Financial Data and Key Metrics Changes - Conagra's organic net sales for Q1 2026 were $2.6 billion, reflecting a 0.6% decline compared to the prior year [18] - Adjusted gross margin was 24.4% and adjusted operating margin was 11.8%, both down from the previous year but slightly better than initial expectations [18] - Adjusted earnings per share (EPS) were $0.39, down $0.14 from the year-ago period [18] Business Line Data and Key Metrics Changes - Grocery and Snacks segment net sales were $1.1 billion, representing a 1% decline in organic net sales [19] - Refrigerated and Frozen segment also delivered $1.1 billion in net sales, with organic net sales up 0.2% [20] - International segment organic net sales declined 3.5%, while Foodservice segment returned to growth with a 0.2% increase [20] Market Data and Key Metrics Changes - 44% of Conagra's portfolio held or gained volume share in Q1, an improvement from Q4 fiscal 2025 [7] - Frozen portfolio volumes improved by 3.2 points compared to Q4 fiscal 2025, with significant share gains in frozen vegetables, meals, and prepared chicken [8] - Snacks business saw strong volume in protein snacks, but faced declines in specific products due to promotional timing shifts [10] Company Strategy and Development Direction - The company is focused on growing its frozen and snacks segments while investing in supply chain resiliency [16] - Conagra is maintaining a disciplined approach to capital allocation, with $450 million planned for capital expenditures [15] - The company successfully completed divestitures of Chef Boyardee and frozen seafood businesses, using proceeds to reduce net debt by over $400 million [13] Management's Comments on Operating Environment and Future Outlook - Management expects inflationary pressures and weak consumer sentiment to persist, reaffirming full-year guidance for fiscal 2026 [5] - Core inflation expectations have increased to the low 7% range, primarily due to rising costs in animal proteins [14] - The company anticipates organic net sales growth for the second half of the year as supply constraints ease [28] Other Important Information - Conagra reduced net debt by nearly $1.1 billion compared to the year-ago period, ending the quarter with net leverage at 3.55 times [25] - The company is on track to complete its supply chain modernization efforts, including the Baked Chicken project [12] - Adjusted SG&A expenses were unfavorable to the prior year due to higher incentive compensation and advertising spend [22] Q&A Session Summary Question: What are the expectations for organic net sales growth? - The company continues to expect organic net sales growth in the range of negative 1% to positive 1% for fiscal 2026 [26] Question: How is the company managing inflation and tariff costs? - The company has been able to mitigate a large portion of tariff costs in Q1 but expects higher net tariff costs in Q2 due to inventory utilization [28] Question: What is the outlook for the second quarter? - The company expects organic net sales to decline in low single digits in Q2, driven by recent consumption trends and trade expense shifts [28]

Financial Data and Key Metrics Changes - The company reported a free cash flow conversion of 125% and has paid down $500 million in debt over the last 12 months [27][28] - Inflation for the quarter came in at around 4%, consistent with expectations for the full year [71][73] Business Line Data and Key Metrics Changes - Snack volumes increased by 4% in Q3, contrasting with broader industry trends, attributed to a focus on healthier snacking options [107][111] - The gap between shipments and consumption in grocery and snacks was primarily due to seasonal shipment timing differences [14][20] Market Data and Key Metrics Changes - The company noted challenges in the convenience store channel, which has seen weaker performance due to stretched consumer budgets [22][86] - Consumption trends remain strong overall, despite some channel-specific weaknesses [21][88] Company Strategy and Development Direction - The company is prioritizing returning volume to growth over gross margin expansion, focusing on maintaining strong consumer relationships [64][66] - Ongoing modernization efforts in the supply chain are expected to enhance operational efficiency [35][37] Management's Comments on Operating Environment and Future Outlook - Management highlighted the dynamic macro environment, with ongoing monitoring of inflation, tariffs, and consumer sentiment impacting future guidance [12][45] - The company anticipates continued strong consumption in Q4, with improvements in shipment volumes expected [48][101] Other Important Information - The company is actively monitoring state-level legislation regarding food additives, but most of its portfolio does not contain synthetic dyes, minimizing potential impacts [92][93] - Capital expenditure guidance was lowered by $40 million for the current year, primarily due to timing rather than project cuts [29][31] Q&A Session Summary Question: Insights on fiscal 26 guidance and macro dynamics - Management indicated that it is too early to provide guidance for fiscal 26, emphasizing the need to monitor external factors [10][12] Question: Gap between shipments and consumption in grocery - The gap was attributed to seasonal shipment timing, with no significant underlying issues affecting overall consumption [14][20] Question: Confidence in hitting leverage targets - The company expressed confidence in cash flow performance and debt reduction, with updates expected in July [26][28] Question: Impact of convenience store performance - Management acknowledged challenges in the convenience store channel but noted strong overall consumption across other channels [22][21] Question: Expectations for inflation and pricing strategies - The company is assessing various levers to manage costs, including productivity programs and alternative suppliers [75][73] Question: Changes in consumer behavior - Management noted ongoing value-seeking behavior among consumers, which has been a trend for the past two years [86][88] Question: Impact of state-level legislation on additives - The company is monitoring state-level legislation but indicated that most of its products are not affected due to the absence of synthetic dyes [92][93]

Financial Data and Key Metrics Changes - Conagra's organic net sales for Q3 were $2.9 billion, reflecting a 5.2% decline compared to the prior year [18] - Adjusted gross margin was 24.8% and adjusted operating margin was 12.7%, both down from the previous year [18] - Adjusted earnings per share (EPS) were $0.51, a decrease of $0.18 year-over-year [18] Business Line Data and Key Metrics Changes - Grocery and Snacks segment net sales were $1.2 billion, down 3.9% year-over-year due to lower volumes and unfavorable price mix [20] - Refrigerated and Frozen segment net sales were $1.1 billion, down 7.2% year-over-year, impacted by supply constraints [21] - International segment organic net sales declined 1.2% year-over-year, with volume declines partially offset by price mix increases [21] - Foodservice business organic net sales decreased 6.3% year-over-year, affected by ongoing softness in commercial traffic [22] Market Data and Key Metrics Changes - Domestic retail consumption volume increased by 1.1% compared to the prior year, indicating strong consumer demand [6] - 60% of Conagra's portfolio either held or gained volume share, outperforming peers by eight percentage points [10] Company Strategy and Development Direction - The company is focused on restoring inventory and improving customer service levels through investments in infrastructure and strategic partnerships [5] - Conagra is committed to a disciplined approach to brand building, avoiding heavy discounting to ensure long-term brand health [11] - Investments are being made to expand capacity in frozen vegetables and frozen meals to meet elevated demand [29] Management's Comments on Operating Environment and Future Outlook - Management remains vigilant regarding external factors such as tariffs, inflation, and shifts in consumer sentiment, while maintaining fiscal 2025 guidance unchanged [5][16] - The company expects total company volume to improve in Q4, driven by strong consumption trends [28] Other Important Information - The company generated $1.3 billion in net cash flows from operating activities in the first three quarters of fiscal 2025, down from the prior year but historically strong [26] - Capital expenditures for the year are expected to be approximately $410 million to support supply chain modernization [31] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.