Latest news with #Conagra Brands
Yahoo
25-07-2025
- Business
- Yahoo
UBS Maintains 'Neutral' on Conagra (CAG), Lowers Price Target to $20
Conagra Brands, Inc. (NYSE:CAG) is one of the best alternative meat stocks to invest in according to analysts. On July 11, UBS maintained a 'Neutral' rating on Conagra's stock and lowered the price target on the shares to $20 from $21. Analyst Bryan Adams stated that his decision takes into account the company's 'less-than-stellar performance in the fourth quarter.' He also highlighted Conagra's fiscal year 2026 guidance that is 'more weighted towards the latter half of the year.' A worker assembling a meal in a food production facility. Conagra reported disappointing Q4 FY2025 results. Earnings per share (EPS) came in at $0.56, missing the forecasted $0.59, and revenue fell short at $2.78 billion compared to the anticipated $2.85 billion. As such, the analyst expressed skepticism about Conagra's fiscal year 2026 outlook. The analyst also pointed to Conagra's 'weaker quarterly execution in recent periods' as a concern. Despite the challenges, UBS acknowledges that market expectations for Conagra have already been 'recalibrated lower,' indicating that growth concerns are largely reflected in the current stock valuation. The firm also highlighted Conagra's 'competitive dividend and free cash flow yield' as factors that likely limit the stock's further downside potential. This contributes to the balanced risk-reward assessment that informed the neutral rating. Conagra Brands, Inc. (NYSE:CAG) is a major packaged foods company with a diverse portfolio that includes frozen meals, snacks, and plant-based products. The corporation owns Gardein, a brand that has become a key player in the alternative protein space. While not directly producing lab-grown meat, Conagra, through its Gardein brand, offers the Ultimate Chick'n line—an advanced plant-based product that mimics traditional chicken. While we acknowledge the potential of CAG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Top 10 AI Stocks With Huge Upside Potential and 11 Best High Return Penny Stocks to Buy Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Washington Post
20-07-2025
- Business
- Washington Post
Months of Trump's tariffs are shifting supply chains and diplomatic ties
Major U.S. corporations and trading partners are scrambling to adapt to a new global economy, even as President Donald Trump mulls the imposition of historic tariffs in less than two weeks. Conagra Brands, owner of Hunt's, Duncan Hines and Birds Eye, plans to raise prices on canned goods after 'suffering a tremendous amount of inflation due to tariffs on tinplate steel,' its chief executive told investors this month.
Yahoo
11-07-2025
- Business
- Yahoo
Conagra Brands Inc (CAG) Q4 2025 Earnings Call Highlights: Navigating Inflation and Driving Growth
Release Date: July 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Conagra Brands Inc (NYSE:CAG) received a strong consumer response to volume-focused investments, particularly in frozen snacks, leading to volume growth. The company is implementing a robust productivity program, expecting over 5% productivity gains in fiscal '26, which is higher than previous years. Conagra Brands Inc (NYSE:CAG) is investing in supply chain resiliency, including a new chicken plant, to reduce costs and improve efficiency. The company is focusing on premiumization and innovation in its frozen food segment, with successful products like Banquet MEGA Chicken Filets. Conagra Brands Inc (NYSE:CAG) is committed to maintaining an attractive dividend while also planning to pay down $700 million in debt in fiscal '26. Conagra Brands Inc (NYSE:CAG) is facing persistent inflation, with an additional 11% cost increase expected across fiscal '25 and '26, leading to temporary margin compression. The company is experiencing double-digit inflation in key material costs, such as animal proteins, impacting overall cost structure. Conagra Brands Inc (NYSE:CAG) is dealing with supply chain constraints that have affected service levels and volume growth in the past. The company anticipates a modest volume decline in fiscal '26, with challenges in maintaining volume growth across its portfolio. Conagra Brands Inc (NYSE:CAG) is facing competitive pressures, particularly in categories with high private label presence, which may impact pricing strategies. Warning! GuruFocus has detected 5 Warning Signs with CAG. Q: Sean, should the more aggressive investment approach in Conagra's fiscal '26 guidance suggest that the current industry challenges are more structural? A: Sean Connolly, CEO, explained that the company is focusing on volume growth despite inflationary pressures. He emphasized that the inflation cycle is not transitory, with cumulative delivery costs increasing by over $2 billion. Conagra is investing in volume growth, particularly in frozen snacks, and expects margin expansion in the future through productivity, inflation relief, supply chain investments, and strategic pricing. Q: Dave, can you unpack the 4% core inflation number for fiscal '26 and the moving parts within it? A: David Marberger, CFO, detailed that 60% of the cost of goods sold are material costs, with animal proteins inflating double digits. Additional inflation is seen in corrugated cocoa and manufacturing infrastructure. Transportation and warehousing costs are also inflating, contributing to the 4% core inflation estimate for fiscal '26. Q: How is Conagra balancing price and promotion strategies across its major categories? A: Sean Connolly, CEO, stated that Conagra is not searching for answers to drive volume growth, as they have a proven model. The company focuses on modernizing brands, investing in high-quality displays, and leveraging social media for awareness. Conagra is prioritizing volume growth in frozen and snacks while managing pricing in other categories like canned foods. Q: What gives Conagra confidence in taking pricing actions despite consumer value-seeking behavior? A: Sean Connolly, CEO, explained that Conagra's elasticity is slightly better than competitors, and they are taking inflation-justified pricing in the grocery business. The strategy is to invest in growth areas like frozen and snacks while maximizing cash flow from canned foods to fund these investments. Q: How does Conagra plan to manage the impact of ongoing inflation and maintain profitability? A: Sean Connolly, CEO, described the mechanical nature of inflation cycles, where initial cost increases are followed by pricing actions to recover profits. Conagra is focusing on maintaining brand equity and consumer connection, with a pathway to recapture margins through productivity, pricing, and process improvements. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Wall Street Journal
10-07-2025
- Business
- Wall Street Journal
Conagra Expects Worsening Inflation to Hurt Sales This Year
Conagra CAG -3.53%decrease; red down pointing triangle Brands expects organic sales to remain stagnant as Chief Executive Sean Connolly said the challenging environment in which the company has been operating isn't going to improve soon. The food-and-snacks company behind Vlasic pickles and Snack Pack pudding cups said Thursday that inflation, supply challenges, foreign-exchange headwinds and weakening consumer sentiment continued to weigh on results.
Wall Street Journal
10-07-2025
- Business
- Wall Street Journal
Conagra Brands Forecasts Flat Sales as Challenges Continue
Conagra Brands CAG -1.31%decrease; red down pointing triangle expects organic sales to remain stagnant as elevated inflation and macroeconomic uncertainty continue to challenge operations. The food and snacking-brands company–maker of Vlasic pickles and Snack Pack pudding cups–guided for organic sales, which account for revenues generated from existing operations, in a range of down 1% to up 1% for fiscal 2026.
