Despite Record Performance, Why Pork Giant's Stock Plummeted Over 6%

On April 27 in U.S. trading, shares of Smithfield Foods Inc. (NASDAQ: SFD) closed at $26.88, roughly ₩39,000, plunging 6.44% from the previous session. The company’s market capitalization fell to about $10.5 billion (roughly ₩15.6 trillion), erasing some $640 million (around ₩900 billion) in value in a single day.

In its fiscal 2026 first-quarter earnings report released that day, Smithfield posted revenue of $3.8 billion, net income of $249 million, and earnings per share of $0.62—its best quarterly performance on record and above analysts’ expectations. Despite these strong results, warnings of near-term inflationary pressures and a slowdown in consumer demand, along with a hike in the quarterly dividend to $0.3125 per share (lifting the yield into the high-4% range), were not enough to buoy investor sentiment.

Earlier this year in January, Smithfield agreed to acquire New York–based Coney Island hot dog brand Nathan’s Famous for about $450 million (approximately ₩660 billion), expanding its brand portfolio.

Headquartered in Smithfield, Virginia, Smithfield Foods is the largest pork processing and packaged meats company in the U.S. It is a fully integrated food producer supplying bacon, ham, and other processed meats across North America and Europe. Since its acquisition by Hong Kong–listed WH Group in 2013, the China-backed firm has continued to grow—despite political and security concerns over foreign ownership—bolstered by rising meat demand in both the U.S. and China.