Core Viewpoint - The article discusses seven low beta stocks with dividend yields up to 8%, which are considered more stable during market downturns, providing a cushion against volatility [2][3]. Group 1: Low-Beta Dividend Stocks - Getty Realty (GTY) offers a 6.6% yield with a 5-year beta of 0.86 and a 1-year beta of 0.12, indicating lower volatility compared to the market. The company has a stable cash-flowing tenant base, primarily from convenience stores and car washes [5][7]. - AES Corp. (AES) has a 5.5% yield and operates with a 1-year beta of 0.88 and a 5-year beta of 0.96. It combines traditional utility services with renewable energy sales, providing growth potential [9][10]. - Northwest Bancshares (NWBI) offers a 6.8% yield with a 5-year beta of 0.69 and a 1-year beta of 0.80. The company has a solid balance sheet but faces challenges in consistent growth despite a recent merger [11][12]. - Conagra Brands (CAG) has a yield of 7.4% but faces significant challenges, including supply chain issues and food inflation, with a 1-year beta of -0.05 and a 5-year beta of 0.08 [17][21]. - Cal-Maine Foods (CALM) boasts an 8.0% yield and has seen a 60% increase year-to-date, with a 1-year beta of 0.67 and a 5-year beta of 0.19. The company has benefited from rising egg prices but faces income variability [23][24]. Group 2: Market Performance and Trends - The article highlights that low beta stocks tend to attract buyers during market downturns, which can help stabilize their share prices [3]. - The performance of low beta stocks like Kraft Heinz (KHC) and General Mills (GIS) has been disappointing, with low betas reflecting counter-market movements rather than stability [14][15]. - The overall trend indicates that while some low beta stocks have maintained dividends, their growth has been limited, and challenges remain in the current market environment [16][22].

Conagra is a large food maker, but it hasn't been performing particularly well of late, and you need to understand why.Conagra Brands (CAG 1.45%) is likely to pop up on a lot of dividend searches today, given its lofty 7.2% dividend yield. That compares favorably to the S&P 500 index's (^GSPC -1.60%) scant 1.2% yield and the roughly 2.5% or so yield of the average consumer staples company.Make sure you watch these key issues about Conagra before you buy it.What does Conagra do?Conagra is a consumer staples ...

Group 1: Tariff Impact on Companies - Companies are warning that tariffs will raise costs by hundreds of millions of dollars as the deadline for higher import taxes approaches [1] - Stanley Black & Decker expects an annualized hit of $800 million from tariff-related policy changes [2] - Conagra Brands anticipates a 3% increase in the cost of goods sold due to higher tariffs, translating to over $200 million annually [2] Group 2: Specific Company Effects - Tesla reports an increase in costs tied to tariffs of approximately $300 million, with two-thirds related to its auto business [3] - General Motors experienced a $1.1 billion hit to earnings before interest and taxes attributed to the net effect of tariffs [4] - The impact of steel and aluminum tariffs is also affecting companies like Conagra Brands, despite most of their production being in the U.S. [3]

Group 1 - The company is facing numerous challenges, but its valuation has decreased significantly, suggesting potential investment opportunities [1] - Ian Bezek, a former hedge fund analyst, has extensive experience in Latin American markets and specializes in high-quality growth stocks at reasonable prices [2] Group 2 - The article expresses the author's personal opinions and discloses a beneficial long position in HSY shares [3]

Core Insights - Celiac Canada has partnered with Conagra Brands Canada to enhance gluten-free food service in healthcare and long-term care facilities, aiming to improve access to safe, high-quality meals for individuals with celiac disease and gluten intolerance [1][3] - The initiative includes the distribution of a comprehensive resource titled "Gluten-Free Food Service in Health Care: A Practical Guide," designed to assist food service providers in gluten-free meal preparation and cross-contamination prevention [2][3] Partnership Details - The partnership addresses the challenges faced by individuals with celiac disease in finding safe meal options in healthcare settings, with a focus on providing necessary resources and training for food service providers [3] - Celiac Canada and Conagra Brands aim to set a new standard for gluten-free food service in Canada through advocacy, education, and practical solutions [3] Additional Initiatives - An educational webinar was hosted by Celiac Canada and DN Hospitality in collaboration with Sysco Canada to introduce best practices from the guide to food service providers [7] - Chef Daryl Neamtu will create healthcare-friendly gluten-free recipes to help institutions diversify their meal options [7] Company Background - Celiac Canada is a national charity focused on improving the lives of Canadians with celiac disease and gluten-related disorders through advocacy, research, and education [5] - Conagra Brands, a leading North American food company, reported over $12 billion in net sales for fiscal 2024 and is known for its diverse portfolio of food brands [6]

Group 1 - The approach has received over 180 five-star reviews from satisfied members, indicating strong customer satisfaction and perceived value [1] - The company invests significant resources, over $100,000 annually, into researching profitable investment opportunities, aiming to provide high-yield strategies at a lower cost [1] - The US Dollar has depreciated by 10% this year relative to a basket of major international currencies, highlighting potential market volatility [1] Group 2 - Samuel Smith, a lead analyst and Vice President at various dividend stock research firms, has a strong educational background in engineering and mathematics, enhancing his analytical capabilities [1] - The High Yield Investor group, led by Samuel Smith, focuses on balancing safety, growth, yield, and value in investment strategies [1] - The services offered by High Yield Investor include real-money portfolios, trade alerts, educational content, and an active community for investors [1]

Core Viewpoint - Conagra Brands is currently at a low stock price, presenting a potential buying opportunity for long-term investors, with expectations of returning to growth in FY2026 despite ongoing challenges in the consumer staples sector [1][10]. Financial Performance - In Q4 FY2025, Conagra reported a revenue decline of 4.3%, with an organic decline of 3.5%, influenced by divestitures, consumption trends, and foreign exchange headwinds [8][9]. - The organic decline was attributed to a 1% reduction in price realization and a 2.5% decline in volume, with the International segment experiencing a 13% decline due to M&A activity and FX headwinds [9]. - The forecast for FY2026 indicates revenue contraction will be offset by flat to slightly higher organic growth, supporting balance sheet health and dividend distributions [10]. Dividend Insights - Conagra offers a 7% dividend yield, which is considered safe for income investors, although there are risks associated with potential cuts in 2025 [5][11]. - The payout ratio for 2026 is projected at 80% relative to the 2025 payout, which is high but manageable given the free cash flow outlook [5][6]. Market Sentiment - Analysts have mixed views on Conagra, with price target reductions and downgrades impacting stock performance, yet the overall sentiment remains bullish with expectations for significant upside [12][13]. - Institutional investors own over 80% of Conagra's stock, providing a solid support base and showing buying activity throughout the year [11]. Stock Forecast - The 12-month stock price forecast for Conagra is $22.73, indicating a potential upside of 17.21% from the current price of $19.39 [8]. - Following recent price declines, analysts suggest that the stock is positioned for a rebound, potentially increasing by low-single to high-double digits, with a possibility of up to 30% if traction is gained in FY2026 [12][13].

Group 1 - The US stock market closed at a historic high on Thursday, with the S&P 500 index rising by 0.27%, and 9 out of 11 sectors showing gains, particularly in consumer discretionary and energy stocks [1] - Delta Air Lines (DAL.US) saw its stock price surge by 11.99% after announcing a restored full-year profit outlook and an increase in passenger numbers, which also positively impacted travel-related companies and car rental stocks [1] - MP Materials (MP.US) experienced a dramatic stock price increase of 50.62%, marking its largest single-day gain, following a multi-billion dollar agreement with the US Department of Defense to build a magnet factory and expand rare earth production [1] Group 2 - Trade policy uncertainty continues as President Trump threatens to impose a 50% tariff on Brazil, while also announcing a 50% tariff on copper imports starting August 1 [4] - Analysts express concerns that the unpredictable tariff policies may weigh on the stock market, with a noted decrease in the likelihood of interest rate cuts in September due to policy delays [4] - There is a noticeable rotation in market performance, with previously underperforming sectors rebounding strongly, while early-year leaders are losing momentum, reflecting investor attempts to balance between optimistic consumption recovery and concerns over escalating trade tensions [4]

Core Viewpoint - Conagra Brands reported quarterly earnings of $0.56 per share, missing the Zacks Consensus Estimate of $0.59 per share, and showing a decline from $0.61 per share a year ago, indicating a negative earnings surprise of -5.08% [1][2] Financial Performance - The company posted revenues of $2.78 billion for the quarter ended May 2025, which was 2.18% below the Zacks Consensus Estimate and down from $2.91 billion year-over-year [2] - Over the last four quarters, Conagra Brands has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - Conagra Brands shares have declined approximately 26.6% since the beginning of the year, contrasting with the S&P 500's gain of 6.5% [3] - The current Zacks Rank for Conagra Brands is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $2.72 billion, while for the current fiscal year, the estimate is $2.19 on revenues of $11.64 billion [7] - The trend of estimate revisions for Conagra Brands has been unfavorable leading up to the earnings release [6] Industry Context - The Food - Miscellaneous industry, to which Conagra Brands belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, suggesting a challenging environment for stock performance [8] - Mondelez, another company in the same industry, is expected to report quarterly earnings of $0.67 per share, reflecting a year-over-year decline of -22.1% [9]

Part I [Business Overview](index=3&type=section&id=Item%201.%20Business) Conagra Brands is a leading North American branded food company operating across four segments, focusing on innovation and managing risks, with a significant portion of sales concentrated with Walmart [Reporting Segments](index=3&type=section&id=Reporting%20Segments) Conagra's operations are structured into four distinct reporting segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice - The company's four reporting segments are Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) [Business Operations and Environment](index=5&type=section&id=Business%20Operations%20and%20Environment) Conagra navigates a competitive food industry, managing fluctuating raw material costs, seasonal demand, intellectual property, and extensive government regulation - The company experiences intense competition from both branded and private label food items, competing on quality, innovation, value, and brand loyalty[21](index=21&type=chunk) - The company's largest customer, Walmart, Inc. and its affiliates, accounted for approximately **29% of consolidated net sales for fiscal 2025**, up from **28% in fiscal 2024 and 2023**[26](index=26&type=chunk) - The company's intellectual property, including owned trademarks (e.g., Healthy Choice®, Slim Jim®) and licensed trademarks (e.g., P.F. Chang's®, Wendy's®), is of material importance[23](index=23&type=chunk) [Human Capital Resources](index=7&type=section&id=Human%20Capital%20Resources) Conagra manages approximately 18,300 employees, with a focus on health, safety, and human capital development, including collective bargaining agreements and ERGs - As of May 25, 2025, the company had approximately **18,300 employees**, with about **44%** being parties to collective bargaining agreements[28](index=28&type=chunk) - The OSHA Incident Rate has shown consistent improvement, decreasing from **1.58 in FY2023 to 1.40 in FY2024**, and further to **1.32 in FY2025**, with no employee fatalities in the last three fiscal years[30](index=30&type=chunk)[31](index=31&type=chunk) [Executive Officers](index=12&type=section&id=Information%20About%20Our%20Executive%20Officers) The executive leadership team, led by Sean M. Connolly, comprises experienced professionals overseeing key functions including finance and operations - Sean M. Connolly has served as President and CEO since April 2015[45](index=45&type=chunk) - David S. Marberger has served as Executive Vice President and Chief Financial Officer since August 2016[46](index=46&type=chunk) [Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) Conagra faces diverse risks including economic downturns, commodity price volatility, supply chain disruptions, high debt levels, intense competition, evolving consumer preferences, and cybersecurity threats - Deterioration of general economic conditions, inflation, and rising interest rates could reduce consumer spending and harm business operations[59](index=59&type=chunk)[61](index=61&type=chunk) - The company is subject to price increases in raw materials and other inputs; it may not be able to fully offset this inflation in a timely manner[65](index=65&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk) - Supply chain disruptions, such as those experienced in recent years due to transportation issues and labor challenges, could continue to negatively impact profitability[71](index=71&type=chunk) - The company's debt of approximately **$8.07 billion** as of May 25, 2025, could limit cash flow for business needs and restrict its ability to return cash to stockholders[83](index=83&type=chunk) - Failure to identify and adapt to changing consumer preferences, including health and wellness trends and the growing use of weight loss medication, could negatively impact sales[96](index=96&type=chunk) - Impairment of the **$10.50 billion** in goodwill or **$2.42 billion** in other intangibles could result in significant charges and negatively impact net worth[136](index=136&type=chunk) [Cybersecurity](index=39&type=section&id=Item%201C.%20Cybersecurity) Conagra maintains a comprehensive cybersecurity program, integrated with ERM and overseen by the Board, focusing on risk management, monitoring, and training to mitigate threats - The cybersecurity program is integrated with the company's Enterprise Risk Management (ERM) and is overseen by the Board of Directors and its Audit/Finance Committee[150](index=150&type=chunk)[158](index=158&type=chunk)[164](index=164&type=chunk) - The program includes ongoing monitoring, annual employee training, vulnerability assessments like penetration testing, and engagement with law enforcement and intelligence-sharing organizations[149](index=149&type=chunk)[153](index=153&type=chunk) - The cybersecurity team is led by a Chief Information Security Officer (CISO) with over **25 years of experience**, who reports to the Chief Information Officer (CIO)[160](index=160&type=chunk) - While threats have been experienced, the company is not aware of any cybersecurity breach to date that has had a material impact on its operations or business[154](index=154&type=chunk) [Properties](index=43&type=section&id=Item%202.%20Properties) Conagra operates 38 domestic and international manufacturing facilities, primarily owned, with headquarters in Chicago, Illinois - As of July 10, 2025, Conagra operated **38 domestic manufacturing facilities** and also has international facilities in Canada and Mexico[168](index=168&type=chunk) - The company owns most of its manufacturing facilities but leases a limited number of plants, transportation equipment, and distribution centers[169](index=169&type=chunk) [Legal Proceedings](index=45&type=section&id=Item%203.%20Legal%20Proceedings) Conagra is involved in product liability and legacy litigation, with an accrual of $204.5 million for all matters as of May 25, 2025 - The company is party to product liability claims regarding cooking spray products and has settled most matters, paying **$25 million in fiscal 2025** with an additional **$185 million** to be paid in fiscal 2026 and 2027[422](index=422&type=chunk) - The total accrual for all litigation matters was **$204.5 million** as of May 25, 2025[425](index=425&type=chunk) Part II [Market for Common Equity and Shareholder Matters](index=46&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Conagra's common stock trades on the NYSE under CAG, with no share repurchases in the fourth quarter of fiscal 2025 - The company's common stock is listed on the NYSE under the ticker symbol CAG[174](index=174&type=chunk) - No shares of common stock were repurchased during the fourth quarter of fiscal 2025[175](index=175&type=chunk) [Management's Discussion and Analysis (MD&A)](index=46&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal 2025 saw a 3.6% net sales decrease and significant diluted EPS growth driven by a tax benefit, as Conagra navigates inflation, supply chain pressures, and manages its $8.07 billion debt Fiscal 2025 vs. 2024 Key Financial Results | Metric | Fiscal 2025 | Fiscal 2024 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $11,612.8 M | $12,050.9 M | (3.6)% | | Gross Profit | $3,003.5 M | $3,333.4 M | (9.9)% | | Operating Profit | $1,364.6 M | $852.8 M | 60.0% | | Net Income | $1,152.5 M | $347.7 M | 231.5% | | Diluted EPS | $2.40 | $0.72 | 233.3% | - The company anticipates continued challenges in fiscal 2026 from supply chain issues, commodity cost volatility, and economic pressures on consumers, which are expected to negatively impact volumes[186](index=186&type=chunk) [Segment Performance Review](index=49&type=section&id=Segment%20Review) In fiscal 2025, most segments experienced net sales and operating profit declines, with Refrigerated & Frozen particularly impacted by manufacturing challenges and inflation Net Sales by Segment (Fiscal 2025 vs. 2024) | Reporting Segment | FY2025 Net Sales ($M) | FY2024 Net Sales ($M) | % Change | | :--- | :--- | :--- | :--- | | Grocery & Snacks | $4,899.3 | $4,958.7 | (1.2)% | | Refrigerated & Frozen | $4,662.3 | $4,865.5 | (4.2)% | | International | $956.5 | $1,078.3 | (11.3)% | | Foodservice | $1,094.7 | $1,148.4 | (4.7)% | | **Total** | **$11,612.8** | **$12,050.9** | **(3.6)%** | Operating Profit by Segment (Fiscal 2025 vs. 2024) | Reporting Segment | FY2025 Operating Profit ($M) | FY2024 Operating Profit ($M) | % Change | | :--- | :--- | :--- | :--- | | Grocery & Snacks | $1,017.0 | $1,100.3 | (7.6)% | | Refrigerated & Frozen | $651.7 | $815.9 | (20.1)% | | International | $143.9 | $155.1 | (7.1)% | | Foodservice | $131.0 | $151.3 | (13.4)% | - The Refrigerated & Frozen segment's operating profit was significantly impacted by manufacturing challenges at a primary facility for chicken, leading to increased costs from using third-party manufacturers and temporary production stoppages[205](index=205&type=chunk) [Consolidated Results of Operations](index=53&type=section&id=Consolidated%20Results%20of%20Operations) Fiscal 2025 saw increased SG&A, decreased net interest expense, and a significant income tax benefit of $225.8 million, which substantially boosted diluted EPS - Income tax expense for fiscal 2025 was **$3.7 million**, a steep decline from **$262.5 million in fiscal 2024**, principally due to a **$225.8 million tax benefit** from the release of a valuation allowance related to a federal audit settlement[211](index=211&type=chunk) - The effective tax rate was **0.3% in fiscal 2025**, compared to **43.0% in fiscal 2024**, with an expectation of approximately **23% for fiscal 2026**[211](index=211&type=chunk)[212](index=212&type=chunk) - Net interest expense decreased by **3.2% to $416.7 million** in fiscal 2025, driven by an overall reduction in debt balances[209](index=209&type=chunk) [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) Conagra manages liquidity through operations, a $2.0 billion credit facility, and commercial paper, with total debt at $8.07 billion and decreased operating cash flow in fiscal 2025 - As of May 25, 2025, the company had total debt of approximately **$8.07 billion**[83](index=83&type=chunk) - The company has a **$2.0 billion revolving credit facility**, which was extended to June 27, 2030, subsequent to the fiscal year-end, with no borrowings outstanding as of May 25, 2025[217](index=217&type=chunk)[350](index=350&type=chunk) - Cash generated from operating activities decreased to **$1.69 billion in fiscal 2025** from **$2.02 billion in fiscal 2024**, primarily due to lower operating profits and higher inventory balances[238](index=238&type=chunk) - During fiscal 2025, the company repurchased **2.1 million shares for $64.0 million**, with **$852.6 million** remaining under the share repurchase authorization[228](index=228&type=chunk) [Critical Accounting Estimates](index=61&type=section&id=Critical%20Accounting%20Estimates) Critical accounting estimates involve significant judgment, particularly for marketing costs, income taxes, employee benefits, and the annual impairment testing of goodwill and intangible assets - Goodwill and other intangible assets, valued at **$10.50 billion and $2.42 billion** respectively, are tested annually for impairment using methods that require significant management judgment on future cash flows, growth rates, and discount rates[136](index=136&type=chunk)[263](index=263&type=chunk) - For brands with less than **10% excess fair value** over carrying amount, a **50-basis-point increase** in the discount rate would decrease their aggregate fair value by **$70.9 million**, while a **100-basis-point decrease** in the royalty rate would decrease it by **$247.9 million**, indicating sensitivity to these assumptions[264](index=264&type=chunk)[265](index=265&type=chunk) - Pension benefit accounting requires significant estimates, including a weighted-average discount rate of **6.17%** for service and interest expense for fiscal 2026 and an expected long-term rate of return on plan assets of **5.89%**[255](index=255&type=chunk)[256](index=256&type=chunk) [Market Risk Disclosures](index=67&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Conagra manages market risks from commodity prices, interest rates, and foreign currency using derivatives, with a 1% interest rate increase impacting fixed-rate debt by $302.8 million - A **1% increase in interest rates** would decrease the fair value of the company's fixed-rate debt by approximately **$302.8 million** as of May 25, 2025[272](index=272&type=chunk) Fair Value Impact of a Hypothetical 10% Fluctuation | In Millions | Average During FY Ended May 25, 2025 | Average During FY Ended May 26, 2024 | | :--- | :--- | :--- | | Energy commodities | $5.7 | $4.4 | | Agriculture commodities | $8.4 | $4.5 | | Foreign exchange | $9.6 | $10.0 | [Financial Statements and Supplementary Data](index=70&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents consolidated financial statements and notes for fiscal years 2023-2025, audited by KPMG LLP, with the Birds Eye intangible asset valuation noted as a critical audit matter [Consolidated Financial Statements](index=70&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show fiscal 2025 net sales of $11.61 billion, a significant increase in net income to $1.15 billion, and total assets of $20.93 billion Consolidated Statement of Earnings Highlights (FY2025) | Metric (in millions) | FY2025 | FY2024 | FY2023 | | :--- | :--- | :--- | :--- | | Net sales | $11,612.8 | $12,050.9 | $12,277.0 | | Gross profit | $3,003.5 | $3,333.4 | $3,264.8 | | Operating profit | $1,364.6 | $852.8 | $1,075.3 | | Net income attributable to Conagra | $1,152.4 | $347.2 | $683.6 | Consolidated Balance Sheet Highlights (at year-end) | Metric (in millions) | May 25, 2025 | May 26, 2024 | | :--- | :--- | :--- | | Total Current Assets | $3,071.0 | $3,149.5 | | Total Assets | $20,933.9 | $20,862.3 | | Senior Long-Term Debt | $6,234.1 | $7,492.6 | | Total Liabilities | $12,001.2 | $12,351.0 | | Total Stockholders' Equity | $8,932.7 | $8,511.3 | [Selected Notes to Consolidated Financial Statements](index=77&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes to financial statements detail fiscal 2025 acquisitions, significant divestitures, intangible asset impairments, a $225.8 million tax benefit, litigation accruals, and a major pension de-risking action - In fiscal 2025, the company acquired Sweetwood Smoke & Co. for **$179.4 million** and a contract manufacturer for **$51.2 million**, adding **$176.3 million** to goodwill[327](index=327&type=chunk)[328](index=328&type=chunk)[369](index=369&type=chunk) - Subsequent to fiscal year-end, the company completed the sale of its Chef Boyardee® business for **$601.2 million** and its frozen fish business (Van De Kamp's®, Mrs. Paul's®) for **$42.4 million**[356](index=356&type=chunk)[359](index=359&type=chunk) - In fiscal 2025, the company recorded **$72.1 million** in brand intangible impairment charges, primarily related to its spreads businesses (Earth Balance®, Smart Balance®), following significant impairments of **$430.2 million in FY2024** and **$589.2 million in FY2023**[374](index=374&type=chunk)[377](index=377&type=chunk)[379](index=379&type=chunk) - During fiscal 2025, the company transferred **$760.6 million** of its U.S. defined benefit pension plan obligations to an insurance company via an annuity contract, resulting in a noncash pre-tax settlement gain of **$13.0 million**[447](index=447&type=chunk) [Report of Independent Registered Public Accounting Firm](index=141&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) KPMG LLP issued an unqualified opinion on financial statements and internal controls, identifying the Birds Eye intangible asset valuation as a critical audit matter - The auditor, KPMG LLP, issued an unqualified opinion on the financial statements and internal controls[507](index=507&type=chunk) - A critical audit matter was identified concerning the evaluation of the recoverability of the Birds Eye indefinite-lived intangible asset, highlighting the subjective and challenging nature of the assumptions used in its valuation[516](index=516&type=chunk)[517](index=517&type=chunk) [Controls and Procedures](index=146&type=section&id=Item%209A.%20Controls%20and%20Procedures) As of May 25, 2025, management concluded that disclosure controls and internal control over financial reporting were effective, with no material changes in the fourth quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures and its internal control over financial reporting were effective as of May 25, 2025[521](index=521&type=chunk)[524](index=524&type=chunk) Part III [Directors, Executive Compensation, and Corporate Governance](index=149&type=section&id=Item%2010%2C%2011%2C%2012%2C%2013%2C%2014) This section incorporates information on directors, executive compensation, and security ownership by reference from the forthcoming 2025 Proxy Statement - Information regarding directors, executive compensation, security ownership, and related transactions is incorporated by reference from the forthcoming 2025 Proxy Statement[531](index=531&type=chunk)[537](index=537&type=chunk)[538](index=538&type=chunk) Equity Compensation Plan Information (as of May 25, 2025) | Plan Category | Securities to be Issued Upon Exercise (a) | Weighted-Average Exercise Price (b) | Securities Remaining Available for Future Issuance (c) | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 7,876,676 | $33.76 | 13,798,410 | | Equity compensation plans not approved by security holders | — | — | — | | **Total** | **7,876,676** | **$33.76** | **13,798,410** | Part IV [Exhibits and Financial Statement Schedules](index=151&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section provides a comprehensive list of all exhibits filed with the Form 10-K, including governance documents, debt agreements, and compensation plans - This section provides a comprehensive list of all exhibits filed with the annual report, including the Restated Certificate of Incorporation, debt indentures, credit agreements, and various management and compensation plans[547](index=547&type=chunk)[550](index=550&type=chunk)[552](index=552&type=chunk)