CHICAGO, July 16, 2024 /PRNewswire/ -- Conagra Brands, Inc. (NYSE: CAG), one of North America's leading branded food companies, today announced it has been recognized as one of the "Best Places to Work for Disability Inclusion" by The Disability Equality Index®, the world's most comprehensive benchmarking tool for Fortune 1000 scope companies to measure disability workplace inclusion inside their organizations and to assess performance across industry sectors.Established in 2015, the Disability Equality Ind ...

Loading...Loading...Conagra Brands, Inc. CAG reported worse-than-expected fourth-quarter sales results and issued FY25 adjusted EPS guidance below estimates.The company reported adjusted earnings per share of 61 cents, beating the analyst consensus estimate of 57 cents. Quarterly revenues of $2.905 billion missed the street view of $2.930 billion, according to data from Benzinga Pro."Looking ahead, we expect a gradual waning of the challenging industry trends seen throughout fiscal year 2024, as consumers a ...

Conagra Brands NYSE: CAG is a North American food industry leader and is considered part of the consumer staples sector. Conagra Brands’ earnings report for the fourth quarter of 2024 shows evidence of a company that continues to navigate a challenging and shifting consumer landscape. Get Conagra Brands alerts:Conagra Brands Q4 and Fiscal Year 2024 Financial PerformanceConagra Brands TodayCAGConagra Brands$28.37 -0.44 (-1.53%) 52-Week Range$25.16▼$33.60Dividend Yield4.93%P/E Ratio14.26Price Target$32.38Add ...

Core Viewpoint - Conagra Brands presents a potential buying opportunity due to recent stock price decline and the defensive nature of its business amid a slowing economy and potential recession [1][9]. Stock Performance - Conagra shares recently traded around $31.50 but have pulled back to approximately $28, below the 50-day moving average of $29.85 and near the 200-day moving average of $28.39 [2]. Earnings Estimates and Financials - Consensus earnings estimates indicate low to mid single-digit growth rates for 2025 and 2026, suggesting a price-to-earnings ratio of about 10 times, significantly lower than the S&P 500 average of over 20 times [3]. - For FY 2024, EPS is projected at $2.63, reflecting a 5.12% decline year-over-year, with sales expected to be $12.08 billion, down 1.63% [4]. Recent Financial Results - In Q4 2024, Conagra reported a net loss of $567.3 million or $1.18 per share, but adjusted earnings were $0.61 per share, beating consensus estimates by $0.04 [5]. - Sales declines were noted in grocery and snacks (2.1%), refrigerated and frozen revenues (3.8%), and foodservice (3.9%), while international sales increased by 6.4% [6]. Debt Management - Conagra has approximately $8.68 billion in debt and $78.5 million in cash, but strong cash flows from the food industry mitigate some balance sheet concerns [4]. - The company repaid a $1 billion senior note in Q4 2024, reducing net debt by $777 million, or 8.5%, from fiscal 2023 [6]. Growth Catalysts - Focus on reducing expenses and debt could lower interest expenses and lead to stock multiple expansion [7]. - Potential for international expansion exists, as the international segment showed revenue growth despite being smaller compared to other segments [7]. Dividend Information - Conagra pays a quarterly dividend of $0.35 per share, yielding about 5%, with a payout ratio around 50%, indicating room for future increases [8]. Economic Outlook - Signs of a potential recession are increasing, with slowing job growth and rising consumer debt impacting sentiment [9]. - The Federal Reserve's expectation of declining interest rates could enhance the attractiveness of high-yield stocks like Conagra [10]. Competitive Landscape - The food industry is highly competitive, with peers investing more in marketing, and a trend towards fresh foods could impact frozen food sales [11]. - Conagra's slow growth may necessitate acquisitions to boost revenues, which carries inherent risks [11]. Summary - Conagra is viewed as a stable investment with a competitive yield, potential for capital gains, and price-to-earnings multiple expansion, particularly as interest rates decline and the defensive nature of the food industry becomes more appealing in a recessionary environment [12].

Customer Concentration - Conagra Brands' largest customer, Walmart, accounted for approximately 28% of consolidated net sales for fiscal 2024 and 2023, and 27% for fiscal 2022[27]. - Walmart, Inc. accounted for approximately 28% of the company's consolidated net sales during fiscal 2024[103]. Employee and Workplace Culture - The company had approximately 18,500 employees as of May 26, 2024, with about 46% participating in collective bargaining agreements[28]. - Conagra's employee resource groups (ERGs) aim to foster an inclusive culture and support personal and professional development[43]. - The company has implemented new technology to enhance recruiting efforts and simplify the application process for prospective candidates[38]. - Increased competition for talent has led to higher employee turnover, which could adversely affect business activities[135]. Safety and Compliance - Conagra's Occupational Safety and Health Administration Incident Rate was 1.40 incidents per 100 full-time workers in fiscal 2024, down from 1.58 in fiscal 2023 and 1.67 in fiscal 2022[30]. - The company emphasizes a strong culture of safety, conducting audits every 2-5 years to ensure compliance with safety management systems[29]. - The company is subject to extensive regulation, and non-compliance could lead to significant financial penalties and reputational damage[95]. - The company is subject to various governmental laws and regulations, and failure to comply could result in significant fines and penalties[117]. - Changes in regulations may require the company to alter product ingredients or processing methods, potentially leading to increased costs and product recalls[118]. Financial Performance and Debt - Total debt as of May 26, 2024, is approximately $8.44 billion, including $7.02 billion in outstanding senior notes[68]. - The company relies on cash flow from subsidiaries to meet its cash flow needs and service its debt obligations[72]. - Any failure to meet debt obligations could result in an event of default, impacting the company's ability to pay principal and interest on its debt[70]. - The company faces challenges in satisfying debt service obligations, which may limit cash flow for operations and capital expenditures[73]. - The company has a history of utilizing the commercial paper market for funding requirements, which may be affected by disruptions in credit markets[71]. Economic and Market Conditions - Economic conditions such as inflation and rising interest rates have historically harmed the company's business and may continue to do so[64]. - The company anticipates that future financial results will be subject to fluctuations due to various uncontrollable factors[69]. - Rising interest rates could adversely impact the company's results of operations and increase borrowing costs[67]. - The company has experienced shifts in consumer purchasing behavior towards lower-priced offerings during economic downturns, affecting sales of higher-margin products[67]. - The company anticipates that economic pressures, including high inflation, may continue to negatively impact volumes throughout fiscal 2025[189]. Supply Chain and Operational Challenges - Supply chain disruptions and labor challenges have negatively impacted operations and profitability, with ongoing risks from economic conditions[90]. - Disruptions in the supply chain, including those from geopolitical turmoil, could impair the company's ability to manufacture or sell products[110]. - The company incurred charges totaling $4.4 million ($3.3 million after-tax) due to supply chain disruptions caused by a third-party vendor's cybersecurity incident in Q4 of fiscal 2023[116]. - The company relies on third-party service providers for various functions, and any failure in their performance could lead to increased costs and operational disruptions[112]. Competition and Market Dynamics - Increased competition in the food industry is leading to reduced sales and profits, with significant pressure on pricing and market share[76]. - The company faces increased pressure from larger customers who demand lower pricing and tailored products, which could negatively impact profitability[105]. - The sophistication and buying power of customers have increased, leading to greater negotiating strength and potential declines in profitability[107]. Innovation and Product Development - The company focuses on delivering sustainable, profitable growth with strong and improving returns on invested capital[12]. - Conagra's portfolio includes well-known brands such as Birds Eye, Duncan Hines, and Healthy Choice, continuously evolving to meet consumer preferences[11]. - The company is focused on innovation and expansion into adjacent categories, including through acquisitions[12]. - Consumer preferences are evolving, and the company must adapt its product offerings to meet changing demands to maintain sales and profitability[101]. Financial Results - Fiscal 2024 net sales decreased compared to fiscal 2023, primarily due to lower consumption trends and strategic trade investment[186]. - Diluted earnings per share for fiscal 2024 were $0.72, down from $1.42 in fiscal 2023, impacted by lower net income and significant items affecting comparability[187]. - Charges totaling $956.7 million related to impairments of goodwill and certain brand intangible assets were recognized in fiscal 2024[190]. - The company experienced moderate input cost inflation and increased supply chain stability during fiscal 2024, which is expected to continue into fiscal 2025[188]. - The Grocery & Snacks and Refrigerated & Frozen segments saw organic sales declines, while International and Foodservice segments experienced increases[186]. Cybersecurity - The company maintains a cybersecurity program that includes ongoing monitoring and assessment of threats[152]. - Cybersecurity risks are heightened due to geopolitical turmoil, including the Russia-Ukraine conflict[128]. - The company invests in new technologies and third-party cybersecurity risk management to mitigate cyber risks[128]. - The company has experienced threats to its data and systems but is not aware of any breaches that had a material impact on operations[157]. - The company’s cybersecurity program is integrated into its enterprise risk management strategy, with clear responsibilities for incident management[153].

Strain on the consumer is eating into its growth.Packaged-foods company Conagra Brands (CAG -1.72%) had a mixed quarter and provided disappointing guidance for its new fiscal year. Investors reacted by sending shares of Conagra down as much as 5%, before they rallied to be down only 2% as of 1:30 p.m. ET on Thursday.Price inflation is eating into salesConagra -- whose brands include Birds Eye, Duncan Hines, Healthy Choice, Slim Jim, and Reddi-wip -- reported adjusted earnings of $0.61 per share in its fisca ...

Conagra Brands, Inc. (CAG) delivered fourth-quarter fiscal 2024 results, wherein the bottom and top lines declined year over year and the latter missed the Zacks Consensus Estimate. The company continued to witness challenging industry trends, including a slowdown in consumption. Shares of the company lost more than 2% in the pre-market trading session on Jul 11.However, Conagra’s strategic investments in brands have proven effective, leading to volume improvements in its Domestic Retail business, especiall ...

Key TakeawaysConagra Brands gave a disappointing fiscal 2025 outlook, citing a tough consumer environment.The processed food company said it expects the consumer to remain challenged in the fiscal year ahead.Conagra posted better-than-expected profit in its fiscal 2024 fourth quarter, although revenue declined. Conagra Brands (CAG) shares fell Thursday as the processed food giant gave weaker-than-expected guidance amid what it called a “difficult consumer environment.” The provider of brands such as Birds E ...

Conagra Brands (CAG) reported $2.91 billion in revenue for the quarter ended May 2024, representing a year-over-year decline of 2.3%. EPS of $0.61 for the same period compares to $0.62 a year ago.The reported revenue represents a surprise of -1.13% over the Zacks Consensus Estimate of $2.94 billion. With the consensus EPS estimate being $0.56, the EPS surprise was +8.93%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ex ...

Conagra Brands, Inc. (NYSE:CAG) Q4 2024 Earnings Call Transcript July 11, 2024 8:30 AM ET Company Participants Melissa Napier - SVP of IR Sean Connolly - CEO David Marberger - CFO Operator Good morning. This is Melissa Napier from Conagra Brands. Thank you for listening to our prepared remarks on Conagra Brand’s Fourth Quarter and Fiscal Year 2024 Earnings. At 9:30 AM eastern this morning, we will hold a separate live question-and-answer session on today's results, which you can access via webcast on our In ...