Hormel, which is also a turkey and pork processor, said it expected earnings of $1.88 to $1.96 a share for the year ending in October, down from its prior forecast of $1.93 to $2.03.
Analysts on average had forecast a profit of $1.99 a share, according to Thomson Reuters I/B/E/S.
Hormel was squeezed by higher costs for chicken, pork and beef, a spokesman said.
The company said it would provide more details of the outlook at its investor day on June 26.
Earlier this year, Hormel bought Skippy peanut butter, aiming to diversify away from its core meat businesses.
That move should mitigate some of the risks associated with the lower-margin meat business, said Janney Capital Markets analyst Jonathan Feeney, but he added that the stock still warranted a discount to the broader packaged food sector.
Hormel shares were down $1.89, or 4.6 percent, at $38.76 on the New York Stock Exchange.
