General Mills is to shut three factories in the US as part of the company’s bid to cut costs and improve productivity. In a stock-exchange filing, General Mills said it will close three facilities in Missouri it acquired in the last three years by the end of its 2029 fiscal year. The group said it would also conduct “the consolidation of assets at certain of our other facilities”. In May, General Mills set out a “global transformation” programme to make the business more productive. As a consequence, t ...

Tyson Foods Inc. (NYSE: TSN ) is one of the world’s largest protein companies , producing approximately 20% of the beef, pork, and chicken in the United States. It is primarily US-focused (over 80% of sales) but exports to over 100 countries. ItI am a UK-based equity enthusiast and private investor with a professional background in finance. With over a decade of experience, I aim to bring a pragmatic, valuation driven approach to equity research. My focus is on identifying and analysing underappreciated fun ...

Group 1 - Tyson Foods' shares have underperformed over the past year, losing 9% of their value [1] - The company is facing a challenging margin environment, particularly in its beef segment, which has negatively impacted market sentiment [1]

Group 1 - Tyson Foods' shares have underperformed over the past year, losing 9% of their value [1] - The company is facing a challenging margin environment, particularly in its beef segment, which has negatively impacted market sentiment [1]

Stifel Nicolaus sets a price target of $63 for NYSE:LW, indicating a modest 1.6% potential upside.Lamb Weston reaffirms guidance with a positive outlook for cash flow and capital returns, supported by substantial dividend payments and aggressive share buybacks.The stock's current yield is 2.5%, with a manageable payout ratio of 60% and a cash flow payout ratio of only 17% in Q1, suggesting sustainability in its distribution growth.Lamb Weston Holdings, Inc. (NYSE:LW) is a leading supplier of frozen potato p ...

Group 1 - The company reported first-quarter fiscal 2026 net sales of $1.66 billion, slightly up from $1.65 billion a year earlier and exceeding the $1.62 billion estimate [1] - Adjusted net income was $103 million, with adjusted earnings per share of 74 cents, surpassing the 55-cent estimate [1] - Adjusted EBITDA increased to $302.2 million from $299.4 million [1] Group 2 - The company reaffirmed its fiscal 2026 guidance for constant-currency sales between $6.35 billion and $6.55 billion, compared to a $6.49 billion estimate, and adjusted EBITDA of $1.0 billion to $1.2 billion [2] - The company's shares gained 5.9% to $61.49 following the earnings announcement [2] Group 3 - Analysts made adjustments to their price targets for Lamb Weston after the earnings announcement [3] - Wells Fargo analyst maintained an Overweight rating and raised the price target from $66 to $68 [8] - B of A Securities analyst maintained a Neutral rating and raised the price target from $60 to $66 [8]

Core Insights - Conagra Brands reported revenue of $2.63 billion for the quarter ended August 2025, a decrease of 5.8% year-over-year, with EPS at $0.39 compared to $0.53 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $2.61 billion by 0.89%, while the EPS surpassed the consensus estimate of $0.33 by 18.18% [1] Financial Performance Metrics - Net Sales growth in Grocery & Snacks was -8.7%, better than the average estimate of -10.1% [4] - Net Sales growth in Refrigerated & Frozen was -0.9%, compared to the average estimate of -3.6% [4] - Price/Mix for Foodservice increased by 3.8%, exceeding the average estimate of 2% [4] - Organic Volume for Foodservice decreased by -3.6%, slightly worse than the average estimate of -3.3% [4] - Price/Mix for International was 1.7%, below the average estimate of 3.1% [4] - Organic Volume for International declined by -5.2%, worse than the average estimate of -2.9% [4] - Net Sales growth for International was -18%, significantly worse than the average estimate of -9.7% [4] - Net Sales growth for Foodservice was -0.8%, better than the average estimate of -1.3% [4] Sales Breakdown - Sales in Grocery & Snacks amounted to $1.08 billion, slightly above the average estimate of $1.06 billion, reflecting a year-over-year decline of -8.7% [4] - Sales in Foodservice were $264.5 million, exceeding the average estimate of $263.17 million, with a year-over-year change of -0.8% [4] - Sales in International reached $212.3 million, below the average estimate of $238.18 million, representing a year-over-year decline of -18.1% [4] - Sales in Refrigerated & Frozen were $1.08 billion, surpassing the average estimate of $1.05 billion, with a year-over-year change of -0.9% [4]

Financial Data and Key Metrics Changes - The fiscal first quarter results exceeded expectations, with a net debt reduction of over $400 million compared to the previous year [30] - The company is on track to pay down $700 million in debt for fiscal 2026, supported by divestitures and cash flow from operations [27][30] - Overall inflation guidance remains slightly above 7%, with core inflation pressures primarily from animal proteins [20][96] Business Line Data and Key Metrics Changes - Frozen business is expected to regain momentum after service interruptions, with innovations like Dolly Parton frozen meals performing well [41][42] - The company experienced a shift in promotional events, impacting sales timing, but anticipates a return to growth in frozen and snacks categories [7][14] - The company reported a 3% growth in frozen business in Q2 of the previous year, indicating potential for recovery [39] Market Data and Key Metrics Changes - The company noted a low single-digit decline in consumption trends for the second quarter, attributed to timing shifts in promotional events [5][6] - Retailers are returning to pre-COVID promotional levels, which is expected to support volume growth [81] Company Strategy and Development Direction - The company is focusing on driving volume in frozen and snacks while maximizing cash through inflation-justified pricing [8][68] - There is an emphasis on innovation and marketing to attract value-seeking consumers, particularly in lower-income demographics [76][78] - The company plans to leverage technology, including AI, to enhance core processes and lower costs [57] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the second half of the fiscal year, expecting positive sales growth driven by volume momentum and effective pricing strategies [7][15][68] - The company acknowledges ongoing inflation and value-seeking behavior among consumers but believes it can navigate these challenges effectively [76][70] Other Important Information - The company has achieved service levels of 98%, which is crucial for restoring consumer confidence and merchandising activities [14][67] - The company is about 85% covered for Q2 in terms of commodity pricing, with a focus on managing exposure to animal proteins [23] Q&A Session Summary Question: What is driving the expected inflection in sales growth for the second half? - Management attributes the expected growth to volume momentum in frozen products and successful pricing strategies [7][8] Question: How much did trade expense timing benefit organic sales growth in Q1? - The benefit from trade expense timing was approximately 50 basis points in Q1, which will flip to Q2 [12] Question: What is the outlook for frozen entrees given recent share loss? - Management remains positive about the frozen business outlook, citing strong innovation and recovery from supply interruptions [39][42] Question: How is the company addressing inflation and pricing elasticity? - The company tracks elasticities weekly and has built in historical expectations, indicating confidence in managing pricing without significant volume loss [71][100] Question: What are the expectations for promotional levels and volume share performance? - Promotional levels are returning to pre-COVID norms, and the company is cautiously optimistic about improving volume share performance [81][84]

Core Insights - Lamb Weston Holdings, Inc. reported solid first-quarter fiscal 2026 results, with both net sales and earnings exceeding the Zacks Consensus Estimate, although earnings decreased compared to the previous year [1][11] Financial Performance - Adjusted earnings were 74 cents per share, surpassing the Zacks Consensus Estimate of 54 cents, but represented a 5% decrease due to higher income tax expenses and reduced equity method investment earnings [2] - Net sales reached $1,659.3 million, beating the Zacks Consensus Estimate of $1,616 million, with a year-over-year increase of $5.2 million [2] - On a constant-currency basis, sales dipped 1%, with a 6% volume growth offset by a 7% decline in price/mix [3] Segment Analysis - North America segment net sales decreased by 2% to $1,084.6 million, despite a 5% volume increase driven by customer contract wins [7] - International segment net sales grew by 4% to $574.7 million, aided by a favorable $24.5 million from foreign currency translation, with volume growth of 6% [9] Profitability Metrics - Adjusted gross profit fell by $14.2 million year-over-year to $338.9 million, primarily due to weaker price/mix [5] - Adjusted EBITDA increased by $2.8 million year-over-year to $302.2 million, driven by reduced SG&A expenses [6] Shareholder Returns - The company returned $51.7 million to shareholders through cash dividends and repurchased 187,259 shares for $10.4 million, with approximately $348 million remaining for future repurchases [13] Future Outlook - For fiscal year 2026, the company expects net sales at constant currency to range between $6.35 billion and $6.55 billion, with adjusted EBITDA projected between $1.00 billion and $1.20 billion [14]

Q1 FY26 Financial Performance - Organic net sales decreased by 0.6% to $2,611 million[58] - Adjusted gross margin decreased by 153 bps to 24.4%[58] - Adjusted operating margin decreased by 244 bps to 11.8%[58] - Adjusted EPS decreased by 26.4% to $0.39[58] Segment Performance - Grocery & Snacks net sales decreased by 1.0% to $1,080 million[61] - Refrigerated & Frozen net sales increased by 0.2% to $1,076 million[61] - International net sales decreased by 3.5% to $212 million[61] - Foodservice net sales increased by 0.2% to $265 million[61] Debt and Cash Flow - Net debt decreased from $8 billion to $7.6 billion[42] - Free cash flow was $(26) million, a decrease from $136 million[70] Outlook - The company reaffirms FY26 guidance for organic net sales growth of -1% to +1%[51] - The company reaffirms FY26 guidance for adjusted operating margin of approximately 11.0% to 11.5%[51] - The company reaffirms FY26 guidance for adjusted EPS of $1.70 to $1.85[51] Other Key Points - Total inflation is now expected in the low 7% range[48] - Capital expenditures are estimated at approximately $450 million for FY26[49]