Latest news with #DuncanHines
Yahoo
02-08-2025
- Business
- Yahoo
What to Watch With Conagra (CAG) Before Investing
Key Points Conagra is a consumer staples maker with a lofty 7.2% dividend yield. The company's brand portfolio includes some iconic names, but not all of its products are industry-leading. The stock is underperforming, just like the business. 10 stocks we like better than Conagra Brands › Conagra Brands (NYSE: CAG) is likely to pop up on a lot of dividend searches today, given its lofty 7.2% dividend yield. That compares favorably to the S&P 500 index's (SNPINDEX: ^GSPC) scant 1.2% yield and the roughly 2.5% or so yield of the average consumer staples company. Make sure you watch these key issues about Conagra before you buy it. What does Conagra do? Conagra is a consumer staples company that makes packaged food products. Some of its most notable brands include Slim Jim, Hunts, Healthy Choice, and Duncan Hines. With a market cap of around $9 billion, it is a large and important company, but hardly the largest food maker in the industry. In addition, a material number of its brands aren't the leading names in the sectors they serve. In fact, many of its brands would best be described as value brands. In other words, Conagra is a bit of a second-tier player in the packaged food space. There is absolutely nothing wrong with that, but it has some implications for the business. Conagra is more likely to be a follower than a leader, for example. And when quality is a consumer focus and not value, Conagra will likely be facing headwinds. Some problems to watch Watching Conagra's basic business model is the first big thing here, but it isn't the only thing to watch. Over the past year, the stock has lost a third of its value, which is a hint that the company is currently dealing with some issues. Notably, the company's gross profit margin has been trending lower since hitting a peak in 2023. The stock basically started to fall at about the same time as the company's gross margin started to shrink. The company's revenue has also been trending lower in recent years. That suggests that the company's brand portfolio may not be hitting well with consumers today. That complicates the gross profit margin story, since the ability to spread costs over more sales is an important tool in improving margins. So there's a double headwind here. The unfortunate thing is that the fiscal fourth quarter of 2025 didn't provide any uplifting news. For example, sales dropped 4.3% and organic sales were off by 3.5%. Both figures were worse than the comparable full-year fiscal 2025 numbers of a 3.6% sales decline and a 2.9% organic sales decline. Indeed, the situation looks like it may be getting worse, not better. And Conagra also provided less-than-positive guidance for fiscal 2026. Organic sales are expected to be roughly flat, and the adjusted operating margin is projected to decline. Earnings are likely to be materially lower as a result. Not only do you need to closely monitor the business model, but you need to be prepared to watch as the currently weak performance continues for another year. Conagra will survive, but is it worth buying? Second fiddles achieve great success as companies all the time. But sometimes they struggle because they don't have differentiated businesses. That appears to be the case right now with Conagra. It is highly likely that this company survives through this rough patch, but that probably won't be enough to make it worth buying for most investors. Particularly for conservative dividend investors, noting that Conagra's adjusted earnings dividend payout ratio could run as high as 80% in fiscal 2026. That's an unsettling figure and helps explain why there hasn't been a dividend increase announced since the second quarter of fiscal 2024. Should you invest $1,000 in Conagra Brands right now? Before you buy stock in Conagra Brands, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Conagra Brands wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,090,257!* Now, it's worth noting Stock Advisor's total average return is 1,036% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. What to Watch With Conagra (CAG) Before Investing was originally published by The Motley Fool 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
Time of India
28-06-2025
- Business
- Time of India
Duncan Hines parent Conagra Brands says it will phase out artificial colors
HighlightsConagra Brands, the parent company of Duncan Hines and Slim Jim, announced it will discontinue the use of artificial colors in its frozen foods by the end of this year and across its entire portfolio by the end of 2027. The company will not offer products containing artificial colors to K-12 schools starting from the 2026-2027 school year, aligning with similar commitments made by Kraft Heinz and General Mills. The federal government has increased scrutiny on artificial colors, with a recent ban on the dye Red 3 and plans to eliminate synthetic dyes by the end of 2026, relying on voluntary efforts from the food industry. Conagra Brands , the parent company of Duncan Hines , Slim Jim and other brands, is the latest big food company to say it's discontinuing the use of artificial dyes. In a statement released Wednesday - the same day as a similar statement from Nestle - Chicago-based Conagra said it will remove artificial colors from its frozen foods by the end of this year. Conagra's frozen brands include Marie Callender's, Healthy Choice and Birds Eye. Conagra said it won't offer products containing artificial colors to K-12 schools by the beginning of the 2026-2027 school year, and it will work to discontinue artificial dyes across its entire portfolio by the end of 2027. Kraft Heinz and General Mills made similar pledges earlier this month. The federal government has stepped up its scrutiny of artificial colors in recent months. In January, days before President Donald Trump took office, the U.S. regulators banned the dye called Red 3 from the nation's food supply, nearly 35 years after it was barred from cosmetics because of potential cancer risk. In April, Trump's Health Secretary Robert F. Kennedy Jr. and FDA Commissioner Marty Makary said the agency would take steps to eliminate synthetic dyes by the end of 2026, largely by relying on voluntary efforts from the food industry . Many of Conagra's products already make a point of using natural dyes . On a jar of Vlasic kosher pickle spears, Conagra notes that they're colored with turmeric, not the synthetic Yellow 5. For the cheesy color in its frozen vegetable sides or its Orville Redenbacher popcorn, Conagra uses annatto, a plant extract. But some of Conagra's products still rely on synthetic colors. Duncan Hines' Comstock County Cherry pie filling uses Red 40, for example, while its Creamy Strawberries n' Cream Frosting uses both Red 40 and Yellow 5. Conagra's Swiss Miss Butterscotch pudding contains Yellow 6, Red 40 and Blue 1.
Daily Mail
27-06-2025
- Health
- Daily Mail
Iconic US snack set for major update to taste and look after pressure from RFK Jr
Slim Jims — the iconic spicy, dried meat stick— are set for a major recipe overhaul. The company that makes them said it is removing all artificial dyes from its products by 2027 amid pressure from health secretary Robert F Kennedy Jr. Chicago-based Conagra Brands said Birds Eye frozen vegetables, Orville Redenbacher popcorn and Duncan Hines baking products will also be affected by the change. The coloring agents will likely be replaced with natural ingredients such turmeric or beet juice, which could change the look, change and texture of many iconic foods. The announcement follows similar plans from brands like Nestle, Kraft Heinz and General Mills, many of whom have said they also won't launch any new products with artificial dyes. Health officials have long called for the removal of dyes like Red 40 and Yellow 5 over concerns of hyperactivity and conditions like ADHD in children. Some studies have also linked them to cancer in animals and hormonal issues. Conagra said in its annoucement Wednesday it will remove all dyes from its frozen foods by the end of 2025 and stop selling products with artificial dyes in schools by the start of the 2026-2027 school year. By the end of 2027, it will fully discontinue use of synthetic dyes from all of its products. RFK Jr has outlined plans to strip eight petrolium-based dyes from the US food supply during his tenure as the head of the Department of Health and Human Services. Slim Jims don't specifically say on the packaging that they contain artificial dyes, though it's possible other additives like sodium nitrite could be removed. The push comes amid concerns in recent years over health effects of artificial dyes, including animal studies suggesting they can cause hyperactivity, cancer and other health problems. With a recipe change could also come differences in color, texture and taste, though it's unclear how subtle the shifts will be. Conagra said many of its products already use natural alternatives like turmeric and annatto, especially in items like pickles, frozen vegetables and popcorn. However, products like Duncan Hines frosting and Swiss Miss pudding still contain Red 40, Yellow 5 and Blue 1. Tom McCough, executive vice president and chief operating officer of Conagra Brands, said in a statement: 'Conagra Brands is known for innovating delicious, on-trend foods, and our transition away from FD&C colors is just one aspect of our broader strategy to modernize our portfolio to align with consumer preferences. 'Our leading portfolio of frozen brands, including Birds Eye, Healthy Choice, Marie Callender's and more, will be 100% free from FD&C colors by the end of 2025.' Health advocates have long called for the removal of artificial dyes from foods, citing studies indicating they can cause neurobehavioral problems, including hyperactivity and attention issues, in children. The FDA has maintained that the approved dyes are safe and that 'the totality of scientific evidence shows that most children have no adverse effects when consuming foods containing color additives.' The agency currently allows 36 food color additives, including eight synthetic dyes. However, it announced in January that Red 3 — used in candies, cakes and some medications — would be banned in food by 2027 because it caused cancer in laboratory rats. Several states, including California and West Virginia, have passed laws restricting the use of artificial colors in foods. FDA Commissioner Dr Marty Makary announced in April that the agency will phase out the use of eight artificial food dyes in America's food supply within the next two years. The massive shakeup will free children from the 'toxic soup' that makes up much of America's food supply, Dr Makary said. It's unclear if Conagra will reformulate the affected products or discontinue them entirely. The company has also not announced plans to change the recipes globally.
The Hill
26-06-2025
- Health
- The Hill
Duncan Hines parent Conagra Brands says it will phase out artificial colors
Conagra Brands, the parent company of Duncan Hines, Slim Jim and other brands, is the latest big food company to say it's discontinuing the use of artificial dyes. In a statement released Wednesday – the same day as a similar statement from Nestle – Chicago-based Conagra said it will remove artificial colors from its frozen foods by the end of this year. Conagra's frozen brands include Marie Callender's, Healthy Choice and Birds Eye. Conagra said it won't offer products containing artificial colors to K-12 schools by the beginning of the 2026-2027 school year, and it will work to discontinue artificial dyes across its entire portfolio by the end of 2027. Kraft Heinz and General Mills made similar pledges earlier this month. The federal government has stepped up its scrutiny of artificial colors in recent months. In January, days before President Donald Trump took office, the U.S. regulators banned the dye called Red 3 from the nation's food supply, nearly 35 years after it was barred from cosmetics because of potential cancer risk. In April, Trump's Health Secretary Robert F. Kennedy Jr. and FDA Commissioner Marty Makary said the agency would take steps to eliminate synthetic dyes by the end of 2026, largely by relying on voluntary efforts from the food industry. Many of Conagra's products already make a point of using natural dyes. On a jar of Vlasic kosher pickle spears, Conagra notes that they're colored with turmeric, not the synthetic Yellow 5. For the cheesy color in its frozen vegetable sides or its Orville Redenbacher popcorn, Conagra uses annatto, a plant extract. But some of Conagra's products still rely on synthetic colors. Duncan Hines' Comstock County Cherry pie filling uses Red 40, for example, while its Creamy Strawberries n' Cream Frosting uses both Red 40 and Yellow 5. Conagra's Swiss Miss Butterscotch pudding contains Yellow 6, Red 40 and Blue 1.
Washington Post
26-06-2025
- Business
- Washington Post
Duncan Hines parent Conagra Brands says it will phase out artificial colors
Conagra Brands, the parent company of Duncan Hines, Slim Jim and other brands, is the latest big food company to say it's discontinuing the use of artificial dyes. In a statement released Wednesday – the same day as a similar statement from Nestle – Chicago-based Conagra said it will remove artificial colors from its frozen foods by the end of this year. Conagra's frozen brands include Marie Callender's, Healthy Choice and Birds Eye.
