Hormel Foods · Risk factors

Prior heading: Deterioration of economic conditions could harm the Company’s business.

The Company’s business may be adversely affected by changes in national or global economic conditions, including inflation, interest rates, tax rates, availability of capital, energy availability and costs (including fuel surcharges), political developments, civil unrest, terrorist attacks, armed conflicts, public health crises, legal and regulatory actions, immigration policies and trends, and the effects of governmental initiatives to manage economic conditions. Decreases in consumer spending rates and shifts in consumer product preferences could also negatively impact conditions, including through the Company. Volatility in financial markets imposition of tariffs, quotas, trade barriers, and the deterioration other restrictions. Any of these or other changes in national and global economic conditions could adversely impact the Company’s results of operations and financial condition, including as follows: ▪The financial stability of the Company’s customers and suppliers may be compromised, which could result in challenges in collecting accounts receivable or non-performance by suppliers. ▪Unfavorable economic conditions may lead customers and consumers to delay or reduce purchases of the Company’s products. ▪The imposition of tariffs, quotas, trade barriers, or other restrictions could increase the cost of key inputs or reduce their availability. In particular, recent U.S. tariffs imposed or threatened to be imposed on a variety of countries, and any retaliatory actions taken by such countries, could result in the Company incurring additional costs to procure key inputs. ▪Fuel and transportation costs may become inflated and there may be supply chain shortages and delays, as has occurred in recent years. ▪Customer demand for products may not materialize to levels required to achieve the Company’s anticipated financial results or may decline as distributors and retailers seek to reduce inventory positions if there is an economic downturn or economic uncertainty in key markets. ▪The value of the Company’s investments in debt and equity securities may decline, including, most significantly, assets held in pension plans and the trading securities held as part of a rabbi trust to fund supplemental executive retirement plans and deferred compensation plans. ▪Future volatility or disruption in the capital and credit markets could impair the Company’s liquidity or increase costs of borrowing. ▪The Company may be required to redirect cash flow provided by operations or explore alternative strategies, such as disposing of assets, to fulfill the payment of principal and interest on its indebtedness. The Company has no manufacturing operations ▪Volatile fluctuations in Russia, Ukraine, or the Middle East, yet it has experienced inflated fuel costs and supply chain shortages and delays due to the impact of the military conflicts on the global economy. If these conflicts or others arise or escalate further, market conditions could cause the Company could, among other things, face additional supply chain disruptions, rising prices Company's hedging instruments for oil and other commodities, volatility in capital markets and foreign exchange rates, rising interest rates, or heightened cybersecurity risks, any of which may adversely affect the Company’s business. The Company manages its exposure to commodity prices through hedging programs that utilize hedge accounting, where qualified, for financial reporting purposes. Volatile fluctuations in market conditions could cause these instruments to become ineffective, which could require any gains or losses associated with these instruments to be reported in the Company’s earnings each period. These instruments may limit the Company’s ability to benefit from market gains if commodity prices become more favorable than those secured under the Company’s hedging programs. If a highly pathogenic human disease outbreak developed, such as COVID-19, it may negatively impact the global economy, demand for Company products, the supply chain, the Company’s co-manufacturers, and/or the Company’s workforce availability including leadership, and the Company’s financial results could suffer. The Company has developed contingency plans to address infectious disease scenarios and the potential impact on its operations and will continue to update these plans, as necessary. There can be no assurance given, however, that these plans will be effective in eliminating the negative effects of any such diseases on the Company’s operating results.programs.

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Prior heading: The Company’s operations are subject to the general risks associated with acquisitions, joint ventures, equity investments, and divestitures.

The Company regularly reviews opportunities to support the Company’s strategic initiative of delivering long-term value to shareholders through acquisitions, joint ventures, and equity investments and to divest non-strategic assets. The Company has made several acquisitions, joint ventures, equity investments, and divestitures in recent years, including the purchase of a minority interest in Garudafood in fiscal 2023 and the divestiture divestitures of Hormel Health Labs, LLC in fiscal 2024. 2024 and Mountain Prairie, LLC in fiscal 2025. Potential risks associated with these transactions include the inability to consummate a transaction timely or on favorable terms, diversion of management’s attention from other business concerns, loss of key employees and customers of current or acquired companies, inability to integrate or divest operations successfully, assumption of unknown liabilities, disputes with buyers, sellers, or partners, inability to obtain favorable financing terms, and the inherent risks in entering markets or lines of business in which the Company has limited or no prior experience. There is also the risk of post-acquisition impairment charges if purchase assumptions are not achieved. achieved, which could adversely affect the Company's results of operations and financial condition. For example, based on an assessment in the fourth quarter of fiscal 2025 and in connection with the preparation of the Company's consolidated financial statements, the Company initiated an impairment review of its investment in Garudafood and concluded that the decline in fair value was no longer believed to be temporary. As a result, the Company recognized a $163.7 million impairment charge to reduce the investment's carrying amount to estimated fair value. Due to the nature of joint ventures and equity investments, these arrangements involve further risks, including the possibility that the Company is unable to execute business strategies and manage operations given limitations of the Company’s control. Additionally, partners may make business decisions that are inconsistent with the Company’s goals, block or delay necessary decisions, or experience financial difficulties of their own. Acquisitions, joint ventures, or equity investments outside the U.S. may also present unique challenges and increase the Company’s exposure to the risks associated with foreign operations. The Company’s level of indebtedness may increase to fund future acquisitions, joint ventures, or equity investments. investments in the future. Higher levels of debt may, among other things, impact the Company’s liquidity or credit rating and increase the Company’s exposure to negative fluctuations in interest rates. Any of these risks outcomes could adversely impact the Company’s financial Company's reputation, results of operations, and business reputation.financial condition.

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Prior heading: Risks and uncertainties associated with intangible assets, including any future goodwill or intangible asset impairment charges, may negatively impact the Company.

The Company’s goodwill and indefinite-lived intangible assets are initially recorded at fair value and are not amortized but are reviewed for impairment annually or more frequently if impairment indicators arise. Impairment testing requires significant judgment around estimates and assumptions and is impacted by factors such as various factors, including revenue growth rates, operating margins, tax rates, royalty rates, and discount rates. An unfavorable change in any of these factors may lead to the impairment of goodwill and/or intangible assets. assets. During the Company’s fiscal 2023, an 2025 quantitative impairment testing, the International reporting unit with a goodwill balance of $258.9 million was indicated for identified as having modest fair value in excess of its carrying amount and is considered at heightened risk of impairment. Separately, impairments were recognized on the Planters® and Chi-Chi's® trade names for $59.1 million and $2.9 million, respectively. The Justin’s® trade name, resulting in an impairment charge name was also identified as having heightened risk of $28.4 million. In addition, during fiscal 2023, impairment. As of October 26, 2025, the Company recorded a $7.0 million impairment charge related to a corporate venturing investment to recognize a decline in fair total carrying value not believed to be temporary. Fiscal 2024 net sales for Planters® snack nuts were negatively impacted by production disruptions of indefinite-lived intangible assets considered at heightened risk, including the Suffolk, Virginia, facility. The trade names impaired, was $683.3 million. If the Company believes these impacts are short term in nature (less than one year) and projects sales to recover continues to historical levels shortly after supply normalizes. Should face unfavorable changes in any of the impact last longer, or be more severe than currently anticipated, it is likely factors impacting its intangible assets, the Company would have may be required to recognize an record impairment charge on this trade name, charges in connection with such assets, which is currently valued at $675 million.could adversely affect the Company's results of operations and financial condition.

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Prior heading: The Company is subject to the risk of disruption of operations, including at owned facilities, co-manufacturers, suppliers, logistics providers, customers, or other third-party service providers.

The Company’s ability, and the ability of the Company’s co‑manufacturers, suppliers, and logistics providers to manufacture, supply supply, and distribute the Company’s products is critical to the Company’s success. A significant disruption in the operation of the Company’s manufacturing, supply, or distribution capabilities, whether Company-owned or supported by third parties, could have a negative impact on the Company’s ability to operate its business. business, particularly if such a disruption were to occur at a facility that supports a meaningful amount of the Company’s production, such as its Austin, Minnesota manufacturing facility. For example, in the fourth quarter of fiscal 2025 a fire occurred at the Company’s Little Rock, Arkansas, peanut butter production facility, which negatively impacted production at the facility. Actions taken to mitigate the impact of any potential disruption, including investing in capital improvements, redundant supply, or increasing inventory in anticipation of a potential production or supply interruption, may adversely affect the Company’s financial results. results of operations. Additionally, labor-related challenges have caused disruptions for many of these Company providers and may continue to in the past. If the Company’s owned facilities, or key co-manufacturers, suppliers, or logistics providers experience significant labor-related challenges in the future, it could impact the Company’s ability to receive inputs or distribute products. products. Any of these outcomes could adversely affect the Company's results of operations and financial condition. The Company relies on its customers to sell its products to ultimate consumers. Disruptions related Any disruption to a significant customers customer or sales channels channel could result in a reduction in sales or a change in the mix of products sold. sold, which could adversely affect the Company's results of operations. The Company also relies on a variety of third-party service providers to support its operations. Disruption in Any disruption to services from third-party service providers used to support business functions such as benefit plan administration, payroll processing, information technology (IT) (IT), and cloud computing services could have a negative impact on adversely affect the Company’s business.Company's business, results of operations, and financial condition.

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Prior heading: The Company may not realize the anticipated cost savings or operating profit improvements associated with strategic initiatives, including its Transform and Modernize initiative.

The Company implements strategic initiatives to achieve a profitable cost structure, operate more profitably, efficiently, better serve customers, and optimize cash flow. These initiatives may focus on opportunities to improve the procurement, manufacturing, and logistics within the Company’s supply chain as well as general and administrative processes. A failure or delay in implementing the improvements associated with these strategic initiatives could adversely impact the Company’s results, results of operations, ability to meet its long-term growth expectations, and ability to fund future initiatives. The Company began its Transform and Modernize initiative in the second half of fiscal 2023 with a goal of contributing meaningful operating profit growth through fiscal 2026. If this initiative does not achieve the expected financial impact in the aggregate or on the expected timeline, the Company’s financial results of operations and ability to meet its long-term growth expectations could be adversely impacted. Furthermore, in the fourth quarter of fiscal 2025, the Company commenced a corporate restructuring plan, the focus of which is to reduce administrative expenses, improve efficiencies, and align the workforce to the Company’s future needs, while enabling continued investment in the Company’s growth. The program includes a voluntary early retirement program for certain groups of employees, the closing of certain open roles, involuntary role reductions, and making select changes to benefit programs. If the Company is unable to fully realize the anticipated benefits of this corporate restructuring plan, including the reduction of expenses and the enablement of continued investment in the Company's growth, the Company's results of operations could be adversely impacted. In addition, the Company is in the midst of multi-year data and technology transformation projects to achieve better analytics, customer service, and process efficiencies, efficiencies and to upgrade technologies. The projects, including updating the Company’s order-to-cash process, are expected to improve the efficiency and effectiveness of certain financial and business transaction processes and the underlying systems environment. Multiple phases of these projects have already been implemented implemented, and additional phases are expected to be implemented in the upcoming years. These implementations are a major undertaking from a financial, management, and personnel perspective and may prove to be more difficult, costly, or time consuming than expected, and there can be no assurance that these projects will be beneficial to the extent anticipated.anticipated. Any of these outcomes could adversely affect the Company's results of operations and financial condition.

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Prior heading: The Company is subject to risk of the loss of a significant contract or unfavorable changes in the Company’s relationships with significant customers.

The Company is a party to several supply, distribution, contract packaging and other significant contracts. The loss of a significant contract or failure to obtain new significant contracts could adversely affect the Company’s financial results. Sales to the Company's largest customer, Walmart, accounted for approximately 16 percent of consolidated gross sales less returns and allowances during fiscal 2024. 2025. Walmart is a customer for the Company’s Retail and International segments. The Company’s top five customers collectively represented approximately 37 38 percent of consolidated gross sales less returns and allowances during fiscal 2024. 2025. The loss of one or more of the top customers in any of the reportable segments could have a material adverse effect upon such segment’s adversely affect the Company's results of operations and financial results.condition. The Company relies on suppliers, distributors, and other third parties to source key inputs, deliver products to customers, and support its operations. Any termination of, or adverse change in, the Company's relationship with any of these companies could decrease the Company's sales, increase the Company's costs, and negatively impact the Company's results of operations.

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Prior heading: The Company may be adversely impacted if the Company is affected by cybersecurity attacks, security breaches, or other IT interruptions, involving its own systems or those with whom it does business.

IT systems are an important part of the Company’s business operations. The Company also increasingly relies upon third-party service providers for a variety of business functions, including cloud-based services. Cyber incidents are occurring The Company has programs in place to prevent, detect, contain, and respond to cyber incidents. However, the Company may be unable to anticipate security incidents, detect attacks, or implement adequate preventive measures as cyber threats continue to evolve and cyberattacks have become more frequently across U.S. industries sophisticated and are being made by groups frequent, including through the use of enhanced technologies and individuals capabilities (such as artificial intelligence) by threat actors with a wide range of motives expertise and expertise. In addition, high-profile data security incidents motives. For example, threat actors have increasingly targeted organizations in the U.S. and IT interruptions at other companies, including companies internationally with whom the Company does business, evidence an external environment that is becoming increasingly challenging. From time to time, sophisticated ransomware attacks, which the Company has experienced, and may experience in the future, breaches of security measures due be unable to human error, malfeasance, insider threats, system errors or vulnerabilities anticipate, detect, or other irregularities, none of which have been material to date. contain. In addition, from time to time hardware or software that the Company has experienced disruptions develops or obtains from third parties may contain defects that could compromise the Company's IT systems. Unauthorized parties may also attempt to its operations due gain access to the Company's IT interruptions at systems or facilities, or those of third parties with whom it the Company does business. To date, none business, through fraud, deception, social engineering, or other bad acts. Errors or malicious actions by the Company's team members or contractors and other vulnerabilities or irregularities could also negate the Company's security measures or those of these have been material. Although third parties with whom the Company has programs in place related to does business continuity, disaster recovery, and information security initiatives to maintain result in a compromise or breach of the confidentiality, integrity, and availability Company's or their IT systems. The utilization of systems, business applications, hybrid and customer information, remote work by the Company's team members, suppliers, and other third parties has amplified the Company's already extensive reliance on IT systems and unimpeded internet access. Furthermore, the training the Company conducts as part of information security and cybersecurity efforts may not be able to anticipate or implement effective preventive measures against all potential IT interruptions or cybersecurity threats, especially because, in connection preventing or limiting successful attacks. The Company and third parties with cybersecurity threats the techniques used change frequently whom it does business face attempts by others to gain unauthorized access to, sabotage, take control of, and because attacks can originate from corrupt, its or their IT systems and data. As a wide variety result of sources, these types of attempts, both domestic the Company and foreign. Cybersecurity risk cannot be fully mitigated because third parties with whom it does business have experienced information security, cybersecurity, and data privacy incidents. None of these incidents have had a material impact on the rapidly evolving nature Company's business strategy, results of the threats, targets, and consequences. operations, or financial condition. If the Company experiences a loss or significant disruption in its operations due to a cybersecurity event or other IT interruption, third parties with whom the Company may suffer reputational, competitive, does business experience additional significant information security, cybersecurity, or data privacy incidents or fail to detect and appropriately respond to significant incidents, the Company's business harm operations could be severely disrupted and may it could be exposed to legal liability, which may costly government enforcement actions and private litigation. In addition, the Company's customers and consumers could delay, reduce, or cease purchases of the Company's products. Any of these outcomes could adversely affect the Company’s Company's reputation, results of operations.operations, and financial condition.

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Prior heading: The Company may be adversely affected if it fails to timely replace legacy technologies.

The Company relies extensively on IT systems throughout its business. The Company also relies on continued and unimpeded access to the internet to use its IT systems. These systems are subject to possible damage or interruption from many events, including power and other outages, telecommunications failures, third-party failures, malicious attacks, security breaches, unplanned downtime, program transitions, and implementation errors. Any damage or disruption to the Company's IT systems could severely interrupt the Company's business operations, including the Company's ability to develop, process, and distribute its products, which could adversely affect its reputation, results of operations, and financial condition. The Company has been evolving its IT infrastructure infrastructure, but continues to rely on a variety of legacy technologies across its business. The Company is investing significant funds has invested, and expects to update continue investing, in updates to its IT infrastructure. and security infrastructure and capabilities. If the Company fails to timely complete this work, effectively implement these updates, the risk of an adverse cybersecurity incident may increase, if, including for example, example if vendors fail to continue to provide security updates. updates for legacy technologies. Reliance on legacy technology for an extended period may also increase the Company’s IT maintenance expense and risk of system downtime, as well as slow the Company’s adoption of more innovative technologies or ability to benefit from more sophisticated data analytics.analytics. In addition, problems and interruptions associated with implementing technology initiatives could adversely affect the Company's operational efficiency. Any of these outcomes could adversely affect the Company's results of operations and financial condition.

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Prior heading: Deterioration of labor relations, labor availability or increases in labor costs could harm the Company’s business.

A The Company's ability to meet its labor needs while controlling its costs is subject to external factors such as labor laws and regulations, labor availability, unemployment levels, prevailing wage rates, benefit costs, changing demographics, immigration laws, regulations, and enforcement policies, and the Company's reputation within the labor market. If the Company is unable to attract and retain a workforce meeting its needs (including for specialized roles with significant competition for talent) or is unable to successfully execute on succession planning and continuity at all levels of the organization, including as a result of the Company's recent corporate restructuring plan, the Company's operations, strategy, and competitiveness could suffer. Any of these outcomes could adversely affect the Company's reputation, results of operations, and financial condition. In addition, a significant increase in labor costs costs, a reduction of available labor, or a deterioration of labor relations at any of the Company’s owned facilities or co-manufacturing facilities resulting could result in work slowdowns or stoppages stoppages, which could harm adversely affect the Company’s financial results. Labor Company's reputation, results of operations, and skilled labor availability challenges could continue to have an adverse effect on the Company’s business. financial condition. The Company periodically renegotiates its collective bargaining agreements as such agreements expire. New or increased unionization efforts at a facility or failure to successfully negotiate with existing unions could lead to disruptions in the Company's supply chain, increases in operating costs, and constraints on operating flexibility.flexibility. Any of these outcomes could adversely affect the Company's reputation, results of operations, and financial condition.

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Prior heading: The Company’s operations are subject to the general risks of the food industry.

The Company's development, production, and distribution of food products manufacturing industry is subject for human consumption subjects it to the risks posed by a number of factors, many risks, including: ▪food contamination caused by disease-producing organisms or pathogens, such as Listeria monocytogenes, Salmonella, and pathogenic E coli.; coli., including contamination caused by the introduction of pathogens as a result of improper handling by customers or consumers (over which the Company has no control); ▪food contamination caused by operational errors by suppliers, co-manufacturers, or in Company-owned facilities; ▪mislabeling, including with respect to food allergens; ▪food spoilage; ▪claims of false or deceptive advertising; ▪nutritional and health-related concerns; ▪federal, state, and local food processing controls; ▪consumer product liability claims; ▪product tampering; and ▪the possible unavailability and/or expense of liability insurance. The pathogens that Company may cause food contamination are found generally in livestock face litigation, investigations, and in the environment regulatory proceedings and thus may be present in the Company’s products. These pathogens can also be introduced subject to products as a result of improper handling by customers or consumers. The Company does not have control over handling procedures once products have been shipped for distribution. If one or more liability if any of these risks were to materialize, the Company could incur significant costs, loss including if consumption of sales, regulatory action, any of the Company's products causes injury, illness, or litigation as well as negative impacts to death. Furthermore, any such events could damage the Company's relationship with its brand customers and lead to adverse perceptions of the Company's business reputation. During and consumer boycotts. In addition, the Company may take marketplace action such as a voluntary product recall in the event of contamination or damage to any of the Company's products. For example, during the fourth quarter of fiscal 2025, the Company issued a voluntary, class 1 recall related to certain chicken products sold in foodservice channels. In addition, during the third quarter of fiscal 2024, the Company voluntarily recalled a limited number of Planters® products due to the potential for contamination of the product with Listeria monocytogenes. Although to-date there have the Company has not been no made aware of any reports of illness related to the recalled products, products in connection with either of these recalls, the Company has experienced costs and business impacts associated with the event.events. If similar events occur in the future or if any other food safety or food industry risks materialize, the Company's reputation, results of operations, and financial condition could be adversely affected.

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Prior heading: Outbreaks of disease among livestock and poultry flocks could harm the Company’s revenues and operating margins.

The Company is subject to risks associated with the outbreak of disease in pork and beef livestock, and poultry flocks, including African swine fever (ASF), Bovine Spongiform Encephalopathy (BSE), pneumo-virus, Porcine Circovirus 2 (PCV2), Porcine Reproduction & Respiratory Syndrome (PRRS), Foot-and-Mouth Disease (FMD), Porcine Epidemic Diarrhea Virus (PEDv), and Highly Pathogenic Avian Influenza (HPAI). The outbreak of any such diseases could adversely affect the Company’s supply of raw materials, increase the cost of production, reduce utilization of the Company’s harvest facilities, and reduce earnings. The impact of global climate change may increase Although the Company has developed business continuity plans for various disease scenarios, there can be no assurance that these risks due to changes in weather or migratory patterns, which may result plans will be effective in certain types of diseases occurring more frequently or with more intense effects. Additionally, reducing the outbreak negative effects of disease may hinder any such diseases on the Company’s ability to market and sell products both domestically and internationally. results of operations. In recent years, outbreaks of ASF have impacted hog herds in China, Asia, Europe, and the Caribbean. If an outbreak of ASF were to occur in the U.S., the Company’s supply of hogs and pork could be materially impacted. significantly impacted. Furthermore, HPAI was detected within the Company’s turkey supply chain during fiscal 2024 and the first quarter of fiscal 2025. HPAI could continue to be detected in the future. The impact Future impacts of HPAI has reduced and the Company believes it will continue to could reduce the production volume in the Company’s turkey facilities. The Company is continuing continues to monitor the situation and will take appropriate actions to protect the health of the turkeys across the supply chain. The Company has developed business continuity plans for various impact of a changing climate may also increase disease scenarios and will continue risks due to update these plans, as necessary. There can be no assurance given, however, that these plans will be effective changes in eliminating the negative effects weather or migratory patterns, which may result in certain types of any such diseases on occurring more frequently or with more intense effects. Additionally, the outbreak of disease may hinder the Company’s operating results.ability to market and sell products both domestically and internationally. Any of these outcomes could adversely affect the Company's results of operations and financial condition.

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Prior heading: Market demand for the Company’s products may fluctuate, including due to private label products and lower-priced alternatives.

The Company faces competition from a variety of sources, including other national brands, private label producers, and producers of alternative meats and protein sources, including pork, beef, turkey, chicken, fish, nuts, nut butters, whey, and plant-based proteins. The factors on which the Company competes include: ▪price; ▪product quality and attributes; ▪brand identification; ▪breadth of product line; and ▪customer service. For certain products and product categories there has been, and the Company expects there to continue to be, a consumer shift towards more generic, lower-priced, or other value offerings, including private label products, which could result in lower sales, reduced margins, and lower market share for the Company's products. Demand for the Company’s products is also affected by competitors’ promotional spending, the effectiveness of the Company’s advertising and marketing programs, and consumer perceptions, including those related to food trends such as sustainability of product sources and animal welfare. The Company’s failure to compete successfully on any of these or other factors could lead to, among other things, reduced demand for the Company’s brands and products, which could negatively impact the Company’s financial condition and results of operations.operations and financial condition.

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Prior heading: Damage to the Company’s reputation or brand image can adversely affect its business.

Maintaining and enhancing the perception of the reputation of the Company and its key brands is critical to the Company's business success. The Company's reputation is largely based on perceptions. It may be difficult to address negative publicity or sensationalism across media channels, regardless of its accuracy or the reputability of its source, including as a result of fictitious media content (such as content produced by artificial intelligence or bad actors). Negative incidents (including those based on differing perspectives or opinions) involving the Company, its brands, its workforce, or others with whom the Company does business could quickly erode trust and confidence and result in changes in behavior including consumer boycotts, workforce unrest or walkouts, government investigations, and litigation. Negative reputational incidents or negative perceptions of the Company or its brands have been in could adversely affect the past, Company's business and results of operations, including through lower sales, the termination of business relationships, higher costs, and team member engagement, retention, and recruiting difficulties. The Company has previously experienced negative perceptions of its business, and it could experience similar occurrences in the future be, adversely impacted by a number future. Any of factors, these outcomes could negatively impact the Company's reputation, results of operations, and financial condition. The Company previously established, and may continue to establish, various goals and initiatives regarding environmental, social, and governance matters, including unfavorable events with respect to sustainability. The Company has modified, and may continue to modify, certain of these goals and initiatives from time to time. The Company's establishment and continuation of any goals or rumors, adverse publicity, initiatives regarding environmental, social, and governance matters, any modification or termination of such goals or initiatives, or any failure or perceived failure by the Company to achieve them, could result in negative information disseminated through social reactions from the Company's shareholders, customers, consumers, team members, suppliers, and digital media. Failure other third parties (including governmental entities and officials and non-governmental organizations) and lead to maintain, extend, adverse perceptions of the Company's business, consumer boycotts, litigation, investigations, and expand regulatory proceedings. Any of these outcomes could negatively impact the Company’s reputation Company's reputation, results of operations, and financial condition. Reputational harm can also occur indirectly through companies and others with whom the Company does business or brand image who sell the Company's products. In addition, the Company has previously had, and may in the future have, relationships with celebrities, influencers, and other individuals, including for advertising campaigns and marketing programs. If consumers have negative experiences with, or view unfavorably, any of the companies or individuals with whom the Company has relationships, it could cause them to reduce or stop purchasing the Company's products, which could adversely impact operating results.affect the Company's results of operations.

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Prior heading: Climate change, or legal, regulatory or market measures to address climate change, could have an adverse impact on the Company’s business and results of operations.

There is growing concern that carbon dioxide and other greenhouse gases in the atmosphere The potential impacts of a changing climate may have an adverse impact on global temperatures, weather patterns, be widespread and unpredictable and present a variety of risks in the frequency short-term and severity long-term. The physical effects of a changing climate, such as natural disasters, extreme weather conditions, drought, and natural disasters. If such climate change has a negative impact on agricultural productivity, rising sea levels, could adversely affect the Company may have decreased Company's results of operations, including by reducing the availability of, or less favorable pricing for, of necessary raw materials, increasing the cost of raw materials necessary for materials, increasing its operations. Climate change may also cause decreased availability of, or less favorable pricing for, water, energy costs, disrupting its supply chain, negatively impacting its workforce, damaging its facilities, and threatening the habitability of the locations in which could have an adverse effect on the Company’s financial results, operations, and supply chain. Company operates. In addition, natural disasters and extreme weather, including those caused by climate change, have caused and could continue addition to cause disruption in physical risks, the Company’s operations and supply chain and increases in property insurance premiums. The increasing concern over potential impacts of a changing climate change may also result in greater local, state, federal, and foreign legal requirements, present transition risks, including requirements to limit greenhouse gas emissions or conserve water usage. If such requirements are enacted, regulatory and reputational risks. For example, the Company could experience significant cost increases uses commodities and energy inputs in its operations and supply chain. The Company has developed, publicly announced, and had validated through the Science Based Targets initiative, goals to reduce its greenhouse gas emissions. The Company’s ability that may face increased regulation due to achieve its greenhouse gas emissions goals, and its a changing climate or other environmentally focused goals set forth in its 20 by 30 Challenge, is subject to numerous factors and conditions, many of environmental concerns, which are outside of its control. Examples include, among others, evolving regulatory requirements, disclosure frameworks, could increase the Company's costs. Furthermore, the Company's establishment and methodologies for reporting data. The Company’s inability to accomplish its continuation of sustainability goals related and initiatives, or any modification, conclusion, failure, or perceived failure by the Company to greenhouse gas emissions reductions, achieve them, or with respect to otherwise meet evolving, varied, and potentially conflicting expectations from the Company's shareholders, customers, consumers, team members, suppliers, and other environmental matters set forth in third parties (including governmental entities and officials and non-governmental organizations) regarding the 20 by 30 Challenge may disappoint stakeholders, cause decreased demand for environment and the Company’s products, Company's goals and have an initiatives, could lead to adverse effect on perceptions of the Company’s Company's business, consumer boycotts, litigation, investigations, and regulatory proceedings. Any of these outcomes could adversely affect the Company's reputation, results of operations.operations, and financial condition.

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Prior heading: The Company’s operations are subject to the general risks of litigation.

The Company is regularly involved on an ongoing basis in litigation arising a variety of legal proceedings, including litigation, arbitration, claims, investigations, and inquiries. The frequency of any such proceedings could increase in the ordinary course future. These proceedings relate to a wide range of business. Trends in litigation may include matters, including class actions involving employees, consumers, competitors, suppliers, shareholders, or others, and claims relating to commercial disputes, product liability, contract disputes, antitrust regulations, tax regulations, intellectual property, advertising, labeling, wage and hour laws, employment practices or practices, environmental matters. Neither litigation trends nor matters, shareholder actions, securities claims, and other matters relating to the outcomes Company's compliance with applicable laws and regulations. These matters are inherently uncertain, and the Company may not be successful in defending itself. Determining applicable reserves and possible losses related to such matters involves judgment and may not reflect the full range of litigation can uncertainties and unpredictable outcomes. In addition, the Company's assessment of the materiality and likely outcome of these matters may not be predicted consistent with certainty the ultimate outcome of such matters. Responding to these matters has required, and adverse litigation trends may in the future require, the Company to devote significant resources and outcomes incur significant expenses, even for those that are non-meritorious, which could negatively adversely affect the Company’s Company's results of operations and financial results.condition. Any of these proceedings could also generate negative publicity that adversely affects the Company's reputation.

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Prior heading: Government regulation, present and future, exposes the Company to potential sanctions and compliance costs that could adversely affect the Company’s business.

The Company’s operations, and those of its suppliers, are subject to extensive regulation in the U.S. and abroad, by the U.S. Department of Agriculture, the U.S. Food and Drug Administration, the U.S. Department of Homeland Security, international, federal, and state taxing authorities authorities, and other international, federal, state, and local authorities, including those that oversee workforce mobility, taxation, animal welfare, food safety, and the processing, packaging, storage, distribution, advertising, and labeling of the Company’s products. Claims or enforcement proceedings could be brought against the Company in the future. In addition, these regulations could become more restrictive, which could lead to increased costs for the Company. For example, multiple states in the U.S. have implemented, or are considering implementing, extended producer responsibility laws that will require the Company to enact policies and processes and will increase expenses, including through fees paid to state governments in connection with such laws. In addition, pork harvest facilities that the Company relies upon in its supply chain are subject currently relying on government-issued waivers to regulations that otherwise limit maximum production line speeds. The current maximum While rulemaking and legislation are underway to permanently increase permissible line speeds speeds, if these waivers are under review by the government. If not made permanent and line speeds are required to be slowed, harvest capacity and costs may be negatively impacted. impacted. Any of these outcomes could adversely affect the Company's results of operations and financial condition. The Company’s manufacturing facilities and products are also subject to ongoing inspection by federal, state, and local authorities. The loss of the availability of government inspectors inspectors, including due to a government furlough or reduction in force, could cause disruption to the Company’s manufacturing facilities. Additionally, facilities, which could adversely impact the Company is subject Company's results of operations. There have been, and may continue to new be, changes in the legal or modified laws, regulations, regulatory environment (including as a result of executive orders) affecting many areas related to the Company's business, including raw material costs and accounting standards. availability, energy costs and availability, workforce availability, transport costs and capacity, information security, cybersecurity, and data privacy, supply chain requirements, food safety, environmental, social, and governance matters, and climate and emissions disclosure. The Company’s failure ultimate impact of any changes in the legal or inability regulatory environment (including as a result of executive orders) is not possible to comply with such requirements predict and could subject negatively affect the Company's results of operations and financial condition, including by increasing its expenses, reducing customer and consumer demand for the Company's products, limiting workforce availability for the Company, its suppliers, and its customers, and resulting in litigation, investigations, and regulatory proceedings against the Company. In addition, if the Company is unable or perceived to civil remedies, including fines, injunctions, recalls be unable to comply with any changes in the legal or seizures, as well regulatory environment (including as potential criminal sanctions.a result of executive orders), the Company's reputation, results of operations, and financial condition could be adversely affected.

Added · Removed · word-level comparison of the two filings