Hormel Foods benefiting from, pressured by tight labor market

摘要

A tight labor market was a boon and a bane for Hormel Foods Corp. during the third quarter of fiscal 2021. On the positive side, the company's foodser-vice strategy is proving successful as operators seek to do more with fewer people. On the negative side, a shortage of workers prevented Hormel Foods from meeting demand in some product categories. "For the quarter, we saw an acceleration in our foodservice business as sales grew 45% compared to last year," said James P. Snee, chairman, president and chief executive officer, during a Sept. 2 earnings call to discuss third-quarter results. "What is even more impressive is sales increased 17% compared to 2019 pre-pandemic levels. "Our enterprise foodservice portfolio remains perfectly positioned to meet the most pressing need of today's foodservice operators, which is labor. Our products minimize labor, simplify food preparation and save time all while preserving the flexibility to add their own unique touch to their menus." Net income for the quarter ended July 25 was $177 million, equal to 33C per share on the common stock, and down from the previous year when the company earned $203 million, or 38C per share.