Hormel Foods Corp.'s stock was down 8.7% to $33.11 a share on Thursday, making it the worst performer in the S&P 500 , after union workers ratified a new contract with the largest wage increases in company history.
The stock (HRL) was on track for its lowest close since March 23, 2018, when it ended the session at $32.55, according to Dow Jones Market Data.
It was also on a path for its largest percentage decrease since May 18, 2022, when it fell 8.76%.
The United Food and Commercial Workers International Union said members who work for Hormel in Minnesota, Georgia, Wisconsin and Iowa have voted to ratify a new contract containing wage increases of between $3 and $6 an hour.
The union said the contract also nearly doubles bereavement leave, protects health care coverage and increases retirement benefits.
Hormel is projecting 5% to 7% operating income growth from its current business by 2026, as well as 2% to 3% organic net sales growth over the same time period.
From 2012 to 2022, it maintained a compound annual revenue growth rate of 4.2%.
Wall Street analysts currently expect Hormel to report fiscal 2023 revenue of $12.192 billion and fiscal 2024 revenue of $12.408 billion, which would be an increase of about 1.8%, according to FactSet consensus estimates.
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