Shares of Hormel Foods Corp. rose sharply today after the Minnesota-based company reported strong sales of canned food, including Spam, a Hawaii favorite.

Hormel shares climbed $2.39, or 7.9 percent, to $32.81 on the New York Stock Exchange, the biggest gain since Nov. 21. Hormel shares have gained 5.6 percent this year.

Hormel said it has decided to make some canned food at its $89 million plant in Dubuque, Iowa, as consumers eat less of the higher-priced Compleats microwavable entrees that Hormel had intended to produce at the site.

Analysts say sales of Spam have taken off as consumers tighten their budgets in response to the economic downturn. Hawai'i consumes more Spam per capita than any other state, according to Hormel's Web site.

Hormel reported its net income fell to $81.4 million, or 60 cents a share, in the three months through Jan. 25, from $88.2 million, or 64 cents, a year earlier. That surpassed the 51-cent average estimate of seven analysts surveyed by Bloomberg News Service.