Hormel vs Kraft Heinz: Revenue, Profit and Business Model
Hormel had $12.1B of annual revenue in FY2025 and $478.2M of net income. Kraft Heinz had $24.9B of annual revenue in FY2025 and a net loss of $5.8B.
Latest financial snapshot
Hormel
- Latest annual revenue
- $12.1B (FY2025)
- Net income
- $478.2M
- Net margin
- 4.0%
- Revenue growth
- +2.7% a year, FY2016–FY2025
Kraft Heinz
- Latest annual revenue
- $24.9B (FY2025)
- Net income
- -$5.8B
- Net margin
- -23.4%
- Revenue growth
- -0.6% a year, FY2016–FY2025
Financial summary
Hormel
Revenue has been flat at roughly $11.9-$12.5 billion since FY2022, while net earnings slid from about $1.0 billion in FY2022 to $478 million in FY2025 as turkey, commodity and restructuring costs bit. Fiscal 2026 shows a split picture: Q3 net sales fell 2.4% to $2.96 billion and GAAP diluted EPS was $0.11 after Brazil divestiture, Indonesia impairment and litigation charges, but adjusted EPS rose 6% to $0.37. Hormel ended Q3 with $840 million of cash, has paid dividends since 1928, and is an S&P 500 Dividend Aristocrat. Hormel Foods Corporation is a major American food processing company, maintaining a market valuation generally exceeding $15 billion.
Kraft Heinz
Kraft Heinz's net sales peaked at $26.6 billion in 2023 and fell to $25.846 billion in 2024 and $24.942 billion in 2025. Profitability swings with impairments: the company reported a $10.2 billion loss in 2018 after the $15.4 billion write-down of Kraft and Oscar Mayer brands, profits of $2.4 billion to $2.9 billion from 2022 to 2024, and a $5.846 billion net loss in FY2025 on a $4.669 billion operating loss. In Q2 2026 (quarter ended June 27, 2026), net sales were $6.262 billion, down 1.4%, and a $7.4 billion non-cash impairment produced a $6.4 billion operating loss and a net loss of about $5.46 billion. Cash generation is steadier: year-to-date 2026 operating cash flow was $2.1 billion and free cash flow $1.7 billion, and the company returned $0.9 billion to shareholders, including a $0.40 quarterly dividend. Market capitalization was about $29 billion in September 2026, far below the more than $100 billion value it reached in 2017. The Kraft Heinz Company is a colossal American multinational food and beverage conglomerate, commanding a market valuation generally exceeding $40 billion.
Revenue and profit by year
Hormel
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $12.1B | $478.2M | 4.0% | +1.6% | Source |
| FY2024 | $11.9B | $805M | 6.8% | -1.6% | Source |
| FY2023 | $12.1B | $793.6M | 6.6% | -2.8% | Source |
| FY2022 | $12.5B | $1000M | 8.0% | +9.4% | Source |
| FY2021 | $11.4B | $908.8M | 8.0% | +18.5% | Source |
| FY2020 | $9.6B | $908.1M | 9.5% | +1.2% | Source |
| FY2019 | $9.5B | $978.8M | 10.3% | -0.5% | Source |
| FY2018 | $9.5B | $1B | 10.6% | +4.1% | Source |
| FY2017 | $9.2B | $846.7M | 9.2% | -3.7% | Source |
| FY2016 | $9.5B | $890.1M | 9.3% | — | Source |
Kraft Heinz
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $24.9B | -$5.8B | -23.4% | -3.5% | Source |
| FY2024 | $25.8B | $2.7B | 10.6% | -3.0% | Source |
| FY2023 | $26.6B | $2.9B | 10.7% | +0.6% | Source |
| FY2022 | $26.5B | $2.4B | 8.9% | +1.7% | Source |
| FY2021 | $26B | $1B | 3.9% | -0.5% | Source |
| FY2020 | $26.2B | $356M | 1.4% | +4.8% | Source |
| FY2019 | $25B | $1.9B | 7.7% | -4.9% | Source |
| FY2018 | $26.3B | -$10.2B | -38.8% | +0.7% | Source |
| FY2017 | $26.1B | $10.9B | 42.0% | -0.9% | Source |
| FY2016 | $26.3B | $3.6B | 13.7% | — | Source |
Where the revenue comes from
Hormel
- Retail~62%
Retail generated $7.455 billion in FY2025 net sales from branded products sold through grocery, club, mass, convenience, and other retail channels.
- Foodservice~33%
Foodservice generated $3.942 billion in FY2025 net sales from products sold to restaurants, distributors, operators, and away-from-home customers.
- International~6%
International generated $709 million in FY2025 net sales from branded and foodservice products sold outside the United States.
Kraft Heinz
- North America~74%
US and Canada retail and foodservice sales of Heinz, Kraft, Oscar Mayer, Philadelphia, Lunchables, Velveeta, Capri Sun, and Maxwell House. H1 2026 net sales were $9.084 billion, down 1.7%.
- International Developed Markets~14%
Developed markets outside North America, including the UK, Europe, Australia, and Japan, led by Heinz condiments, beans, and soups. H1 2026 net sales were $1.708 billion, down 0.3%.
- Emerging Markets~12%
West and East Emerging Markets plus Asia Emerging Markets, including Brazil, Mexico, the Middle East, China, and Indonesia. H1 2026 net sales grew 9.0% to $1.517 billion.
Business model and strategy
Hormel
How it makes money
Hormel buys commodity inputs (mainly pork, turkey, peanuts and other nuts) and sells them as branded, value-added foods. A raw pound of pork earns thin margins; cured, sliced and branded as Hormel pepperoni, Black Label bacon or a Columbus charcuterie tray, it earns more.
Growth strategy
Hormel's growth plan centers on priority brands (Planters, SPAM, Applegate, Hormel chili, Jennie-O value-added turkey), foodservice prepared proteins, and portfolio shaping. Under its Transform and Modernize initiative it is cutting costs and investing in data and technology.
Competitive advantage
Hormel's edge is a portfolio of brands that lead their niches (SPAM in canned meat, Skippy in peanut butter, Planters in snack nuts, Hormel pepperoni and Jennie-O in turkey), plus a foodservice business that sells labor-saving prepared proteins to operators. Foodservice posted its 12th straight quarter of organic sales growth in Q3 fiscal 2026.
Kraft Heinz
How it makes money
Kraft Heinz makes money by manufacturing and selling branded, mostly shelf-stable and refrigerated foods to grocery retailers, mass merchants, club stores, and foodservice operators. It buys commodities such as tomatoes, dairy, meat, coffee, and packaging, turns them into branded products, and earns its margin through brand pricing power, scale in procurement and distribution, and category leadership on the shelf.
Growth strategy
Under Steve Cahillane, Kraft Heinz's growth plan is to invest behind its biggest brands instead of splitting the company. The roughly $700 million incremental 2026 budget, raised from $600 million in August 2026, goes to marketing, R&D and product quality, sales capabilities, and selective price investment, mostly in the US.
Competitive advantage
Kraft Heinz's advantage is a set of category-defining brands, led by Heinz ketchup and condiments, Philadelphia cream cheese, Kraft Mac & Cheese, and Oscar Mayer, combined with national distribution and category-captain relationships with large retailers.
Questions about Hormel vs Kraft Heinz
Which company has higher revenue — Hormel Foods Corporation or The Kraft Heinz Company?
Hormel Foods Corporation had $12.1B (FY2025), while The Kraft Heinz Company had $24.9B (FY2025). By latest annual revenue, The Kraft Heinz Company is the larger business, with Hormel Foods Corporation showing a smaller revenue base.
What is the market cap of Hormel Foods Corporation vs The Kraft Heinz Company?
Hormel Foods Corporation's market capitalisation stands at $11.3B, while The Kraft Heinz Company's is $29.0B. The Kraft Heinz Company carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Hormel Foods Corporation.
How does revenue per employee compare for Hormel Foods Corporation and The Kraft Heinz Company?
Hormel Foods Corporation has $605k / employee in revenue per employee, while The Kraft Heinz Company has $713k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Hormel Foods Corporation and The Kraft Heinz Company make money?
Hormel Foods Corporation and The Kraft Heinz Company generate revenue in fundamentally different ways. Hormel Foods Corporation: Hormel buys commodity inputs (mainly pork, turkey, peanuts and other nuts) and sells them as branded, value-added foods. The Kraft Heinz Company: Kraft Heinz makes money by manufacturing and selling branded, mostly shelf-stable and refrigerated foods to grocery retailers, mass merchants, club stores, and foodservice operators.
Which company is valued higher relative to revenue — Hormel Foods Corporation or The Kraft Heinz Company?
On a price-to-sales (P/S) basis, Hormel Foods Corporation trades at 0.9x P/S and The Kraft Heinz Company at 1.2x P/S. The Kraft Heinz Company commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Hormel Foods Corporation. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Hormel Foods Corporation bigger than The Kraft Heinz Company?
By last reported revenue, The Kraft Heinz Company ($24.9B (FY2025)) is the larger company compared to Hormel Foods Corporation ($12.1B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Hormel vs Kraft Heinz overview