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Competition

     The products of the Company are sold under highly competitive conditions. All food products can be considered competitive with other food products, but the Company considers its principal competitors to include national, regional and local producers and distributors of refrigerated, frozen and snack food products. Several of the Company’s competitors include large companies with substantially greater financial and marketing resources than those of the Company. Existing competitors may broaden their product lines and potential competitors may enter or increase their focus on the Company’s market, resulting in greater competition for the Company. The Company believes that its products compete favorably with those of the Company’s competitors. Such competitors’ products compete against those of the Company for retail shelf space, institutional distribution and customer preference.

     Importance of Key Customers

     Sales to Wal-Mart® comprised 10.2% and 14.6% of revenues for fiscal years 2008 and 2007, respectively. Accounts receivable from Wal-Mart® was 14.2% of total accounts receivable at October 31, 2008 and 12.4% of total accounts receivable at November 2, 2007.

     Sources and Availability of Raw Materials

     The Company purchases large quantities of pork, beef and flour. These ingredients are generally available from a number of different suppliers although the availability of these ingredients is subject to seasonal variation. The Company builds ingredient inventories to take advantage of downward trends in seasonal prices or anticipated supply limitations.

     Employees

     The Company has approximately 613 employees, approximately 42% of whose employment relationship is governed by collective bargaining agreements. These agreements currently expire or expired between December 2008 and March 2012. A contract with Teamsters Locals 87, 150, 386 and 431, covering 12 employees, expired on March 31, 2007. As of January 2009, a new agreement is in the process of ratification. The Company believes that its relationship with employees is favorable.

     Executive Officers of the Registrant

     The names, ages and positions of all the executive officers of the Company as of January 1, 2009 are listed below. Messrs. Hugh Wm. Bridgford and Allan L. Bridgford are brothers. William L. Bridgford is the son of Hugh Wm. Bridgford and the nephew of Allan L. Bridgford. Officers are normally appointed annually by the board of directors at their meeting immediately following the annual meeting of shareholders. All executive officers are full-time employees of the Company, except for Allan L. Bridgford, who works 60% of full-time effective March, 2005.

Item 1A. Risk Factors

     In addition to the other matters set forth in this Annual Report on Form 10-K, the continuing operations and the price of the Company’s common stock are subject to the following risks, each of which could materially adversely affect the business, financial condition and results of operations. The risks described below are not the only risks faced by the Company. The risks described below are only the risks that the Company currently believes are material to its business. However, additional risks not presently known, or risks that are currently believed to be immaterial, may also impair business operations.

     General Risks of Food Industry and Risks Relating to Changes in Consumer Preference and Economic Conditions

     The food industry, and the markets within the food industry in which the Company competes, are subject to various risks, including the following: evolving consumer preferences, nutritional and health-related concerns, federal, state and local food inspection and processing controls, consumer product liability claims, risks of product tampering, and the availability and expense of liability insurance. The meat and poultry industries are subject to scrutiny due to the association of meat and poultry products with recent outbreaks of illness, and on rare occasions even death, caused by food borne pathogens. Product recalls are sometimes required in the food industries to withdraw contaminated or mislabeled products from the market. Additionally, the failure to identify and react appropriately to changes in consumer trends, demands and preferences could lead to, among other things, reduced demand and price reduction for our products. Further, we may be adversely affected by changes in domestic or foreign economic conditions, including inflation or deflation, interest rates, availability of capital markets, consumer spending rates, and energy availability and costs (including fuel surcharges). These and other general risks related to the food industry, if realized by us, could have a significant adverse affect on demand for our products, as well as the costs and availability of raw materials, ingredients and packaging materials, thereby negatively affecting our operating results and financial position.