On Wall Street, question marks over the health of the economy have increased as many sectors struggle to maintain stability. However, consumer stocks — especially those related to essential goods — often exhibit resilience during such volatility. Companies that provide everyday products, such as food and beverages, are particularly well-positioned to weather economic downturns.For instance, since January, the S&P 500 Consumer Staples index has gained over 11%. Many of these consumer stocks have gained as th ...

Conagra Brands, Inc. (CAG) , a leading snacks, frozen foods and alternative-protein supplier, recently unveiled a deal to acquire Sweetwood Smoke & Co, maker of FATTY Smoked Meat Sticks. This move appears apt, given the growing trend in the snacking industry, as consumers increasingly seek high-protein, on-the-go options.Inside the HeadlinesConagra Brands' acquisition of Sweetwood Smoke & Co. is a strategic move as part of its portfolio optimization strategy aimed at speeding up growth. This acquisition not ...

CHICAGO, Aug. 9, 2024 /PRNewswire/ -- Today Conagra Brands, Inc. (NYSE: CAG) announced that it has acquired Sweetwood Smoke & Co., maker of FATTY Smoked Meat Sticks. Financial terms were not disclosed.FATTY Smoked Meat Sticks are protein-packed, better-for-you snacks for people on the go, made with high-quality pork and beef smoked with real hickory wood."The acquisition of FATTY Smoked Meat Sticks is another step in reshaping our portfolio for faster growth," said Sean Connolly, president and chief executi ...

CHICAGO, July 16, 2024 /PRNewswire/ -- Conagra Brands, Inc. (NYSE: CAG), one of North America's leading branded food companies, today announced it has been recognized as one of the "Best Places to Work for Disability Inclusion" by The Disability Equality Index®, the world's most comprehensive benchmarking tool for Fortune 1000 scope companies to measure disability workplace inclusion inside their organizations and to assess performance across industry sectors.Established in 2015, the Disability Equality Ind ...

Loading...Loading...Conagra Brands, Inc. CAG reported worse-than-expected fourth-quarter sales results and issued FY25 adjusted EPS guidance below estimates.The company reported adjusted earnings per share of 61 cents, beating the analyst consensus estimate of 57 cents. Quarterly revenues of $2.905 billion missed the street view of $2.930 billion, according to data from Benzinga Pro."Looking ahead, we expect a gradual waning of the challenging industry trends seen throughout fiscal year 2024, as consumers a ...

Conagra Brands NYSE: CAG is a North American food industry leader and is considered part of the consumer staples sector. Conagra Brands’ earnings report for the fourth quarter of 2024 shows evidence of a company that continues to navigate a challenging and shifting consumer landscape. Get Conagra Brands alerts:Conagra Brands Q4 and Fiscal Year 2024 Financial PerformanceConagra Brands TodayCAGConagra Brands$28.37 -0.44 (-1.53%) 52-Week Range$25.16▼$33.60Dividend Yield4.93%P/E Ratio14.26Price Target$32.38Add ...

Core Viewpoint - Conagra Brands presents a potential buying opportunity due to recent stock price decline and the defensive nature of its business amid a slowing economy and potential recession [1][9]. Stock Performance - Conagra shares recently traded around $31.50 but have pulled back to approximately $28, below the 50-day moving average of $29.85 and near the 200-day moving average of $28.39 [2]. Earnings Estimates and Financials - Consensus earnings estimates indicate low to mid single-digit growth rates for 2025 and 2026, suggesting a price-to-earnings ratio of about 10 times, significantly lower than the S&P 500 average of over 20 times [3]. - For FY 2024, EPS is projected at $2.63, reflecting a 5.12% decline year-over-year, with sales expected to be $12.08 billion, down 1.63% [4]. Recent Financial Results - In Q4 2024, Conagra reported a net loss of $567.3 million or $1.18 per share, but adjusted earnings were $0.61 per share, beating consensus estimates by $0.04 [5]. - Sales declines were noted in grocery and snacks (2.1%), refrigerated and frozen revenues (3.8%), and foodservice (3.9%), while international sales increased by 6.4% [6]. Debt Management - Conagra has approximately $8.68 billion in debt and $78.5 million in cash, but strong cash flows from the food industry mitigate some balance sheet concerns [4]. - The company repaid a $1 billion senior note in Q4 2024, reducing net debt by $777 million, or 8.5%, from fiscal 2023 [6]. Growth Catalysts - Focus on reducing expenses and debt could lower interest expenses and lead to stock multiple expansion [7]. - Potential for international expansion exists, as the international segment showed revenue growth despite being smaller compared to other segments [7]. Dividend Information - Conagra pays a quarterly dividend of $0.35 per share, yielding about 5%, with a payout ratio around 50%, indicating room for future increases [8]. Economic Outlook - Signs of a potential recession are increasing, with slowing job growth and rising consumer debt impacting sentiment [9]. - The Federal Reserve's expectation of declining interest rates could enhance the attractiveness of high-yield stocks like Conagra [10]. Competitive Landscape - The food industry is highly competitive, with peers investing more in marketing, and a trend towards fresh foods could impact frozen food sales [11]. - Conagra's slow growth may necessitate acquisitions to boost revenues, which carries inherent risks [11]. Summary - Conagra is viewed as a stable investment with a competitive yield, potential for capital gains, and price-to-earnings multiple expansion, particularly as interest rates decline and the defensive nature of the food industry becomes more appealing in a recessionary environment [12].

[Business Overview](index=3&type=section&id=Item%201.%20Business) Conagra Brands, a leading North American branded food company, operates across four segments, with Walmart as its largest customer, and manages a workforce of approximately 18,500 employees under a defined executive leadership team [Company Profile and Segments](index=3&type=section&id=General%20Development%20of%20Business) Conagra Brands is a leading North American branded food company with a portfolio including well-known brands like Birds Eye®, Healthy Choice®, and Slim Jim®. The company operates through four main reporting segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice. Its largest customer, Walmart, Inc., accounted for approximately 28% of consolidated net sales in fiscal 2024 - Conagra Brands is one of North America's leading branded food companies, with a portfolio including brands such as Birds Eye®, Duncan Hines®, Healthy Choice®, Marie Callender's®, Reddi-wip®, and Slim Jim®[11](index=11&type=chunk) - The company's operations are organized into four reporting segments: - **Grocery & Snacks:** Branded, shelf-stable food products sold in U.S. retail channels - **Refrigerated & Frozen:** Branded, temperature-controlled food products sold in U.S. retail channels - **International:** Branded food products sold in retail and foodservice channels outside the U.S - **Foodservice:** Branded and customized food products for restaurants and other foodservice establishments, primarily in the U.S[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) - Walmart, Inc. and its affiliates represent the company's largest customer, accounting for approximately **28% of consolidated net sales in fiscal 2024** and 2023, and 27% in fiscal 2022[27](index=27&type=chunk) [Human Capital Management](index=7&type=section&id=Human%20Capital%20Resources) As of May 26, 2024, Conagra employed approximately 18,500 people, with 46% covered by collective bargaining agreements. The company prioritizes employee health and safety, achieving a lower OSHA incident rate of 1.40 in fiscal 2024, down from 1.58 in fiscal 2023, with no employee fatalities for three consecutive years. It fosters an inclusive culture through eight Employee Resource Groups (ERGs) and offers competitive compensation and benefits to attract and retain talent - As of May 26, 2024, the company had approximately **18,500 employees**, with about **46%** being parties to collective bargaining agreements[28](index=28&type=chunk) - The Occupational Safety and Health Administration (OSHA) Incident Rate improved, decreasing from 1.67 in fiscal 2022 and 1.58 in fiscal 2023 to **1.40 in fiscal 2024**. There were no employee fatalities in fiscal years 2022, 2023, or 2024[30](index=30&type=chunk) - The company supports eight employee-led Employee Resource Groups (ERGs) to foster an engaged and inclusive culture, including groups for Asian, Black, Disability, Latinx, LGBTQ+, Veterans, Women, and Young Professionals[43](index=43&type=chunk)[45](index=45&type=chunk) [Executive Officers](index=13&type=section&id=Information%20About%20Our%20Executive%20Officers) The company's leadership team as of July 11, 2024, is led by President and CEO Sean M. Connolly. Key executives include David S. Marberger as EVP and CFO, and Thomas M. McGough as EVP and COO. In May 2024, Noelle O'Mara joined as EVP and President, New Platforms and Acquisitions | Name | Title & Capacity | Age | Year First Appointed an Executive Officer | | :--- | :--- | :--- | :--- | | Sean M. Connolly | President and Chief Executive Officer | 58 | 2015 | | David S. Marberger | Executive Vice President and Chief Financial Officer | 59 | 2016 | | Carey L. Bartell | Executive Vice President, General Counsel and Corporate Secretary | 50 | 2022 | | Charisse Brock | Executive Vice President, Chief Human Resources Officer | 62 | 2015 | | Alexandre O. Eboli | Executive Vice President, Chief Supply Chain Officer | 52 | 2021 | | Thomas M. McGough | Executive Vice President and Chief Operating Officer | 59 | 2013 | | Noelle O'Mara | Executive Vice President and President New Platforms and Acquisitions | 45 | 2024 | | William E. Johnson | Senior Vice President and Corporate Controller | 42 | 2023 | [Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) Conagra faces diverse risks including economic downturns, high debt, intense competition, commodity price volatility, supply chain disruptions, product liability, evolving consumer preferences, customer concentration, third-party reliance, cybersecurity threats, and potential impairment of significant goodwill and intangible assets [Market, Credit, and Competition Risks](index=17&type=section&id=Market%2C%20Credit%2C%20and%20Competition%20Risks) The company faces significant market risks from economic downturns, inflation, and geopolitical conflicts that could reduce consumer spending and increase costs. Credit risks are heightened by its substantial debt of approximately $8.44 billion, which could limit cash flow and increase borrowing costs. The highly competitive food industry poses risks of reduced sales and profits due to pressure from large competitors, private brands, and the growth of e-commerce - The business is exposed to risks from general economic conditions, including inflation, rising interest rates, recessions, and geopolitical conflicts, which can lead to shifts in consumer spending to lower-margin products and decreased demand in the foodservice sector[64](index=64&type=chunk)[65](index=65&type=chunk)[67](index=67&type=chunk) - As of May 26, 2024, the company had total debt of approximately **$8.44 billion**. This high level of debt could make it difficult to service obligations, fund operations, and could increase vulnerability to adverse economic conditions[68](index=68&type=chunk) - The food industry is intensely competitive, with pressure from large, well-resourced competitors, private label products, and e-commerce, which may reduce sales, market share, and profitability[76](index=76&type=chunk)[78](index=78&type=chunk)[80](index=80&type=chunk) [Commodity and Operating Risks](index=23&type=section&id=Commodity%20and%20Operating%20Risks) Conagra is subject to commodity price volatility for key raw materials, which can negatively impact profits despite hedging strategies. Operational risks include supply chain disruptions, which have previously impacted profitability, and the potential for product recalls and liability claims. The company's reputation is critical and can be damaged by product quality issues, negative publicity, or failure to meet ethical and environmental standards - The company is exposed to price volatility in key commodities like wheat, corn, oils, and proteins. While it uses hedging, it may not fully offset cost increases, potentially impacting profits[83](index=83&type=chunk)[86](index=86&type=chunk) - Supply chain disruptions, transportation issues, and labor challenges have impacted and could continue to impact operations and profitability[89](index=89&type=chunk)[91](index=91&type=chunk) - The company faces risks of product recalls, liability claims, and changing regulations. A significant recall or judgment could negatively impact sales and profitability[92](index=92&type=chunk)[95](index=95&type=chunk) [Consumer, Customer, and Third-Party Risks](index=27&type=section&id=Consumer%2C%20Customer%2C%20and%20Third-Party%20Risks) The business is dependent on its ability to adapt to changing consumer preferences, including health trends and the impact of weight loss medications. A significant portion of revenue comes from its largest customer, Walmart (28% of FY24 sales), and the loss or reduction of this business could be material. The company also relies heavily on third-party suppliers, co-manufacturers, and service providers, whose failure to perform, including from cybersecurity incidents, could disrupt operations - Success depends on identifying and meeting evolving consumer preferences, which are influenced by factors like health and wellness trends, packaging sustainability, and the growing use of weight loss medication[101](index=101&type=chunk) - The company has significant customer concentration risk, with its largest customer, Walmart, Inc., accounting for approximately **28% of consolidated net sales in fiscal 2024**[103](index=103&type=chunk) - The company is vulnerable to disruptions from third parties in its supply chain. A third-party vendor's cybersecurity incident in Q4 fiscal 2023 resulted in **$4.4 million in charges** due to operational disruptions[115](index=115&type=chunk)[116](index=116&type=chunk) [Cybersecurity, Legal, and Other Risks](index=31&type=section&id=Cybersecurity%2C%20Legal%20and%20Other%20Risks) Conagra faces risks from potential cybersecurity incidents targeting its own or third-party IT systems, which are increasingly complex with remote work and new technologies like AI. The company is also subject to extensive government regulation, and changes related to climate change could increase costs. A significant risk lies in the potential impairment of its $10.58 billion in goodwill and $2.71 billion in other intangible assets, which could lead to material charges - The company relies on complex IT systems vulnerable to cyberattacks. The modernization of operations and adoption of AI may increase this exposure[125](index=125&type=chunk)[129](index=129&type=chunk) - Growing concern over climate change may lead to new regulations, decreased availability of agricultural commodities, and increased operational costs[121](index=121&type=chunk)[122](index=122&type=chunk) - As of May 26, 2024, the company had goodwill of **$10.58 billion** and other intangibles of **$2.71 billion**. Impairment of these assets, driven by factors like competitive pressure or lower growth, could result in significant charges and negatively impact net worth[138](index=138&type=chunk) [Cybersecurity](index=40&type=section&id=Item%201C.%20Cybersecurity) Conagra's cybersecurity program, based on NIST framework, is integrated into ERM, focusing on continuous monitoring and training, with governance overseen by the Board and its Audit/Finance Committee [Risk Management, Strategy, and Governance](index=40&type=section&id=Risk%20Management%2C%20Strategy%2C%20and%20Governance) Conagra's cybersecurity program, informed by the NIST framework, is integrated into its enterprise risk management (ERM) process. The program focuses on assessing, identifying, and managing cyber risks through continuous monitoring, employee training, and third-party testing. Governance is managed by a dedicated internal team led by a Chief Information Security Officer (CISO), with direct oversight from the Board of Directors and its Audit/Finance Committee, which receives regular updates on cyber risks and mitigation strategies - The cybersecurity program is based on recognized frameworks like NIST and is integrated with the company's overall Enterprise Risk Management (ERM)[152](index=152&type=chunk)[153](index=153&type=chunk) - The program includes ongoing monitoring, annual employee training, penetration testing, tabletop exercises, and engagement with law enforcement and intelligence-sharing organizations[152](index=152&type=chunk)[154](index=154&type=chunk) - Oversight is provided by the Board of Directors and its Audit/Finance Committee, which receives regular updates from the Chief Information Officer (CIO) or Chief Information Security Officer (CISO) at each scheduled meeting[167](index=167&type=chunk) [Management's Discussion and Analysis (MD&A)](index=47&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Fiscal 2024 saw a net sales decrease for Conagra, significantly impacted by goodwill and intangible asset impairment charges, despite strong operating cash flow, with critical accounting estimates focusing on asset impairment [Executive Overview](index=49&type=section&id=EXECUTIVE%20OVERVIEW) In fiscal 2024, Conagra experienced a decrease in net sales, driven by lower volumes in its Grocery & Snacks and Refrigerated & Frozen segments as consumers adapted to higher prices. Despite lower sales, gross profit increased due to productivity gains and lower costs. However, significant non-cash impairment charges on goodwill and intangible assets heavily impacted net income, causing diluted EPS to fall to $0.72 from $1.42 in fiscal 2023. The company expects moderate input cost inflation and improving volumes to continue into fiscal 2025 - Fiscal 2024 net sales decreased due to lower consumption and consumer shifts, while gross profit increased from higher productivity and lower transportation costs. Segment operating profit was mixed[186](index=186&type=chunk) - Diluted earnings per share fell to **$0.72 in fiscal 2024** from $1.42 in fiscal 2023, primarily due to significant items impacting comparability, including large impairment charges[187](index=187&type=chunk) - Key items impacting comparability in fiscal 2024 included **$956.7 million in goodwill and brand impairment charges** and **$66.6 million in restructuring charges**[190](index=190&type=chunk) [Results of Operations (FY2024 vs. FY2023)](index=51&type=section&id=SEGMENT%20REVIEW) For fiscal 2024, consolidated net sales decreased 1.8% to $12.05 billion, with declines in Refrigerated & Frozen (-5.6%) and Grocery & Snacks (-0.5%) offsetting growth in International (+7.6%) and Foodservice (+1.0%). Operating profit was severely impacted by a $347.5 million loss in the Refrigerated & Frozen segment, driven by $879.1 million in goodwill and intangible asset impairments. Consequently, diluted EPS fell to $0.72 from $1.42 in the prior year | Reporting Segment | Net Sales FY2024 ($M) | Net Sales FY2023 ($M) | % Change | | :--- | :--- | :--- | :--- | | Grocery & Snacks | $4,958.7 | $4,981.9 | (0.5)% | | Refrigerated & Frozen | $4,865.5 | $5,156.2 | (5.6)% | | International | $1,078.3 | $1,002.5 | 7.6% | | Foodservice | $1,148.4 | $1,136.4 | 1.0% | | **Total** | **$12,050.9** | **$12,277.0** | **(1.8)%** | | Reporting Segment | Operating Profit (Loss) FY2024 ($M) | Operating Profit FY2023 ($M) | % Change | | :--- | :--- | :--- | :--- | | Grocery & Snacks | $1,012.4 | $1,002.8 | 1.0% | | Refrigerated & Frozen | ($92.5) | $255.0 | N/A | | International | $97.9 | $121.4 | (19.4)% | | Foodservice | $157.2 | $85.0 | 84.8% | - The Refrigerated & Frozen segment's operating loss was primarily due to **$879.1 million in impairment charges** for goodwill and certain brand intangible assets during fiscal 2024[208](index=208&type=chunk) - Diluted EPS decreased to **$0.72 in FY2024** from $1.42 in FY2023, reflecting lower net income primarily due to significant impairment charges[215](index=215&type=chunk) [Liquidity and Capital Resources](index=58&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company generated strong operating cash flow of $2.02 billion in fiscal 2024, a significant increase from $995.4 million in the prior year, mainly due to inventory reductions. Key financing activities included repaying $1.77 billion of long-term debt and issuing $500.0 million in new notes. The company ended the year with $77.7 million in cash and cash equivalents and maintains a $2.0 billion revolving credit facility for liquidity. Capital expenditures for fiscal 2025 are estimated to be approximately $500 million | Cash Flow Activity ($ in billions) | Fiscal 2024 | Fiscal 2023 | | :--- | :--- | :--- | | Net cash from operating activities | $2.02 | $0.995 | | Net cash used in investing activities | ($0.375) | ($0.355) | | Net cash used in financing activities | ($1.66) | ($0.632) | - The increase in operating cash flow was primarily driven by a reduction in inventory balances and higher dividends received from an equity method investment[239](index=239&type=chunk) - The company did not repurchase any common stock in fiscal 2024. The remaining share repurchase authorization is **$916.6 million**[228](index=228&type=chunk) - The preliminary estimate for capital expenditures in fiscal 2025 is approximately **$500 million**[237](index=237&type=chunk) [Critical Accounting Estimates](index=64&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) Management identifies the impairment of goodwill and other intangible assets as a critical accounting estimate due to the significant judgment required. In fiscal 2024, the company recorded goodwill impairments of $526.5 million and indefinite-lived intangible impairments of $430.2 million. These charges were primarily driven by higher discount rates and revised sales forecasts. The carrying value of goodwill was $10.58 billion and indefinite-lived intangibles was $2.03 billion at year-end, with certain assets remaining susceptible to future impairment if economic conditions or performance decline - The company holds significant goodwill (**$10.58 billion**) and indefinite-lived intangible assets (**$2.03 billion**) as of May 26, 2024[263](index=263&type=chunk) - In fiscal 2024, the company recorded goodwill impairment charges of **$526.5 million** in its Sides, Components, Enhancers reporting unit and **$430.2 million** in impairments for indefinite-lived brand intangibles[263](index=263&type=chunk)[360](index=360&type=chunk) - The impairments were largely due to increased discount rates reflecting current economic conditions (higher interest rates), declines in market capitalization and multiples, and downward revisions to sales forecasts for specific units and brands[358](index=358&type=chunk)[360](index=360&type=chunk) | Sensitivity Analysis on Assets with <10% Fair Value Cushion | Impact of 50-Basis-Point Discount Rate Change | Impact of 25-Basis-Point Growth Rate Change | Impact of 100-Basis-Point Royalty Rate Change | | :--- | :--- | :--- | :--- | | **Reporting unit (Goodwill)** | +$93.9M / -$82.0M | +$49.7M / -$28.9M | N/A | | **Brands (Intangibles)** | +$81.2M / -$68.3M | +$32.5M / -$22.9M | +$309.7M / -$298.9M | [Financial Statements and Supplementary Data](index=72&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Conagra's fiscal 2024 financial statements reflect decreased net sales and net income due to substantial impairment charges, alongside strong operating cash flow, with notes detailing restructuring, impairments, and ongoing litigation [Consolidated Financial Statements Summary](index=72&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements for fiscal year 2024 show a 1.8% decline in net sales to $12.05 billion. Net income attributable to Conagra Brands fell sharply to $347.2 million from $683.6 million in fiscal 2023, resulting in diluted EPS of $0.72. Total assets decreased to $20.86 billion from $22.05 billion, while total liabilities also decreased to $12.35 billion. Cash flow from operations was strong at $2.02 billion, a significant increase from the prior year | Key Financial Metrics (in millions, except EPS) | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 | | :--- | :--- | :--- | :--- | | **Net Sales** | $12,050.9 | $12,277.0 | $11,535.9 | | **Net Income Attributable to Conagra** | $347.2 | $683.6 | $888.2 | | **Diluted EPS** | $0.72 | $1.42 | $1.84 | | Key Balance Sheet Items (in millions) | May 26, 2024 | May 28, 2023 | | :--- | :--- | :--- | | Total Current Assets | $3,149.5 | $3,385.0 | | Total Assets | $20,862.3 | $22,052.6 | | Total Current Liabilities | $3,241.8 | $4,440.7 | | Total Liabilities | $12,351.0 | $13,245.3 | | Total Stockholders' Equity | $8,511.3 | $8,807.3 | | Key Cash Flow Items (in millions) | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | $2,015.6 | $995.4 | $1,177.3 | | Net cash from investing activities | ($375.0) | ($354.9) | ($434.9) | | Net cash from financing activities | ($1,656.7) | ($631.6) | ($738.0) | [Selected Notes to Financial Statements](index=79&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes to the financial statements detail significant events in fiscal 2024. The company recorded $66.6 million in charges under its ongoing restructuring plan. Goodwill and intangible asset impairments were substantial, totaling $526.5 million for goodwill and $430.2 million for brands, primarily impacting the Refrigerated & Frozen segment. The company is also managing contingencies from legacy litigation related to lead-based paint and ongoing lawsuits concerning its cooking spray products. In a subsequent event, Conagra acquired the manufacturing operations of a co-manufacturer for $46 million - **Restructuring:** In fiscal 2024, the company recognized **$66.6 million in pre-tax expenses** related to the Conagra Restructuring Plan, including $19.1 million in cost of goods sold and $47.5 million in SG&A[325](index=325&type=chunk)[327](index=327&type=chunk) - **Goodwill & Intangible Impairments:** In FY2024, recognized a **$526.5 million goodwill impairment** in the Sides, Components, Enhancers reporting unit and **$430.2 million in brand impairments**, with Birds Eye® ($255.4M) and Earth Balance® ($72.1M) being the largest[358](index=358&type=chunk)[360](index=360&type=chunk) - **Contingencies:** The company has accrued **$76.3 million for litigation matters** as of May 26, 2024, including ongoing cases related to lead-based paint from the Beatrice acquisition and Pam® cooking spray products[406](index=406&type=chunk)[409](index=409&type=chunk)[411](index=411&type=chunk) - **Subsequent Event:** After fiscal year-end, Conagra acquired the manufacturing operations of an existing co-manufacturer of its cooking spray products for initial cash consideration of **$46 million**[478](index=478&type=chunk) [Controls and Procedures](index=139&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, with CEO and CFO participation, concluded that Conagra's disclosure controls and internal control over financial reporting were effective as of May 26, 2024, a conclusion affirmed by KPMG LLP [Management's Report on Internal Controls](index=139&type=section&id=Management's%20Annual%20Report%20on%20Internal%20Control%20Over%20Financial%20Reporting) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of May 26, 2024. Management also assessed the effectiveness of internal control over financial reporting using the COSO framework and concluded that it was effective as of the same date. The independent registered public accounting firm, KPMG LLP, has audited and concurred with management's assessment - Management, with the participation of the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective as of May 26, 2024**[496](index=496&type=chunk) - Based on an assessment using the criteria in the COSO framework, management concluded that the company's internal control over financial reporting was **effective as of May 26, 2024**[499](index=499&type=chunk) - KPMG LLP, the independent registered public accounting firm, audited the effectiveness of the company's internal control over financial reporting and issued an unqualified opinion[500](index=500&type=chunk)[481](index=481&type=chunk) [Corporate Governance and Executive Compensation](index=142&type=section&id=PART%20III) Information on Conagra's directors, executive officers, corporate governance, and compensation is incorporated by reference from its 2024 Proxy Statement, with details on equity compensation plans [Director, Officer, and Compensation Disclosures](index=142&type=section&id=Items%2010-14) Information regarding directors, executive officers, corporate governance, executive compensation, security ownership, and principal accountant fees and services is incorporated by reference from the company's definitive 2024 Proxy Statement. The company has adopted a code of ethics for senior financial officers, available on its website. As of May 26, 2024, there were 14.9 million securities available for future issuance under equity compensation plans approved by security holders - Detailed information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the Registrant's 2024 Annual Meeting of Stockholders Proxy Statement[505](index=505&type=chunk)[510](index=510&type=chunk)[511](index=511&type=chunk)[518](index=518&type=chunk)[519](index=519&type=chunk) | Equity Compensation Plan Information (as of May 26, 2024) | Number of Securities to be Issued Upon Exercise | Weighted-Average Exercise Price | Number of Securities Remaining Available for Future Issuance | | :--- | :--- | :--- | :--- | | Approved by security holders | 7,846,847 | $31.38 | 14,873,523 | | Not approved by security holders | — | — | — | | **Total** | **7,846,847** | **$31.38** | **14,873,523** |

Strain on the consumer is eating into its growth.Packaged-foods company Conagra Brands (CAG -1.72%) had a mixed quarter and provided disappointing guidance for its new fiscal year. Investors reacted by sending shares of Conagra down as much as 5%, before they rallied to be down only 2% as of 1:30 p.m. ET on Thursday.Price inflation is eating into salesConagra -- whose brands include Birds Eye, Duncan Hines, Healthy Choice, Slim Jim, and Reddi-wip -- reported adjusted earnings of $0.61 per share in its fisca ...

Core Insights - Conagra Brands, Inc. reported a decline in both revenue and earnings for the fourth quarter of fiscal 2024, with net sales of $2,905.9 million, down 2.3% year over year, missing the Zacks Consensus Estimate of $2,939 million [2][6] - The company experienced a challenging industry environment characterized by a slowdown in consumption, leading to a 1.6% year-over-year decline in adjusted earnings per share (EPS) to 61 cents, although this exceeded the Zacks Consensus Estimate of 56 cents [2][6] - Despite these challenges, strategic investments in brands have led to volume improvements in the Domestic Retail business, particularly in the Frozen and Snacks categories, and management anticipates a gradual easing of difficult industry trends [1][6] Financial Performance - Adjusted gross profit remained flat at $803 million, while adjusted gross margin improved by 62 basis points to 27.6%, driven by higher productivity [3] - Adjusted EBITDA decreased to $577 million from $594.2 million in the previous year [3] - The company generated $2 billion in net cash flows from operating activities for fiscal 2024, with capital expenditures of $388 million and free cash flow of $1.6 billion [6] Segment Performance - Grocery & Snacks segment net sales were $1,174.7 million, down 2.1% year over year, with organic sales also declining by 2.1% due to a 3.6% drop in volumes [4] - Refrigerated & Frozen segment saw net sales decline by 3.8% to $1,173 million, with volumes up 0.9% but a price/mix decrease of 4.7% [4] - International segment net sales increased by 6.4% to $266.8 million, driven by improved organic sales and positive currency effects [5] Guidance - For fiscal 2025, Conagra anticipates organic net sales growth to be between a 1.5% decline and flat, with adjusted operating margin expected between 15.6% and 15.8% [7] - Management projects adjusted EPS in the range of $2.60 to $2.65, compared to $2.67 in fiscal 2024 [7] - The company plans to maintain its dividend rate at $1.40 per share, with a quarterly dividend of 35 cents per share scheduled for payment on August 29, 2024 [6]