Investors gobbled up shares of Hormel Foods on Thursday after the food company reported third-quarter results that beat expectations.
To CNBC's Jim Cramer, the pork and turkey products maker is performing so well that it could soon find itself a possible takeover target. After all, rival Tyson Foods purchased Hillshire Brands for roughly $7.7 billion in July. Hormel is "working hard to stay independent," he said.
In 3Q, lower grain prices helped Hormel reduce its raw costs, boosting several of its business segments, Cramer said.
Read MoreHormel posts 3Q profit
"Refrigerated foods. You're talking about bacon. That's doing very, very well. Jennie-O Turkey is a really important division," he said.
"People have to recognize: great dividend, fabulously run company. They have terrible input costs in Spam and yet they were still able to deliver a quality number."
—By CNBC's Drew Sandholm.
DISCLOSURE: When this story was published, Cramer's charitable trust did not own Hillshire Brands, Hormel Foods or Tyson Foods.