Conagra Brands TodayCAGConagra Brands$26.71 -0.07 (-0.26%) 52-Week Range$23.06▼$33.24Dividend Yield5.24%P/E Ratio26.19Price Target$28.20Add to WatchlistOn a day when many investors saw nothing but red, Conagra Brands Inc. NYSE: CAG managed a small gain of around 1.5%. This came despite the company missing on the top and bottom lines in its third quarter 2024 earnings report.Get Conagra Brands alerts:With tariff fears accelerating sector rotation, Conagra may be getting a tailwind from the flight to consum ...

Lamb Weston NYSE: LW and Conagra Brands NYSE: CAG are trading at value levels and offering historically high yields for investors in 2025. While Lamb Weston trades at a premium to Conagra, both are at the low ends of their historical ranges and well below broad market averages, and there are reasons. Both are quality consumer staples brands, but Lamb Weston’s potato-centric business is more stable and growing in 2025, while Conagra struggles with headwinds.  Conagra’s headwinds include a consumer shift to l ...

Shares of consumer staples giants Lamb Weston (LW 9.95%), Conagra (CAG 1.23%), and Philip Morris International (PM 3.96%) all rallied today, up 9.7%, 1.5%, and 4%, respectively. The results were all the more notable as the S&P 500 index plunged 4.8% following yesterday's tariff announcements. Lamb Weston is a large producer and distributor of frozen potato products to restaurants and supermarkets -- essentially, french fries. Conagra sells branded food products under various familiar brands like Slim Jim, H ...

Financial Performance - Net sales for the thirteen weeks ended February 23, 2025, were $2,841.0 million, a decrease of 6.3% compared to $3,032.9 million for the same period in 2024[8]. - Net income for the thirty-nine weeks ended February 23, 2025, was $896.5 million, down 2.9% from $914.9 million for the same period in 2024[8]. - Earnings per share (EPS) for the thirteen weeks ended February 23, 2025, were $0.30, a decline of 53.1% compared to $0.64 for the same period in 2024[8]. - Comprehensive income attributable to Conagra Brands, Inc. for the thirty-nine weeks ended February 23, 2025, was $889.0 million, compared to $915.1 million for the same period in 2024[11]. - Net income for the thirty-nine weeks ended February 23, 2025, was $896.5 million, down from $914.9 million for the same period in the previous year, representing a decrease of about 2.6%[16]. - Net income attributable to Conagra Brands, Inc. for the thirty-nine weeks ended February 23, 2025, was $466.8 million, compared to $284.5 million for the same period in the previous year, representing a year-over-year increase of 64%[87]. - The company reported a net income of $145.1 million for the thirteen weeks ended February 23, 2025, compared to $308.8 million in the same period last year, reflecting a decrease of 53.0%[106]. - Diluted earnings per share for Q3 fiscal 2025 was $0.30, down from $0.64 in Q3 fiscal 2024, reflecting lower net income[116]. Expenses and Costs - Selling, general and administrative expenses increased to $443.7 million for the thirteen weeks ended February 23, 2025, up 14.5% from $387.4 million in the same period in 2024[8]. - The cost of goods sold for the thirty-nine weeks ended February 23, 2025, was $6,534.7 million, a decrease of 1.2% from $6,616.5 million in the same period in 2024[8]. - Interest expense, net, for the thirty-nine weeks ended February 23, 2025, was $314.9 million, down from $325.8 million for the same period in 2024[8]. - The company recognized an impairment charge of $27.2 million in the Refrigerated & Frozen segment during Q3 fiscal 2025[97]. - The company incurred asset impairment charges of $121.3 million during the period, compared to $50.9 million in the previous year[16]. Assets and Liabilities - Total current assets decreased from $3,149.5 million to $2,965.6 million, a decline of approximately 5.8%[13]. - Total liabilities decreased from $12,351.0 million to $11,965.4 million, a reduction of about 3.1%[13]. - Cash and cash equivalents at the end of the period decreased to $49.4 million from $77.7 million, a decline of approximately 36.4%[16]. - Current liabilities increased to $4,303.7 million as of February 23, 2025, compared to $3,241.8 million as of May 26, 2024, an increase of 33.0%[13]. - Goodwill increased from $10,325.9 million as of May 26, 2024, to $10,499.8 million as of February 23, 2025, reflecting an acquisition of $176.2 million and a currency translation adjustment of $(2.3) million[51]. Acquisitions and Divestitures - The company acquired Sweetwood Smoke & Co. for $179.4 million, with $129.9 million classified as goodwill[24]. - The company completed the sale of its 51.8% ownership stake in Agro Tech Foods Limited for net proceeds of $76.8 million, recognizing a loss of $2.3 million on the sale[27]. - The company recognized a loss on divestitures of $27.2 million for the thirteen weeks ended February 23, 2025, compared to no loss in the same period in 2024[8]. Restructuring and Plans - The Conagra Restructuring Plan has incurred cumulative charges of $310.2 million, with $90.7 million recognized in the first three quarters of fiscal 2025[34]. - The company has approved a total of $345.9 million for the Conagra Restructuring Plan, with $90.1 million in cash charges and $255.8 million in non-cash charges recognized[34]. - The company initiated plans to sell businesses within its Grocery & Snacks, Refrigerated & Frozen, and International segments, recognizing an impairment charge of $27.2 million in the third quarter of fiscal 2025[30]. Cash Flow and Financing - The company reported net cash flows from operating activities of $1,346.2 million, compared to $1,531.3 million in the prior year, a decrease of approximately 12.1%[16]. - Cash used in investing activities amounted to $457.2 million in the first three quarters of fiscal 2025, compared to $295.6 million in the same period of fiscal 2024[165]. - Cash used in financing activities was $914.3 million in the first three quarters of fiscal 2025, down from $1.25 billion in fiscal 2024, reflecting long-term debt repayments of $274.8 million and cash dividends paid of $502.2 million[166]. - The company repaid $1.0 billion of its 4.30% senior notes on May 1, 2024, funded by an unsecured term loan and commercial paper[37]. Market and Economic Conditions - The company anticipates ongoing challenges related to inflation, supply chain issues, and changing consumer preferences impacting future performance[111]. - The company anticipates continued economic pressures on consumers, including high inflation and potential tariff increases, which may affect volumes[118].

Conagra Brands, Inc. (CAG) posted third-quarter fiscal 2025 results, wherein both top and bottom lines missed the Zacks Consensus Estimate. Both net sales and earnings experienced year-over-year declines.The company brands demonstrated resilience with strong consumption trends and market share gains. However, shipments lagged due to supply constraints. The company is actively replenishing inventory and improving customer service levels. While keeping a close watch on external market conditions, Conagra rema ...

For the quarter ended February 2025, Conagra Brands (CAG) reported revenue of $2.84 billion, down 6.3% over the same period last year. EPS came in at $0.51, compared to $0.69 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $2.89 billion, representing a surprise of -1.67%. The company delivered an EPS surprise of -1.92%, with the consensus EPS estimate being $0.52.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Str ...

Conagra Brands (CAG) came out with quarterly earnings of $0.51 per share, missing the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.92%. A quarter ago, it was expected that this company would post earnings of $0.68 per share when it actually produced earnings of $0.70, delivering a surprise of 2.94%.Over the last four quarters, the company has ...

Financial Data and Key Metrics Changes - The company reported a free cash flow conversion of 125% and has paid down $500 million in debt over the last 12 months [27][28] - Inflation for the quarter came in at around 4%, consistent with expectations for the full year [71][73] Business Line Data and Key Metrics Changes - Snack volumes increased by 4% in Q3, contrasting with broader industry trends, attributed to a focus on healthier snacking options [107][111] - The gap between shipments and consumption in grocery and snacks was primarily due to seasonal shipment timing differences [14][20] Market Data and Key Metrics Changes - The company noted challenges in the convenience store channel, which has seen weaker performance due to stretched consumer budgets [22][86] - Consumption trends remain strong overall, despite some channel-specific weaknesses [21][88] Company Strategy and Development Direction - The company is prioritizing returning volume to growth over gross margin expansion, focusing on maintaining strong consumer relationships [64][66] - Ongoing modernization efforts in the supply chain are expected to enhance operational efficiency [35][37] Management's Comments on Operating Environment and Future Outlook - Management highlighted the dynamic macro environment, with ongoing monitoring of inflation, tariffs, and consumer sentiment impacting future guidance [12][45] - The company anticipates continued strong consumption in Q4, with improvements in shipment volumes expected [48][101] Other Important Information - The company is actively monitoring state-level legislation regarding food additives, but most of its portfolio does not contain synthetic dyes, minimizing potential impacts [92][93] - Capital expenditure guidance was lowered by $40 million for the current year, primarily due to timing rather than project cuts [29][31] Q&A Session Summary Question: Insights on fiscal 26 guidance and macro dynamics - Management indicated that it is too early to provide guidance for fiscal 26, emphasizing the need to monitor external factors [10][12] Question: Gap between shipments and consumption in grocery - The gap was attributed to seasonal shipment timing, with no significant underlying issues affecting overall consumption [14][20] Question: Confidence in hitting leverage targets - The company expressed confidence in cash flow performance and debt reduction, with updates expected in July [26][28] Question: Impact of convenience store performance - Management acknowledged challenges in the convenience store channel but noted strong overall consumption across other channels [22][21] Question: Expectations for inflation and pricing strategies - The company is assessing various levers to manage costs, including productivity programs and alternative suppliers [75][73] Question: Changes in consumer behavior - Management noted ongoing value-seeking behavior among consumers, which has been a trend for the past two years [86][88] Question: Impact of state-level legislation on additives - The company is monitoring state-level legislation but indicated that most of its products are not affected due to the absence of synthetic dyes [92][93]

FY25 Q3 Earnings Presentation April 3, 2025 1 Legal Disclosure 3 Key Messages Note on Forward-Looking Statements This document contains forward-looking statements within the meaning of the federal securities laws. Examples of forward-looking statements include statements regarding the company's expected future financial performance or position, results of operations, business strategy, plans and objectives of management for future operations, and other statements that are not historical facts. You can ident ...

Financial Performance - Net sales decreased 6.3% to $2.8 billion, with organic net sales down 5.2% driven by a 2.1% negative impact from price/mix and a 3.1% decrease in volume[5]. - Gross profit decreased 17.3% to $710 million, and adjusted gross profit decreased 19.1% to $704 million due to lower net sales and inflation in cost of goods sold[6]. - Reported diluted earnings per share (EPS) was $0.30, a 53.1% decrease, while adjusted EPS was $0.51, a 26.1% decrease[6]. - Net income attributable to Conagra Brands decreased 53.0% to $145 million, or $0.30 per diluted share, compared to $309 million, or $0.64 per diluted share in the prior year[11]. - Year-to-date net sales were $8,831.0 million, a decline of 3.4% from $9,145.0 million in the same period last year[53]. - Year-to-date net income attributable to Conagra Brands, Inc. was $896.4 million, down 2.0% from $914.5 million year-over-year[53]. - Adjusted net income for Q3 FY25 was $242.1 million, with diluted EPS of $0.51, down 26.3% compared to the previous year[59]. - Net income for the thirty-nine weeks ended February 23, 2025, was $896.5 million, down from $914.9 million, reflecting a decrease of about 2.6%[55]. Cash Flow and Debt - Free cash flow decreased by $180 million to $1.0 billion, with capital expenditures at $304 million compared to $310 million in the prior year[25]. - The company ended the quarter with net debt of $8.1 billion, representing a 5.9% reduction in net debt versus the prior year period[28]. - Cash and cash equivalents at the end of the period decreased to $49.4 million from $78.5 million, a drop of approximately 37.1%[55]. - Year-to-date (YTD) net cash flows from operating activities decreased by 12.1% to $1,346.2 million compared to $1,531.3 million in the previous year[63]. - Free cash flow for YTD FY25 was $1,042.0 million, down 14.7% from $1,221.7 million in FY24[63]. - Total debt as of February 23, 2025, was $8,145.1 million, down from $8,677.3 million in the previous year[63]. - The net debt to adjusted EBITDA ratio was 3.59 as of February 23, 2025[64]. Segment Performance - The Grocery & Snacks segment net sales decreased 3.2% to $1.2 billion, with a volume share gain in snacking and staples categories[13]. - Year-over-year change in net sales for the Grocery & Snacks segment was a decrease of 3.9%[56]. - Grocery & Snacks segment operating profit decreased by 20.6% year-over-year to $237.6 million[57]. - Refrigerated & Frozen segment operating profit saw a significant decline of 52.5% year-over-year, totaling $95.7 million[57]. - The International segment reported a 49.8% increase in operating profit year-over-year, reaching $107.6 million[58]. - Conagra Brands experienced a decline in adjusted operating profit across all segments, with the most significant drop in Refrigerated & Frozen at 38.8%[57]. Expenses and Costs - Selling, general, and administrative expense (SG&A) increased 14.5% to $444 million, primarily due to charges related to legacy legal matters[9]. - The effective tax rate was 23.3%, slightly down from 23.7% in the prior year quarter[23]. - Cost of goods sold decreased by 2.0% to $2,130.7 million from $2,174.1 million year-over-year[52]. - Legal matters accounted for $95.8 million in expenses in Q3 FY25, impacting overall profitability[57]. - The company reported a loss on divestitures of $27.2 million in the third quarter, compared to no loss in the same period last year[52]. - The company reported asset impairment charges of $121.3 million for the thirty-nine weeks ended February 23, 2025, compared to $50.9 million in the prior year[55]. - Restructuring plans contributed $90.7 million to operating profit adjustments YTD[58]. Guidance and Future Outlook - The company's fiscal 2025 guidance remains unchanged, expecting organic net sales to decline approximately 2% compared to fiscal 2024 and adjusted EPS of approximately $2.35[6][35]. - The company revised its calculation methodology for Adjusted SG&A to include advertising and promotional expenses, impacting prior-year comparisons[47]. Other Financial Metrics - Adjusted EBITDA for YTD FY25 was $1,680.4 million, reflecting an 11.9% decrease from $1,906.8 million in FY24[65]. - Year-to-date (YTD) reported gross profit for Q3 FY25 was $2,296.3 million, accounting for 26.0% of net sales, a decline of 9.2% year-over-year[61]. - The company reported a corporate hedging derivative loss of $7.7 million in Q3 FY25, affecting overall profitability[59]. - The company incurred a net cash outflow from investing activities of $457.2 million, compared to $295.6 million in the previous year[55].