Can Hormel Foods Sustain Its Momentum Once COVID-19 Is Gone?
Posting 13.5% share gains during the first seven months of the year, Hormel Foods (NYSE: HRL) is one of a cadre of consumer staples stocks riding the COVID-19 wave to increased profits and performance. While the 31% of its sales derived from foodservice took a hit from the prolonged restaurant shutdown, Hormel's highly diversified product range allowed it to quickly switch emphasis to growth sectors, such as staple foods.
The famous canned meat brand, Spam, made a comeback after years of decline, with U.S. canned meat demand skyrocketing 70% through April, May, and June. Hormel's grocery segment saw double-digit sales increases during the period. Furthermore, the company frequently kept coronavirus infection rates below 3% at its facilities.
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Source Fool.com
