CAG

Brown-Forman B (BF.B) came out with quarterly earnings of $0.38 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post earnings of $0.33 per share when it actually produced earnings of $0.12, delivering a surprise of -63.64%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Brown-Forman B, which belongs to the Zacks Beverages - Alcohol industry, posted revenues of $911 million for the quarter ended July 2026, missing the Zacks Consensus Estimate by 1.11%. This compares to year-ago revenues of $924 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Brown-Forman B shares have added about 1.2% since the beginning of the year versus the S&P 500's gain of 11.5%. While Brown-Forman B has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Brown-Forman B was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.46 on $1.04 billion in revenues for the coming quarter and $1.70 on $3.96 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Beverages - Alcohol is currently in the bottom 12% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Consumer Staples sector, Conagra Brands (CAG), is yet to report results for the quarter ended August 2026. The results are expected to be released on September 30. This company is expected to post quarterly earnings of $0.31 per share in its upcoming report, which represents a year-over-year change of -20.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Conagra Brands' revenues are expected to be $2.59 billion, down 1.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Brown-Forman Corporation (BF.B) : Free Stock Analysis Report Conagra Brands (CAG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Over the past six months, Conagra’s shares (currently trading at $16.16) have posted a disappointing 16.1% loss, well below the S&P 500’s 11.7% gain. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation. Is there a buying opportunity in Conagra, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it’s free. Despite the more favorable entry price, we’re passing on Conagra for now. Here are three reasons you should be careful with CAG, plus one stock we’d rather own. Revenue growth can be broken down into changes in price and volume (the number of units sold). While both are important, volume is the lifeblood of a successful staples business as there’s a ceiling to what consumers will pay for everyday goods; they can always trade down to non-branded products if the branded versions are too expensive. Conagra’s average quarterly sales volumes have shrunk by 1.5% over the last two years. This decrease isn’t ideal because the quantity demanded for consumer staples products is typically stable. Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Conagra’s revenue to drop by 3.9%. This projection doesn’t excite us and suggests its newer products will not accelerate its top-line performance yet. Operating margin is an important measure of profitability accounting for key expenses such as marketing and advertising, IT systems, wages, and other administrative costs. Analyzing the trend in its profitability, Conagra’s operating margin decreased by 26.2 percentage points over the last year. Conagra’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers. Its operating margin for the trailing 12 months was negative 14.4%. We see the value of companies helping consumers, but in the case of Conagra, we’re out. Following the recent decline, the stock trades at 11.3× forward P/E (or $16.16 per share). This valuation is reasonable, but the company’s shaky fundamentals present too much downside risk. There are better stocks to buy right now. We’d suggest looking at a dominant aerospace business that has perfected its M&A strategy. ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

It has been about a month since the last earnings report for Conagra Brands (CAG). Shares have added about 6.4% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Conagra Brands due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Conagra Brands before we dive into how investors and analysts have reacted as of late. Conagra Brands reported fourth-quarter fiscal 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. While net sales increased, earnings decreased from the year-ago period’s actuals. Adjusted earnings per share (EPS) for the quarter were 47 cents, beating the Zacks Consensus Estimate of 46 cents. The bottom line dropped 16.1% year over year.Net sales increased 3.6% year over year to $2,882.1 million, slightly exceeding the Zacks Consensus Estimate of $2,876 million. The increase reflected a 7.7% benefit from the 53rd week and a 0.5% favorable foreign exchange impact, partly offset by a 4.6% headwind from M&A activity. Organic net sales remained flat, supported by a 1.6% increase in price/mix, which offset a 1.6% decline in volume, with the company gaining volume share in categories including frozen single-serve meals, frozen multi-serve meals, frozen vegetables, meat snacks, seeds and pudding. Adjusted gross profit declined 1.6% to $706 million, while adjusted gross margin contracted 130 basis points to 24.5%, as productivity initiatives, approximately $6 million in tariff refunds and the benefit of the 53rd week were more than offset by cost inflation and unfavorable operating leverage. Adjusted SG&A expenses, which include advertising and promotional expenses, increased 11% to $369 million, due to elevated incentive compensation and the impact of the 53rd week. Adjusted EBITDA declined 11% to $484.4 million. Grocery & Snacks: Net sales rose 0.3% year over year to about $1.2 billion, reflecting a 7.8% benefit from the 53rd week, partly offset by an 8% M&A headwind, while organic net sales grew 0.5%. Organic growth was driven by a 4% increase in price/mix, partially offset by a 3.5% decline in volume. Adjusted operating profit fell 4.1% to $216 millionRefrigerated & Frozen: Net sales increased 5.3% to $1.2 billion, supported by a 7.6% benefit from the 53rd week despite a 1.8% M&A headwind and a 0.5% decline in organic net sales. Organic sales reflected a 0.8% decline in price/mix, partially offset by a 0.3% increase in volume. Adjusted operating profit decreased 18.5% to $139 million.International: Sales jumped 6.3% to $244 million, benefiting from 6% favorable foreign exchange and a 7.6% contribution from the 53rd week, partially offset by a 4.9% M&A impact and a 2.4% decline in organic net sales. Organic sales were affected by a 3% decline in volume, partly mitigated by a 0.6% increase in price/mix. Adjusted operating profit slipped 7.1% to $33 million.Foodservice: Net sales rose 8.1% to $302 million, driven by a 7.7% benefit from the 53rd week and 1.8% organic growth, partially offset by a 1.4% M&A headwind. Organic growth was supported by a 2.6% increase in price/mix despite a 0.8% decline in volume. Adjusted operating profit declined 6.9% to $29 million. For fiscal 2027, the company expects organic net sales to decline 1-3%, adjusted operating margin to be in the range of 10-10.5%, and adjusted EPS of $1.40-$1.50. The outlook also assumes equity earnings of approximately $140 million and free cash flow conversion of more than 90%. Since the earnings release, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -20.88% due to these changes. At this time, Conagra Brands has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Conagra Brands has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months. Conagra Brands is part of the Zacks Food - Miscellaneous industry. Over the past month, General Mills (GIS), a stock from the same industry, has gained 0.5%. The company reported its results for the quarter ended May 2026 more than a month ago. General Mills reported revenues of $4.61 billion in the last reported quarter, representing a year-over-year change of +1.2%. EPS of $0.95 for the same period compares with $0.74 a year ago. For the current quarter, General Mills is expected to post earnings of $0.73 per share, indicating a change of -15.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.7% over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for General Mills. Also, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Conagra Brands (CAG) : Free Stock Analysis Report General Mills, Inc. (GIS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Conagra Brands, Inc. CAG is entering fiscal 2027 with a plan to raise prices while input costs remain elevated. The strategy is designed to protect profitability after inflation and volume-focused investments compressed margins.The key test is whether pricing can stabilize earnings without driving a sharper decline in unit demand, especially in frozen foods where management expects unusually high elasticity. Image Source: Zacks Investment Research Conagra expects fiscal 2027 organic net sales to decline 1%-3%. Adjusted operating margin is projected at 10%-10.5%, while adjusted earnings are forecast at $1.40-$1.50 per share.Those targets mark a reset from fiscal 2026, when adjusted operating margin was 11.3% and adjusted earnings were $1.72 per share. The outlook shows that pricing and productivity are unlikely to fully offset inflation, investment spending and weaker volumes in the near term. Conagra Brands price-consensus-eps-surprise-chart | Conagra Brands Quote Management is shifting toward profitable growth after concluding that its earlier emphasis on volume came at too high a cost to margins. Strategic, inflation-justified pricing will focus heavily on frozen products, where profitability has faced the most pressure.The trade-off is demand. Conagra expects volumes to fall at a mid-single-digit rate and has assumed larger-than-historical elasticities in frozen. Higher prices may support price/mix, but they could also reduce household purchases and weaken retailer movement before brand investments gain traction. Fourth-quarter inflation, including core inflation and gross tariffs, was about 6.5%. Beef, edible oils, crude oil and logistics remained key cost pressures, while lower internal production volumes created unfavorable operating leverage.Fiscal 2027 guidance assumes inflation, including the tariff wrap, of roughly 5%-6%. Conagra also expects about $40 million of expense tied to prior tariff mitigation. Oil, logistics and tariff pressure should be heavier in the first quarter, when adjusted operating margin is expected in the high single digits. Image Source: Zacks Investment Research Conagra reduced its annualized dividend 50% to 70 cents per share. The move is expected to generate about $335 million of additional discretionary cash each year for debt reduction, brand support and supply-chain modernization.Cash preservation matters because capital expenditures are projected to rise to about $550 million from $423 million in fiscal 2026. Net leverage ended fiscal 2026 at 3.83 times and is expected near four times in fiscal 2027, limiting flexibility despite the lower payout. Frozen consumption volume increased 3% in the fourth quarter, while snacks dollar consumption rose 1.9%. Volume-share gains in frozen meals, frozen vegetables and meat snacks indicate that parts of the portfolio can still respond to innovation and merchandising support.Conagra plans to raise advertising and promotion spending 14%, with frozen meals and meat snacks among the priorities. General Mills, Inc. GIS is likewise investing to improve brand relevance and organic growth, while The Kraft Heinz Company KHC continues to reshape operations around growth priorities. That industry backdrop raises the execution bar for Conagra. Pricing may ease some margin pressure, but the fiscal 2027 reset leaves limited room for execution errors. Volume sensitivity, persistent inflation and elevated leverage support a cautious view until profitability begins to stabilize.CAG currently carries a Zacks Rank #5 (Strong Sell), reflecting unfavorable near-term earnings estimate revisions. Its Value Score of B, Growth Score of B and VGM Score of B provide some support, but the Momentum Score of C and the weak rank remain more important for near-term timing. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Conagra Brands (CAG) : Free Stock Analysis Report General Mills, Inc. (GIS) : Free Stock Analysis Report Kraft Heinz Company (KHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Chicago, IL – July 30, 2026 – Zacks Director of Research Sheraz Mian says, "For the 216 S&P 500 companies that have reported Q2 results, or 43.2% of the index’s total membership, total earnings are up +58.1% from the same period last year on +12.2% higher revenues." Q3 Estimates Increase for Tech and Finance, Fall for Consumer Staples Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: For the 216 S&P 500 companies that have reported Q2 results, or 43.2% of the index’s total membership, total earnings are up +58.1% from the same period last year on +12.2% higher revenues, with 86.6% beating EPS estimates and 77.3% beating revenue estimates. This is a notably better showing from these 216 index members relative to other recent periods, both in terms of the earnings and revenue growth rates as well in terms of the beats percentages. The EPS and revenue beats percentages for these 216 index members are notably tracking above the averages for this group of companies over the preceding 20 quarters. The Q2 earnings and revenue growth rates have been boosted by Micron’s MU blockbuster quarterly results and Alphabet’s GOOGL unrealized gain on its SpaceX SPCX stake. However, the earnings and revenue growth rates would still compare favorably with other recent periods when we exclude Micron and Alphabet from these results. Excluding Micron and Alphabet, Q2 earnings for the remaining 214 index members that have reported Q2 results would be up +17.8% (vs. +58.1% otherwise) on +9.8% higher revenues (vs. +12.2% otherwise). For the Finance sector, we now have Q2 results from 69.7% of the sector’s market capitalization in the S&P 500 index. Total earnings for these Finance companies are up +25.1% from the same period last year on +16.2% higher revenues, with 87.3% of companies beating EPS estimates and 78.2% beating revenue estimates. This is a notably better performance from these Finance companies relative to what we have seen from the group in other recent periods. Broad Q2 Outperformance Sustains Positive Revisions Trend Despite Consumer Discretionary & Staples Drag The Q2 earnings season continues to validate our bullish outlook on corporate earnings. An above-average percentage of companies are topping consensus top- and bottom-line estimates while offering constructive commentary for upcoming quarters. This solid execution is sustaining a positive revisions trend, with Q3 earnings estimates rising across 8 of the 16 Zacks sectors since early July—extending the favorable momentum observed in recent quarters. Positive revisions have been particularly notable in Energy, Basic Materials, Tech, and Finance. Conversely, 7 of the 16 Zacks sectors have seen their Q3 estimates revised lower this month, led by cuts in Consumer Staples, Consumer Discretionary, and Autos. The pressure on Consumer Staples directly reflects the exhaustion of sector pricing power. Procter & Gamble’s PG recent earnings miss and conservative outlook underscore escalating consumer pushback against price hikes, which had previously driven sales growth and margin expansion. While everyday essentials typically provide steady defensive cash flows, budget-strained shoppers are increasingly migrating to private-label store brands or paring back unit purchases. P&G is hardly an isolated case—recent updates from Conagra Brands CAG and PepsiCo PEP confirm a broader industry pattern of weakened pricing power and stagnant volume growth. The Earnings Big Picture Estimates for full-year 2026 have also been steadily going up, particularly since the start of March. Full-year 2026 earnings estimates have increased for 11 of the 16 Zacks sectors since the start of March, with the most pronounced gains at the Energy, Basic Materials, Tech, Industrials, Utilities, and Business Services sectors. On the negative side, estimates have been under pressure for the Transportation, Autos, Medical, and Consumer Discretionary sectors since the start of March. History suggests that these favorable revisions will get a boost from the Q2 earnings season and updated management guidance. Free: Instant Access to Zacks' Market-Crushing Strategies Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached. Get all the details here >> Follow us on Twitter:  https://twitter.com/zacksresearch Join us on Facebook:  https://www.facebook.com/ZacksInvestmentResearch/ Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Media Contact Zacks Investment Research 800-767-3771 ext. 9339 [email protected] https://www.zacks.com Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Procter & Gamble Company (The) (PG) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report Conagra Brands (CAG) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Space Exploration Technologies Corp. (SPCX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, July 15, 2026 at 9:30 a.m. ET Senior Director of Investor Relations - Matthew Neisius President and Chief Executive Officer - John Brase Operator: Good morning, and welcome to the Conagra Brands Fourth Quarter Fiscal 26 Earnings Q and A Call. All participants will be in listen only mode. Then 0 on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. Please also note today's event is being recorded. I would now like to turn the conference over to Matthew Neisius, Senior Director of Investor Relations for Conagra Brands. Please go ahead. Matthew Neisius: Good morning, everyone, and thank you for joining us. This morning I am joined by John Brase, our CEO. Due to unforeseen circumstances, David is unable to join us this morning, but sends his regrets. So John and I will be taking your questions. We may be making some forward looking statements in discussing non GAAP financial measures during this Q and A session. Please see our earnings release, prepared remarks, presentation materials and filings with the SEC the Investor Relations section of our website for descriptions of our risk factors, GAAP to non GAAP reconciliations, and information on our comparability items. I will now ask the operator to introduce the first question. Operator: Thank you, sir. Today's first question comes from Andrew Lazar at Barclays. Please go ahead. Andrew Lazar: Great. Thanks so much. Good morning and welcome, John. John Brase: Thank you, Andrew. Andrew Lazar: Sure. I guess, the my question would be, even with the dividend cut, leverage is still expected to rise in fiscal 27 given the business reinvestment needs both A and P and supply chain as well as I am assuming some volume deleverage impacts. Are the balance sheet constraints causing you to not invest as much as you would have truly liked to this coming year? As your early work suggested that what you proposed is appropriate, you know, with some flex built in as things rarely go sort of exactly as planned. And I asked because early investor discussion certainly seems to suggest many feel that the reinvestment planned at this stage looks insufficient. Thanks so much. John Brase: Hey, thanks again for the question, Andrew. As I discussed in my opening remarks, I really believe a balanced approach to capital allocation is critical to the long term success of the company. The dividend cut, it is going to enable us over time to progress towards that 3.0 leverage target, which is really important to enable the strategic optionality to reshape the portfolio over time. But it is also unlocking some meaningful investments in the business in fiscal 2027. We talked about the $40 million increase in brand building which is a 14% increase. Along with an incremental $125 million in capital. it is really going to help drive supply chain resilience and also lower cost by moving more production in house. I would say relative to brand building. I would call this a first move towards efficiency We are going to continue to increase our investments behind our strategic growth brands to drive trial and preference. So overall, I really do believe these are the immediate right investments. But as you know, I am still in the early innings here. I can assure you we are going to continue to look for additional opportunities to invest where we can accelerate our path to profitable growth. Thank you. Operator: Thank you. And our next question today comes from Peter Galbo at Bank of America. Please go ahead. Peter Galbo: Hey, good morning, John and Matthew. Thanks for taking the question. John, I was maybe hoping to piggyback off of that question from Andrew. Specifically, your plan to stabilize and improve margins in the frozen business, which I think you are looking to do via some pretty significant pricing actions. But you are also, I think, at the same time reinvesting. So I just think there is a bit of confusion around we want to grow margins in the frozen business, but also we want to reinvest at the same time. And so maybe you can just help us reconcile those 2 kind of priorities and pillars that you have in the plan because I think there is a bit of confusion around which 1 is ultimately going to win out. Thanks very much. John Brase: Yes. Thanks Peter. I think over the past couple of years as you are well aware, we have invested significantly to drive volume improvement and that is yielded solid results but it is also resulted in significant margin compression. I would tell you as inflation persisted in 2027, just have to remain agile as we look to offset continued cost pressure. Our first line of defense will always be to use productivity to fight inflation. We are targeting another year productivity above 4%, but we are also going to have to lean on inflation justified pricing where necessary. Just to give us the fuel that we need to invest in our business and with customers to drive that long term growth. I would say this is all about balance ensuring we are priced competitively and also passing along inflation justified prices where we need to. To give us the ability to drive our brands in the categories that we compete in. I want to make sure you hear something importantly, though, we are not backing off our commitment to frozen. We are making significant incremental investments in brand building like I just talked about. In fiscal 27. And we have probably our strongest innovation pipeline in place to delight the consumer. And I think as you think about elasticity we have been very prudent in our elasticity assumptions Our guidance is assumed higher than historical elasticities with volumes down mid single digits really weighted towards frozen. So I think we have taken a prudent approach to how we plan the year. Okay. Thank you. Operator: And our next question today comes from David Palmer at Evercore ISI. Please go ahead. David Palmer: Thanks. I guess my 1 question would be, what you are going to be tracking the most? There is a lot of variables that go into any fiscal year. You have a guidance range. If you are going to hit the high end of that guidance, what will be going right What are some of the key things that you are specifically going to be tracking and watching that you think are the key variables you might be price elasticities in certain key brands in frozen for example, but I would love to understand how you are thinking about the key variables going into this year. Thank you. John Brase: Yes, a couple of thoughts here. I think you hit the first 1, which is, I think, the price elasticity. And again, as I want to reinforce, I think we have taken a very prudent approach We are expecting higher than historical elasticities. That is probably the most important thing we will be watching on the top line. I think the next thing is to really continue to drive those productivity savings. We benchmark productivity above 4%. And we have to ensure that those productivity savings are flowing to the bottom line. And so I think that would be another important marker. But Matthew anything else you want to build? I think as you go down the P and L inflation of 5% is what we called out relative to productivity above 4%. Matthew Neisius: So that continues to be a pressure point with inflation exceeding productivity. However, I will note the pricing we are putting in place mid Q2, we are only getting a half a year impact of that. So as we get into FY 2028, we should have a favorable wrap on that piece as well. So I think those pieces get you to gross margin that is roughly flat on the year. And then John talked about the step up in A and P that we are going to have, which really is get you to the margin guidance that we gave. Then just in terms of other swing factors, you know, Ardent Mills is always 1 that we keep an eye on. Right, wheat prices have been a bit more volatile of late, but it is always challenging to extrapolate that into a full year. So as we rolled everything up, as John mentioned, I think you know, we have given our best shot at how we think the year is going to play out while also building in some prudent assumption where we felt necessary. John Brase: Great. Thank you. Operator: And our next question today comes from Robert Moskow with TD Cowen. Please go ahead. Robert Moskow: Hey, thanks. John, maybe you could give a little more color on how you went about trying to figure out what the new earnings base should be Did you consider something even lower like $1.20 even just to fully clear out any further downside and create a path. And if not, you know, is there kind of a margin here? Like, the margins are pretty low at 10%. Is getting below that line just kind of dangerous for the business? Is that 1 of the, you know, the concerns you had? John Brase: Robert, thanks for the question. I think on as you think about EPS next year, again, I think this is a balancing act. And I will continue to use that. We wanted to give ourselves the room to invest meaningfully back into the business, which we have done. With the step up in A and P and also in capital to really drive the supply chain resilience and also obviously the cost savings that come from repatriating some of our manufacturing back in house. I think we wanted to enable sufficient investment back into the business. You talk about margin and I think it is important that we kind of take the actions necessary to get ourselves to what I would call healthy structural margin that can build a foundation for profitable growth from I think we have threaded that balance right as we think about fiscal 27. Okay. Thank you. Operator: Thank you. And our next question today comes from Leah Jordan with Goldman Sachs. Please go ahead. Leah Jordan: Good morning. Thank you for taking my question. Thank you, John, for all the detail you have already provided today. You know, John, you talked about being in attractive categories with significant runway for growth, and we see you are leaning into investments in frozen and meat stacks today. But then you also talked about the potential to simplify your portfolio. Just looking for more detail around that, how do you think about the cyclical versus structural headwinds of the industry today? What does normalized category growth look like for you and your business? When do we get there? Which of your categories are better positioned long term? Thank you. John Brase: Leah, I am glad you brought up portfolio and I want to start and you heard my remarks. Really do believe today as we look at the portfolio, it is been too large, it is been too complex for too long and this is an area we definitely want to address. So, portfolio reshape is going to be a meaningful part of our strategy moving forward. Going to be very thoughtful and strategic about the approach that we take. And I will tell you a couple of things here. 1, I really like the growth categories that we have outlined. I think our frozen portfolio, I think we are positioned. We have a strong competitive advantage. We have scale. I believe frozen is on trend. We have got the right innovation. And so I think this is a segment that we want to continue to win in. And I believe permissible snacking is the same. I love our portfolio there with meat snacks, our seeds business, our popcorn business, and even some of our permissible sweet snacks are performing incredibly well. Those will continue to be the growth drivers. I think while we look at driving a portfolio that is more efficient and effective moving forward. Thank you. Operator: Thank you. And our next question today comes from Nick Modi at RBC Capital Markets. Please go ahead. Nick Modi: Yes. Hi. Good morning, everyone. Thanks for taking the question. So just a quick follow-up to that question, John. I just want to clarify that no portfolio shaping has been embedded into the forward guide. Just I just wanted to clear that up. And I guess the bigger question is just as you have been in the seat now for about 6 weeks, and you think about the big picture, obviously, do not want to get ahead of any formal strategic updates. But just like when you look at the business, your observations, what are some of your highest conviction kind of observations in terms of the structural work that you believe needs to be done to get Conagra back on to a more sustainable growth track, whether it be cost structure, go to market, just talked about the portfolio shaping. Would love to get your thoughts on that and kind of how you think about the sequencing of those initiatives? John Brase: Yes, let me try to take those in order. I think first with the portfolio and thank you for the clarification. We are going to take a very thoughtful and strategic approach as we think about portfolio So, I think as you think about the long term portfolio, that will be a more of a mid to longer term impact. I think there is some opportunity we can do to clean up some of the portfolio in the near term. And you really think about that as a lot of SKU complexity I think there is some really nice opportunities we have to tighten up the portfolio that we have while we do the strategic review that I would call more of a mid to long term plays that comes to the portfolio. I think as you think about the first kind of 45 days in the business I think I want to start with the strengths. There are some things that really excite me about this business. We have got some great brands and some very attractive categories I have been incredibly impressed with the innovation capabilities of Conagra. And I think we are really ahead of the ball when it comes to kind of developing an advanced foundation in both technology and AI. And maybe most, we have got a deep, talented team and a great culture to build on. I think as I think through the opportunities and you will see those in actions we have taken in 2027. I do believe we are a bit out of balance today between this volume and margin. And I think finding that right balance between volume growth that is also structurally profitable is important. And so that is why we have made the moves in pricing. I do not believe we are investing enough in our brands and our supply chain. Again, why you have seen a significant step up in investment there. And this notion of complexity I really believe complexity can be the enemy of execution. And so, you know, we are going to really get after a simplification both in our organization and how we get work done Project Catalyst to be a nice enabler of that. But also as we think about the portfolio And what I am really excited about is we are planning as you saw in the notes and the remarks this morning Investor Day in early 27. that is where we will be able to kind of fully review the strategic plan moving forward. Great. Thank you. Operator: Thank you. And our next question today comes from Peter Grom at UBS. Please go ahead. Peter Grom: Great. Thank you and welcome, John. So I guess I wanted to just more follow-up on kind of the outlook and just get some perspective on kind of the shape of the year from a margin and earnings trajectory. Sounds like 1Q is going to be under some pressure. So I am just kind of curious how we should be thinking about the improvement from there. Just given the puts and takes around inflation and pricing? Matthew Neisius: Leah, thanks for the question. So for Q1 op margin, we pointed that in the high single digits. that is really impacted by a couple of things. Number 1, inflation. So inflation, as you know, up a bit as we got into our fourth quarter. that is going to take a little bit of time to flow through the P and L so that will start to impact Q1 in a bigger way. We also have the tariff wrap that we called out of $40 million to the year. that is really lapping some of the mitigating items we had last Q1. So as you think about the $40 million that is really going to over index to the first quarter. And then the step-up in A&P, that is going to be really throughout the year a piece in Q1, and a bit more back half weighted. So I think that is kind of how Q1 is shaping up. And then, you know, we gave the full year guidance where the pricing will go in mid second quarter. Think that is really where you are going to see the step up in gross margin just from that price mix turning a bit more positive especially in the frozen area where some of those pricing is concentrated? Peter Grom: Great. Thank you so much. I will pass it on. Operator: Thank you. And our next question today comes from Alexia Howard of Bernstein. Go ahead. Alexia Howard: Great. Just to follow-up on that about the pricing in Q2. Are you able to give us an idea of roughly how much that will be across the portfolio? And more importantly, what sort of price elasticity assumption are you making in terms of the impact on volumes as you take that? Matthew Neisius: Yes, Alexia, in our guidance, so we guided to volumes down mid single digits for the year and organic net sales. I suppose if you use the midpoint of down 2% gets you to a price mix figure of roughly plus 3% or so. So I think that is probably a fair starting place as you just kind of evaluate those considerations. And then I am sorry. Could you repeat your second question? Alexia Howard: No, it was really around the price elasticity. Just what gives you the confidence that the EPS numbers can come up come around so nicely in Q2? Is it mainly it is really just around the pricing? Matthew Neisius: Yes. Pricing is a big part of it. Think on the elasticity question, John mentioned, we have been very prudent in the assumptions that we put into the plan. I think for frozen, it is recognizing the current consumer environment. We have been a bit more we have leaned in a bit higher on the elasticities maybe relative to historical standards. Whereas grocery and snacks, I would say is more in that 1-to-1 level. So I think from an elasticity standpoint we feel good about what we put in the plan. it is clearly going to be 1 of the items we are paying very close attention to as we go throughout the year. But that is just 1 piece of it. I think productivity at above 4% really reflects continued effort across our organization to find cost savings. We mentioned some of the in sourcing initiatives that we have that give us better control of our supply chain while also removing costs So I think it is a number of factors that kind of come together to make the year. But from a phasing perspective, I think the pricing is not insignificant. So that is when you will see it is largely in Q2 and beyond. Alexia Howard: Thank you. I will pass it on. Operator: Thank you. And our next question today comes from Max Gumford with BNP Paribas. Please go ahead. Max Gumford: Hey. Thanks for the question. So you are clearly prioritizing investments, your prepared remarks suggest a bit of a pivot from a focus on stabilizing volumes to stabilizing margins. You discussed how past margin compression was partially driven by an emphasis on driving volume at the expense of margin, most notably in frozen. And we can clearly see the impact that is had on the business. Your operating margins have fallen from 16% just a few years ago. to your guidance now calling for 10% to 10.5% However, at the same time, organic volumes are now expected to decline 6 fiscal years in a row. And I understand you cannot have margins keep falling But outside of tobacco, I cannot think of many CPG businesses that have thrived as consistent volume declines, particularly given high fixed costs. So why is this pivot the right approach? And how many more years of volume declines do you believe the business has the capacity to suffer through? Thanks very much. John Brase: Yes. Again, I think this is there is this continues to be about balance, right? And we are managing both the impact on the consumer with our volume assumptions. But again, we have to have the right structural margins to fuel the future investments. I think we have been very, very thoughtful and deliberate about our pricing strategy. What I can tell you is we are going to continue to be agile in our pricing to make sure that we find the right balance between the right margins and being competitive on the shelf in a time where we know the consumer is being very value conscious. I think 1 of the things that gives me a great confidence is the portfolio and the power of the portfolio using frozen as an example. We have got a portfolio that really plays across the full value spectrum. And I think that also gives us some insulation as you think about these pricing moves We have got places for the consumer to go within our portfolio no matter what the value challenges might be that they are facing. Matthew Neisius: And Max, I would just add. I think, you know, this environment that we have experienced the past several years is not necessarily normal in terms of the level of inflation that we have seen in our business. So, you know, the past several quarters, we have talked about the need to be agile and if inflation is going to be persistent and elevated again, then pricing may be on the table. So I think the plan that you are seeing today reflects that while also balancing other investment needs in the business including A and P, including CapEx, So I think I think to John's point, balance is probably a keyword there. Max Gumford: Okay. Thanks very much. Operator: Thank you. And our next question today comes from Christopher Carey at Wells Fargo. Please go ahead. Christopher Carey: Hi, everyone. I wanted to go back to the complexity reduction part of your key priorities John. So you said the portfolio has been too large and too complex for too long, but also that like, SKU rationalization or portfolio cleanup will be more of a medium term endeavor. Nevertheless, can you give us a sense of where you see this complexity? Is it in a SKUs that have become too plentiful? Is that in the structure of the portfolio at large? Does a dividend reduction allow you to consider larger transactions for bigger pieces of your business? Are there implications for your supply chain, which is already dealing with a bit capacity issues? I just I realize it is still early days, I think investors would agree with the complexity observation and just a bit more detail on where you see that from product or, you know, portfolio segmentation or even your reporting segments? I would love any additional color if you have it. Thanks. John Brase: Leah, I want to start with the positive. We have got some real gems in this portfolio. So I think a big part of the simplification and prioritization is to allow us to disproportionately focus our resources and our investments on the brands that we believe can really drive profitable growth for the portfolio. So I really look at this as allowing more focus and attention on the brands and the segments where we have a right to win and we believe we can win. And so I think to hit your question directly, really think we are the right approach is to attack this from both a bottoms up and a top down. Perspective. And again, I think about bottoms up, this really is taking a bit of a zero based approach to our SKUs. We need to ensure that all of the SKUs in our portfolio are playing a key role in delighting our consumers and our customers. But they are also creating value for the enterprise. And again I think looking at making each view each item kind of earn their keep is going to be important. So we will be doing a very robust kind of bottoms up look at all of the items, all of our 5.5 thousand SKUs across the portfolio to ensure they are doing that. I think at the same time on a parallel path we are going to take a very prudent top down approach. You heard me talk about we are going to be thoughtful and strategic here. But really starting with what do we want this portfolio to look like 5 years from now and how we are to get there. And I think that is going to take some time. that is probably the piece that I would call more of a mid to long term perspective. I think we will have a lot more to share on that strategic direction of the portfolio when we are at Investor Day in early 27. Okay. Thank you. Operator: Thank you. And our next question today comes from Matthew Smith at Stifel. Please go ahead. Matt Smith: Hi, good morning. I wanted to come back to the part of your plan around increasing investment in the supply chain. You called out improving resilience and some investment to unlock savings. The guidance this year includes a step up in I think it is above 5% of sales at this point. When we think about the level of spending this year, Is this a unique amount related to some capacity projects? Would you expect CapEx investment in the supply chain to kind of ratchet down in future years, or do you think it needs to remain elevated as you pursue this resiliency and productivity savings? Thank you. Matthew Neisius: Leah, Matthew, I can take that 1. So I think for CapEx, our long term guidance is between 4% to 5% of net sales. This year is obviously towards the upper end of that And in part, that is some of the bigger in sourcing projects that we have planned this year. We have talked about fried chicken in the past and more broadly just our belief in protein. So that is a big project. I would say roughly $100 million of the year over year step up in CapEx is related to that. But as we go forward, I think resiliency is going to be 1 of the things that we continue prioritize. So that 4% to 5% of net sales range probably feels right going forward. But rest assured, our supply team is hard at work evaluating projects, ensuring we have a really strong foundation in our supply chain while also tackling some of these more modern manufacturing initiatives around technology, around AI, and really trying to simplify the way we work even within our manufacturing facilities. Operator: Thank you. And our next question today comes from Scott Marks at Jefferies. Please go ahead. Scott Marks: Hey, good morning all. Thanks for taking our questions. Just wanted to follow-up a bit on that supply chain resiliency. I guess how should we be thinking about maybe just benchmarks along the way as you go through this investment phase? When should we be expecting certain milestones to be hit Or what milestones are you looking for that kind of signal to the investment community that you guys are making real progress and you feel comfortable with where you are and how things are going? Thanks. John Brase: Yes. There are things that we will continue to look at really is things like our service levels, right? And we want to continue to operate in that 98% to 98.5% kind of service levels. that is probably the cleanest indicator. Are we delivering the product at the right time for our customers? that is probably the strongest indicator. And then I think it is trying to minimize any of those business interruptions that come from a supply challenge. And so our goal is zero. Right? We do not want any supply disruptions to kind of get in the way of delighting our consumers and our customers. So I think those are some of the key markers that we will look at. But Matthew anything to build here? Matthew Neisius: I think the last piece I would just highlight is inventory and working capital management. Which for us has been a huge priority these past couple of years. In FY 2026, again, we took out a significant amount of in terms of days and dollars. Which as you think about our other priorities really helps from a cash flow perspective, from a leverage perspective. So I think that is just 1 of those other areas of the supply chain that as we look to become more efficient and effective, our inventory balance and days of inventory will be another marker that we will keep an eye on. Operator: Thank you. Our next question today comes from Steve Powers at Deutsche Bank. Please go ahead. Steve Powers: Hey, thanks. Hi, John, good morning. Maybe stepping back a little bit, I guess over these first 6 weeks, you have emphasized the importance of listening to external stakeholders, including retail customers and investors. Maybe reflecting on those conversations, was there particular feedback that stood out or surprised you most? And maybe did the feedback you received externally challenge assumptions that the organization may have held previously that leads to the plan you outlined today. And I guess as an extension, what is been the buy in on the plan you have outlined today as you have begun to present it internally? John Brase: Thanks for the question because I think it is really important to reemphasize the first 45 days I have spent a lot more time listening and learning. Each of you have been incredibly helpful, our internal team, customers, consumers all of which have been really, really informative. I think a couple of things have really resonated. We have hit on these but I think important to reinforce the importance of simplification and prioritization. I think that was a theme loud and clear that I have heard internally and externally the need to simplify and prioritize as we think about our portfolio but also even how we get work done. And so I am really excited about some of the portfolio work that we are going to continue to embark on but also project catalyst which is going to help us do work more efficiently and effectively. I would say it is to get our folks more time building the business than managing and tracking the business and Catalyst will be a major enabler there. So I think that is the first 1. I think the second 1 is really it is about my words matter, but our actions matter even more. And I think this notion of restoring credibility by delivering on our commitments. And so I think what you will hear today is a plan. And then our job now is to go deliver that plan with no excuses. And I think you will see high accountability from our team in delivering what we say we are going to do to the external world, I think, is another critical 1. I think the last 1, and again, a theme that we have discussed throughout the session is the need to invest back in the business. And again, why we have created a plan that does create some of that flexibility both in the balance sheet and in the P and L to invest back in ourselves. And I think that is really critical. So those are probably 3 of the top themes and we have acted on all 3 of those in this fiscal year. But I would tell you there is still a lot to learn. I am going to continue to stay on the learning journey. I think you will see the full summation of what we have learned and how we are going to make our strategic pivots as we spend more time talking to you through the strategic plan. in early 2027. Great. Thank you very much. Operator: Thank you. And our next question comes from Priya Gupta with Barclays. Please go ahead. Priya Gupta: Great. As you talk to the rating agencies about some of the actions that you have taken around the dividend as well as your reinvestment for next year. What are their thoughts around your current ratings and outlooks? And how should we be thinking about the timeline to get back to that 3.0x target that you have and whether that is sort of been baked into the current recent outlooks from the agencies as well? Thank you. Matthew Neisius: Leah, thanks for the question. We have really good relationships with our rating agencies. And as you can imagine, they are up to speed on our latest thinking. But obviously, dividend cut from a credit perspective is probably seen as a positive there. I think it really does help accelerate our path to getting back to that 3 times number. Like, if you just look at the next 3 years or so, the level of the dividend cut frees up roughly $1 billion of incremental cash flow. A good amount of which will help us delever, continue to pay down debt. The other thing I would also highlight is just the focus on cash flow at this company is across the board. We delivered free cash flow conversion of 119% this year that is the third year in a row of above 115%. Which really just reflects the focus company wide on driving cash at this company. And I can assure you that we are not going to stop. that is something that is gonna continue into next year. But overall, I think with the rating agencies, I think they understand the plan. They understand the need for balance, and they understand our commitment to the investment grade credit rating. Great. Thank you so much. Operator: Thank you. And our next question today comes from Brian Callan at Bank of America. Please go ahead. Brian Callan: Hi, thank you. Just a quick follow-up question to that, maybe on a shorter term basis. How are you planning to handle the October debt maturities? Are hybrids considered in the 4x leverage guide? Or any incremental debt repayment that is embedded in the, I guess, the interest expense guidance, just kind of what is baked into that interest expense and the 4.0x number? Thank you. Matthew Neisius: Leah, I think what you will find in the interest expense number is a continued focus on debt pay down. So with the dividend reduction this year, we will get 3-fourths of the benefit into fiscal 27. A good amount of that cash will go to continuing to delever And then part of the cash as we laid out in terms of the A and P investments and the CapEx investments. Will go to that as well. So in terms of the refinancing, we do have some notes coming due, you know, here in October. I think right now, we are continuing to evaluate what our options are there, but I would say we have a number of options, whether that is commercial paper whether that is term loans, whether that is public notes, So the teams are hard at work figuring out a plan to refinance either a portion of those or all of those. I would say more to come there. Thank you. Operator: Thank you. And that concludes our question and answer session. I would like to turn the conference back over to Matthew Neisius for any closing remarks. Matthew Neisius: All right. Thank you so much, and thank you all for joining us today. Please reach out to Investor Relations if you guys have any additional follow-up questions. Thank you. Operator: That concludes today's conference call. Thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day. Before you buy stock in Conagra Brands, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Conagra Brands wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and 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 $370,332!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,272,280!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of July 22, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Conagra (CAG) Q4 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: July 15, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Conagra Brands Inc (NYSE:CAG) delivered fiscal 2026 results within their original guidance ranges despite a dynamic environment. The company has strong innovation capabilities and a proven ability to develop products that resonate with consumers. Conagra Brands Inc (NYSE:CAG) has established an advanced foundation in technology and AI, which can be leveraged for productivity and decision-making. The company is increasing advertising spend by 14% year-over-year to support key growth brands, particularly in frozen meals and meat snacks. Conagra Brands Inc (NYSE:CAG) made significant progress in reducing debt, lowering net debt by almost $1 billion versus fiscal 2025. The focus on volume and margin has become imbalanced, leading to a need for margin restoration. There has been insufficient investment in brands and supply chain, affecting consumer relevance and service reliability. Complexity across the portfolio and organization has hindered strong execution and slowed decision-making. The current capital allocation limits financial flexibility, necessitating a reset of the dividend to improve financial flexibility. Adjusted operating margin and adjusted earnings per share were down versus the prior year, reflecting challenges in profitability. Warning! GuruFocus has detected 3 Warning Sign with CAG. Is CAG fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the strategic pricing actions you plan to implement, particularly in the frozen business? A: John Brase, CEO: We are focusing on strategic inflation-justified pricing actions, especially in our frozen portfolio. While these actions may pressure volumes in the short-term, they are essential for restoring margins and funding necessary investments for long-term health and growth. Q: What are the key priorities for Conagra moving forward? A: John Brase, CEO: Our four main priorities are to stabilize and restore margins, increase investment in our brands and supply chain, simplify and reduce complexity within our portfolio and organization, and rebalance capital allocation. These priorities are interconnected and aimed at building a strong foundation for profitable growth. Q: How do you plan to address the complexity within the organization? A: John Brase, CEO: We aim to achieve radical simplicity by prioritizing our time and capital on the most critical areas. This involves simplifying our portfolio and leveraging technology, including AI, to streamline processes and enhance decision-making. Q: What is the rationale behind the dividend reset, and how will it impact capital allocation? A: David Marberger, CFO: The dividend reset is intended to realign our capital allocation, accelerate progress toward our leverage target, and support critical investments. This action will provide approximately $335 million of additional discretionary cash annually, enhancing our financial flexibility. Q: Can you provide more details on the fiscal '27 guidance? A: David Marberger, CFO: For fiscal '27, we expect organic net sales to decline by 1% to 3%, adjusted operating margin to be between 10% and 10.5%, and adjusted EPS to be between $1.40 and $1.50. These projections reflect our strategic actions to balance top-line growth and margin restoration. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Conagra Brands, Inc. CAG used its fourth-quarter fiscal 2026 earnings call to outline a reset focused on restoring margins, improving supply chain capabilities and simplifying the portfolio. Management emphasized balancing near-term profitability with investments intended to strengthen future performance. The company reported adjusted EPS of $0.47, ahead of the Zacks Consensus Estimate of $0.46, while revenues reached $2.882 billion compared with the consensus estimate of $2.876 billion. Management’s discussion centered more on strategic changes than on quarterly results. Conagra Brands price-consensus-eps-surprise-chart | Conagra Brands Quote CEO John Brase said the company is prioritizing a healthier margin structure after several years of emphasizing volume growth. He highlighted the need to balance competitive pricing, investment levels and profitability as Conagra works toward a stronger operating foundation. The company’s fiscal 2027 outlook reflects this shift, with organic net sales expected to decline 3-1%, adjusted operating margin targeted at 10-10.5%, and adjusted EPS projected at $1.40-$1.50. Management also pointed to productivity as a key driver, targeting productivity savings above 4% while addressing inflation pressures. Executives noted that pricing actions will play a role in supporting investment capacity. Brase said the company plans to increase brand investment by $40 million, representing a 14% increase, while adding $125 million of incremental capital spending to strengthen supply chain resilience and reduce costs. The company expects fiscal 2027 capital expenditures of about $550 million, with free cash flow conversion above 90%. Management said investments are designed to improve manufacturing capabilities while supporting long-term efficiency. During the Q&A, a Barclays analyst questioned whether balance sheet constraints limited investment levels. Brase responded that the dividend reduction and capital allocation changes create room for both reinvestment and progress toward the company’s leverage target. Management maintained that frozen remains a strategic priority despite recent margin pressure. Brase said the company intends to continue investing in frozen brands while using pricing and productivity actions to rebuild profitability. The Refrigerated & Frozen segment generated $1.2 billion in fourth-quarter sales, but adjusted operating profit declined 18.5% to $139 million due to inflation, higher SG&A and unfavorable operating leverage. A Bank of America analyst asked about the balance between frozen margin improvement and continued investment. Management said pricing actions, productivity improvements and innovation spending are intended to address both priorities. Brase said portfolio simplification is a major focus, noting that the company plans to evaluate opportunities to reduce complexity and improve resource allocation. He said the review will include a detailed assessment of the company’s approximately 5,500 SKUs. Management highlighted frozen and permissible snacking categories, including meat snacks, seeds and popcorn, as areas where Conagra believes it has competitive advantages. A RBC Capital Markets analyst asked about the timing of portfolio changes. Brase said strategic portfolio actions would be a longer-term effort, while near-term opportunities include reducing SKU complexity. Conagra entered fiscal 2027 with a focus on improving execution while managing inflation and consumer sensitivity. Management said pricing assumptions and volume trends are key factors it will monitor throughout the year. The company reported fiscal 2026 adjusted EPS of $1.72, adjusted operating margin of 11.3% and free cash flow of $978.7 million. Net debt ended the year at $7.1 billion, with a net leverage ratio of 3.83X. Executives also said the dividend reduction is expected to support deleveraging efforts. Management expects the change to free roughly $1 billion of incremental cash flow over the next three years. Brase said his early focus has been listening to investors, customers and employees while identifying opportunities to simplify operations and improve accountability. He highlighted Project Catalyst as an initiative aimed at improving efficiency. Management’s message on the call was centered on rebuilding operational discipline through targeted investments, portfolio focus and stronger cash management. The company plans to provide additional strategic details at an Investor Day in early 2027. CAG carries a Zacks Rank #4 (Sell) at present, which indicates that the stock is currently positioned lower within the Zacks Rank system based on earnings estimate revisions. The Zacks Rank can change as analysts update their estimates following new company information. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The stock has a Value Score of A, a Growth Score of D, a Momentum Score of B and a VGM Score of B. The Zacks Style Score is designed to complement the Zacks Rank by evaluating value, growth and momentum characteristics, with higher grades representing stronger relative characteristics within each style category. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Conagra Brands (CAG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Conagra Brands (CAG) came out with quarterly earnings of $0.47 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.56 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2.17%. A quarter ago, it was expected that this company would post earnings of $0.4 per share when it actually produced earnings of $0.39, delivering a surprise of -2.5%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Conagra Brands, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $2.88 billion for the quarter ended May 2026, surpassing the Zacks Consensus Estimate by 0.21%. This compares to year-ago revenues of $2.78 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Conagra Brands shares have lost about 18.3% since the beginning of the year versus the S&P 500's gain of 10.2%. While Conagra Brands has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Conagra Brands was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.39 on $2.64 billion in revenues for the coming quarter and $1.65 on $11.14 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Miscellaneous is currently in the bottom 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Sysco (SYY), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This food distributor is expected to post quarterly earnings of $1.51 per share in its upcoming report, which represents a year-over-year change of +2%. The consensus EPS estimate for the quarter has been revised 0.1% lower over the last 30 days to the current level. Sysco's revenues are expected to be $21.9 billion, up 3.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Conagra Brands (CAG) : Free Stock Analysis Report Sysco Corporation (SYY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Conagra Brands, Inc. CAG reported fourth-quarter fiscal 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate. While net sales increased, earnings decreased from the year-ago period’s actuals. Conagra Brands’ adjusted earnings per share (EPS) for the quarter were 47 cents, beating the Zacks Consensus Estimate of 46 cents. The bottom line dropped 16.1% year over year. Conagra Brands price-consensus-eps-surprise-chart | Conagra Brands Quote Net sales increased 3.6% year over year to $2,882.1 million, slightly exceeding the Zacks Consensus Estimate of $2,876 million. The increase reflected a 7.7% benefit from the 53rd week and a 0.5% favorable foreign exchange impact, partly offset by a 4.6% headwind from M&A activity. Organic net sales remained flat, supported by a 1.6% increase in price/mix, which offset a 1.6% decline in volume, with the company gaining volume share in categories including frozen single-serve meals, frozen multi-serve meals, frozen vegetables, meat snacks, seeds and pudding. We had anticipated volumes to fall 1% while expecting a 1.5% pricing gain. Adjusted gross profit declined 1.6% to $706 million, while adjusted gross margin contracted 130 basis points to 24.5%, as productivity initiatives, approximately $6 million in tariff refunds and the benefit of the 53rd week were more than offset by cost inflation and unfavorable operating leverage. Our model projected adjusted gross margin contraction of about 110 basis points to 24.7%. Adjusted SG&A expenses, which include advertising and promotional expenses, increased 11% to $369 million, due to elevated incentive compensation and the impact of the 53rd week. Adjusted EBITDA declined 11% to $484.4 million. Grocery & Snacks: Net sales rose 0.3% year over year to about $1.2 billion, reflecting a 7.8% benefit from the 53rd week, partly offset by an 8% M&A headwind, while organic net sales grew 0.5%. Organic growth was driven by a 4% increase in price/mix, partially offset by a 3.5% decline in volume. Adjusted operating profit fell 4.1% to $216 millionRefrigerated & Frozen: Net sales increased 5.3% to $1.2 billion, supported by a 7.6% benefit from the 53rd week despite a 1.8% M&A headwind and a 0.5% decline in organic net sales. Organic sales reflected a 0.8% decline in price/mix, partially offset by a 0.3% increase in volume. Adjusted operating profit decreased 18.5% to $139 million.International: Sales jumped 6.3% to $244 million, benefiting from 6% favorable foreign exchange and a 7.6% contribution from the 53rd week, partially offset by a 4.9% M&A impact and a 2.4% decline in organic net sales. Organic sales were affected by a 3% decline in volume, partly mitigated by a 0.6% increase in price/mix. Adjusted operating profit slipped 7.1% to $33 million.Foodservice: Net sales rose 8.1% to $302 million, driven by a 7.7% benefit from the 53rd week and 1.8% organic growth, partially offset by a 1.4% M&A headwind. Organic growth was supported by a 2.6% increase in price/mix despite a 0.8% decline in volume. Adjusted operating profit declined 6.9% to $29 million. For fiscal 2026, Conagra Brands generated net cash from operating activities of $1,402.1 million. Capital expenditures totaled $423.4 million, resulting in free cash flow of $978.7 million. The company ended the year with net debt of approximately $7.1 billion, reflecting a year-over-year reduction and a net leverage ratio of 3.83. Conagra Brands declared a quarterly dividend of 17.5 cents per share, payable on Sept. 2, 2026, to its shareholders of record as of the close of business on July 30. For fiscal 2027, the company expects organic net sales to decline 1-3%, adjusted operating margin to be in the range of 10-10.5%, and adjusted EPS of $1.40-$1.50.The outlook also assumes equity earnings of approximately $140 million and free cash flow conversion of more than 90%.This Zacks Rank #4 (Sell) stock has fallen 3.7% in the past three months against the industry’s growth of 4.1%. Image Source: Zacks Investment Research United Natural Foods, Inc. UNFI distributes natural, organic, specialty, produce and conventional grocery and non-food products in the United States and Canada. At present, United Natural sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The consensus estimate for United Natural’s current fiscal-year earnings implies growth of 254.9% from the year-ago figures. UNFI delivered a trailing four-quarter earnings surprise of 29.9%, on average.Mama's Creations, Inc. MAMA manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA flaunts a Zacks Rank of 1. Mama's Creations delivered a trailing four-quarter earnings surprise of 129.2%, on average.The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 30% and 73.3%, respectively, from the year-ago figures. Hormel Foods Corporation HRL develops, processes and distributes various meat, nuts and other food products to foodservice, convenience store and commercial customers in the United States and internationally. It carries a Zacks Rank of 2 (Buy) at present. HRL delivered a trailing four-quarter earnings surprise of 3.2%, on average. The Zacks Consensus Estimate for Hormel Foods’ current fiscal-year sales and earnings indicates growth of 1.5% and 9.5%, respectively, from the prior-year reported levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Conagra Brands (CAG) : Free Stock Analysis Report Hormel Foods Corporation (HRL) : Free Stock Analysis Report United Natural Foods, Inc. (UNFI) : Free Stock Analysis Report Mama's Creations, Inc. (MAMA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research