Core Thesis - Conagra Brands, Inc. is viewed positively due to its diversified portfolio and potential for future growth despite current challenges [1][2] Company Overview - Conagra Brands, Inc. is a U.S.-based packaged food company with a diverse range of products across Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice segments [2] - The company boasts a strong brand lineup including Birds Eye, Duncan Hines, Marie Callender's, and Slim Jim, supported by over 40 manufacturing facilities and approximately 18,300 employees [2] Current Challenges - The company faces margin pressures due to persistent commodity inflation in proteins and tariffs on tin-plate steel and aluminum, which have increased costs by roughly 3% [3] - Management anticipates a 2% year-over-year decline in organic net sales, exacerbated by temporary supply chain disruptions in frozen meals [3] Future Outlook - Conagra is implementing a "Fuel for Growth" initiative aimed at modernizing the supply chain, targeting $1 billion in cumulative cost savings over three years [4] - Successful execution of this initiative could restore margins and enhance free cash flow generation [4] Investment Appeal - As a consumer staples company, Conagra offers recession resilience, with stable demand for affordable at-home food products during economic downturns [5] - The stock features an approximately 8% dividend yield, appealing to income-oriented investors [5] Innovation Potential - The company plans to launch over 50 new frozen products, expand gluten-free offerings, and eliminate artificial dyes by the end of 2025 [6] - While historical revenue growth has been modest, successful innovation and cost-saving measures could stabilize performance and support a gradual rerating of the stock [6]

Core Viewpoint - Conagra Brands, Inc. will present its business strategies and financial outlook at the 2026 CAGNY Conference on February 17, 2026 [1] Company Overview - Conagra Brands, Inc. is one of North America's leading branded food companies with a history of over 100 years in quality food production [3] - The company generated nearly $12 billion in net sales for fiscal 2025 [3] - Conagra's brand portfolio includes well-known names such as Birds Eye®, Duncan Hines®, Healthy Choice®, and many others [3] Presentation Details - The presentation will feature Sean Connolly (CEO), Dave Marberger (CFO), and Bob Nolan (SVP of Growth Science) [1] - A video webcast and presentation slides will be available on the company's investor relations website [2] - The replay of the webcast will be accessible until February 17, 2027 [2]

With a market cap of $8.9 billion, Conagra Brands, Inc. (CAG) is a leading U.S. consumer packaged foods company that produces and markets a wide range of grocery, frozen, refrigerated, and snack products. Founded in 1919 and headquartered in Chicago, it operates across retail, international, and foodservice channels, with a strong portfolio of well-known brands such as Birds Eye, Duncan Hines, Healthy Choice, and Slim Jim. Shares of the company have significantly underperformed the broader market over th ...

"We can't wait for the debut of Banquet MEGA Breakfast Bowls," said Tim Nangle, VP/GM, Conagra Brands. "Consumers are looking for protein-packed meals to start their day, and these four new flavors are an ideal solution that's both convenient and delicious." Across the growing $626 million breakfast bowls category, consumers are seeking protein — it's the top attribute they look for when making a purchase. Banquet MEGA Breakfast Bowls are an ideal solution. Ready in minutes, each offers 30g of protein per b ...

Conagra Brands, Inc. (NYSE:CAG) is included among the 14 Best Mid-Cap Dividend Stocks to Buy Now. Morgan Stanley Sees Rising Competitive Pressure Weighing on Conagra (CAG) On January 16, Morgan Stanley analyst Megan Alexander Clapp lowered her price target on Conagra Brands, Inc. (NYSE:CAG) to $18 from $19, while keeping an Equal Weight rating on the shares. She said the outlook remains tough, calling it “an already challenging backdrop” for US food stocks. Morgan Stanley also warned that competitive pre ...

Group 1 - Conagra Brands, Inc. (CAG) previously had a hold rating due to concerns over margins affected by inflation and tariffs, but there are early signs of stabilization in the business [1] - The individual investor managing their own capital has a diverse investing background, utilizing fundamental, technical, and momentum investing strategies to enhance their investment process [1] Group 2 - No stock, option, or similar derivative positions are held in any of the companies mentioned, and there are no plans to initiate such positions in the near future [2] - The article expresses personal opinions and is not compensated beyond the platform used for publication [2]

Company Overview - Conagra Brands is a packaged food company with well-known brands such as Slim Jim, Healthy Choice, and Duncan Hines, but it lacks true category leaders [2] - The company is currently facing challenges, as indicated by a significant decline in stock price, down over 35% from its 52-week highs [1] Financial Performance - In the fiscal second quarter of 2026, Conagra's overall sales decreased by 6.8%, with organic sales down 3%, reflecting broader struggles in the consumer staples sector [3] - The company reported a one-time impairment charge of $0.94 per share, resulting in a loss of $1.39 per share [3][4] - The impairment charge suggests that the company's brands are not valued as highly as previously believed, impacting shareholders by reducing book value per share [4] Dividend Analysis - Conagra's current dividend yield stands at 8.2%, significantly higher than the average yield of 2.8% for consumer staples stocks [1][8] - The quarterly dividend of $0.35 per share was covered by adjusted earnings in the fiscal second quarter, but the dividend payout ratio has exceeded 100% for a concerning period [5][7] - The board has previously reduced dividends when payout ratios spiked, and the lack of dividend increases in recent years raises concerns about sustainability [7] Market Position and Comparison - The overall business position of Conagra is not among the best in the consumer staples sector, and it may struggle to improve given its brand portfolio [5] - For investors seeking reliable dividends, Conagra may not be the best option, especially when compared to better-positioned companies like PepsiCo, which has shown revenue growth and a more reliable dividend history [9][10]

Core Insights - The analyst has over a decade of experience researching various industries, including commodities and technology, which aids in providing valuable insights for readers [1] Group 1: Industry Focus - The analyst specializes in metals and mining stocks but is also knowledgeable in consumer discretionary/staples, REITs, and utilities [1] Group 2: Research Methodology - The transition from a personal blog to a value investing-focused YouTube channel has allowed the analyst to research hundreds of companies [1]

Group 1 - The article emphasizes the importance of evaluating food-and-beverage companies based on their alignment with changing consumer eating habits [1] - The author has managed investments since 1999, gaining insights through various market cycles, and focuses on uncovering mispriced assets [1] - A fundamentals-first approach is highlighted, despite the influence of sentiment and technical factors in today's algorithm-driven investment environment [1]

Core Insights - The rise of GLP-1 drugs is not just altering dietary habits but fundamentally reshaping the food and beverage industry, leading to a significant decline in consumer spending on traditional snacks and meals [1][3][28] Consumer Behavior Changes - Grocery budgets have decreased by 5.3% to 8.2% in six months, with higher-income households cutting spending by up to 8.6%, particularly impacting the snack aisle [2] - 66% of GLP-1 users have reduced their snacking frequency, with significant changes in taste and appetite reported by 85% of users [4][5] - The medications suppress hunger cravings, leading to a permanent demand destruction in traditional food categories [3][5] Industry Impact - KPMG forecasts a $48 billion annual reduction in food and beverage spending through 2034, indicating a long-term shift rather than a temporary dip [3] - Traditional food industry strategies, which rely on consumer cravings, are becoming obsolete as appetite suppression alters consumer behavior [4][5] Market Fragmentation - By 2030, 35% of U.S. households will include a GLP-1 user, leading to a bifurcated market where one segment seeks nutrient-dense options and the other continues traditional snacking [16][29] - The demand for protein snacks is projected to grow significantly, with the market expected to expand from $4.92 billion to $10.83 billion by 2035 [18] Company Performance - Companies like PepsiCo and Mondelez International are experiencing declines in snack volumes, with PepsiCo reporting five consecutive quarters of declining savory snack volume [9][10] - Hershey has acknowledged a significant year-over-year decline in net sales for salty snacks, indicating broader structural concerns in the industry [10] Strategic Adaptation - Leading companies are pivoting towards healthier, protein-rich products, with Nestlé launching a line of frozen meals designed for GLP-1 users [22] - Venture capital is increasingly flowing into health-focused food innovations, reflecting a shift towards nutrient-dense consumption rather than traditional snacking [25][26] Future Outlook - The companies that will thrive are those that adapt to the new consumer landscape shaped by GLP-1 drugs, focusing on intentional consumption rather than impulse-driven purchases [28][29]