Core Insights - Conagra Brands, Inc. (CAG) is experiencing a difficult environment characterized by a slowdown in consumer spending, elevated inflation, and tariffs, leading to a Zacks Rank of 5 (Strong Sell) and nearing a 5-year low [1] Financial Performance - In the second quarter of fiscal 2026, Conagra reported earnings of $0.45, beating the Zacks Consensus of $0.44, marking the second consecutive earnings beat [2] - Net sales decreased by 6.8%, with organic net sales down by 3.0%, although the company is optimistic about a return to net sales growth in the second half of the fiscal year [3] Guidance and Inflation - Conagra reaffirmed its fiscal 2026 guidance, expecting organic net sales to change by a loss of 1% to 1% compared to fiscal 2025, with earnings projected between $1.70 and $1.85 [4] - The company anticipates continued elevated costs of goods sold inflation, with total cost of goods inflation expected to reach 7% in fiscal 2026, influenced by U.S. tariffs increasing costs by 3% before mitigations [5] Analyst Revisions - Analysts have cut fiscal 2026 earnings estimates, with the Zacks Consensus falling to $1.72 from $1.75, indicating a 25.2% decline in earnings [6] - For fiscal 2027, estimates were also reduced, with the Zacks Consensus dropping to $1.79 from $1.86, reflecting a projected earnings growth of 4.2% [7] Stock Performance and Valuation - Conagra's shares have declined significantly over the past year, now near 5-year lows [10] - The company trades at a forward price-to-earnings (P/E) ratio of 9.6, suggesting it may be undervalued [12] Dividend Information - Conagra pays a dividend of $1.40 per share, yielding 8.5%, with dividends paid in the first half of fiscal 2026 remaining flat year over year at $335 million [13]

Core Insights - The U.S. frozen food market is valued at $93.5 billion and is being shaped by four key themes: protein-packed meals, restaurant-inspired favorites, family-style solutions, and all-day breakfast [1][2] Group 1: Emerging Trends - Protein remains the most influential nutrition attribute, with high-protein frozen foods generating $12 billion annually and growing at double-digit volume rates [5] - "Takeout-style" frozen foods total $14.3 billion in annual sales, driven by younger generations and families seeking restaurant-quality taste and convenience [5] - Multi-serve meals and frozen sides account for approximately $12 billion in sales, with value-size frozen products making up over 40% of frozen aisle sales [5] Group 2: Consumer Behavior - Consumers are increasingly relying on frozen foods to meet daily protein needs, with frozen meals averaging high protein levels per serving [5] - The trend of recreating restaurant experiences at home is growing, particularly as dining out becomes more expensive [5] - Breakfast items are being consumed throughout the day, with high-protein, ready-to-heat formats gaining popularity among Gen Z and Millennials [5]

Company Overview - Nomad Foods is the largest frozen foods manufacturer and distributor in Europe, holding the No. 1 brand position in 13 out of 15 countries served and No. 2 in the remaining two [3]. Business Focus - The company generates approximately two-thirds of its revenue from protein and vegetables, positioning itself well to benefit from the growing trend towards healthier eating, particularly with its revamped chicken and protein-focused meals [4]. Market Challenges - Despite operating in a frozen food industry that typically grows at around 5% annually, Nomad Foods has experienced a stock decline of over 60% due to inflation, inventory issues, weather disruptions in Europe, and a change in CEO [5]. Strategic Initiatives - Nomad Foods is shifting its focus from revenue growth to operational efficiency, aiming to save $200 million between 2026 and 2028 by optimizing its logistics, procurement processes, and increasing production capacity, which currently operates at only 66% [7]. - The company plans to reduce capital expenditures by half compared to the three-year average from 2023 to 2025, which is expected to enhance free cash flow [8]. Financial Health - Nomad Foods generates consistent free cash flow annually, and its high-yield dividend payouts are well-covered by its cash generation. Additionally, the company's share count has decreased by 4% annually over the past five years [9].

Core Viewpoint - Conagra Brands, Inc. (NYSE:CAG) is currently facing challenges, with a recent price target cut by UBS and a decline in net sales reported for fiscal Q2 2026 [1][2]. Financial Performance - For fiscal Q2 2026, Conagra reported a net sales drop of 6.8%, with organic net sales decreasing by 3.0% [2]. - The reported diluted net loss per share was $1.39, primarily due to non-cash goodwill and brand impairment charges, while adjusted earnings per share (EPS) stood at $0.45 [3]. - The operating margin for the quarter was reported at 20.1%, with an adjusted operating margin of 11.3% [2]. Sales Dynamics - The decline in organic net sales was attributed to flat price/mix and a 3.0% decrease in volume, alongside a headwind of approximately 100 basis points from changes in retailer purchasing activity [4]. - Price/mix was further impacted by a 60 basis point headwind related to changes in estimates for fiscal 2025's trade expense accrual and an unfavorable product mix [5]. Guidance and Outlook - Conagra reaffirmed its fiscal 2026 guidance, expecting an adjusted operating margin between approximately 11.0% and 11.5%, and adjusted EPS between $1.70 and $1.85 [5]. Company Overview - Conagra Brands operates in three segments: Grocery & Snacks, Refrigerated & Frozen, and International, with a brand portfolio that includes Birds Eye, Duncan Hines, Healthy Choice, Marie Callender's, Reddi-wip, and BOOMCHICKAPOP [6].

Company Overview - Conagra Brands, Inc. (CAG) has a market capitalization of $8.5 billion and is a leading consumer packaged foods company based in Chicago, Illinois, with a diverse portfolio of over 70 well-known brands [1] - The company's operations span various channels including grocery, snacks, frozen, refrigerated, international, and foodservice, serving both retail and commercial customers [1] Market Position - CAG is classified as a mid-cap stock, fitting the category of companies valued between $2 billion and $10 billion [2] - The company is enhancing its market presence through brand modernization and product innovation, focusing on refreshing legacy franchises and introducing trend-driven offerings [2] - This balanced approach across value and premium segments, supported by a robust distribution network, allows Conagra to reach a broad and diverse consumer base [2] Stock Performance - Shares of Conagra have decreased by 37.8% from their 52-week high of $28.51 and have declined 7.4% over the past three months, underperforming the S&P 500 Index, which has rallied by 3.7% in the same period [3] - Over the past 52 weeks, Conagra's shares have plunged 36.8%, contrasting sharply with the S&P 500's gain of 12.9% [4] - The stock has also slid 20.3% over the past six months, underperforming the S&P 500's decline of 12.8% [4] Technical Analysis - The stock continues to show downside pressure, having traded below both its 50-day and 200-day moving averages for most of the past year [5] Fundamental Challenges - Conagra has underperformed the broader market due to weakening fundamentals, with declining sales volumes indicating weaker consumer demand and limited pricing power in a competitive staples market [6] - Analysts expect revenue to contract, raising concerns that newer product launches are not sufficiently strong to reaccelerate growth [6] - Past growth initiatives have yielded modest returns on invested capital, leading to doubts about capital efficiency and long-term value creation [6]

Core Insights - Thompson, Siegel, and Walmsley (TSW) has increased its stake in Conagra Brands, making it the 7th-largest holding in their portfolio, with a total position of 5,269,532 shares valued at $96.48 million as of the end of the third quarter [1][2]. Company Overview - Conagra Brands is a leading North American packaged foods company with a diversified product lineup and strong brand portfolio [6]. - The company reported a trailing twelve months (TTM) revenue of $11.45 billion and a net income of $850.10 million, with a dividend yield of 8.13% [4]. Recent Performance - As of December 1, 2025, Conagra Brands shares were priced at $17.22, reflecting a 33% decline over the prior year and underperforming the S&P 500 by 49 percentage points [3]. - The stock is currently trading at 0.7 times sales, the lowest since 2015, and at 7 times free cash flow, close to its lowest in the last two decades [11]. Investment Rationale - TSW's investment in Conagra aligns with a value investing strategy, as the company is seen as stable despite declining sales growth rates and challenges from GLP-1 medicines impacting food companies [10]. - The company holds $7.5 billion in long-term debt against a market capitalization of $8.2 billion, necessitating continued debt repayment to ensure the safety of its high-yield dividend and overall company longevity [12]. Product Portfolio - Conagra offers a broad portfolio of branded packaged foods, including frozen meals, snacks, and shelf-stable grocery products under well-known brands such as Birds Eye, Duncan Hines, Healthy Choice, and Slim Jim [9]. - The company generates revenue primarily through the manufacturing and distribution of consumer food products across various channels, leveraging scale and brand recognition [9].

Core Insights - Conagra Brands, a 105-year-old company with over 20 national food brands, is projected to achieve more than $11.6 billion in sales this year while modernizing its portfolio for future growth [1] - The company's stock has declined 37% year-to-date, making it one of the worst performers in the S&P 500, which has resulted in an increased dividend yield of 8% [2] - Conagra has a trailing payout ratio of 78% and has increased its dividend for the past six years, indicating a commitment to returning value to shareholders [7] Conagra Brands - Conagra is focusing on modernizing its product offerings to drive future growth [1] - The company has experienced a significant stock decline, which has led to a high dividend yield, attracting value investors [2] - The dividend payments from Conagra are projected to grow, with historical growth rates averaging 6.3% annually over the past five years [3] - The current dividend yield of Conagra is significantly higher than the S&P 500 average of 1.2% [5] - Conagra's price-to-earnings (P/E) and price-to-sales (P/S) ratios are near 10-year lows, suggesting potential value [7] United Parcel Service (UPS) - UPS has also faced a challenging year, with a 28% decline in stock price, resulting in a dividend yield of almost 7% [8] - The company has maintained or increased its dividend annually since going public in 1999, reflecting its financial strength [9] - UPS's dividend payout ratio is currently at 91%, but it is expected to decrease as earnings per share (EPS) are projected to grow by 4% and 11% in 2026 and 2027, respectively [10] Pfizer - Pfizer's stock has seen a modest decline of 5% year-to-date, with a current dividend yield of 6.9%, the highest in the healthcare sector [11] - The company has a 98% dividend payout ratio, which is projected to decline to 75% by 2026, indicating potential for sustainable dividends [12] - Pfizer has a strong track record of dividend increases over the past 16 years, supported by its balance sheet strength [12] Verizon - Verizon offers a dividend yield of 6.7%, making it one of the top dividend payers in the S&P 500 [13] - The company has a commitment to returning value to shareholders, with a 21-year track record of annual dividend increases [14] - Verizon's current P/E ratio is less than 9 times earnings for the next 12 months, indicating potential undervaluation [15]

Core Insights - Nomad Foods Limited is on track to deliver full-year results near the low end of its existing guidance ranges, with challenges faced in the third quarter of 2025 impacting overall performance [1][5]. Financial Performance - For the third quarter of 2025, revenue decreased by 2.2% to €752 million compared to the same period in 2024, with organic revenue declining by 1.6% due to a volume decline of 0.5% and a price/mix decline of 1.1% [3][4]. - Adjusted EBITDA for the third quarter decreased by 14.2% to €143 million, and adjusted EPS decreased by 10.9% to €0.49 [4][3]. - For the first nine months of 2025, revenue decreased by 2.0% to €2,259 million, with organic revenue down by 2.1% driven by a volume decline of 1.6% [3][4]. Management Commentary - CEO Stéfan Descheemaeker noted that while the third quarter results were in line with expectations, the company faced headwinds such as weather-related category pressure and soft performance in the UK, which offset strong performance in growth platforms [1]. - Co-Chairman Noam Gottesman expressed confidence in the underlying fundamentals of the business and highlighted the company's focus on innovation and efficiency programs to drive future growth [1]. Guidance - The company expects full-year organic revenue to be near the low end of its flat to -2% range, with adjusted EBITDA anticipated to be near the low end of the -3% to -7% year-on-year range [5]. - Adjusted EPS is expected to be near the low end of its €1.64 to €1.76 range, translating to a USD range of $1.89 to $2.02 based on the USD/EUR exchange rate as of September 30, 2025 [5]. Strategic Initiatives - Nomad Foods is focusing on a robust pipeline of innovation and renovation initiatives, with price increases for 2026 already communicated to the trade [1]. - The company has implemented a multi-year efficiency program aimed at providing further financial flexibility [1].

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].

Core Insights - Nomad Foods Limited has successfully priced a USD 620 million term loan and a EUR 880 million term loan, both due in 2032, with interest rates linked to SOFR and EURIBOR respectively [1] - The company has extended its Revolving Cash Facility of EUR 175 million to 2032, indicating a strategic move to enhance liquidity and financial flexibility [1] - The net proceeds from the term loans will be utilized for repaying existing loans, transaction expenses, and general corporate purposes, reflecting a focus on financial restructuring [1] - The CFO of Nomad Foods expressed satisfaction with the refinancing outcome, highlighting the strength of the company's cash flow and portfolio [1] Company Overview - Nomad Foods is recognized as Europe's leading frozen food company, with a portfolio that includes well-known brands such as Birds Eye, Findus, iglo, Ledo, and Frikom [2] - The company is headquartered in the United Kingdom and is committed to providing high-quality, nutritious, and convenient food options to consumers [2]