [C17][C17] Form 10-Q, Note L, debt tableTotal Debt 2,855,123 2,857,424Hormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm [C18][C18] Results release, balance sheetCash and Cash Equivalents $ 839,639 $ 670,679Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm Add its market value of about $11.0 billion to about $2.0 billion of net debt, and Hormel itself is valued at roughly 10 times. So it pays more than its own multiple before savings and less after. [C42][C42] Form 10-Q cover550,350,800Hormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm [C77][C77] IEX closing pricesHRL closed at $19.95 on September 30, 2026 (IEX)IEX closing prices for HRL, XLP, GIS and KHC, September 16 to September 30, 2026Open source ↗https://iextrading.com/trading/market-data/ [C17][C17] Form 10-Q, Note L, debt tableTotal Debt 2,855,123 2,857,424Hormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm [C18][C18] Results release, balance sheetCash and Cash Equivalents $ 839,639 $ 670,679Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm A tax step-up would lower the real price further, but Hormel does not give its value. [C9][C9] Investor presentation, slide 3, transaction detailsExpected tax basis step-up of acquired assetsHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm

The family that owns Brakebush gets $1.055 billion in cash. The price moves up or down at closing for cash, debt and working capital, against a $166.6 million working-capital target. [C2][C2] Form 8-K, Item 1.01The purchase price consists of a base purchase price of $1.055 billion in cash, subject to customary adjustments.Hormel Foods Form 8-K on the agreement to buy Brakebush Brothers, filed September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_8k.htm [C61][C61] Purchase agreement, definitions“ NWC Target Amount ” means $166,600,000.Membership Interest Purchase Agreement for Brakebush Brothers, Exhibit 2.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex2-1.htm $17.5 million is held back in escrow to settle that. Hormel also takes on retention bonuses for some Brakebush workers, but the filings do not give their size. [C62][C62] Purchase agreement, Section 2.3Seventeen Million Five Hundred Thousand Dollars ($17,500,000) (the “ Adjustment Escrow Amount ”)Membership Interest Purchase Agreement for Brakebush Brothers, Exhibit 2.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex2-1.htm [C71][C71] Purchase agreement, definitions“ Retention Bonus Agreements ” means the retention bonus agreements between the Company or a Company Subsidiary and certain Company EmployeesMembership Interest Purchase Agreement for Brakebush Brothers, Exhibit 2.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex2-1.htm In return Hormel gets the business, its savings target and a tax step-up. The step-up lets it deduct more of the price against its taxes over time. [C8][C8] Investor presentation, slide 3, transaction detailsExpected run-rate cost synergies of ~$20 million by the end of fiscal 2028Hormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm [C9][C9] Investor presentation, slide 3, transaction detailsExpected tax basis step-up of acquired assetsHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm

The deal terms lean toward the sellers in two ways. If a seller's promise about the business proves wrong, Hormel's only remedy, except for fraud, is an insurance policy it bought. [C14][C14] Purchase agreement, Section 8.2the sole and exclusive remedy for any claims for any inaccuracy or breach of any representation or warranty by the Company and/or Seller in this Agreement will be to recover from the R&W Insurance Policy, except in the case of Fraud by the Company and/or SellerMembership Interest Purchase Agreement for Brakebush Brothers, Exhibit 2.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex2-1.htm Hormel must also pay even if its borrowing falls through. [C13][C13] Purchase agreement, Section 6.3Buyer’s obligations to consummate the Contemplated Transactions (including the obligation to pay the Purchase Price) are not subject to, or conditioned upon any equity or debt financingMembership Interest Purchase Agreement for Brakebush Brothers, Exhibit 2.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex2-1.htm In Hormel's favor, it does not have to sell any of its own businesses to win approval. It may have to give up small Brakebush assets. [C15][C15] Purchase agreement, antitrust effortsBuyer shall not be required to agree to divest or hold separate any of its or its Affiliates’ operationsMembership Interest Purchase Agreement for Brakebush Brothers, Exhibit 2.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex2-1.htm [C63][C63] Purchase agreement, Section 6.3(b)divest or hold separate any assets, properties, products, product lines, services, businesses, or rights of the Company or the Company Subsidiaries, but only to the extent that those assets are not materialMembership Interest Purchase Agreement for Brakebush Brothers, Exhibit 2.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex2-1.htm Either side can walk away if the deal has not closed by March 29, 2027. Three more months are allowed if regulators are still reviewing it. [C3][C3] Form 8-K, Item 1.01including if the transaction has not been completed by March 29, 2027, subject to an automatic three-month extension in specified circumstances relating to outstanding regulatory approvals.Hormel Foods Form 8-K on the agreement to buy Brakebush Brothers, filed September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_8k.htm

At the end of July, Hormel held $840 million of cash, $224 million of it outside the United States. It had $2.86 billion of debt, so net debt was about $2.0 billion. [C18][C18] Results release, balance sheetCash and Cash Equivalents $ 839,639 $ 670,679Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm [C19][C19] Form 10-Q, liquidityAs of July 26, 2026, the Company’s international subsidiaries held $224 million of cash and cash equivalents.Hormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm [C17][C17] Form 10-Q, Note L, debt tableTotal Debt 2,855,123 2,857,424Hormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm Because it will pay with cash and new long-term debt, net debt rises by the full price at closing, to about $3.1 billion. [C10][C10] Investor presentation, slide 3, financial structureExpect to finance with a combination of cash on hand and long-term debtHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm [C2][C2] Form 8-K, Item 1.01The purchase price consists of a base purchase price of $1.055 billion in cash, subject to customary adjustments.Hormel Foods Form 8-K on the agreement to buy Brakebush Brothers, filed September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_8k.htm Hormel puts net debt at 1.5 times adjusted EBITDA today. It expects the low-2 times range after the deal, above its 1.5 to 2.0 times target. It gives no date to get back inside the range. [C67][C67] Investor presentation, slide 8Net Debt to Adj. EBITDA1 Acquired Planters F’21 F’22 F’23 F’24 F’25 LTM Q3F’26 2.0x 1.5x 1.8x 1.5x 1.7x 1.5xHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm [C11][C11] Investor presentation, slide 8Low-2x Expected Post- Acquisition Net Debt to Adj. EBITDAHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm [C68][C68] Investor presentation, slide 81.5x to 2.0xHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm [C69][C69] Investor presentation, slide 3, financial structureReasonable path to deleveraging over timeHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm Those ratios use adjusted EBITDA. On EBITDA as reported, about $846 million over the past year, net debt is about 2.4 times today and about 3.2 times after the deal. [C90][C90] Form 10-K, EBITDA (Non-GAAP)Depreciation and Amortization 263,901 257,756 EBITDA (Non-GAAP) $ 982,937 $ 1,326,095Hormel Foods annual report on Form 10-K for the fiscal year ended October 26, 2025, filed December 5, 2025Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/hrl-20251026.htm [C30][C30] Results release, non-GAAP reconciliationOperating Income (GAAP) $ 110,904 $ 239,748 $ 571,713 $ 716,430Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm [C89][C89] Results release, cash flow statementDepreciation and Amortization 66,427 64,692 202,348 194,527Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm [C7][C7] Investor presentation, slide 3, transaction detailsImplied adjusted EBITDA multiple1 of 10.7x and 8.9x after synergiesHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm

New money will cost more than the old. Hormel has an unused $750 million credit line. Its older notes pay just 1.7% to 3.05%. [C20][C20] Form 10-Q, borrowing capacityAs a source of short-term financing, the Company maintains a $750 million unsecured revolving credit facility.Hormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm [C21][C21] Form 10-Q, Note L, revolving credit facilityThe Company had no outstanding borrowings from this facility as of July 26, 2026, and October 26, 2025.Hormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm [C47][C47] Form 10-Q, Note L, debt tableSenior Unsecured Notes with Interest at 1.700 % Interest Due Semi-annually through June 2028 Maturity DateHormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm [C48][C48] Form 10-Q, Note L, debt tableSenior Unsecured Notes with Interest at 3.050 % Interest Due Semi-annually through June 2051 Maturity DateHormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm [C22][C22] Form 10-Q, Note L, debt tableSenior Unsecured Notes with Interest at 1.800 % Interest Due Semi-annually through June 2030 Maturity DateHormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm The $500 million of notes due in March 2027 pay 4.8%, so new borrowing will likely cost more. [C16][C16] Form 10-Q, Note L, senior notesOn March 8, 2024, the Company issued senior notes in an aggregate principal amount of $ 500.0 million due March 2027. The notes bear interest at a fixed rate of 4.800 % per annum.Hormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm Interest is a small bill today: $59 million so far this fiscal year, against $572 million of reported operating income. Its loans require earnings to stay above a set multiple of interest, and it met that test in July. [C57][C57] Results release, statement of operationsInterest Expense 19,635 19,461 59,185 58,438Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm [C30][C30] Results release, non-GAAP reconciliationOperating Income (GAAP) $ 110,904 $ 239,748 $ 571,713 $ 716,430Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm [C23][C23] Form 10-Q, Note L, debt covenantsincluding maintaining a minimum interest coverage ratio. As of July 26, 2026, the Company was in compliance with all covenants.Hormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm Hormel says it will keep a strong investment-grade credit rating, which lets it borrow cheaply. It pays in cash and issues no new shares. [C58][C58] Investor presentation, slide 3, financial structureCommitted to maintaining strong investment-grade ratingHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm [C2][C2] Form 8-K, Item 1.01The purchase price consists of a base purchase price of $1.055 billion in cash, subject to customary adjustments.Hormel Foods Form 8-K on the agreement to buy Brakebush Brothers, filed September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_8k.htm

The dividend ties it all together. Hormel lists the dividend first among its uses of cash and share buybacks last. [C12][C12] Investor presentation, slide 7, capital allocationPriority •DividendHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm [C70][C70] Investor presentation, slide 7, capital allocationOpportunistic •Share repurchasesHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm In the first nine months, operations brought in $769 million and plant spending took $219 million. The $549 million left over covered $481 million of dividends, with about $68 million to spare. [C56][C56] Form 10-Q, cash flow highlightsCash dividends paid to the Company’s shareholders totaled $481 million during the first nine months of fiscal 2026Hormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm [C27][C27] Results release, cash flow statementNet Cash Provided by (Used in) Operating Activities 240,599 156,698 768,752 522,345Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm [C28][C28] Results release, cash flow statementPurchases of Property, Plant, and Equipment (68,163) (72,194) (219,331) (219,444)Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm [C29][C29] Results release, cash flow statementDividends Paid on Common Stock (160,963) (159,467) (481,401) (473,692)Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm Part of that came from building less inventory. Stockpiles rose $81 million, against $247 million a year earlier, so it may not repeat. [C91][C91] Form 10-Q, MD&A, cash flowsInventory increased $81 million during the first nine months of fiscal 2026 compared to an increase of $247 million in the comparable period of the prior year.Hormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm Last fiscal year was tighter. Operations brought in $845 million and plant spending took $311 million. That left about $534 million against $633 million of dividends, a shortfall of about $99 million. [C64][C64] Form 10-K, cash flow statementNet Cash Provided by (Used in) Operating Activities 845,251 1,266,738 1,047,847Hormel Foods annual report on Form 10-K for the fiscal year ended October 26, 2025, filed December 5, 2025Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/hrl-20251026.htm [C65][C65] Form 10-K, cash flow statementPurchases of Property, Plant, and Equipment ( 310,902 ) ( 256,441 ) ( 270,211 )Hormel Foods annual report on Form 10-K for the fiscal year ended October 26, 2025, filed December 5, 2025Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/hrl-20251026.htm [C66][C66] Form 10-K, cash flow statementDividends Paid on Common Stock ( 633,192 ) ( 614,960 ) ( 592,932 )Hormel Foods annual report on Form 10-K for the fiscal year ended October 26, 2025, filed December 5, 2025Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/hrl-20251026.htm

On reported earnings the dividend is above what Hormel expects to make per share this year. The $1.45 to $1.51 adjusted forecast does cover it. [C24][C24] Results release, fiscal 2026 guidanceUpdates diluted earnings per share guidance to be in the range of $1.06 to $1.12Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm [C25][C25] Results release, fiscal 2026 guidanceguidance to be in the range of $1.45 to $1.51Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm We expect the board to keep its streak going, because Hormel calls dividends a top priority. But the strain is real. [C75][C75] Form 10-K, Item 7, dividendsReturning cash to shareholders in the form of dividends remains a top priorityHormel Foods annual report on Form 10-K for the fiscal year ended October 26, 2025, filed December 5, 2025Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/hrl-20251026.htm The deal and the March 2027 notes need about $1.56 billion together. That is more than the $840 million of cash on hand, $224 million of it abroad, so the credit line and new debt must cover the gap. [C2][C2] Form 8-K, Item 1.01The purchase price consists of a base purchase price of $1.055 billion in cash, subject to customary adjustments.Hormel Foods Form 8-K on the agreement to buy Brakebush Brothers, filed September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_8k.htm [C16][C16] Form 10-Q, Note L, senior notesOn March 8, 2024, the Company issued senior notes in an aggregate principal amount of $ 500.0 million due March 2027. The notes bear interest at a fixed rate of 4.800 % per annum.Hormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm [C18][C18] Results release, balance sheetCash and Cash Equivalents $ 839,639 $ 670,679Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm [C19][C19] Form 10-Q, liquidityAs of July 26, 2026, the Company’s international subsidiaries held $224 million of cash and cash equivalents.Hormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm [C20][C20] Form 10-Q, borrowing capacityAs a source of short-term financing, the Company maintains a $750 million unsecured revolving credit facility.Hormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm

Chicken is a crowded business where price rules. Brakebush buys chicken, then cooks and cuts it. So its profit depends on the gap between what it pays for meat and what buyers pay. [C6][C6] Press release, about Brakebusha leading, value-added, non-vertically integrated chicken provider, serving a diverse foodservice customer base across national and regional operators.Hormel Foods press release on the Brakebush agreement, Exhibit 99.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-1.htm [C49][C49] Investor presentation, slide 4Comprehensive portfolio of fully cooked, par-fried and raw portioned productsHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm Hormel's annual report says its results depend largely on the cost of pork, poultry, beef and other inputs. It also says its markets are highly competitive. [C73][C73] Form 10-K, risk factors, commodity pricesThe Company’s results of operations and financial condition are largely dependent upon the cost and supply of pork, poultry, beef, feed grains, nuts, energy, and other inputs, as well as the selling prices for many of the Company’s products, which are determined by dynamic market forces of supply and demand.Hormel Foods annual report on Form 10-K for the fiscal year ended October 26, 2025, filed December 5, 2025Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/hrl-20251026.htm [C74][C74] Form 10-K, competitionThe production and sale of meat and food products in the U.S. and internationally is highly competitive.Hormel Foods annual report on Form 10-K for the fiscal year ended October 26, 2025, filed December 5, 2025Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/hrl-20251026.htm

The best case for the deal is that Hormel is buying into its healthiest unit at 8.9 times adjusted EBITDA if savings arrive. That is below the roughly 10 times the market puts on Hormel itself, with a tax benefit on top. [C8][C8] Investor presentation, slide 3, transaction detailsExpected run-rate cost synergies of ~$20 million by the end of fiscal 2028Hormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm [C7][C7] Investor presentation, slide 3, transaction detailsImplied adjusted EBITDA multiple1 of 10.7x and 8.9x after synergiesHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm [C9][C9] Investor presentation, slide 3, transaction detailsExpected tax basis step-up of acquired assetsHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm Brakebush brings its own sales team and chicken know-how. The new finance chief ran Tyson's chicken numbers, and interest is still small next to operating income. [C82][C82] Investor presentation, slide 3, strategic highlightsStrengthens Foodservice platform through Brakebush’s direct sales organization, category expertiseHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm [C40][C40] Form 8-K, Item 5.02Prior to joining the Company, Mr. Bhumbla, age 39, served Tyson Foods, Inc., a food company, as Senior Vice President and Chief Financial Officer, Chicken segment, from September 2023 to August 2026Hormel Foods Form 8-K naming Ash Bhumbla chief financial officer, filed August 24, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000049/hrl-20260824.htm [C57][C57] Results release, statement of operationsInterest Expense 19,635 19,461 59,185 58,438Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm [C30][C30] Results release, non-GAAP reconciliationOperating Income (GAAP) $ 110,904 $ 239,748 $ 571,713 $ 716,430Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm

The case against starts with earnings quality. So far this fiscal year Hormel reported $572 million of operating income but $807 million on its own adjusted basis, so the adjusted figures leave out about $235 million of costs. [C30][C30] Results release, non-GAAP reconciliationOperating Income (GAAP) $ 110,904 $ 239,748 $ 571,713 $ 716,430Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm [C31][C31] Results release, non-GAAP reconciliationAdjusted Operating Income (Non-GAAP) $ 266,215 $ 254,244 $ 807,292 $ 773,196Hormel Foods third-quarter fiscal 2026 results release, Exhibit 99 to Form 8-K, August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000053/hormelearningsreleaseq32026.htm Second, the deal pushes debt above Hormel's target while the dividend already ran ahead of free cash last year. [C11][C11] Investor presentation, slide 8Low-2x Expected Post- Acquisition Net Debt to Adj. EBITDAHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm [C68][C68] Investor presentation, slide 81.5x to 2.0xHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm [C64][C64] Form 10-K, cash flow statementNet Cash Provided by (Used in) Operating Activities 845,251 1,266,738 1,047,847Hormel Foods annual report on Form 10-K for the fiscal year ended October 26, 2025, filed December 5, 2025Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/hrl-20251026.htm [C65][C65] Form 10-K, cash flow statementPurchases of Property, Plant, and Equipment ( 310,902 ) ( 256,441 ) ( 270,211 )Hormel Foods annual report on Form 10-K for the fiscal year ended October 26, 2025, filed December 5, 2025Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/hrl-20251026.htm [C66][C66] Form 10-K, cash flow statementDividends Paid on Common Stock ( 633,192 ) ( 614,960 ) ( 592,932 )Hormel Foods annual report on Form 10-K for the fiscal year ended October 26, 2025, filed December 5, 2025Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/hrl-20251026.htm Third, past purchases led to write-downs. Late last fiscal year Hormel also issued a class 1 recall, the most serious kind, of chicken sold to food-service buyers. [C36][C36] Form 10-K, risk factors, intangible assetsimpairments were recognized on the Planters ® and Chi-Chi's ® trade names for $59.1 million and $2.9 million, respectivelyHormel Foods annual report on Form 10-K for the fiscal year ended October 26, 2025, filed December 5, 2025Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/hrl-20251026.htm [C37][C37] Form 10-K, equity in earnings of affiliatesa $164 million non-cash impairment charge related to a minority investment in Indonesia.Hormel Foods annual report on Form 10-K for the fiscal year ended October 26, 2025, filed December 5, 2025Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/hrl-20251026.htm [C38][C38] Form 10-K, risk factors, food safetythe Company issued a voluntary, class 1 recall related to certain chicken products sold in foodservice channels.Hormel Foods annual report on Form 10-K for the fiscal year ended October 26, 2025, filed December 5, 2025Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/hrl-20251026.htm

The deal cannot close before October 26, 2026, the day after Hormel's fiscal year ends. It also needs approval from 80% of the selling company's shareholders, and holders of at least that much signed up when the deal was signed. [C79][C79] Purchase agreement, Section 2.6provided, that in no event shall the Closing occur prior to October 26, 2026.Membership Interest Purchase Agreement for Brakebush Brothers, Exhibit 2.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex2-1.htm [C80][C80] Form 8-K, Item 5.02the Company’s Annual Report on Form 10-K for the fiscal year ending October 25, 2026.Hormel Foods Form 8-K naming Ash Bhumbla chief financial officer, filed August 24, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000049/hrl-20260824.htm [C81][C81] Purchase agreement, shareholder supportSeller shall cause the Shareholder Support Agreement to be duly executed and delivered by Seller and Shareholders holding at least eighty percent (80%) of the issued and outstanding voting shares of SellerMembership Interest Purchase Agreement for Brakebush Brothers, Exhibit 2.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex2-1.htm Hormel expects to close in the first quarter of fiscal 2027, once the antitrust waiting period ends. [C54][C54] Form 8-K, Item 1.01The closing of the acquisition is expected to be completed during the first quarter of the Company’s 2027 fiscal yearHormel Foods Form 8-K on the agreement to buy Brakebush Brothers, filed September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_8k.htm [C72][C72] Form 8-K, Item 1.01the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976Hormel Foods Form 8-K on the agreement to buy Brakebush Brothers, filed September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_8k.htm After that come the size and rate of the new debt, the March 2027 repayment and the next dividend decision. We would be wrong if the board froze or cut the payout, or if debt stayed above the low-2 times level Hormel expects. [C10][C10] Investor presentation, slide 3, financial structureExpect to finance with a combination of cash on hand and long-term debtHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm [C16][C16] Form 10-Q, Note L, senior notesOn March 8, 2024, the Company issued senior notes in an aggregate principal amount of $ 500.0 million due March 2027. The notes bear interest at a fixed rate of 4.800 % per annum.Hormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm [C26][C26] Form 10-K, Item 5, dividendsThe implied annualized dividend rate for 2026 is $1.17 per share, representing an increase of 1 percent and marking the 60th consecutive year of dividend increases.Hormel Foods annual report on Form 10-K for the fiscal year ended October 26, 2025, filed December 5, 2025Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/hrl-20251026.htm [C11][C11] Investor presentation, slide 8Low-2x Expected Post- Acquisition Net Debt to Adj. EBITDAHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm

How much Hormel will borrow, in what form and at what rate, and what the rating agencies say. The filings say only that it will use cash and new long-term debt. [C10][C10] Investor presentation, slide 3, financial structureExpect to finance with a combination of cash on hand and long-term debtHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm

When Hormel expects debt to be back inside its 1.5 to 2.0 times target. The filings give no date. [C68][C68] Investor presentation, slide 81.5x to 2.0xHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm [C69][C69] Investor presentation, slide 3, financial structureReasonable path to deleveraging over timeHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm

How much the deal will cost to close and fold in, whether those costs will be left out of adjusted earnings, and how the price will be split between assets and goodwill. Hormel says only that the deal adds to adjusted earnings per share from fiscal 2028. [C5][C5] Press releaseThe company expects the acquisition to be accretive to adjusted earnings per share beginning in fiscal 2028.Hormel Foods press release on the Brakebush agreement, Exhibit 99.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-1.htm

Why the press release calls Brakebush's $1.2 billion of sales the last 12 months while the slides call it a 2026 estimate. [C4][C4] Press release, about BrakebushBrakebush generated approximately $1.2 billion in net sales over the last 12 months and operates five production facilities and two research and development labs.Hormel Foods press release on the Brakebush agreement, Exhibit 99.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-1.htm [C60][C60] Investor presentation, slide 3, transaction detailsBased on CY2026 estimate for Brakebush ... Net sales of approximately $1.2 billion2Hormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm

Brakebush's actual profit in dollars and how it has moved, who its biggest customers are, and how much its margins move with chicken prices. The filings give only a 10.7 times price multiple and about $1.2 billion of sales. [C7][C7] Investor presentation, slide 3, transaction detailsImplied adjusted EBITDA multiple1 of 10.7x and 8.9x after synergiesHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm [C4][C4] Press release, about BrakebushBrakebush generated approximately $1.2 billion in net sales over the last 12 months and operates five production facilities and two research and development labs.Hormel Foods press release on the Brakebush agreement, Exhibit 99.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-1.htm

When the antitrust filings were made, how much Brakebush overlaps with Hormel's own food-service chicken, and which assets the sellers keep. The deal required the filings within 10 business days, but the filings give none of these details. [C72][C72] Form 8-K, Item 1.01the expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976Hormel Foods Form 8-K on the agreement to buy Brakebush Brothers, filed September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_8k.htm [C92][C92] Purchase agreement, Section 6.3(b)as promptly as reasonably practicable after the date of this Agreement, and in no event later than ten (10) Business Days from the date of this AgreementMembership Interest Purchase Agreement for Brakebush Brothers, Exhibit 2.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex2-1.htm

Whether the new debt will also refinance the $500 million of notes due in March 2027, and whether John Ghingo led the deal or will be paid on how well it is folded in. The notes are due in March 2027, and Ghingo becomes chief executive on October 26, 2026. [C16][C16] Form 10-Q, Note L, senior notesOn March 8, 2024, the Company issued senior notes in an aggregate principal amount of $ 500.0 million due March 2027. The notes bear interest at a fixed rate of 4.800 % per annum.Hormel Foods quarterly report on Form 10-Q for the quarter ended July 26, 2026, filed August 27, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000055/hrl-20260726.htm [C39][C39] Form 8-K, Item 5.02appointed John F. Ghingo, the Company’s current President and a member of the Board, as the Company’s President and Chief Executive Officer, effective October 26, 2026.Hormel Foods Form 8-K naming John Ghingo chief executive, filed July 28, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000047/hrl-20260727.htm

The size of the retention bonuses, the limit on the insurance policy and the value of the tax step-up. Hormel names all three but gives no figures. [C71][C71] Purchase agreement, definitions“ Retention Bonus Agreements ” means the retention bonus agreements between the Company or a Company Subsidiary and certain Company EmployeesMembership Interest Purchase Agreement for Brakebush Brothers, Exhibit 2.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex2-1.htm [C14][C14] Purchase agreement, Section 8.2the sole and exclusive remedy for any claims for any inaccuracy or breach of any representation or warranty by the Company and/or Seller in this Agreement will be to recover from the R&W Insurance Policy, except in the case of Fraud by the Company and/or SellerMembership Interest Purchase Agreement for Brakebush Brothers, Exhibit 2.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex2-1.htm [C9][C9] Investor presentation, slide 3, transaction detailsExpected tax basis step-up of acquired assetsHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm

Whether Hormel's standing filing to sell new bonds quickly is still current; its annual report lists one dated December 6, 2022. Hormel also names no lender: it says only that it has enough cash and/or committed financing, and the deal does not depend on financing. [C93][C93] Exhibit 23.1, registration statementsRegistration Statement Number 333-268693 on Form S-3 ASR dated December 6, 2022Auditor's consent, Exhibit 23.1 to Hormel Foods Form 10-K, filed December 5, 2025Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846525000059/q42025exhibit231eyconsent.htm [C94][C94] Purchase agreement, Section 5.6Buyer represents and warrants that it has sufficient cash on hand and/or committed financing necessary to enable it to make payment of the Purchase PriceMembership Interest Purchase Agreement for Brakebush Brothers, Exhibit 2.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex2-1.htm [C13][C13] Purchase agreement, Section 6.3Buyer’s obligations to consummate the Contemplated Transactions (including the obligation to pay the Purchase Price) are not subject to, or conditioned upon any equity or debt financingMembership Interest Purchase Agreement for Brakebush Brothers, Exhibit 2.1 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex2-1.htm

When Hormel will report full-year results, give a fiscal 2027 outlook and declare its next dividend, and whether John Ghingo will change the debt target. Ghingo becomes chief executive on October 26, 2026, and Hormel's stated target is 1.5 to 2.0 times. [C39][C39] Form 8-K, Item 5.02appointed John F. Ghingo, the Company’s current President and a member of the Board, as the Company’s President and Chief Executive Officer, effective October 26, 2026.Hormel Foods Form 8-K naming John Ghingo chief executive, filed July 28, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000004846526000047/hrl-20260727.htm [C68][C68] Investor presentation, slide 81.5x to 2.0xHormel Foods investor presentation on the Brakebush agreement, Exhibit 99.2 to Form 8-K, September 30, 2026Open exact filing on SEC EDGAR ↗https://www.sec.gov/Archives/edgar/data/48465/000110465926112101/tm2626547d1_ex99-2.htm