By Evie Liu

Two food stocks are among the best and worst performers in Thursday's trading.

Hormel Foods shares jumped 10% after the packaged-food company reported better-than-expected quarterly results. Sales benefited from stronger demand for turkey and other meat brands as consumers continue to prepare more meals at home and look for relatively affordable sources of protein.

Hormel shares have been under pressure for much of the past two years as investors lost confidence in the company's ability to protect profits. Like many peers, Hormel was squeezed by sharply higher input costs at a time when many consumers were already trading down to cheaper grocery options.

The company tried to offset those pressures with price hikes, but that weakened volumes as shoppers became more cautious about their budgets. In the quarter ended in January, sales volumes for Hormel's retail segment fell 6% from a year ago, dragging sales down by 2%.

Investors were encouraged to see that the company's turnaround is showing progress. In the April quarter, retail volume was down just 2% from a year ago, while sales remained flat. For a stock that recently touched a 52-week low, even modest evidence of stabilization can be enough to spark a rebound.

Tyson Foods stock, on the other hand, tumbled 5% on Thursday after the company named Jeff Schomburger, a former Procter & Gamble executive, to succeed Donnie King as CEO, effective in October. Leadership transitions could raise concerns about uncertainty, especially as King spent over four decades with the company and served as CEO since 2021.

Earlier this month, Tyson posted a 4.4% year-over-year sales growth for the March quarter, largely thanks to strength in its chicken business that benefited from rising protein demand, better execution, and lower feed costs. Chicken sales volume rose 1.7% in the quarter, and the segment had a 12.2% adjusted operating margin.

But investors are still focused on the drag from beef. Cattle supplies remain tight after years of drought, keeping cattle costs high and squeezing meatpackers' margins. Tyson's beef business posted a large operating loss in the latest quarter, and the company expects that segment to continue losing money for the full year.

Schomburger will need to prove that Tyson can become more than a volatile commodity meat processor. The company has been trying to increase its higher-margin prepared foods business to reduce its dependence on unpredictable commodity cycles. Schomburger's experience as a consumer-products executive could help accelerate that progress.

Write to Evie Liu at evie.liu@barrons.com

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May 28, 2026 13:29 ET (17:29 GMT)

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