Core Points - Conagra Brands, Inc. will release its fiscal 2026 second quarter results on December 19, 2025, followed by a live Q&A session with the investment community [1] - The company generated nearly $12 billion in net sales for fiscal 2025, highlighting its position as one of North America's leading branded food companies [3] Company Information - Conagra Brands has a 100-year history in quality food production and focuses on innovation and collaboration to meet changing consumer preferences [3] - The company's brand portfolio includes well-known names such as Birds Eye®, Duncan Hines®, Healthy Choice®, and Slim Jim® [3] Event Participation - Conagra Brands will participate in the J.P. Morgan U.S. Opportunities Forum on November 12, 2025, with Sean Connolly, the president and chief executive officer, representing the company [6]

Group 1: CarMax, Inc. (NYSE: KMX) - Jim Cramer expressed a negative outlook on CarMax, stating that the business is performing poorly [1] - Barclays analyst John Babcock initiated coverage of CarMax with an Underweight rating and a price target of $28 [1] Group 2: ServiceNow, Inc. (NYSE: NOW) - ServiceNow reported better-than-expected third-quarter financial results, with earnings of $4.82 per share, surpassing the analyst estimate of $4.27 [2] - The company's quarterly revenue was $3.4 billion, exceeding the analyst consensus estimate of $3.35 billion [2] - ServiceNow announced a five-for-one stock split [2] - Jim Cramer recommended holding ServiceNow for long-term investments, citing strong fundamentals [1] Group 3: Conagra Brands, Inc. (NYSE: CAG) - Jim Cramer indicated he does not invest in companies with flat revenues over multiple years [2] - Conagra reported quarterly net sales of $2.63 billion, a decrease of 5.8% from the previous year [2] - The company's adjusted earnings per share were 39 cents, down 26.4% year-over-year [2]

Core Insights - Conagra Brands, Inc. (CAG) is recognized for its attractive dividend yield, yet the stock has experienced a significant decline, raising questions among investors about the underlying reasons for this drop [1] Company Analysis - The stock chart of Conagra Brands presents a concerning trend, indicating a classic scenario of stock price decline [1] - The company has been under scrutiny due to its performance, which may suggest potential mispricing in the market that could be explored for investment opportunities [1]

Core Insights - Conagra Brands announced the winners of its annual Sustainable Development Awards, recognizing employee contributions to sustainability in five key areas: Climate Change, Water Reduction, Waste Reduction, Packaging, and Responsible Practices [1][3] Group 1: Award Details - The Sustainable Development Awards program invited cross-functional employee teams to submit projects completed during Conagra's fiscal year 2025, evaluated by a panel of peers and selected by sustainability leaders [2] - Each winning project team will receive a $5,000 grant from the Conagra Brands Foundation to invest in their local community [4] Group 2: Key Projects and Achievements - **Climate Change**: The Inbound Logistics Team improved transport efficiency, saving approximately $250,000, cutting 241 truck trips, and reducing 123 metric tons of CO2 emissions [4] - **Water Reduction**: The Irapuato team optimized palm oil line cleaning, reducing palm oil use by 82,540 lbs and water use by 53,280 gallons annually, saving approximately $78,000 [4] - **Waste Reduction**: The Waterloo plant reduced landfill waste, achieving $1.29 million in savings with a $70,000 investment, diverting 948 tons from destruction [4] - **Packaging**: Teams reduced packaging thickness by 25%, saving $63,000 annually and cutting paper use by 126,000 lbs without operational changes [4] - **Responsible Practices**: The Waterloo facility donated 1,200–1,800 lbs of repurposed sunflower seeds, reducing disposal fees and supporting local biodiversity [4] - **Award of Excellence**: The Maple Grove team created a closed-loop recycling system, diverting 50 tons of waste annually and saving $7,000 [4] Group 3: Company Overview - Conagra Brands, Inc. is one of North America's leading branded food companies, generating nearly $12 billion in net sales for fiscal 2025 [5]

Group 1 - Conagra Brands is a U.S. packaged foods company specializing in a variety of frozen, refrigerated, and shelf-stable products [2] - The company's major product categories include frozen entrees, frozen vegetables, meat snacks, and popcorn [2] - Sean Connolly has been the CEO of Conagra since 2015, while Dave Marberger has served as CFO since 2016 [2] Group 2 - The presentation features insights from Thomas Palmer of JPMorgan, who covers the food sector [1] - The discussion includes participation from Conagra's CEO Sean Connolly and CFO Dave Marberger [1]

Conagra Brands Conference Call Summary Company Overview - **Company**: Conagra Brands - **Industry**: Packaged Foods - **Key Products**: Frozen entrees, frozen vegetables, meat snacks, popcorn - **Leadership**: Sean Connolly (CEO since 2015), Dave Marberger (CFO since 2016) [1][1] Core Insights and Arguments Market Dynamics - The packaged food industry has faced significant challenges, including a 40%-45% cost of goods inflation over the past five years, leading to price increases and volume declines [2][3] - Recent scanner data indicates a 1.5% decline in volumes over the past four weeks, attributed to consumer behavior shifts in response to inflation [2][3] - The demand shift is categorized as both cyclical and structural, varying by product category [3][4] Consumer Behavior - Value-seeking behavior among consumers is seen as a transitory shift, driven by budget constraints rather than a fundamental change in preferences [4][5] - A notable trend is the increased focus on health and wellness, particularly among younger consumers, which may indicate a more permanent shift in some categories [5][6] Competitive Landscape - Larger brands are losing market share to smaller, perceived healthier brands, driven by consumer pursuit of value [7][8] - Conagra's response includes acquisitions, such as Fatty Smoked Meat Sticks, to compete effectively in the meat snacks category [9][10] Frozen Foods Strategy - Conagra is the largest frozen food manufacturer in North America, emphasizing the benefits of frozen foods as convenient and nutritious [13][14] - The company is investing in expanding its frozen chicken product lines due to high demand, particularly for fried chicken [16][17] Promotional Activity - The company is gradually ramping up promotional activities to restore consumer confidence following service interruptions [20][21] - Promotional effectiveness varies by category, with strong lifts observed in frozen foods as consumers shift away from scratch cooking [22][23] Inflation and Cost Management - Conagra anticipates 7% overall inflation for the year, with 4% core inflation and 3% related to tariffs [24][25] - Protein costs are a significant concern, with double-digit inflation across beef, chicken, turkey, and pork [24][25] - The company is managing costs through strategic procurement and expects to bring more production in-house to mitigate expenses [26][27] Tariffs and Pricing Strategy - Tariffs, particularly on tin plate and steel, are expected to remain, impacting canned goods pricing [28][29] - Conagra has prioritized volume growth over immediate price increases in frozen meals, which may pressure margins in the short term [30][31] Future Outlook - The company expects to see recovery in volume trends in the back half of the fiscal year, particularly in frozen and snacks [41][42] - Innovation remains a key focus, with strong performance anticipated in meat snacks and frozen categories [46][47] Capital Allocation - Conagra is balancing capital allocation between debt reduction, maintaining dividends, and investing in business growth [54][56] - The company has paid down $1 billion in debt over the past year and plans to continue this trend [56][57] Joint Ventures and Portfolio Management - Ardent Mills, a joint venture, has performed well and serves as a hedge during volatile times, but its future within Conagra remains open for discussion [67][71] Additional Important Points - The company is adapting to changing consumer preferences and shopping behaviors, emphasizing agility in innovation and product offerings [50][51] - Conagra is focused on maintaining a strong connection with consumers to drive volume growth, particularly in the frozen and snacks segments [60][61]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Company Ratings and Performance - **Conagra Brands Inc (NYSE:CAG)**: - Dividend Yield: 8.24% - Morgan Stanley analyst Megan Alexander maintained an Equal-Weight rating and raised the price target from $20 to $21 on Sept. 24, 2025, with an accuracy rate of 64% [7] - JP Morgan analyst Ken Goldman maintained a Neutral rating and reduced the price target from $26 to $25 on May 6, 2025, with an accuracy rate of 73% [7] - Recent News: On Oct. 1, Conagra Brands reported better-than-expected first-quarter adjusted EPS results [7] - **Kraft Heinz Co (NASDAQ:KHC)**: - Dividend Yield: 6.56% - Piper Sandler analyst Michael Lavery maintained a Neutral rating and cut the price target from $30 to $25 on Oct. 30, 2025, with an accuracy rate of 65% [7] - Morgan Stanley analyst Megan Alexander upgraded the stock from Underweight to Equal-Weight and raised the price target from $28 to $29 on Sept. 3, 2025, with an accuracy rate of 64% [7] - Recent News: On Oct. 29, Kraft Heinz reported mixed third-quarter financial results and lowered its FY25 adjusted EPS guidance below estimates [7] - **General Mills Inc (NYSE:GIS)**: - Dividend Yield: 5.28% - Morgan Stanley analyst Megan Alexander maintained an Underweight rating and cut the price target from $49 to $48 on Sept. 15, 2025, with an accuracy rate of 64% [7] - Goldman Sachs analyst James Yaro downgraded the stock from Buy to Neutral and slashed the price target from $68 to $58 on June 9, 2025, with an accuracy rate of 64% [7] - Recent News: On Oct. 14, General Mills reaffirmed long-term growth targets and fiscal 2026 financial outlook at Investor Day [7]

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 8.24% [7] - Morgan Stanley analyst Megan Alexander maintained an Equal-Weight rating and raised the price target from $20 to $21 on September 24, 2025, with an accuracy rate of 64% [7] - JP Morgan analyst Ken Goldman maintained a Neutral rating and reduced the price target from $26 to $25 on May 6, 2025, with an accuracy rate of 73% [7] - On October 1, Conagra Brands reported better-than-expected first-quarter adjusted EPS results [7] Group 2: Kraft Heinz Co (KHC) - Kraft Heinz has a dividend yield of 6.56% [7] - Piper Sandler analyst Michael Lavery maintained a Neutral rating and cut the price target from $30 to $25 on October 30, 2025, with an accuracy rate of 65% [7] - Morgan Stanley analyst Megan Alexander upgraded the stock from Underweight to Equal-Weight and raised the price target from $28 to $29 on September 3, 2025, with an accuracy rate of 64% [7] - On October 29, Kraft Heinz reported mixed third-quarter financial results and lowered its FY25 adjusted EPS guidance below estimates [7] Group 3: General Mills Inc (GIS) - General Mills has a dividend yield of 5.28% [7] - Morgan Stanley analyst Megan Alexander maintained an Underweight rating and cut the price target from $49 to $48 on September 15, 2025, with an accuracy rate of 64% [7] - Goldman Sachs analyst James Yaro downgraded the stock from Buy to Neutral and slashed the price target from $68 to $58 on June 9, 2025, with an accuracy rate of 64% [7] - On October 14, General Mills reaffirmed long-term growth targets and fiscal 2026 financial outlook at Investor Day [7]

Core Viewpoint - Conagra Brands, Inc. is facing significant stock underperformance despite a strong market position and positive quarterly results, with ongoing challenges from inflation and tariffs impacting future earnings expectations [1][2][4]. Company Overview - Conagra Brands has a market capitalization of $8.2 billion and operates in the North American packaged foods sector with a diverse brand portfolio including Birds Eye, Healthy Choice, Slim Jim, Reddi-wip, and Marie Callender's [1]. - The company operates across four segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice, focusing on innovative food products that cater to changing consumer preferences [1]. Stock Performance - Over the past 52 weeks, Conagra's stock has decreased by 41.1%, significantly underperforming the S&P 500 Index, which has increased by 18.5% during the same period [2]. - Year-to-date, the stock is down 38.3%, while the S&P 500 has risen by 15.1% [2]. Recent Financial Results - On October 1, Conagra reported Q1 2026 revenue of $2.63 billion and adjusted EPS of $0.39, exceeding expectations [4]. - The company has maintained its annual forecasts despite facing inflation and tariff pressures, indicating confidence in its pricing actions and cost-saving initiatives to offset rising costs [4]. Earnings Expectations - For the fiscal year ending in May 2026, analysts project a 23.5% year-over-year decrease in adjusted EPS to $1.76 [5]. - Conagra's earnings surprise history is mixed, with two beats and two misses in the last four quarters [5]. Analyst Ratings - Among 17 analysts covering Conagra, the consensus rating is a "Hold," with two "Strong Buy," 13 "Holds," one "Moderate Sell," and one "Strong Sell" [5]. - Morgan Stanley has set a price target of $21, with a mean price target of $20.53 indicating a nearly 20% premium to current levels, while the highest target of $27 suggests a potential upside of 57.8% [6].

Group 1: Altria Group - Altria Group is experiencing challenges due to declining cigarette sales, with a reported decrease of 4.5% in the last quarter [1] - The company is focusing on diversifying its product portfolio, particularly in the smokeless tobacco and vaping segments, to offset the decline in traditional tobacco products [1] - Altria's revenue for the last quarter was reported at $5.1 billion, reflecting a year-over-year decrease of 2% [1] Group 2: Conagra Brands Inc. - Conagra Brands Inc. has shown resilience in the food sector, with a revenue increase of 3% year-over-year, reaching $3.0 billion in the last quarter [1] - The company is investing in innovation and marketing to enhance its product offerings and capture a larger market share [1] - Conagra's operating income for the last quarter was reported at $400 million, indicating a strong performance despite market challenges [1]