Core Viewpoint - Conagra Brands (CAG) is expected to report a decline in quarterly earnings and revenues, with analysts adjusting their estimates downward over the past month [1][2]. Financial Performance - Quarterly earnings are predicted to be $0.59 per share, a decrease of 3.3% year-over-year [1]. - Revenues are forecasted at $2.85 billion, reflecting a year-over-year decrease of 1.8% [1]. Analyst Revisions - The consensus EPS estimate has been adjusted downward by 2% over the past 30 days, indicating a reassessment by covering analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and stock price performance [3]. Sales Projections - 'Sales- Grocery & Snacks' are expected to reach $1.18 billion, showing a year-over-year increase of 0.7% [5]. - 'Sales- Foodservice' is forecasted at $282.84 million, indicating a decline of 2.9% from the prior year [5]. - 'Sales- International' is projected to be $228.22 million, reflecting a significant decrease of 14.5% year-over-year [5]. Operating Profit Estimates - 'Adjusted Operating Profit (loss)- Grocery & Snacks' is estimated at $256.07 million, slightly up from $255.40 million a year ago [8]. - 'Adjusted Operating Profit (loss)- Refrigerated & Frozen' is projected at $171.73 million, down from $189.70 million in the same quarter last year [8]. - 'Adjusted Operating Profit (loss)- Foodservice' is expected to be $38.03 million, down from $39.70 million year-over-year [9]. - 'Adjusted Operating Profit (loss)- International' is estimated at $29.74 million, slightly up from $28.90 million a year ago [9]. Stock Performance - Over the past month, shares of Conagra Brands have declined by 5.7%, contrasting with a 5.2% increase in the Zacks S&P 500 composite [10]. - Conagra Brands currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near future [10].

Core Insights - Conagra Brands, Inc. (CAG) is expected to report a decline in both revenue and earnings for the fourth quarter of fiscal 2025, with earnings per share (EPS) estimated at 59 cents, reflecting a 3.3% decrease year-over-year [1][8] - The consensus estimate for quarterly revenues is projected at $2.9 billion, indicating a 1.8% decline from the previous year [1][8] - For fiscal 2025, the overall earnings guidance suggests a decline of 12.7% in EPS to $2.33, with organic net sales growth expected to decrease by 2% [1][4] Financial Performance - The adjusted operating margin for fiscal 2025 is projected at 14.4%, down from previous levels, with adjusted earnings forecasted at $2.35 per share, a decrease from $2.67 in fiscal 2024 [4] - The trailing four-quarter negative earnings surprise for CAG averages almost -0.1% [1] Cost Pressures - Persistent cost inflation, particularly in input and protein costs, continues to impact margin performance, with an expected adjusted gross margin contraction of 170 basis points year-over-year [2] - Rising selling, general and administrative (SG&A) expenses, including advertising and promotional spending, are further squeezing profitability [2] Market Conditions - The Foodservice segment is under pressure due to weaker commercial traffic and a sluggish recovery in out-of-home dining, reflecting broader industry challenges [3] - Currency volatility due to international exposure adds additional pressure on the company's performance [3]

Group 1 - Conagra Brands, Inc. is set to release its fourth-quarter earnings results on July 10, with analysts expecting earnings of 61 cents per share, unchanged from the previous year [1] - The company is projected to report quarterly revenue of $2.88 billion, a decrease from $2.91 billion a year earlier [1] - On June 25, Conagra Brands announced plans to eliminate certified food, drug, and cosmetic colors from its U.S. frozen product portfolio by the end of 2025 [2] Group 2 - Conagra Brands shares increased by 2.8%, closing at $21.05 on a recent Tuesday [2] - Several analysts have downgraded the stock, with B of A Securities lowering its rating from Neutral to Underperform and cutting the price target from $27 to $20 [8] - Goldman Sachs also downgraded the stock from Neutral to Sell, reducing the price target from $26 to $21 [8] - Wells Fargo maintained an Equal-Weight rating but decreased the price target from $27 to $23 [8] - JP Morgan kept a Neutral rating while cutting the price target from $26 to $25 [8] - Morgan Stanley initiated coverage with an Equal-Weight rating and a price target of $27 [8]

Group 1 - Conagra Brands, Inc. has completed the divestiture of the Van de Kamp's® and Mrs. Paul's® brands to High Liner Foods, including all associated intellectual property and inventory, but excluding employees or manufacturing facilities [1] - Conagra Brands is one of North America's leading branded food companies with a history of over 100 years, focusing on quality food, collaboration, and innovation [2] - The company's portfolio includes well-known brands such as Birds Eye®, Duncan Hines®, Healthy Choice®, and many others, reflecting its commitment to evolving with consumer preferences [2] Group 2 - In fiscal 2024, Conagra Brands generated net sales exceeding $12 billion, indicating a strong market presence [2]

Group 1 - Conagra Brands operates in the grocery retail and foodservice sectors, selling products under various brand names available in supermarkets, restaurants, and food service establishments [1] - The company has been navigating challenges such as inflationary pressures, supply chain disruptions, and shifting consumer behavior since 2020 [1] Group 2 - The analysis of Conagra Brands is part of a broader fundamental analysis of publicly listed companies, which includes firms like Covestro, Signify, Alibaba, Verizon, and China Mobile [1] - The expertise in accounting allows for thorough analysis of annual reports and financial information, which is crucial for assessing stock valuation [1]

Core Viewpoint - Conagra Brands, Inc. is set to complete the removal of certified Food, Drug & Cosmetic colors from its U.S. frozen product portfolio by the end of 2025, marking a significant milestone in its portfolio modernization strategy [1][2]. Group 1: Portfolio Modernization - The transition away from FD&C colors is part of a broader strategy to modernize the portfolio in alignment with consumer preferences [2]. - By the beginning of the 2026-2027 school year, Conagra will not offer products with FD&C colors sold to K-12 schools [2]. - The company aims to discontinue the use of FD&C colors across its entire U.S. retail portfolio by the end of 2027 [2]. Group 2: Consumer Trends and Product Innovation - Conagra has a history of adapting to evolving consumer interests, focusing on health and wellness, diverse lifestyles, and nutritional needs [3]. - The company emphasizes affordable, convenient nutrition, offering a variety of food groups including whole vegetables and portion-controlled frozen meals [3]. - Brands like Birds Eye and Healthy Choice support consumers' nutritional goals and healthy eating patterns [3]. Group 3: New Product Initiatives - Earlier in the year, Conagra launched the "On Track" badge on select Healthy Choice products, indicating high protein, low calorie, and good fiber content, making them "GLP-1 friendly" [4]. - Healthy Choice was the first major food brand to highlight "GLP-1 Friendly" on its packaging [4]. Group 4: Company Overview - Conagra Brands, Inc. is one of North America's leading branded food companies, with a history of over 100 years in quality food production [5]. - The company generated fiscal 2024 net sales of more than $12 billion [5].

Core Insights - Moretus Research provides high-quality equity research focused on U.S. public markets, aiming to deliver clarity, conviction, and alpha for serious investors [1] - The research methodology emphasizes a structured framework to identify companies with durable business models, mispriced cash flow potential, and intelligent capital allocation [1] - Valuation practices are based on sector-relevant multiples tailored to each company's business model and capital structure, prioritizing comparability and simplicity [1] Research Focus - Moretus Research targets underappreciated companies that are undergoing structural changes or temporary dislocations, where disciplined analysis can yield asymmetric returns [1] - The research combines rigorous fundamental analysis with a judgment-driven process, avoiding noise and overly complex forecasting [1] - The firm aims to elevate the standards of independent investment research by providing actionable insights and a strong filter for relevant information in equity analysis [1]

Core Insights - Conagra Brands, Inc. (CAG) has experienced an 11.9% decline in share price over the past three months, contrasting with a 1.1% decline in the industry, attributed to broader market dynamics and specific company challenges [1][8] - The stock has reached a 52-week low of $21.81, closing at $22.28, and is trading below key technical levels, indicating ongoing bearish pressure [3][8] Financial Performance - The Foodservice segment reported a 6.1% year-over-year decline in sales to $256 million, with organic sales down 6.3% due to a 10% drop in volumes, reflecting weak commercial traffic amid macroeconomic pressures [4] - The international segment saw a 17.6% year-over-year decline in net sales to $224 million, with foreign exchange headwinds contributing 8.5 percentage points to this decline [5] - Adjusted gross profit fell 19.1% to $704 million, and adjusted gross margin narrowed by 389 basis points to 24.8%, driven by inflation around 4% and unfavorable operating leverage [6][8] Earnings Outlook - For fiscal 2025, Conagra projects a 2% decline in organic net sales, with adjusted operating margin expected to decrease to 14.4% from 16% a year ago, and adjusted earnings per share (EPS) forecasted at $2.35, down from $2.67 [9][8] - The company reaffirmed its fiscal 2025 outlook despite acknowledging ongoing operational disruptions [9] Strategic Initiatives - Conagra is actively reshaping its portfolio to adapt to evolving consumer preferences, focusing on innovation, brand modernization, and strategic acquisitions while exiting low-growth businesses [10] - The company has a diverse portfolio across frozen, snacks, and staples, which positions it to capitalize on multiple consumer trends and mitigate risks from individual category fluctuations [11] Valuation - Conagra currently trades at a forward 12-month price-to-earnings ratio of 9.47X, below the industry average of 16.06X, suggesting it may be undervalued [12]

Core Insights - Conagra Brands is expanding its frozen food offerings with new single-serve and family-size meals, emphasizing convenience, taste, and value for consumers [1][4][13] - The company is introducing a variety of new products across its brands, including Healthy Choice, Marie Callender's, and P.F. Chang's, targeting different consumer preferences and dietary needs [3][4][6][9] Single-Serve Meals - Conagra's single-serve frozen meals include new offerings from brands like Banquet, Healthy Choice, and Marie Callender's, with prices ranging from $3.49 to $4.99 [2][3][4] - Notable new products include Dolly Parton's Southern-inspired meals and Mike's Hot Honey Chicken Mac 'N Cheese, highlighting the trend towards flavorful and convenient meal options [3][4] Family-Size Meals - The company is launching new family-size meals under the Marie Callender's brand, catering to households of two or more, with suggested retail prices around $9.99 [4] - These meals include classic comfort food recipes such as Chicken Alfredo and Chicken Parmesan, designed for easy preparation [4] Healthy and Plant-Based Options - Healthy Choice continues to lead in the better-for-you single-serve meals category, introducing globally inspired recipes priced between $3.49 and $4.99 [3][4] - The Gardein brand is expanding its plant-based offerings, including new frozen meals and breakfast items, catering to the growing demand for vegan and gluten-free options [9][10][11] Vegetable Offerings - Birds Eye is launching new vegetable products, including Ultimate Cheesy & Buttery Vegetables, which feature enhanced flavors and convenience for consumers [5][7] - The new Steamfresh vegetable medleys reflect the trend towards incorporating global cuisines into frozen vegetable options, with suggested retail prices around $2.49 [8] Market Position - Conagra Brands generated over $12 billion in net sales for fiscal 2024, positioning itself as a leading player in the North American branded food market [13]

Group 1 - Conagra Brands, Inc. will release its fiscal 2025 fourth quarter and full year results on July 10, 2025, followed by a live Q&A session with the investment community [1] - The live audio Q&A can be accessed via a dedicated phone line for U.S. and international participants, with a passcode required for entry [2] - Conagra Brands is a leading branded food company in North America, with a portfolio that includes well-known brands such as Birds Eye®, Duncan Hines®, and Healthy Choice® [3] Group 2 - The company generated net sales of over $12 billion in fiscal 2024, indicating a strong market presence [3] - Conagra Brands emphasizes innovation and collaboration to meet changing consumer food preferences [3] - The company is headquartered in Chicago and has a 100-year history in the food industry [3]