Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Conagra Brands Inc (CAG) - Conagra Brands has a dividend yield of 8.20% [6] - Deutsche Bank analyst Steve Powers maintained a Hold rating and reduced the price target from $19 to $18, with an accuracy rate of 66% [6] - Morgan Stanley analyst Megan Alexander maintained an Equal-Weight rating and lowered the price target from $21 to $19, with an accuracy rate of 67% [6] - Recent news indicates that Conagra Brands posted mixed quarterly results on December 19 [6] Group 2: Altria Group Inc (MO) - Altria Group has a dividend yield of 7.19% [6] - B of A Securities analyst Lisa Lewandowski maintained a Buy rating and raised the price target from $64 to $72, with an accuracy rate of 58% [6] - Barclays analyst Gaurav Jain maintained an Underweight rating and increased the price target from $49 to $57, with an accuracy rate of 57% [6] - Recent news includes the retirement of CEO Billy Gifford and the appointment of Sal Mancuso as his successor on December 11 [6] Group 3: Flowers Foods Inc (FLO) - Flowers Foods has a dividend yield of 9.11% [6] - DA Davidson analyst Brian Holland maintained a Neutral rating with a price target of $15, with an accuracy rate of 53% [6] - Jefferies analyst Rob Dickerson maintained a Hold rating and reduced the price target from $23 to $20, with an accuracy rate of 64% [6] - Recent news shows that Flowers Foods posted in-line quarterly earnings on November 6 [6]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Conagra Brands Inc (NYSE:CAG) - Conagra Brands has a dividend yield of 8.20% [6] - Deutsche Bank analyst Steve Powers maintained a Hold rating and reduced the price target from $19 to $18, with an accuracy rate of 66% [6] - Morgan Stanley analyst Megan Alexander maintained an Equal-Weight rating and lowered the price target from $21 to $19, with an accuracy rate of 67% [6] - Recent news indicates that Conagra Brands posted mixed quarterly results on December 19 [6] Group 2: Altria Group Inc (NYSE:MO) - Altria Group has a dividend yield of 7.19% [6] - B of A Securities analyst Lisa Lewandowski maintained a Buy rating and raised the price target from $64 to $72, with an accuracy rate of 58% [6] - Barclays analyst Gaurav Jain maintained an Underweight rating and increased the price target from $49 to $57, with an accuracy rate of 57% [6] - Recent news includes the retirement of CEO Billy Gifford and the appointment of Sal Mancuso as his successor on December 11 [6] Group 3: Flowers Foods Inc (NYSE:FLO) - Flowers Foods has a dividend yield of 9.11% [6] - DA Davidson analyst Brian Holland maintained a Neutral rating with a price target of $15, with an accuracy rate of 53% [6] - Jefferies analyst Rob Dickerson maintained a Hold rating and reduced the price target from $23 to $20, with an accuracy rate of 64% [6] - Recent news shows that Flowers Foods posted in-line quarterly earnings on November 6 [6]

Core Insights - Conagra Brands Inc reported mixed results for Q2, with earnings per share of 45 cents, exceeding the analyst consensus estimate of 44 cents, while sales of $2.979 billion fell short of the $2.986 billion estimate [1][2] Financial Performance - The company reaffirmed its fiscal 2026 adjusted EPS guidance of $1.70 to $1.85, compared to the analyst estimate of $1.75 [2] - Conagra projected organic net sales for fiscal 2026 to change between a 1% decline and flat growth compared to fiscal 2025 [2] - The adjusted operating margin outlook was maintained at approximately 11.0% to 11.5% [2] Market Reaction - Conagra shares fell 0.8% to trade at $17.21 following the earnings announcement [3] - Analysts adjusted their price targets for Conagra post-earnings, with B of A Securities lowering the target from $18 to $17, RBC Capital from $22 to $20, Evercore ISI Group from $23 to $22, and TD Cowen from $19 to $18 [4]

Core Insights - Conagra Brands Inc reported mixed results for Q2, with earnings per share of 45 cents, exceeding the analyst consensus of 44 cents, while sales of $2.979 billion fell short of the $2.986 billion estimate [1][2] Financial Performance - The company reaffirmed its fiscal 2026 adjusted EPS guidance of $1.70 to $1.85, compared to the analyst estimate of $1.75 [2] - Conagra projected organic net sales for fiscal 2026 to change between a 1% decline and flat growth compared to fiscal 2025 [2] - The adjusted operating margin outlook was maintained at approximately 11.0% to 11.5% [2] Market Reaction - Following the earnings announcement, Conagra shares fell by 0.8%, trading at $17.21 [3] - Analysts adjusted their price targets for Conagra, with B of A Securities lowering it from $18 to $17, RBC Capital from $22 to $20, Evercore ISI Group from $23 to $22, and TD Cowen from $19 to $18 [4]

Core Insights - The company is preparing to release its top investment picks for 2026, emphasizing the timeliness of joining to access these opportunities [1] - Significant resources are allocated to research, with an annual investment exceeding $100,000 to identify high-yield strategies [1] - The company has received approximately 200 five-star reviews from satisfied members, indicating a positive reception and effectiveness of its investment approach [2]

Financial Performance - Net sales for the thirteen weeks ended November 23, 2025, were $2,979.1 million, a decrease of 6.8% compared to $3,195.1 million for the same period in 2024[8] - Gross profit for the twenty-six weeks ended November 23, 2025, was $1,336.6 million, down 15.7% from $1,586.0 million in 2024[8] - The company reported a net loss of $663.6 million for the thirteen weeks ended November 23, 2025, compared to a net income of $284.5 million in the same period last year[8] - Net income for the twenty-six weeks ended November 23, 2025, was a loss of $499.1 million, compared to a net income of $751.4 million for the same period in 2024[16] - The company reported a comprehensive loss of $670.8 million for the thirteen weeks ended November 23, 2025, compared to a comprehensive income of $263.3 million in the same period last year[11] - Operating profit for the first half of fiscal 2026 was a loss of $250.2 million, down from a profit of $804.2 million in the same period of fiscal 2025[8] Asset and Liability Management - Total current assets increased to $3,226.3 million as of November 23, 2025, compared to $3,071.0 million as of May 25, 2025[13] - Total liabilities decreased to $11,449.5 million as of November 23, 2025, from $12,001.2 million as of May 25, 2025[13] - Current liabilities decreased to $3,619.7 million from $4,317.0 million, indicating improved liquidity[13] - Cash and cash equivalents decreased to $46.6 million as of November 23, 2025, from $68.0 million as of May 25, 2025[13] - The company’s retained earnings decreased to $5,924.3 million as of November 23, 2025, from $6,759.1 million as of May 25, 2025[13] Impairment Charges - Goodwill impairment charges amounted to $771.3 million for the thirteen weeks ended November 23, 2025, with no charges reported in the same period of 2024[8] - The company recognized asset impairment charges of $975.0 million, significantly higher than $87.6 million in the previous year[16] - The carrying amount of goodwill decreased to $9.73 billion as of November 23, 2025, primarily due to a $771.3 million impairment in the Refrigerated & Frozen reporting unit[54][58] - The company recognized additional impairment charges of $180.0 million related to the Birds Eye® brand name and $17.0 million for the Earth Balance® and Smart Balance® brands[60] Cash Flow and Financing Activities - Cash flows from operating activities decreased to $331.2 million from $754.2 million year-over-year[16] - Cash flows from investing activities improved to $467.2 million, compared to a net outflow of $366.0 million in the prior year[16] - The company repaid $1.00 billion of 4.60% senior unsecured notes on November 1, 2025, funded by $500.0 million of new 5.00% senior unsecured notes due August 1, 2030, and $500.0 million of 5.75% senior unsecured notes due August 1, 2035[41] - The company prepaid $200.0 million and $300.0 million of unsecured term loans in fiscal 2026, utilizing proceeds from the sale of the Chef Boyardee® business[43][44] Segment Performance - The Grocery & Snacks segment reported net sales of $1,209.1 million, down from $1,321.0 million in the prior year, a decrease of about 8.5%[112][113] - The Refrigerated & Frozen segment's net sales were $1,251.2 million, compared to $1,338.5 million in the previous year, reflecting a decline of approximately 6.5%[112][113] - The Foodservice segment generated net sales of $288.4 million, slightly down from $292.2 million in the prior year, a decrease of approximately 1.3%[112][113] Shareholder Returns and Equity - The balance of stockholders' equity as of November 23, 2025, was $8,090.8 million, down from $8,932.7 million as of May 25, 2025[95] - The company declared dividends of $0.35 per share, totaling $167.8 million for the period ending August 25, 2024, and $167.0 million for the period ending November 24, 2024[96] - The company repurchased 0.8 million shares of common stock for $15.0 million during the first quarter of fiscal 2026, with a remaining share repurchase authorization of $837.6 million as of November 23, 2025[169] Restructuring and Strategic Initiatives - The company incurred cumulative charges of $324.1 million related to the Conagra Restructuring Plan, with ongoing costs expected through the end of fiscal 2026[38] - In the first half of fiscal 2026, total pre-tax expenses for the Conagra Restructuring Plan amounted to $2.9 million, with $10.8 million resulting in cash outflows and a $7.9 million non-cash net benefit[39] - The company is analyzing the impact of recently issued accounting standards on its financial disclosures, with early adoption options available for some[18][19][20][21][22] Tax and Legal Matters - The effective tax rate for Q2 fiscal 2026 was (1.3)%, significantly lower than 17.8% in Q2 fiscal 2025, impacted by a goodwill impairment charge[76] - The company recognized an income tax expense of $132.9 million in the first half of fiscal 2026, compared to an income tax benefit of $77.4 million in the first half of fiscal 2025[76] - The total accrual for all litigation matters was $92.3 million as of November 23, 2025, and $204.5 million as of May 25, 2025[85] Acquisitions and Divestitures - The company completed the sale of its Chef Boyardee business for net proceeds of $607.0 million, recognizing a gain of $42.7 million on the sale[29] - Conagra Brands acquired the manufacturing operations of a contract manufacturer for cooking spray products for a cash purchase price of $51.2 million, with approximately $46.3 million classified as goodwill[23] - The divestiture of a 51.8% stake in Agro Tech Foods Limited generated net proceeds of $76.8 million, with a recognized loss of $2.3 million[33]

Core Insights - Conagra Brands, Inc. reported an earnings per share (EPS) of $0.45, exceeding the estimated $0.43, but reflecting a decline from $0.70 in the same quarter last year [2][6] - The company's revenue for the quarter was approximately $2.98 billion, slightly below the estimated $2.97 billion, marking a 6.8% decline from $3.2 billion in the previous year [3][6] - Despite the revenue shortfall, the CEO expressed confidence in the company's strategic direction, emphasizing innovation and increased investments to drive future growth [4][6] Financial Metrics - Conagra has a price-to-earnings (P/E) ratio of approximately 9.69, indicating market valuation of its earnings [5] - The price-to-sales ratio is about 0.72, suggesting the stock is valued at less than its annual sales [5] - The debt-to-equity ratio stands at approximately 0.93, reflecting the company's leverage level relative to its equity [5]

Core Insights - Conagra Brands, Inc. (CAG) reported a decline in both earnings and sales for the second quarter of fiscal 2026, reflecting a challenging consumer environment and lower volumes, partially offset by productivity gains and strong performance in certain growth categories [1] Financial Performance - Adjusted earnings per share (EPS) for the quarter were 45 cents, exceeding the Zacks Consensus Estimate of 44 cents, but down 35.7% year over year due to lower adjusted operating profit [2] - Net sales decreased by 6.8% year over year to $2,979.1 million, missing the Zacks Consensus Estimate of $2,990 million, with a 3.9% headwind from M&A and a 3% decline in organic net sales [3][11] - Organic net sales fell 3% due to a 3% decline in volume, while price/mix remained flat, with management noting a 100-basis-point headwind from retailer purchasing patterns [4][11] - Adjusted gross profit declined 17.1% to $698 million, with adjusted gross margin contracting 292 basis points to 23.4% [5] Segment Performance - Grocery & Snacks segment net sales fell 8.5% year over year to $1,209 million, impacted by a 7.0% adverse M&A effect and a 1.5% decline in organic net sales [6] - Refrigerated & Frozen segment net sales decreased by 6.5% to $1,251 million, with a 5.1% drop in organic net sales [7] - International segment sales declined 5.4% to $230 million, reflecting a 4.1% M&A impact and a 2.9% fall in organic net sales [8] - Foodservice sales decreased 1.3% to $288 million, with organic performance reflecting a 4.2% benefit from price/mix, offset by a 4.0% volume decline [9] Financial Health - In the first half of fiscal 2026, Conagra generated net cash from operating activities of $331 million, with capital expenditures totaling $219 million, resulting in free cash flow of $113 million [12] - The company ended the second quarter with net debt of $7.6 billion and paid a dividend of 35 cents per share [12] Future Outlook - Conagra reiterated its fiscal 2026 outlook, projecting organic net sales to range from a decline of 1% to growth of 1% compared to fiscal 2025, with adjusted EPS anticipated between $1.70 and $1.85 [13] - The outlook factors in continued elevated inflation in the cost of goods sold, with core inflation expected to be slightly above 4% [14] - Total cost of goods sold inflation is projected at approximately 7%, with measures expected to raise costs by roughly 3% annually before mitigation efforts [15]

Market Overview - Major indexes closed higher on Thursday, influenced by a -40 basis-point decline in the Inflation Rate from the CPI report, marking the first decline since early this year [1] - Pre-market futures are fluctuating, with the Dow down 7 points, S&P 500 up 6 points, Nasdaq up 56 points, and Russell 2000 up 6 points [2] - The day is characterized as Quadruple Witching, which may lead to increased volatility due to the expiration of futures and options [2] Santa Claus Rally Potential - Despite recent gains, indexes are down over the past week, with concerns about AI infrastructure spending affecting tech stocks [3] - The "Santa Claus Rally" typically occurs in the last trading days of the year, often correcting earlier trading discrepancies and looking forward to new year opportunities [4] - Current market conditions suggest a favorable environment for a potential Santa Claus Rally [4] Earnings Reports - Nike (NKE) and FedEx (FDX) reported better-than-expected earnings but saw stock declines due to external challenges, including weakness in China and tariff impacts [5] - Winnebago (WGO) surprised with a +216% positive earnings surprise, reporting $0.38 per share and $702.7 million in revenues, leading to a 16% increase in shares [6] - Lamb Weston (LW) beat earnings estimates but faced a 15% drop in shares due to flat sales in North America and uncertainties from international acquisitions [8] - Conagra (CAG) reported earnings slightly above estimates but is down marginally after a significant year-to-date decline of 35% [8]

Financial Data and Key Metrics Changes - The company expects organic net sales growth in the second half of the fiscal year, with positive momentum observed in December [11][12] - Operating profit and margin performance in the first half of the year has been good, with favorable tariff timing and chicken inflation, although there are offsets with beef and pork [21][22] - The company maintains its inflation guidance of 7% for the year, with core inflation above 4% and gross tariff inflation around 3% [42][44] Business Line Data and Key Metrics Changes - The frozen and snacks segments are identified as growth domains, with snacks already showing robust growth and frozen aiming to reclaim market share lost due to previous supply constraints [31][32] - The company is focusing on high-quality promotional activities in the frozen segment, which were limited last year due to supply issues [32][33] Market Data and Key Metrics Changes - The company has seen a return to growth in the frozen and snacks categories, with strong marketing plans in place for the second half of the year [31][33] - The market share in frozen single-serve meals is approaching 53%, indicating a recovery in that segment [32] Company Strategy and Development Direction - The company is implementing Project Catalyst, which focuses on re-engineering core business processes using technology, particularly AI, to improve efficiency and effectiveness [25][26] - The company is committed to margin expansion, particularly in the frozen segment, through productivity improvements and supply chain resiliency investments [52][53] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the volatility in the operating environment and has guided a wider range for EPS to navigate uncertainties [23][83] - The company is optimistic about the second half of the fiscal year, expecting strong underlying trends and promotional activities to drive growth [85] Other Important Information - The company has completed the baked chicken facility, which is expected to enhance production efficiency and margins [100][101] - An impairment charge was taken due to a sustained decline in stock price, which required a reassessment of goodwill and brand values [102][104] Q&A Session Summary Question: Expectations for organic sales growth in fiscal Q3 - Management expects positive organic net sales growth in the second half, with momentum building in December [11][12] Question: Clarification on annual outlook and EPS impact from Ardent - Management believes they can offset the shortfall from Ardent and maintain EPS guidance despite a wider range due to market volatility [22][23] Question: Insights on Project Catalyst and cost savings - Project Catalyst aims to automate core business processes, with expected costs and returns being evaluated as the project progresses [25][26] Question: Consumption trends and growth outlook for fiscal 2027 - Management sees potential for growth in frozen and snacks, with strong marketing plans and market share recovery [31][33] Question: Impact of competitors' price cuts on the company - The company has not rolled back prices to move volume but has maintained pricing to support promotional activities [40][41] Question: Inflation guidance and its implications - The company maintains its inflation guidance of 7% for the year, with expectations for inflation to normalize in the future [42][44] Question: Repatriation of production and margin improvement - The transition to in-house production is underway, with expectations incorporated into the fiscal guidance [100][101] Question: Details on impairment charge - The impairment charge was due to a decline in stock price, necessitating a reassessment of goodwill and brand values [102][104]