The market didn't find the stock of Conagra Brands (CAG -5.46%) very tasty on the first trading day of the week after the holiday weekend. On the back of significantly lowered guidance, investors collectively traded out of the veteran packaged foods company to the point where the shares lost almost 6% of their value. And this was on a day when the S&P 500 (^GSPC 0.24%) landed in positive territory, with a 0.2% rise.Breaking out the scissorsConagra revealed the new outlook for its fiscal 2025, and it's no wo ...

Core Insights - Conagra Brands, Inc. is preparing to launch a series of innovations in 2025 to enhance its competitive position and product offerings [1] - The company has revised its fiscal 2025 financial outlook due to supply-chain disruptions and foreign exchange impacts [2][8] Financial Outlook - Organic net sales growth for fiscal 2025 is now expected to decline by 2%, a change from the previous forecast of flat to a 1.5% decrease [2] - Adjusted operating margin is anticipated to be 14.4%, down from the earlier expectation of 14.8% [2] - Adjusted earnings per share have been revised to $2.35, down from the previous estimate of $2.45-$2.50 [3] - The net leverage ratio is expected to rise to 3.55x, compared to the earlier forecast of 3.4x [3] Operational Challenges - Conagra faced significant challenges in the chicken-based frozen meals segment due to production disruptions caused by quality inconsistencies [4] - In the frozen vegetables segment, unexpected consumer demand led to rapid inventory depletion, prompting the company to implement inventory control measures [5] Strategic Growth Initiatives - The company is committed to long-term growth through product innovation, infrastructure improvements, and consumer-driven insights [6] - Investments in upgrading production facilities, particularly in chicken-based frozen meals, are planned to enhance production capabilities [7] - Ongoing investments in supply-chain and manufacturing processes aim to improve operational efficiency and maintain market leadership [7] Investment Analysis - The revised financial forecast indicates short-term challenges, leading to cautious investor sentiment [8] - Despite these challenges, the focus on product innovation and operational efficiency suggests potential for long-term growth [8] - Conagra's shares have decreased by 2.1% over the past month, contrasting with industry and S&P 500 growth [9]

Updated Fiscal 2025 Outlook Reflects Temporary Service Constraints and Impact of Foreign Exchange; Long-Term Targets Unchanged CHICAGO, Feb. 17, 2025 /PRNewswire/ -- Conagra Brands, Inc. (NYSE: CAG) announced that its upcoming presentation at the annual Consumer Analyst Group of New York (CAGNY) Conference will detail Conagra's advantaged market position, perspective on the evolving consumer environment, and unique focus on the science of growth. Conagra will also preview a series of new innovations expecte ...

The average consumer staples company is offering investors a roughly 2.8% dividend yield. Conagra's (CAG 0.32%) 5.1% yield is much higher than that, with Kraft Heinz's (KHC -0.31%) 5.4% yield higher still.If you are a high-yield lover, these two food makers will likely have popped onto your radar screen. Which one is better? There's an easy answer.What do Conagra and Kraft Heinz do?While the consumer staples sector includes companies that produce a large range of products, Conagra and Kraft Heinz are focuse ...

iREIT+HOYA Capital is the premier income-focused investing service on Seeking Alpha. Our focus is on income-producing asset classes that offer the opportunity for sustainable portfolio income , diversification , and inflation hedging . Get started with a Free Two-Week Trial and take a look at our top ideas across our exclusive income-focused portfolios.There is no denying that consumer staple stocks are cheap right now, even after the tech rout due to DeepSeek making its debut. As shown below, the SPDR Cons ...

Core Insights - Conagra Brands, Inc. will present at the 2025 CAGNY Conference on February 18, 2025, at 9 a.m. ET, discussing business strategies and financial outlook [1] - The presentation will feature key executives including Sean Connolly (CEO), Dave Marberger (CFO), and Bob Nolan (SVP of Demand Science) [1] - A video webcast and presentation slides will be available on the company's investor relations website, with a replay accessible until February 18, 2026 [2] Company Overview - Conagra Brands, Inc. is a leading branded food company in North America with a history of over 100 years in quality food production [3] - The company’s portfolio includes well-known brands such as Birds Eye®, Duncan Hines®, Healthy Choice®, and many others, reflecting its commitment to innovation and consumer preferences [3] - For fiscal 2024, Conagra Brands reported net sales exceeding $12 billion, indicating strong market presence [3]

Core Viewpoint - The launch of China's DeepSeek AI chatbot has caused significant market reactions, particularly impacting tech stocks while benefiting consumer staple stocks [1][2]. Group 1: Impact on Tech Stocks - The introduction of DeepSeek is perceived as a competitive threat to established AI companies like Nvidia and Taiwan Semiconductor, leading to a decline in their stock prices [2][4]. - The tech sector had already been experiencing a rise, driven by strong demand and expectations of an AI revolution, but DeepSeek's efficiency and cost-effectiveness challenge these assumptions [4]. Group 2: Performance of Consumer Staples - Consumer staple stocks such as Conagra Brands, J.M. Smucker, and Kraft Heinz saw gains of 3.9%, 3.5%, and 3.4% respectively, as investors shifted towards safer investments [3]. - These companies are less affected by economic fluctuations and AI developments, making them attractive during market turbulence [5]. Group 3: Company-Specific Insights - Conagra has faced sales declines of 0.4% in its most recent quarter, but it maintains a forecasted adjusted operating margin of 14.8% for fiscal 2025, indicating strong brand and distribution capabilities [6][7]. - J.M. Smucker's revenue, excluding acquisitions, grew by 2%, and the company raised its earnings per share guidance, benefiting from its acquisition of Hostess [8]. - Kraft Heinz has struggled, with a 2.8% revenue decline in its third quarter and a $1.4 billion impairment charge, reflecting ongoing challenges in its product portfolio [9][10]. Group 4: Market Outlook - The recent rotation towards safe stocks may not indicate a long-term trend, but it highlights the tendency of investors to seek stability during periods of heightened risk [11][12]. - Companies in the consumer staples sector are noted for their strong dividend payouts, providing income to investors even in declining markets [12].

Core Viewpoint - Conagra Brands, Inc. (CAG) is currently facing significant challenges, with its stock underperforming compared to industry benchmarks and broader market indices, raising concerns about its long-term investment potential [1][5]. Stock Performance - Over the past three months, Conagra's shares have declined by 12.5%, compared to a 10.8% decline in the industry and an 8.6% drop in the Zacks Consumer Staples sector, while the S&P 500 has grown by 3.4% [1]. - The stock closed at $25.82, nearing its 52-week low of $25.35, and is trading below its 50- and 200-day moving averages, indicating potential weakness [4]. Financial Challenges - Conagra is grappling with inflation and a downturn in its Foodservice unit, which has led to a contraction in gross margins [6]. - The company initially expected inflation to peak in the second quarter of fiscal 2025, but this relief has been delayed, with cost of goods sold inflation at 3.8%, impacting margins by 2.6% [7]. - Adjusted gross profit fell by 2.3% to $842 million, and adjusted gross margin contracted by 52 basis points to 26.4% [7]. Foodservice Unit Performance - The Foodservice segment reported a 0.9% year-over-year sales decline to $292.2 million, with organic sales down by 1% [8]. - Although price/mix improved by 2.9%, volumes decreased by 3.9% due to lost business and sluggish restaurant traffic, reflecting broader macroeconomic challenges [8]. Currency Impact - Conagra's international segment faced a 30-basis-point currency headwind to net sales due to the strengthening U.S. dollar against the Mexican peso, which is expected to pressure profitability in fiscal 2025 [10]. Consumer Dynamics - The company noted that consumer behavior is shifting towards value-seeking and affordability due to ongoing inflation, prompting a revision of its fiscal outlook [11]. - Adjusted operating margin for fiscal 2025 is now expected to be around 14.8%, down from a previous range of 15.6%-15.8% [12]. Earnings Estimates - The Zacks Consensus Estimate for Conagra's earnings per share has been revised downward, indicating a bearish outlook among analysts [13]. - For fiscal 2025, adjusted earnings per share are projected to be in the range of $2.45-$2.50, down from the earlier estimate of $2.60-$2.65 [12]. Strategic Response - In response to these challenges, Conagra is increasing investments in advertising, promotions, and innovation, although the effectiveness of these efforts varies [12]. - Despite strong brand positioning and strategic growth efforts, persistent inflation and a dynamic consumer environment pose challenges for the company [14].

Conagra Brands, Inc. (NYSE:CAG), a major supplier to supermarkets, foodservice establishments, and consumers, is a stock that we still like as a dividend-paying income name. Shares have stagnated, particularly in recent weeks, but remain at levels we like. We suggested a buy at the start of the year when shares were around $28, for income. We reiterated that call in October when the stock fell into the $20s, and today, we stand by the call and $32 price target. While we wait for conditions to improve for th ...

Key TakeawaysConagra Brands shares slid Thursday after the food giant lowered its profit outlook.CEO Sean Connolly cited a "challenging consumer environment," and said inflation will likely negatively affect Conagra's second-half results.The company's second-quarter sales and adjusted earnings topped analysts' estimates. Conagra Brands (CAG) shares slid Thursday after the food giant lowered its profit outlook, citing a "challenging consumer environment." CEO Sean Connolly said higher-than-expected inflation ...