Conagra Brands (NYSE:CAG) Announces Quarterly Earnings Results

Conagra Brands (NYSE:CAG) posted its quarterly earnings data on Wednesday. The company reported $0.47 EPS for the quarter, beating the consensus estimate of $0.46 by $0.01, Briefing.com reports. Conagra Brands had a negative net margin of 0.39% and a positive return on equity of 10.15%. The business had revenue of $2.88 billion for the quarter, compared to analysts’ expectations of $2.89 billion. During the same period in the previous year, the firm posted $0.56 EPS. The firm’s revenue was up 3.6% compared to the same quarter last year. Conagra Brands updated its FY 2027 guidance to 1.400-1.500 EPS.

Here are the key takeaways from Conagra Brands’ conference call:

• Management outlined a more aggressive turnaround plan under new CEO John Brase, emphasizing “radical simplicity,” stronger brand and supply-chain investment, portfolio simplification, and better capital allocation to drive long-term value.
• Fiscal 2026 results came in within guidance, with full-year organic net sales down 0.4%, adjusted operating margin at 11.3%, and adjusted EPS of $1.72. Fourth-quarter organic sales were flat, though margins and EPS were down year over year.
• Fiscal 2027 guidance implies pressure on growth and earnings, including organic net sales down 1%-3%, adjusted operating margin of 10%-10.5%, and adjusted EPS of $1.40-$1.50. Management also expects mid-single-digit volume declines, especially in frozen, as pricing actions flow through.
• Conagra plans to increase advertising and supply-chain investment, with A&P rising to about 3% of net sales, up 14% year over year, and capital spending increasing to about $550 million. The company said these investments should support key growth brands, service reliability, and modernization.
• The company cut its dividend by 50% to an annualized $0.70 per share, freeing about $335 million of annual cash for debt reduction, brand investment, and supply-chain initiatives. Management said the move improves flexibility and accelerates progress toward its leverage target.

Conagra Brands Stock Performance

Shares of NYSE CAG opened at $14.17 on Wednesday. The company has a current ratio of 0.90, a quick ratio of 0.30 and a debt-to-equity ratio of 0.79. The company has a market capitalization of $6.78 billion, a P/E ratio of -141.72 and a beta of -0.02. Conagra Brands has a 12 month low of $12.53 and a 12 month high of $20.32. The stock has a 50 day moving average of $13.60 and a 200-day moving average of $15.76.

Key Headlines Impacting Conagra Brands

Here are the key news stories impacting Conagra Brands this week:

• Negative Sentiment: Conagra reported fiscal fourth-quarter and full-year results, but the market is focused on softer profitability, which is weighing on the stock. CONAGRA BRANDS REPORTS FOURTH QUARTER AND FULL YEAR RESULTS
• Negative Sentiment: The company swung to a loss in Q4 and reduced its dividend, signaling that management is prioritizing balance-sheet and spending discipline over shareholder returns. Conagra Swings to Loss, Cuts Dividend Under New CEO
• Negative Sentiment: FY2027 EPS guidance of 1.40-1.50 came in below consensus, reinforcing concerns that earnings growth may remain limited amid higher commodity, protein, and tariff-related costs. Conagra Brands Q4 Earnings on the Horizon: Key Factors to Note
• Negative Sentiment: Broader commentary ahead of the release had already highlighted margin pressure and dividend-risk concerns across food stocks, adding to sentiment headwinds for CAG. Conagra and 6 More Food Stock Dividends That Are at Risk
• Neutral Sentiment: Conagra also announced its regular quarterly dividend of $0.175 per share, which helps show the company is still returning cash to shareholders despite the cut. Conagra Brands Announces Quarterly Dividend Payment of $0.175 Per Share

Analyst Ratings Changes

CAG has been the subject of several research reports. Jefferies Financial Group decreased their price target on shares of Conagra Brands from $15.00 to $13.00 and set a “hold” rating for the company in a research note on Wednesday, May 27th. Royal Bank Of Canada cut their price target on shares of Conagra Brands from $17.00 to $16.00 and set a “sector perform” rating on the stock in a research report on Thursday, June 25th. Wells Fargo & Company reduced their price objective on shares of Conagra Brands from $14.00 to $13.00 and set an “underweight” rating for the company in a research note on Monday, May 18th. Sanford C. Bernstein restated an “underperform” rating and set a $12.00 target price (down from $16.00) on shares of Conagra Brands in a report on Wednesday, June 3rd. Finally, BNP Paribas Exane dropped their price target on shares of Conagra Brands from $16.00 to $14.00 and set a “neutral” rating on the stock in a research report on Thursday, May 21st. One research analyst has rated the stock with a Buy rating, eleven have issued a Hold rating and six have given a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Reduce” and an average price target of $14.00.

Institutional Investors Weigh In On Conagra Brands

Several hedge funds have recently added to or reduced their stakes in CAG. Sunbelt Securities Inc. boosted its holdings in Conagra Brands by 24.2% in the 4th quarter. Sunbelt Securities Inc. now owns 14,498 shares of the company’s stock valued at $251,000 after purchasing an additional 2,826 shares during the period. Invesco Ltd. increased its stake in Conagra Brands by 13.3% during the 4th quarter. Invesco Ltd. now owns 17,667,780 shares of the company’s stock worth $305,829,000 after acquiring an additional 2,079,903 shares during the period. Corient Private Wealth LLC raised its holdings in Conagra Brands by 8.1% in the 4th quarter. Corient Private Wealth LLC now owns 240,129 shares of the company’s stock valued at $4,157,000 after acquiring an additional 18,061 shares in the last quarter. Alberta Investment Management Corp bought a new stake in shares of Conagra Brands during the 4th quarter valued at $1,343,000. Finally, EP Wealth Advisors LLC bought a new stake in shares of Conagra Brands during the 4th quarter valued at $289,000. Institutional investors and hedge funds own 83.75% of the company’s stock.

About Conagra Brands

Conagra Brands, Inc is a leading packaged foods company based in Chicago, Illinois, with a broad portfolio of shelf-stable, frozen and refrigerated foods marketed under familiar brands. The company develops, produces and distributes a wide range of consumer food products, serving both retail grocery and foodservice channels. Conagra’s product lineup includes frozen entrees, snacks, condiments, baking goods and desserts, providing convenient meal solutions for consumers across North America and select international markets.

Among its well-known brands are Birds Eye, Healthy Choice, Lean Cuisine, Marie Callender’s and Banquet in the frozen foods category, as well as Hunt’s sauces, Orville Redenbacher’s popcorn, Slim Jim meat snacks and Reddi-wip toppings.