Conagra Brands, Inc. (CAG)

Over the past six months, Conagra Brands' stock (CAG) has experienced a decline of approximately 25.50%. As of June 26, 2025, the share price was $20.50, marking a 27.66% decrease from $28.34 on June 27, 2024. Recent earnings reports have shown mixed results. In Q3 Fiscal Year 2025, Conagra reported an EPS of $0.51, missing analysts' estimates, and quarterly revenue fell 6.3% year-over-year. In Q2 Fiscal Year 2025, the company reported an EPS of $0.70, surpassing estimates. In Q1 Fiscal Year 2025, EPS was $0.53, missing estimates. Management has lowered its full-year Adjusted EPS guidance to $2.35 at the midpoint, and RBC lowered its price target for Conagra Brands from $27 to $25. The company has faced challenges with sales and volume slipping due to consumers pushing back against price hikes, and supply chain disruptions in frozen vegetables and snacks led to inventory depletion and product shortages. In fiscal year 2024, sales dipped 1.8% to $12.051 billion, and net income was nearly halved to $347 million. Conagra completed the $55 million sale of its Van de Kamp's and Mrs. Paul's frozen seafood brands to High Liner Foods and is proactively revamping its product line to remove artificial colors and introduce new items without synthetic dyes.

Conagra Brands' sales and cash flows are influenced by seasonal cyclicality. Demand for certain food items is affected by holidays, changes in seasons, or other annual events. Sales of frozen foods tend to be marginally higher during the winter months, and pie sales typically peak in November and December due to holiday demand. The production of some of Conagra's products is seasonal, occurring during or immediately following the purchase of agricultural crops. Strong consumer demand for frozen vegetables led to inventory depletion and out-of-stocks, necessitating product allocation and reduced merchandising in early 2025 to rebuild stock before the Easter holiday.

Conagra Brands, Inc. is a North American consumer packaged goods food company headquartered in Chicago, Illinois. The company focuses on branded, value-added consumer food products, foodservice items, and ingredients. Conagra's business model revolves around selling a diverse portfolio of popular food products, launching innovative new items, engaging in strategic acquisitions and partnerships, and producing private label and contract manufactured goods. Key brands include Birds Eye®, Duncan Hines®, Healthy Choice®, Marie Callender's®, Reddi-wip®, Slim Jim®, Angie's® BOOMCHICKAPOP®, Duke's®, Earth Balance®, Gardein®, and Frontera®. The company also has a significant equity investment in Ardent Mills, a milling business. Conagra holds a notable market share in industries such as Frozen Food Production, Snack Food Production, Meat Jerky Production, Frozen Cake & Pastry Manufacturing, and Meat Alternatives Production.

Conagra Brands relies heavily on the North American market for revenue, but also possesses a growing international footprint. The company's international segment sells branded food products outside of the United States, accounting for 8.2% of its net sales. Conagra exports its products to other countries and adapts its offerings to meet local tastes and preferences. The company has ownership interests in international manufacturing facilities in Bangladesh, Sri Lanka, India, and Mexico, and operates manufacturing facilities and sales offices in the US, Mexico, Canada, China, Panama, and the Philippines. Globally, Conagra Brands spans approximately 50 locations.

Conagra Brands' reputation has been impacted by product recalls and ongoing lawsuits. In February 2023, Conagra recalled over 2.5 million pounds of canned meat and poultry products due to a packaging defect. In September 2023, the company recalled over 245,000 pounds of Banquet frozen chicken strips meals after a consumer reported an oral injury due to plastic contamination. Conagra is facing a lawsuit alleging that some of its fish products are not 100% fish, and is among several packaged food giants named in a lawsuit claiming their snacks cause type 2 diabetes and target children. Conagra Brands is actively working to remove artificial colors from its frozen foods by the end of 2025 and across its entire portfolio by the end of 2027, and is also focusing on healthy snacking, particularly protein and fiber-rich products.

Conagra Brands' stock ownership is primarily held by institutional investors, who collectively own approximately 68.58% to 86.25% of the company's shares. Insiders hold about 0.55%, while public companies and individual investors account for roughly 30.87% to 32.81%. Major institutional shareholders include Vanguard Group Inc., BlackRock, Inc., and State Street Corp. Top mutual fund holders include Vanguard Total Stock Market Index Fund Investor Shares (VTSMX), Vanguard 500 Index Fund Investor Shares (VFINX), and Pacer US Cash Cows 100 ETF (COWZ).