CHICAGO, April 17, 2025 /PRNewswire/ -- Conagra Brands, Inc. (NYSE: CAG) today announced the publication of its 2024 Citizenship Report, which highlights key initiatives and actions that positively impact Conagra's employees, the communities it serves, and the health of the planet. Conagra's Citizenship approach is centered around four focus areas that reflect the company's values as a responsible corporate citizen: Good Food, Responsible Sourcing, Better Planet, and Stronger Communities. "I am incredibly p ...

I give a sell rating for Conagra Brands (NYSE: CAG ). While valuation is already at ~10x forward PE today, I see potential for further de-rating when CAG misses estimates. Specifically, I expect margins to see more headwinds dueI am an individual investor that is now fully focus on managing my own capital that I have saved up over the years. My investing background spreads across a wide spectrum as I believe there are merits to each approach, for instance: Fundamental investing [Bottoms-up etc.], Technical ...

Core Viewpoint - Conagra Brands Inc. reported disappointing third-quarter earnings for 2024, missing revenue and earnings per share estimates, yet managed a slight stock gain amidst broader market declines [1][2][3] Financial Performance - Revenue for the quarter was $2.84 billion, slightly below the expected $2.92 billion, with earnings per share (EPS) at 51 cents, one cent below estimates [2] - Net sales declined by 6.3% year-over-year, with a projected full-year net sales decline of approximately 2% and adjusted EPS expected to drop from $2.67 to $2.35 [3][4] - Operating margin fell to 8.4%, a decrease of 712 basis points [4] Market Trends - Consumers are increasingly turning to private-label brands due to inflation, impacting Conagra's sales [3][10] - The company continues to hold a majority volume in the $6.4 billion single-serve meals category, with a 0.6% year-over-year volume increase in the last quarter [7] Product Development - Conagra plans to label select Health Choice frozen food lines as "GLP-1 friendly" starting January 2025, indicating a focus on health-conscious products [5][6] - The frozen foods category is outperforming the broader edible market, with three consecutive quarters of retail volume growth [7] Stock and Dividend Information - Conagra's stock is currently yielding 5.24% with an annual dividend of $1.40 and a payout ratio of 137.25% [11] - The stock is viewed as a potential safe haven during market uncertainty, supported by a forward P/E ratio of around 11x and a consensus price target of $28.20 [12]

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 ...

Core Insights - Conagra Brands reported revenue of $2.84 billion for the quarter ended February 2025, a decrease of 6.3% year-over-year, and EPS of $0.51, down from $0.69 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $2.89 billion, resulting in a surprise of -1.67%, while the EPS also missed the consensus estimate of $0.52 by -1.92% [1] Financial Performance Metrics - Price/Mix for Grocery and Snacks decreased by 2.6%, worse than the estimated -1.3% [4] - Price/Mix for Foodservice increased by 3.7%, exceeding the estimated 2.4% [4] - Organic Volume for Foodservice declined by 10%, significantly worse than the estimated -2.1% [4] - Price/Mix for International increased by 4.4%, surpassing the estimated 1.4% [4] - Organic Volume for International decreased by 5.6%, worse than the estimated -0.3% [4] - Price/Mix for Refrigerated and Frozen decreased by 4.2%, compared to the estimated -3% [4] - Organic Volume for Refrigerated and Frozen declined by 3%, worse than the estimated -2.3% [4] - Organic Volume for Grocery and Snacks decreased by 1.3%, compared to the estimated 0.5% [4] Sales Performance - Sales for Grocery & Snacks were reported at $1.25 billion, below the estimated $1.29 billion, representing a year-over-year decline of 3.2% [4] - Sales for Foodservice were $256.10 million, compared to the average estimate of $273.70 million, reflecting a year-over-year change of -6.1% [4] - Sales for International were $223.90 million, below the estimated $242.41 million, indicating a year-over-year decline of 17.6% [4] - Sales for Refrigerated & Frozen were reported at $1.12 billion, slightly below the estimated $1.14 billion, representing a year-over-year decline of 7.2% [4] Stock Performance - Conagra Brands' shares returned +3.9% over the past month, contrasting with the Zacks S&P 500 composite's -4.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

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]