New Technology Leverages Renewable Energy Solutions and Advances Conagra's Climate Change Goals CHICAGO, April 1, 2025 /PRNewswire/ -- Conagra Brands, Inc. (NYSE: CAG) and Bloom Energy (NYSE: BE), a global leader in power solutions, today announced they will collaborate to utilize Bloom's fuel cell technology at Conagra's Troy and Archbold, Ohio production facilities. The 15-year PPA (power purchase agreement) will deploy approximately six megawatts and provide combustion-free electricity generation, supply ...

Wall Street analysts forecast that Conagra Brands (CAG) will report quarterly earnings of $0.52 per share in its upcoming release, pointing to a year-over-year decline of 24.6%. It is anticipated that revenues will amount to $2.89 billion, exhibiting a decline of 4.7% compared to the year-ago quarter. The consensus EPS estimate for the quarter has undergone a downward revision of 2.1% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassesse ...

Core Viewpoint - The article emphasizes caution for dividend investors, suggesting potential risks in the current market environment [1]. Group 1 - The article titled "Buckle Up Buttercup: My Warning To Dividend Investors" was published on December 20, highlighting concerns for dividend investors ahead of the holiday season [1]. - The author expresses a beneficial long position in REXR shares, indicating a personal investment interest [1].

Group 1 - Mega-cap tech stocks are experiencing a correction as 2025 progresses, while more value-oriented sectors are performing relatively well [1] - Conagra Brands is highlighted as a value-oriented holding within the market [1] Group 2 - The focus is on high-quality and reliable dividend growth investments that aim to build growing income for investors [1] - The service mentioned provides ideas for writing options to further enhance investors' income [1]

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 [3] - The company generated net sales of more than $12 billion in fiscal 2024 [3] - Conagra's brand portfolio includes well-known names such as Birds Eye®, Duncan Hines®, Healthy Choice®, and Slim Jim® [3] Upcoming Financial Results - Conagra Brands will release its fiscal 2025 third quarter results on April 3, 2025 [1] - A press release and supplemental materials will be available that morning, followed by a 30-minute live Q&A session with the investment community at 9:30 a.m. ET [1] Access to Information - The pre-recorded remarks, transcript, press release, and presentation slides will be accessible at conagrabrands.com/investor-relations under Events & Presentations [2] - The live audio Q&A can be accessed via phone for U.S. participants at 1-877-883-0383 and for international participants at 1-412-902-6506 using passcode: 8551232 [2]

Core Insights - Conagra Brands experienced a significant stock decline of nearly 6% following a lowered guidance for fiscal 2025, despite the S&P 500 showing a positive performance [1] - The company now anticipates a 2% decline in organic sales, a notable downgrade from the previous estimate of a 0.7% to 0.8% decline [2] - Non-GAAP adjusted earnings per share forecast has been reduced to approximately $2.35, down from an earlier expectation of $2.45 to $2.50, compared to $2.67 in fiscal 2024 [3] Company Performance - The lowered guidance is attributed to "customer service interruptions" caused by supply constraints in key frozen meal categories, specifically chicken and frozen vegetables, along with negative impacts from foreign exchange rates [4] - Despite these challenges, the CEO expressed satisfaction with the strong demand experienced throughout the year, indicating that investments in infrastructure and strategic partnerships are aimed at long-term success [5] - The company faces significant headwinds, and while some challenges may not be entirely within its control, the deeper-than-expected revenue slump and declining profitability are concerning for investors [6]

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]

Core Viewpoint - Conagra Brands has updated its fiscal 2025 financial outlook due to temporary service constraints and foreign exchange impacts, while maintaining its long-term targets unchanged [3][4]. Fiscal 2025 Outlook Update - Customer service interruptions occurred in Q3 due to supply constraints on frozen meals containing chicken and frozen vegetables [3]. - Updated fiscal 2025 guidance includes: - Organic Net Sales Growth: ~(-2.0)% (previously near the midpoint of (1.5)% to flat) - Adjusted Operating Margin: ~14.4% (previously ~14.8%) - Adjusted EPS: ~$2.35 (previously $2.45 to $2.50) - Net Leverage Ratio: ~3.55x (previously ~3.4x) [3]. CEO Perspective - The CEO emphasized commitment to brand investment and innovation, noting strong demand despite recent service challenges [4]. Frozen Meals Containing Chicken - Manufacturing challenges at the primary facility for chicken used in frozen meals led to production halts and operational adjustments to restore quality [5]. - The facility is set for modernization upgrades, targeted for completion by the end of Q1 fiscal 2026, while maintaining reduced operations in the short term [6]. Frozen Vegetables - Strong demand in the frozen vegetable segment led to inventory depletion and out-of-stocks, prompting strict product allocation [7]. - The company is investing in increased surge capacity to meet sustained growth in demand [8]. CAGNY Conference Presentation - A presentation detailing Conagra's market position and financial guidance will be held on February 18, 2025, at 9:00 a.m. ET [2][9]. Company Overview - Conagra Brands is a leading branded food company in North America, with a portfolio that includes well-known brands and a focus on innovation [10]. - The company generated over $12 billion in net sales for fiscal 2024 [10].

Core Viewpoint - The article compares Conagra and Kraft Heinz, highlighting their high dividend yields and performance challenges, ultimately suggesting that Conagra may be the better investment choice for high-yield investors. Company Overview - Conagra and Kraft Heinz are both focused on packaged foods, with Conagra owning brands like Slim Jim and Birds Eye, while Kraft Heinz includes Oscar Mayer and Jell-O among its offerings [2][3]. - Kraft Heinz has a market capitalization of approximately $36 billion, making it three times larger than Conagra, which has a market cap of around $12 billion [3][4]. Financial Performance - Both companies are experiencing financial difficulties, with Kraft Heinz's issues being largely self-inflicted due to a focus on cost-cutting post-merger, while Conagra's challenges are more organic [5][6]. - Kraft Heinz's dividend has remained stagnant at $0.40 per share since its cut in 2019, indicating a need for a turnaround [10]. - Conagra's adjusted earnings fell by 1.4% in the fiscal second quarter of 2025, but organic sales increased by 0.3%, suggesting some positive momentum [11][12]. Dividend Analysis - The high dividend yields of both companies, 5.1% for Conagra and 5.4% for Kraft Heinz, are attributed to their lagging financial performance compared to the broader food industry [1][8]. - Conagra has increased its dividend for five consecutive years, while Kraft Heinz's stagnant dividend reflects its ongoing struggles [12][13]. Investment Outlook - Conagra appears to be performing better currently, making it a more attractive option for investors willing to accept higher risk for potential rewards [13][14]. - The article suggests that while both companies are likely to survive, Conagra is slightly ahead in its turnaround efforts, positioning it as a preferable income stock [14].

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - Consumer staple stocks are currently considered cheap, particularly after the recent tech market downturn [2] - The SPDR Consumer Staples ETF (XLP) is highlighted as a key investment vehicle in the consumer staples sector [2] Group 2 - The article emphasizes the importance of defensive stocks for medium- to long-term investment strategies [2] - Analysts express personal investment positions in specific stocks, indicating a beneficial long position in CAG [3] - The article serves as an informational resource rather than financial advice, encouraging readers to conduct their own due diligence [4]