CHICAGO, April 11, 2024 /PRNewswire/ -- Conagra Brands, Inc. (NYSE: CAG) today announced that its Board of Directors approved a quarterly dividend payment of $0.35 per share of CAG common stock to be paid on May 30, 2024 to stockholders of record as of the close of business on April 30, 2024.  Conagra Brands, Inc. has paid consecutive quarterly dividends since January 1976. About Conagra Brands Conagra Brands, Inc. (NYSE: CAG), headquartered in Chicago, is one of North America's leading branded food compani ...

Key PointsGeneral Mills stock is rebounding following a double-bottom pattern that has it set up to return to trend. Conagra Brands is among the consumer staples sector's deepest values and highest yields. WK Kellogg is melting up and approaching a critical level that could lead to additional gains. 5 stocks we like better than General MillsGeneral Mills NYSE: GIS, WK Kellogg NYSE: KLG and Conagra NYSE: CAG are among the stocks with the lowest ratings tracked by Marketbeat. Their analysts are more pessimist ...

The packaged foods company delivered slightly better-than-expected quarterly results.Shares of Conagra Brands (CAG 5.44%) climbed 5.4% on Thursday after the consumer packaged goods company announced stronger-than-expected quarterly results before the opening bell.On Conagra's better-than-feared quarterIn its fiscal 2024 third quarter, which ended Feb. 25, Conagra Brands' net sales declined 1.7% year over year to $3.03 billion, including a 0.3% tailwind from currency exchange rate moves and a 2% organic sale ...

Financial Performance - Net sales for the thirteen weeks ended February 25, 2024, were $3,032.9 million, a decrease of 1.7% compared to $3,086.5 million for the same period in 2023[10] - Net income attributable to Conagra Brands, Inc. for the thirty-nine weeks ended February 25, 2024, was $914.5 million, an increase of 41.5% from $646.1 million in the prior year[10] - Earnings per share (EPS) for the thirteen weeks ended February 25, 2024, were $0.64, down from $0.72 in the same period last year[10] - The company reported a net income of $308.8 million for the thirteen weeks ended February 25, 2024, compared to $342.2 million for the same period in 2023[10] - Net income for the thirty-nine weeks ended February 25, 2024, was $914.9 million, an increase of 41.3% compared to $646.9 million for the same period in 2023[17] - Comprehensive income attributable to Conagra Brands, Inc. for the thirty-nine weeks ended February 25, 2024, was $915.1 million, compared to $633.8 million for the same period in 2023[13] Expenses and Costs - The cost of goods sold for the thirty-nine weeks ended February 25, 2024, was $6,616.5 million, a decrease of 3.0% from $6,822.3 million in the previous year[10] - Selling, general and administrative expenses increased to $1,119.6 million for the thirty-nine weeks ended February 25, 2024, compared to $1,463.1 million in the same period last year[10] - Interest expense for the thirteen weeks ended February 25, 2024, was $106.5 million, slightly up from $104.2 million in the same period last year[10] - The company recognized an impairment charge of $34.2 million related to the planned sale of Agro Tech Foods Limited[25] - The company recognized goodwill impairment charges totaling $20.7 million during the first three quarters of fiscal 2024, with no associated tax benefit[63] Assets and Liabilities - The total assets as of February 25, 2024, were reported at $12,000 million, reflecting the company's financial position[14] - Total current assets decreased to $3,285.8 million from $3,385.0 million, reflecting a decline of 2.9%[15] - Total liabilities decreased to $12,694.4 million from $13,245.3 million, a reduction of 4.2%[15] - Cash and cash equivalents at the end of the period were $78.5 million, down from $93.3 million, representing a decrease of 15.9%[17] - The company had approximately $50.3 million of short-term borrowings related to supplier financing arrangements as of February 25, 2024[41] Equity and Stockholder Information - Total stockholders' equity increased to $9,225.5 million from $8,807.3 million, reflecting a growth of 4.7%[15] - Retained earnings rose to $7,011.7 million as of February 25, 2024, an increase from $6,599.4 million on May 28, 2023[89] - Dividends declared on common stock remained consistent at $0.35 per share, totaling $167.4 million for the period[89] - The balance of treasury stock decreased to $(43.8) million as of February 25, 2024, from $(44.4) million on May 28, 2023[89] Cash Flow and Financing Activities - Net cash flows from operating activities increased to $1,531.3 million, compared to $703.4 million for the same period in 2023, marking a growth of 117.5%[17] - Cash used during the first three quarters of fiscal 2024 was $14.6 million, resulting from $1.53 billion generated from operating activities[170] - Cash used in investing activities rose to $295.6 million in the first three quarters of fiscal 2024, compared to $260.2 million in fiscal 2023, mainly driven by capital expenditures of $309.6 million[172] - Cash used in financing activities surged to $1.25 billion in the first three quarters of fiscal 2024, up from $454.5 million in fiscal 2023, reflecting long-term debt repayments of $766.8 million and cash dividends paid of $492.0 million[173] Segment Performance - The Grocery & Snacks segment reported net sales of $1,286.0 million, up 3.4% from $1,243.7 million year-over-year[109] - The Refrigerated & Frozen segment experienced a decline in net sales to $1,202.4 million, down 8.0% from $1,307.7 million in the prior year[109] - International segment net sales increased by 4.0% to $271.7 million, compared to $259.7 million in the previous year[109] - Operating profit in the Grocery & Snacks segment for Q3 fiscal 2024 was $299.3 million, a 16.7% increase from $256.4 million in Q3 fiscal 2023[140] - Operating profit in the Refrigerated & Frozen segment for Q3 fiscal 2024 decreased to $201.5 million, a 23.6% decline from $263.6 million in Q3 fiscal 2023[140] Restructuring and Legal Matters - As of February 25, 2024, the Conagra Restructuring Plan has incurred approved costs of $228.8 million, including $69.5 million in cash charges and $159.3 million in non-cash charges[29] - In the first three quarters of fiscal 2024, Conagra recognized total charges of $28.9 million related to the restructuring plan, compared to $7.5 million in the same period of fiscal 2023, reflecting a year-over-year increase of approximately 285.3%[30] - The company is involved in litigation matters related to its acquisition of Beatrice Company, with a settlement agreement requiring payments totaling $101.7 million, of which $73.0 million had been paid as of February 25, 2024[71] Market and Economic Conditions - The company continues to face risks related to inflation, supply chain challenges, and changing consumer preferences, which may impact future performance[114] - Input cost inflation is expected to continue throughout the remainder of fiscal 2024, although supply chain stability has improved[120]

Key TakeawaysConagra Brands shares jumped in intraday trading Thursday on a third-quarter earnings report that beat analyst estimates.The owner of dozens of food brands such as Slim Jim, Healthy Choice and Duncan Hines reported net sales of $3.03 billion for the quarter, just above estimates.The company credited cost-cutting measures and increased productivity for its higher-than-expected profit. Conagra Brands (CAG) stock rose Thursday following the release of a quarterly earnings report that beat analyst ...

Financial Data and Key Metrics Changes - The company reported a 4% benefit from price mix in the Grocery & Snacks segment, which exceeded expectations [5][6] - Organic sales in the Refrigerated & Frozen segment declined by 8%, despite success in single-serve meals [6][8] - Inflation rate as a percentage of cost of goods sold for the quarter was 2.9%, leading to a 1.9% margin impact [30][31] Business Line Data and Key Metrics Changes - The Frozen single-serve meal business achieved over 51% market share, up 1.7 points year-over-year [22] - The Grocery & Snacks segment saw strong performance due to pricing in tomatoes and recovery in canned meat products [8][9] - The Refrigerated segment experienced deflation, impacting dollar performance but preserving margins due to lower cost of goods sold [8][12] Market Data and Key Metrics Changes - The most recent 4-week scanner data indicated a volume decline of only 1.2% in the frozen category, showing improvement from previous quarters [11][44] - The company noted a shift in consumer behavior, with some trade-down from fresh and frozen vegetables to canned options [23][39] Company Strategy and Development Direction - The company is focused on maintaining gross margins while investing in volume growth, indicating a balanced approach to growth and profitability [12][19] - There is a strategic emphasis on premium and value-added products in the frozen vegetable category, moving away from commodity-oriented products [40] - The company is implementing a connected shop floor program to enhance supply chain efficiency and drive margin expansion [20] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious but optimistic outlook, emphasizing the need for prudent guidance due to a volatile macro environment [14][18] - The company is closely monitoring consumer readiness to return to typical purchasing behaviors and is prepared to invest accordingly [18][19] - There is confidence in the momentum of volume growth, with expectations for continued improvement into the next fiscal year [12][18] Other Important Information - The company is experiencing a lag effect from new inflation, which is impacting margins in the short term but is expected to improve as pricing adjustments take effect [29][30] - The company is focused on cost savings across its portfolio, with strong performance noted in the food service channel [36] Q&A Session Summary Question: Insights on Grocery & Snacks performance - Management noted a 4% benefit from price mix in Grocery & Snacks, driven by pricing in tomatoes and recovery in canned meat [6][8] Question: Volume momentum and future expectations - Management indicated that volume trends are moving in the right direction, with expectations for further progress in FY '25 [11][12] Question: Guidance for Q4 and organic sales growth - Management adopted a prudent approach to guidance, considering the macro environment and potential volume recovery [14][15] Question: Frozen entrees and market share - The frozen single-serve meal business continues to gain market share, with a focus on premium products [22][23] Question: Inflation impact on margins - Inflation has slowed but remains a concern, with a 2.9% inflation rate impacting margins [30][31] Question: Private label competition in frozen vegetables - Management indicated that while private label exists, the company is focused on premium products and has not seen significant threats from private label in the frozen vegetable category [39][40]

Conagra Brands, Inc. (CAG) has delivered mixed results for the third quarter of fiscal 2024. In the quarter, the top and bottom lines declined year over year. Results have been affected by lower volumes stemming from the slowdown in consumption and the adverse impacts of pricing in certain segments. However, sales and earnings surpassed the Zacks Consensus Estimate.Quarter in DetailConagra’s quarterly adjusted earnings per share (EPS) came in at 69 cents, beating the Zacks Consensus Estimate of 63 cents. Th ...

Conagra Brands (CAG) reported $3.03 billion in revenue for the quarter ended February 2024, representing a year-over-year decline of 1.7%. EPS of $0.69 for the same period compares to $0.76 a year ago.The reported revenue represents a surprise of +0.65% over the Zacks Consensus Estimate of $3.01 billion. With the consensus EPS estimate being $0.64, the EPS surprise was +7.81%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determin ...

Financial Data and Key Metrics Changes - Q3 net sales were approximately $3 billion, reflecting an organic net sales decline of 2% [7][19] - Adjusted gross margin increased by 52 basis points to 28.7%, driven by increased productivity [7][20] - Adjusted operating margin was 16.4%, representing a 49 basis point decrease compared to the prior year quarter [7] - Q3 adjusted EPS was $0.69, a decrease of $0.07 over the prior year quarter [7][20] - Free cash flow for the year to date reached $1.2 billion, with a conversion rate of approximately 124% [17][27] Business Line Data and Key Metrics Changes - Grocery and Snacks segment net sales increased by 3.4% compared to the prior year, driven by improved price mix [22] - Refrigerated and Frozen segment net sales declined by 8.1%, primarily due to increased strategic investments [22] - International segment saw volume and net sales increase over the prior year quarter, driven by strong performance in Mexico and global exports [16] - Foodservice segment net sales decreased due to reduced or exited less profitable business and softness in food away from home traffic [16] Market Data and Key Metrics Changes - Approximately 52% of brands held or gained unit share, a 12% increase compared to the prior year [13] - In the frozen category, Conagra's portfolio outperformed the market on a volume basis [12][14] - Recent four weeks of volume consumption improved to -1.2% year-over-year, a 6.5 percentage point improvement since Q1 [12] Company Strategy and Development Direction - The company continues to prioritize brand building investments across merchandising, innovation, and advertising to drive volumes while sustaining gross margin recovery [10][11] - Innovation remains a key strategic tool, with plans to modernize recipes and expand product offerings [15] - The company is focused on operational efficiency and cost savings to improve margins while maintaining investment in brands [23][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving targets and driving shareholder value based on consumer response to investments and cost savings progress [5] - The company is increasing expectations for adjusted operating margin while reaffirming net sales and adjusted EPS guidance [5][28] - Management noted that the stabilization in the supply chain has enabled further productivity initiatives [8] Other Important Information - The company reduced its net leverage ratio to 3.44 times, reflecting strong free cash flow and debt reduction efforts [17][27] - Adjusted SG&A increased by 7.4%, primarily due to the timing of incentive compensation expense [20] Q&A Session Summary Question: What are the expectations for the adjusted operating margin? - The company has modestly increased its adjusted operating margin expectations to approximately 15.8% for the full year [28] Question: How is the company addressing the challenges in the Foodservice segment? - The company is focusing on reducing or exiting less profitable business while managing price mix increases to offset volume declines [16][22]

Conagra Brands Inc (NYSE: CAG) is trading up in premarket on Thursday after reporting better than expected earnings for its fiscal third quarter. Should you buy Conagra Brands stock after earnings Copy link to section Investors are cheering also because the management reiterated its guidance for the future. Conagra forecasts its organic net sales to be down up to 2.0% on $2.60 to $2.65 of per-share earnings (adjusted) in fiscal 2024. Analysts, in comparison, were at a share. Still, Delano Saporu of New Str ...