Published on 21 Mar 2024 on Zacks via Yahoo Finance

Strategic Priorities Aid Hormel Foods (HRL), High Costs Ail

Focus on strategic priorities, including transformation and modernization have been working well for Hormel Foods Corporation HRL. The leading food company is undertaking buyouts to augment portfolio strength and boost revenues. However, the company continues to battle inflationary headwinds.Let’s discuss this in detail.

Focus on Strategic Priorities

The Zacks Rank #3 (Hold) company is progressing with its six strategic priorities, which include enhancing focus and fueling growth in the Retail unit, reinforcing leadership in Foodservice, pursuing solid global expansion, implementing the enterprise entertaining & snacking vision, emphasizing the One Supply Chain initiative and continuing the ongoing transformation and modernization of the business.With regard to transformation and modernization initiatives, it is focused on supply chain efficiency, portfolio optimization and data and analytics. In the plan work stream, management is implementing a new end-to-end planning process and is integrating new planning technology. Under the buy work stream, the company is realizing the benefits of new procurement and productivity programs. Its focus on such initiatives is vital to projected growth in the coming three years. In addition, Hormel Foods’ One Supply Chain initiative is aimed at reducing costs and complexity while investing in long-term growth.