Why Conagra Stock Tumbled by Nearly 6% on Tuesday

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]