Across 4 scored articles from Oct 16 to Nov 14, 2026 (UTC),
the average sentiment of Conagra Brands news is Slightly Bearish (-18)
on a scale from −100 to +100.
That is about the same as the previous 30 days (-14).
📉 Shares collapsed ~50% over five years after dividend halved to $0.175.
📉 Organic volume fell four quarters as frozen food revenue declined sequentially.
Bearish -60
This Consumer Staples Giant’s Dividend Now Depends on 1 Thing Turning Around
AI-generated analysis
Key insights
📉 Conagra Brands halved its quarterly dividend to $0.175, leaving a forward yield of ~5% as shares have collapsed nearly 50% over five years.
📉 Organic volume has fallen for four straight quarters, with revenue declining sequentially due to high price elasticity in frozen foods.
💸 Net leverage sits at 4x against a 3x target, while the reduced dividend still requires $334 million annually alongside $360 million in interest payments.
📉 Operating cash flow turned negative at -$4.2 million in Q1 fiscal 2027, with free cash flow dropping to -$127.9 million after CapEx.
💥 A $968 million non-cash goodwill and brand impairment was recorded in fiscal Q2 2026, worsening GAAP results significantly.
📉 Analysts remain cautious with 10 Hold ratings, three Sell ratings, and two Strong Sell ratings, averaging a $14.32 price target.
🛑 The company's ability to sustain the payout depends entirely on getting volume growing again amidst rising inflation and transportation costs.
📉 Q1 adjusted EPS of 41 cents beat estimates, but this was driven by SG&A timing, trading gains, and one-time items rather than core operational recovery.
🏭 Management is maniacally focused on reducing leverage to the 3x target, with total liabilities at $11.30 billion and equity down 28%.
📈 Bullish signals
📉Conagra Brands reported Q1 adjusted EPS of 41 cents, which beat the consensus estimate of 28.15 cents.
📈Ardent Mills equity earnings rose 71.8% to $50 million in the quarter, providing a partial offset to core weakness.
📈Foodservice segment grew by 3.2%, showing some resilience in specific business lines despite broader volume declines.
📉 Risk factors
📉Organic volume has fallen for four straight quarters, with revenue declining -5.8%, -6.8%, -1.9%, and -1.4% sequentially.
💥The company recorded a massive $968 million non-cash goodwill and brand impairment in fiscal Q2 2026.
📉Operating cash flow turned negative at -$4.2 million in Q1, while free cash flow was -$127.9 million after CapEx.
🏭Net leverage ended the quarter at 3.99x against a 3x target, with management admitting it is maniacally focused on getting there.
📉High price elasticity in frozen foods means every price hike shrinks volume further, exacerbating margin pressure.
📉Shares have lost 59.76% over five years and 27.47% over the past year, reflecting severe investor sentiment deterioration.
Article
Conagra Brands (CAG) has halved its quarterly dividend to $0.175, resulting in a forward yield of approximately 5% as shares have declined nearly 50% over the last five years. The company faces significant headwinds with organic volume falling for four consecutive quarters and revenue declining sequentially. High price elasticity in frozen foods means that necessary price hikes further suppress volume, creating a vicious cycle where lower volumes spread fixed costs over fewer units, eroding margins.
Financial metrics reveal a strained balance sheet with net leverage at 4x against a 3x target. The reduced dividend still requires $334 million annually, competing with $360 million in interest payments and substantial capital expenditures. Operating cash flow turned negative in the first quarter of fiscal 2027, while free cash flow was -$127.9 million after CapEx. A significant non-cash goodwill impairment of $968 million further impacted GAAP earnings, resulting in a trailing diluted loss.
The sustainability of the current payout hinges entirely on reversing volume declines and stabilizing organic sales. While adjusted EPS beat estimates due to one-time items and trading gains, analysts remain cautious with mixed ratings and a lowered price target. Management is maniacally focused on reducing leverage, but if volume continues to fall and leverage remains elevated, further dividend cuts or balance sheet stress are likely risks for shareholders.
Sector and industry come from company profile data. Sentiment is the AI score of the news articles on this page, averaged per day. Not investment advice.
Conagra Brands (CAG) has halved its quarterly dividend to $0.175, resulting in a forward yield of approximately 5% as shares have declined nearly 50% over the last five years. The company faces significant headwinds with organic volume falling for four consecutive quarters and revenue declining sequentially. High price elasticity in frozen foods means that necessary price hikes further suppress volume, creating a vicious cycle where lower volumes spread fixed costs over fewer units, eroding margins.
Financial metrics reveal a strained balance sheet with net leverage at 4x against a 3x target. The reduced dividend still requires $334 million annually, competing with $360 million in interest payments and substantial capital expenditures. Operating cash flow turned negative in the first quarter of fiscal 2027, while free cash flow was -$127.9 million after CapEx. A significant non-cash goodwill impairment of $968 million further impacted GAAP earnings, resulting in a trailing diluted loss.
The sustainability of the current payout hinges entirely on reversing volume declines and stabilizing organic sales. While adjusted EPS beat estimates due to one-time items and trading gains, analysts remain cautious with mixed ratings and a lowered price target. Management is maniacally focused on reducing leverage, but if volume continues to fall and leverage remains elevated, further dividend cuts or balance sheet stress are likely risks for shareholders.
📉 Shares collapsed ~50% over five years after dividend halved to $0.175.
📉 Organic volume fell four quarters as frozen food revenue declined sequentially.
💸 Operating cash flow turned negative at -$4.2 million in Q1 fiscal 2027.
💥 Recorded $968 million goodwill impairment worsening GAAP results in fiscal Q2 2026.
🛑 Analysts average $14.32 price target with 10 Hold and three Sell ratings.
📉 Conagra Brands halved its quarterly dividend to $0.175, leaving a forward yield of ~5% as shares have collapsed nearly 50% over five years.
📉 Organic volume has fallen for four straight quarters, with revenue declining sequentially due to high price elasticity in frozen foods.
💸 Net leverage sits at 4x against a 3x target, while the reduced dividend still requires $334 million annually alongside $360 million in interest payments.
📉 Operating cash flow turned negative at -$4.2 million in Q1 fiscal 2027, with free cash flow dropping to -$127.9 million after CapEx.
💥 A $968 million non-cash goodwill and brand impairment was recorded in fiscal Q2 2026, worsening GAAP results significantly.
📉 Analysts remain cautious with 10 Hold ratings, three Sell ratings, and two Strong Sell ratings, averaging a $14.32 price target.
🛑 The company's ability to sustain the payout depends entirely on getting volume growing again amidst rising inflation and transportation costs.
📉 Q1 adjusted EPS of 41 cents beat estimates, but this was driven by SG&A timing, trading gains, and one-time items rather than core operational recovery.
🏭 Management is maniacally focused on reducing leverage to the 3x target, with total liabilities at $11.30 billion and equity down 28%.
Bullish Signals
Q1 adjusted EPS beat consensus at 41 cents vs 28.15 cents.
Ardent Mills earnings rose 71.8% to $50M, offsetting core weakness.
Conagra Brands Inc (NYSE:CAG) recently announced a quarterly cash dividend of $0.18 per share, with an ex-dividend date of November 5, 2026, and a payment date of December 3, 2026. The company maintains a consistent dividend payment record dating back to 1986, distributing payments on a quarterly basis to provide income investors with a predictable cash flow stream.
As of the reporting period ending August 31, 2026, Conagra Brands Inc offers a 12-month trailing and forward dividend yield of 7.98%, which is notably high relative to the broader market. However, this elevated yield coincides with significant financial headwinds, including a dividend payout ratio of 3.44, indicating that current dividends exceed reported earnings.
The company's fundamental performance metrics show deterioration over recent periods. Over the past three years, annual revenue has decreased by approximately 2.70% per year, while earnings per share (EPS) have declined by an average of 53.40% annually. Additionally, the five-year EBITDA growth rate stands at -29.40%, reflecting substantial contraction in operating profitability compared to global competitors.
Despite a four-decade history of dividend payments, the sustainability of Conagra Brands Inc's distribution is under scrutiny due to its weak growth trajectory and high payout ratio. GuruFocus analysis highlights that while the company has reported net profit in 9 out of the past 10 years, the combination of declining top-line revenue, sharply lower EPS, and a payout ratio significantly above 1.0 suggests investors should treat the high yield with caution.
📅 CAG announces $0.18 quarterly dividend payable Dec 3, 2026.
💰 CAG trades at 7.98% yield, far above market average.
⚠️ GuruFocus flags seven warning signs due to weak fundamentals.
📉 Revenue declined 2.70% annually over past three years.
📉 EPS contracted 53.40% annually, placing CAG in bottom quartile.
📅 Conagra Brands Inc announced a $0.18 quarterly cash dividend payable on Dec. 3, 2026, to shareholders of record before Nov. 5, 2026.
💰 The company currently trades with a 12-month trailing and forward dividend yield of 7.98%, significantly higher than the broader market average.
⚠️ GuruFocus has identified seven warning signs for CAG, citing tension between its attractive yield and deteriorating financial fundamentals.
📉 Over the past three years, Conagra Brands Inc's revenue has declined by an average of 2.70% per year, underperforming approximately 72.53% of global competitors.
📉 Earnings per share have contracted sharply, with a 3-year average decline of 53.40% per year, placing the company in the bottom quartile of global peers.
📉 The five-year EBITDA growth rate is -29.40%, indicating severe compression in operating cash flow generation relative to industry standards.
💸 As of Aug. 31, 2026, Conagra Brands Inc's dividend payout ratio is 3.44, meaning the company is distributing more than three times its reported earnings.
📊 GuruFocus ranks Conagra Brands Inc profitability at 6 out of 10 and growth at 6 out of 10 as of Aug. 31, 2026, reflecting fair but not robust performance.
📈 The five-year yield on cost is approximately 10.48%, offering enhanced effective returns for investors who purchased shares five years ago despite recent declines.
🏭 Conagra Brands Inc operates primarily in the US retail grocery and mass merchandise channels, with a portfolio including Marie Callender's, Slim Jim, Hunt's, and Vlasic.
Conagra Brands Inc has maintained a consistent dividend payment record since 1986, demonstrating a four-decade commitment to returning cash to shareholders.
The company offers a high 12-month trailing and forward dividend yield of 7.98%, which is attractive for income-focused investors seeking current cash flow.
Risk Factors
Conagra Brands Inc's dividend payout ratio is 3.44 as of Aug. 31, 2026, indicating that dividends exceed reported earnings and raising sustainability concerns.
Revenue has decreased by approximately 2.70% per year on average over the past three years, underperforming roughly 72.53% of global competitors.
Earnings per share have declined by an average of 53.40% per year over the past three years, significantly underperforming approximately 94.61% of global peers.
The five-year EBITDA growth rate is -29.40%, showing a severe contraction in operating profitability that pressures the ability to fund future dividends.
Conagra Brands Inc (NYSE: CAG) reported better-than-expected financial results for its fiscal third quarter, causing the stock to trade up in premarket trading despite being down over 20% from its 52-week high. The company posted net sales of $3.03 billion, representing a slight year-over-year decline of 1.7%, while earnings per share dropped from 72 cents to 64 cents on a GAAP basis.
Management reiterated its forward guidance for fiscal 2024, forecasting organic net sales to be down up to 2.0% with adjusted per-share earnings expected between $2.60 and $2.65. Notably, the company revised its outlook upwardly regarding adjusted operating margins, now expecting them to settle around 15.8%, an improvement from previous estimates.
In the third quarter specifically, Conagra improved its adjusted operating margin by 49 basis points to reach 16.4%. CEO Sean Connolly highlighted these operational improvements during the earnings call. Analyst Delano Saporu of New Street Advisors views the stock as having strong value, particularly citing the company's attractive dividend yield of 4.82%.
Conagra Brands (CAG) shares have declined 40.9% over the past five years to a price of US$14.86, prompting an analysis of whether the current valuation aligns with the company's sales performance and long-term revenue power. The article evaluates the stock using Price-to-Sales (P/S) metrics, noting that Conagra trades at 0.6x P/S, which is consistent with its peer group average of 0.6x and slightly below the wider Food sector average of 0.7x.
Analysts are divided on the company's future trajectory, creating a split in valuation opinions regarding its margin rebuild story versus execution risks. The bullish case suggests Conagra is 7% undervalued, citing planned capital expenditures of approximately US$550 million for fiscal year 2027 aimed at modernizing the supply chain and in-sourcing protein and fried chicken operations to lower unit costs.
Conversely, the bearish perspective argues the stock is 8% overvalued due to elevated net leverage of 3.83x entering fiscal 2027, which is expected to rise to around 4x as reinvestment needs and tariff impacts materialize. The analysis concludes that while the current P/S multiple reflects the sales base adequately, the key determinant for future value lies in the durability and quality of these revenues against the backdrop of significant operational investments.
📉 Shares fell 40.9% over five years to US$14.86.
📊 Trades at 0.6x sales, matching peer group average.
💰 Bullish view: 7% undervalued via supply chain modernization.
⚠️ Bearish view: 8% overvalued due to 3.83x net leverage.
🏭 Plans US$550M FY27 capex for protein and fried chicken.
📉 Conagra Brands shares have fallen 40.9% over the past five years to a current price of US$14.86.
📊 The company trades at a Price-to-Sales ratio of 0.6x, aligning closely with its peer group average.
💰 Bullish analysts view Conagra as 7% undervalued based on potential margin improvements from supply chain modernization.
⚠️ Bearish analysts consider the stock 8% overvalued due to net leverage of 3.83x expected to reach 4x by fiscal 2027.
🏭 The company plans to increase capital expenditure to roughly US$550 million in FY27 for protein and fried chicken in-sourcing.
📈 Revenue is viewed as a cleaner anchor for valuation compared to near-term earnings swings in the packaged food sector.
Bullish Signals
Trades at 0.6x P/S, aligned with peer group averages.
Analysts see 7% undervaluation driven by $550M capex.
Risk Factors
Net leverage of 3.83x projected to rise to 4x by fiscal 2027.
Margin rebuild faces execution risks and potential upside cap.
Bullish Signals
Conagra Brands trades at a Price-to-Sales ratio of 0.6x, which aligns closely with its peer group average and suggests the current share price is broadly aligned with market standards for this scale of revenue.
Analysts identify a bullish case where the stock is 7% undervalued, driven by potential long-term operating margin expansion from US$550 million in capital expenditures dedicated to supply chain modernization and cost reduction.
Risk Factors
The bearish case indicates Conagra Brands is 8% overvalued due to net leverage of 3.83x entering fiscal 2027, which is projected to increase to around 4x as reinvestment and tariff effects play through.
Execution risks are cited by analysts as a potential cap on upside, suggesting that the margin rebuild story may face challenges in realization.
Conagra Brands reported encouraging growth in its Foodservice segment for the first quarter of fiscal 2027, driven by higher organic sales and improved productivity. Despite ongoing inflationary pressures affecting input costs, the company successfully expanded both operating profit and operating margin within the segment. Net sales rose 3.2% year over year to $272.9 million, with organic net sales advancing 3.3%, marking the fifth consecutive quarter of positive organic growth.
The Foodservice segment's profitability was bolstered by volume increases of 2.5% and favorable price/mix contributions that offset cost-of-goods-sold inflation. Operating profit surged 11.4% year over year to $30.9 million, while adjusted operating margin expanded 83 basis points to 11.3%. Management noted that sustaining this momentum will depend on continued sales growth and productivity gains to counteract higher costs in the future.
In terms of market performance, Conagra Brands shares fell 8.8% over the past month, underperforming both the industry and the broader Consumer Staples sector which declined by 5% and 2.5%, respectively. The stock also lagged the S&P 500 index, which gained 3.1% during the same period. Currently trading at a forward 12-month P/E ratio of 9.2, the company trades at a modest discount compared to the industry average of 13.79 and the sector average of 16.82.
📈 Foodservice net sales rose 3.2% to $272.9M in Q1 fiscal 2027.
📊 Organic sales grew 3.3% for the fifth consecutive quarter.
💰 Operating profit jumped 11.4% to $30.9M despite inflation.
📉 Shares fell 8.8% last month, underperforming industry and sector.
💵 Stock trades at forward P/E of 9.2 vs 13.79 industry average.
📈 Conagra Brands Foodservice segment delivered encouraging growth in Q1 fiscal 2027 with net sales increasing 3.2% year over year to $272.9 million.
📊 Organic net sales advanced 3.3%, marking the fifth consecutive quarter of organic sales growth within the Foodservice division.
💰 Operating profit for the Foodservice segment increased 11.4% year over year to $30.9 million, demonstrating strong profitability despite inflationary pressures.
📉 Adjusted operating margin expanded 83 basis points to 11.3%, driven by productivity improvements that offset higher input costs.
📉 Shares of Conagra Brands fell 8.8% over the past month, underperforming the industry and the broader Consumer Staples sector.
💵 The stock currently trades at a forward 12-month P/E ratio of 9.2, which is significantly lower than the industry average of 13.79.
Bullish Signals
Foodservice profit rose 11.4% to $30.9M.
Fifth consecutive quarter of organic sales growth.
Operating margin expanded 83 bps to 11.3%.
Risk Factors
Foodservice volume growth of 150 bps from timing is unsustainable.
Shares fell 8.8% last month, underperforming peers.
Bullish Signals
Conagra Brands Foodservice segment achieved an 11.4% year-over-year increase in operating profit to $30.9 million, demonstrating strong resilience against inflationary pressures.
The company recorded a fifth consecutive quarter of organic sales growth in the Foodservice segment, with net sales rising 3.2% year over year.
Adjusted operating margin expanded by 83 basis points to 11.3%, indicating successful cost management and productivity gains within the business.
Risk Factors
Approximately 150 basis points of reported volume growth in the Foodservice segment came from accelerated timing of customer orders, which may not be sustainable.
Conagra Brands shares fell 8.8% over the past month, significantly underperforming the industry and the broader Consumer Staples sector.
Barclays has lowered its price target for Conagra Brands to USD 16.00 from USD 17.00 while maintaining an Overweight rating following the company's fiscal 2027 first-quarter results released in late September 2026. The analyst firm cited a divergence between higher adjusted earnings and declining sales as the primary driver for the adjustment, reflecting concerns over volume contraction despite pricing power.
Conagra Brands reported net sales of USD 2.60 billion for the quarter ended August 30, 2026, representing a 1.4% decline year-over-year. While reported net income rose 6.0% to USD 174.3 million and diluted earnings per share increased 5.9% to USD 0.36, adjusted operating margins slipped slightly to 11.5%, falling 33 basis points below the prior-year level.
The company's organic net sales declined by 1.1% as a 2.1% drop in volume was only partially offset by a 1.0% price-and-mix benefit. Segment performance diverged significantly, with Foodservice organic sales growing 3.3%, whereas Grocery and Snacks organic sales fell 2.0%. Management has reaffirmed its full-year guidance for an organic sales decline of 1% to 3% and adjusted operating margins between 10% and 10.5%.
Financially, Conagra Brands reported net debt of USD 7.39 billion as of August 30, 2026, resulting in a net leverage ratio of 3.99 times. The company maintains a market capitalization of approximately USD 6.3 billion and trades on the NYSE within a 52-week range of USD 12.53 to USD 25.78.
📉 Barclays cut Conagra price target to $16 while retaining Overweight rating.
📉 Fiscal Q1 net sales fell 1.4% YoY to $2.60 billion due to volume.
📈 Reported net income rose 6.0% to $174.3 million with EPS up 5.9%.
📉 Adjusted operating margins slipped 33 bps to 11.5% from prior year.
🎯 Management reaffirmed guidance for 1-3% organic sales decline and 10-10.5% margins.
📉 Barclays cut its Conagra Brands price target from USD 17.00 to USD 16.00 while retaining an Overweight rating.
💰 Fiscal 2027 first-quarter net sales declined 1.4% year-over-year to USD 2.60 billion due to volume contraction.
📈 Reported net income rose 6.0% to USD 174.3 million, while diluted EPS increased 5.9% to USD 0.36.
📉 Adjusted operating margins decreased slightly to 11.5%, falling 33 basis points below the prior-year level.
🍔 Foodservice organic sales grew 3.3%, contrasting with a 2.0% decline in Grocery and Snacks organic sales.
🎯 Management reaffirmed guidance for 1-3% organic sales decline and adjusted operating margins of 10-10.5%.
💸 Net debt stood at USD 7.39 billion, yielding a net leverage ratio of 3.99 times as of August 30, 2026.
📊 The stock trades on the NYSE with a market cap of USD 6.3 billion and a 52-week range of USD 12.53-USD 25.78.
Bullish Signals
Net income rose 6.0% to USD 174.3 million.
EPS grew 5.9% to USD 0.36.
Foodservice organic sales increased 3.3%.
Management reaffirmed fiscal 2027 guidance.
Risk Factors
Organic net sales declined 1.1% due to volume drop.
Bullish Signals
Reported net income increased 6.0% to USD 174.3 million, demonstrating the company's ability to maintain profitability despite sales headwinds.
Diluted earnings per share rose 5.9% to USD 0.36, indicating strong underlying operational efficiency and margin management.
Foodservice organic sales increased 3.3%, providing a bright spot in an otherwise challenging quarter for volume-sensitive categories.
Management reaffirmed its fiscal 2027 guidance, signaling confidence in executing the turnaround strategy despite near-term sales declines.
Risk Factors
Organic net sales declined 1.1% as a 2.1% drop in volume was only partially offset by price-and-mix benefits.
Adjusted operating margins slipped to 11.5%, which is 33 basis points below the prior-year level, indicating margin pressure.
Grocery and Snacks organic sales fell 2.0%, highlighting weakness in core consumer packaged goods categories.
Barclays lowered its price target from USD 17.00 to USD 16.00 following the mixed quarterly results.
Conagra Brands reported its fiscal 2027 first-quarter results on September 30, 2026, reaffirming its full-year outlook. The company posted adjusted earnings per share of USD 0.41, a 5.1% increase year over year, driven by an adjusted operating margin of 11.5%. However, organic net sales declined 1.1%, as a volume drop of 2.1% outweighed price and mix benefits of 1.0%. The stock fell 1.35% to EUR 11.71 on October 5, 2026, despite the earnings beat.
Financial performance was mixed with significant cash flow challenges. While net income rose 6.0% to USD 174.3 million and reported diluted EPS increased 5.9% to USD 0.36, cash generation deteriorated sharply. Net cash used in operating activities turned negative at USD 4.2 million compared to USD 120.6 million generated a year prior, resulting in negative free cash flow of USD 127.9 million for the quarter.
Segment performance highlighted divergent trends across business units. Grocery and Snacks organic sales fell 2.0%, while Foodservice organic sales grew 3.3% to USD 272.9 million, serving as a key recovery driver. Analyst sentiment remains cautious; Zacks Research upgraded the stock from strong sell to hold with a target of USD 14.07, and Deutsche Bank raised its price target to USD 13.00 while maintaining a hold rating.
The company operates in the Consumer Defensive/Packaged Foods sector with a market capitalization of USD 6.3 billion as of October 5, 2026. The stock trades within a 52-week range of USD 12.53 to USD 20.32. Despite positive earnings revisions and analyst upgrades, the immediate market reaction was negative, likely reflecting concerns over the sharp decline in cash generation and sales volume.
🍔 Foodservice sales grew 3.3% while Grocery declined 2.0%.
💸 Free cash flow turned negative at USD 127.9 million.
🔍 Analysts upgraded stock to Hold with target of USD 14.07.
📉 Conagra Brands stock fell 1.35% to EUR 11.71 on October 5, 2026, despite reaffirming its fiscal 2027 outlook.
💰 Adjusted EPS reached USD 0.41 in Q1 fiscal 2027, up 5.1% year over year, with an adjusted operating margin of 11.5%.
📉 Organic net sales declined 1.1% as a 2.1% volume drop outweighed a 1.0% price and mix benefit.
🍔 Foodservice organic sales increased 3.3% to USD 272.9 million, contrasting with a 2.0% decline in Grocery and Snacks.
💸 Cash generation weakened significantly with net cash used in operating activities at USD 4.2 million versus USD 120.6 million generated last year.
📉 Free cash flow turned negative at USD 127.9 million for the first quarter of fiscal 2027.
🔍 Zacks Research upgraded Conagra from strong sell to hold with a consensus target of USD 14.07 after an earnings beat.
🏦 Deutsche Bank raised its price target to USD 13.00 while maintaining a hold rating on the stock.
📊 Reported diluted EPS increased 5.9% to USD 0.36, with net income rising 6.0% to USD 174.3 million.
🏢 The company has a market cap of USD 6.3 billion and trades in a 52-week range of USD 12.53 to USD 20.32.
Bullish Signals
Adjusted EPS grew 5.1% to USD 0.41 with 11.5% operating margin.
Risk Factors
Organic net sales fell 1.1% due to volume decline.
Bullish Signals
Conagra Brands adjusted earnings per share grew 5.1% year over year to USD 0.41, driven by an expanded adjusted operating margin of 11.5%.
Net income rose 6.0% to USD 174.3 million and reported diluted EPS increased 5.9% to USD 0.36 in the first quarter of fiscal 2027.
Foodservice organic sales increased 3.3% to USD 272.9 million, providing a strong contrast to declines in other segments.
Zacks Research upgraded the stock from strong sell to hold following an earnings beat that exceeded the consensus estimate of USD 0.28.
Deutsche Bank raised its price target from USD 12.00 to USD 13.00 while maintaining a hold rating on Conagra Brands.
Risk Factors
Organic net sales fell 1.1% as a 2.1% volume decline outweighed a 1.0% price and mix benefit.
Cash generation deteriorated sharply with net cash used in operating activities at USD 4.2 million compared to USD 120.6 million generated the prior year.
Free cash flow turned negative at USD 127.9 million for the first quarter of fiscal 2027, indicating liquidity pressure.
Grocery and Snacks organic sales declined 2.0%, contributing to overall revenue weakness in the consumer packaged goods segment.
Conagra Brands reported first-quarter fiscal 2027 results that beat adjusted earnings per share (EPS) expectations, with the stock rising 1.21 percent to close at $13.36. The company delivered adjusted EPS of $0.41, surpassing the consensus estimate of $0.28, while reaffirming its full-year fiscal 2027 guidance for adjusted EPS between $1.40 and $1.50.
Despite the earnings beat, underlying fundamentals showed mixed signals as organic net sales declined by 1.1 percent due to a volume drop of 2.1 percent that outweighed price and mix benefits. Gross margins contracted by 50 basis points to 23.8 percent, indicating ongoing pressure on profitability despite management's assertion that margin repair is progressing.
Cash flow dynamics presented significant headwinds, with operating cash flow turning negative at $4.2 million compared to $120.6 million in the prior-year quarter, and free cash flow falling to a negative $127.9 million. The company's net debt stood at $7.4 billion with a leverage ratio of 3.99 times, highlighting financial strain as it relies on productivity gains to offset negative volume trends.
Analyst sentiment remains cautious, with Investing.com listing a neutral consensus from 17 analysts and an average 12-month price target of $14.32, which sits just 7.19 percent above the current stock price. The market appears skeptical about the turnaround story given the persistent demand constraints and the gap between reported earnings quality and operational performance metrics.
📈 Q1 adjusted EPS of $0.41 beat the $0.28 consensus.
📉 Organic net sales fell 1.1 percent due to volume decline.
💰 Gross margins declined 50 basis points to 23.8 percent.
💸 Operating cash flow turned negative at $4.2 million.
🏦 Net debt reached $7.4 billion with 3.99x leverage.
📈 Conagra Brands stock rose 1.21 percent to $13.36 after Q1 fiscal 2027 adjusted EPS of $0.41 beat the $0.28 consensus.
📉 Organic net sales fell 1.1 percent as a 2.1 percent volume decline outweighed price and mix benefits.
Barclays maintained its Buy rating and a USD 17.00 price target for Conagra Brands, citing a meaningful difference in expectations compared to the consensus target of USD 13.85. The analyst firm's stance persists despite the company reaffirming fiscal 2027 guidance that projects organic net sales decline between 3% and 1%, indicating a near-term investment case where profit delivery is prioritized over top-line expansion.
Conagra Brands reported adjusted earnings per share of USD 0.41 for the first quarter of fiscal 2027, representing a 5.10% increase year-over-year. However, net sales decreased by 1.40% to USD 2.60 billion, and reported operating profit fell significantly by 22.70% to USD 268.40 million due to lower adjusted operating margins.
The company faces cash flow pressures with net cash used in operating activities reaching USD 4.20 million compared to generation in the prior year, while free cash flow turned negative at USD 127.90 million. Net debt stood at USD 7.40 billion with a leverage ratio of 3.99 times, highlighting financial constraints as the stock traded down slightly on October 2, 2026.
📉 Q1 EPS rose 5.10% to $0.41 despite net sales dropping 1.40%.
📉 Operating profit fell 22.70% as margins compressed to 10.30%.
💸 Negative free cash flow reached -$127.90 million this quarter.
🏦 Net leverage ratio stands at 3.99x with $7.40 billion debt.
📉 Conagra Brands reported adjusted earnings per share of USD 0.41 for Q1 fiscal 2027, a 5.10% increase despite a 1.40% decline in net sales to USD 2.60 billion.
📉 Reported operating profit fell 22.70% to USD 268.40 million as the company's reported operating margin dropped to 10.30% from an adjusted margin of 11.50%.
💸 Cash flow deteriorated significantly with net cash used in operating activities at USD 4.20 million and negative free cash flow of USD 127.90 million versus the prior year.
🏦 The company carries a net debt of USD 7.40 billion, resulting in a net leverage ratio of 3.99 times as of the end of the quarter.
📈 Barclays maintained its Buy rating with a USD 17.00 price target, which is higher than the USD 13.85 consensus estimate.
🎯 Management reaffirmed fiscal 2027 guidance for organic net sales decline of 3% to 1%, adjusted operating margins of 10% to 10.50%, and EPS between USD 1.40 and 1.50.
📉 The stock traded at EUR 11.71 on October 2, 2026, down 0.43% versus the prior close of EUR 11.76.
Bullish Signals
Barclays maintains Buy rating with $17.00 price target.
Adjusted EPS rose 5.10% to $0.41 in Q1 FY2027.
Risk Factors
Net sales declined 1.40% to USD 2.60 billion.
Operating profit fell 22.70% to USD 268.40 million.
Cash flow deteriorated to net cash used of USD 4.20 million.
Free cash flow turned negative at USD 127.90 million.
Net debt stands at USD 7.40 billion with 3.99x leverage.
Bullish Signals
Barclays maintained a Buy rating and set a USD 17.00 price target, which is notably higher than the USD 13.85 consensus target cited by analysts.
Adjusted earnings per share rose 5.10% to USD 0.41 in the first quarter of fiscal 2027, demonstrating improved profitability despite a slight decline in top-line revenue.
Risk Factors
Net sales declined 1.40% year-over-year to USD 2.60 billion, indicating a contraction in core business revenue.
Reported operating profit fell sharply by 22.70% to USD 268.40 million, driven by a drop in reported operating margin to 10.30% from an adjusted margin of 11.50%.
Cash flow generation deteriorated significantly with net cash used in operating activities at USD 4.20 million compared to USD 120.60 million generated in the prior year.
Free cash flow turned negative at USD 127.90 million, a stark contrast to the negative USD 26.20 million in the prior-year period, indicating increased financial strain.
The company carries substantial net debt of USD 7.40 billion with a high net leverage ratio of 3.99 times, suggesting elevated financial risk.
Management reaffirmed guidance for organic net sales decline between 3% and 1% for fiscal 2027, signaling continued top-line weakness.
Conagra Brands, Inc. (CAG) has been downgraded from Hold to Sell by an analyst citing persistent operational and macroeconomic headwinds that outweigh the stock's attractive 5% dividend yield and low valuation multiple.
The company's latest quarter revealed declines in organic net sales and volumes across key segments, while adjusted operating margins contracted to 11.5% and leverage increased to 3.99x.
Management has reaffirmed negative guidance for the fiscal year, projecting a 16% decline in earnings per share (EPS) and a significant 33% drop in free cash flow by FY '27 due to ongoing inflation, higher interest rates, and weak consumer sentiment.
📉 Conagra downgraded to Sell due to operational and macro headwinds.
📊 Organic net sales and volumes declined across key segments.
💰 Adjusted operating margins dropped to 11.5% with leverage at 3.99x.
📉 Management reaffirmed negative guidance with EPS projected to decline 16%.
💸 Free cash flow expected to drop by 33% by FY '27.
📉 Conagra Brands has been downgraded from Hold to Sell due to persistent operational and macroeconomic headwinds.
📊 The company reported declines in organic net sales and volumes across key segments in its latest quarter.
💰 Adjusted operating margins dropped to 11.5% while leverage rose to 3.99x, indicating financial stress.
📉 Management reaffirmed negative guidance for the fiscal year with EPS projected to decline 16%.
💸 Free cash flow is expected to drop by 33% by FY '27 according to management projections.
🌡️ Ongoing inflation, higher interest rates, and weak consumer sentiment are driving the negative outlook.
Risk Factors
Downgraded to Sell due to operational and macro headwinds.
Risk Factors
Conagra Brands was downgraded from Hold to Sell due to persistent operational and macro headwinds.
Organic net sales and volumes declined in key segments during the latest quarter.
Adjusted operating margins dropped to 11.5% while leverage increased to 3.99x.
Management reaffirmed negative sales and margin guidance for the fiscal year.
EPS is projected to decline by 16% for the fiscal year.
Free cash flow is expected to drop by 33% by FY '27.
Conagra Brands reported first-quarter fiscal 2027 adjusted earnings of 41 cents per diluted share, significantly beating Wall Street estimates of 28 cents. Total net sales reached $2.60 billion, narrowly surpassing analyst expectations of $2.59 billion despite a 1.4% year-over-year decline. Reported diluted earnings per share increased to 36 cents, reflecting a 5.9% rise from the prior year period.
Organic net sales decreased by 1.1%, primarily driven by a 2.1% volume decline partially offset by pricing and product mix contributions. Adjusted gross profit fell 3.9% to $619 million as cost inflation and lower volumes outweighed productivity gains and tariff refunds, while adjusted EBITDA rose 2.4% to $451 million. CEO John Brase stated the company delivered a solid start to fiscal 2027 with profits ahead of expectations.
Segment performance varied, with the Foodservice segment rising 3.2% on volume increases, while Grocery, Snacks, and Refrigerated/Frozen segments saw declines. The International segment posted a 2.7% gain driven by favorable foreign exchange rates. Conagra maintained its fiscal 2027 outlook, anticipating organic net sales between down 3% to down 1% versus the prior year, with adjusted EPS of $1.40 to $1.50.
Following the earnings report, Conagra stock slipped approximately 4.5% in premarket trading. The company ended the quarter with net debt of $7.4 billion and a leverage ratio of 3.99 times. CFO Dave Marberger noted continued mid-single-digit volume declines for the full year due to heightened consumer price sensitivity, particularly in frozen foods.
📈 Q1 adjusted earnings beat estimates at 41 cents per share.
💰 Net sales reached $2.60 billion, narrowly beating consensus.
📉 Organic sales fell 1.1% due to volume decline.
🚀 Adjusted EBITDA rose 2.4% to $451 million.
🍔 Foodservice segment grew 3.2% on volume increase.
📈 Conagra Brands reported Q1 FY2027 adjusted earnings of 41 cents per share, beating analyst estimates of 28 cents.
💰 Total net sales reached $2.60 billion, narrowly beating the $2.59 billion consensus estimate despite a 1.4% decline.
📉 Organic net sales fell 1.1% driven by a 2.1% volume decline partially offset by pricing and product mix.
📊 Adjusted gross profit dropped 3.9% to $619 million as cost inflation and lower volumes outweighed productivity gains.
🚀 Adjusted EBITDA rose 2.4% to $451 million, showing improved operational efficiency despite revenue headwinds.
🍔 Foodservice segment was a bright spot with net sales rising 3.2% on a 2.5% organic volume increase.
🌍 International segment posted a 2.7% net sales gain to $218 million driven by favorable foreign exchange rates.
💸 Net debt decreased to $7.4 billion, reflecting a $193 million reduction from the prior year period.
📉 CFO Dave Marberger anticipates mid-single-digit volume declines for the full year due to consumer price sensitivity.
📈 Conagra maintained its fiscal 2027 outlook with adjusted EPS guidance of $1.40 to $1.50.
📉 Stock slipped around 4.5% in premarket trading following the earnings release.
Bullish Signals
Q1 FY2027 EPS beat estimates at 41 cents vs 28 cents expected.
Risk Factors
Net sales declined 1.4% to $2.60B, missing growth expectations.
Bullish Signals
Conagra Brands beat Wall Street estimates for Q1 FY2027 adjusted earnings, reporting 41 cents per diluted share versus analyst expectations of 28 cents.
Reported diluted earnings per share increased to 36 cents, representing a 5.9% year-over-year increase.
Adjusted EBITDA rose 2.4% to $451 million, demonstrating improved operational profitability despite lower sales volumes.
The Foodservice segment delivered strong growth with net sales rising 3.2% to $273 million on a 2.5% organic volume increase.
Net debt was reduced by $193 million to $7.4 billion, improving the company's balance sheet strength.
The International segment achieved a 2.7% net sales gain to $218 million, driven by favorable foreign exchange rates.
Risk Factors
Total net sales declined 1.4% year-over-year to $2.60 billion, narrowly missing the broader market's expectations for growth.
Organic net sales fell 1.1%, primarily driven by a 2.1% volume decline indicating softening consumer demand.
Adjusted gross profit dropped 3.9% to $619 million as cost inflation and lower sales volumes outweighed productivity gains.
Refrigerated and Frozen net sales declined 2.1% to $1.1 billion, highlighting continued pressure in these key segments.
CFO Dave Marberger noted that consumer price sensitivity, especially in frozen foods, has run higher than historical norms.
The company anticipates mid-single-digit volume declines for the full year, signaling persistent demand challenges.
Conagra stock slipped around 4.5% in premarket trading following the earnings release, reflecting investor caution.
Conagra Brands (CAG) is set to report fiscal first-quarter earnings on Wednesday, September 30, with the stock trading near $14. Wall Street analysts project a challenging quarter driven by consumer trade-downs and elevated input costs, expecting revenue of approximately $2.59 billion, which represents a roughly 2% decline year-over-year.
Earnings estimates indicate earnings per share of 31 cents, marking a significant drop of about 21% compared to the same period last year. The company anticipates full-year inflation costs between 5% and 6%, with a specific $40 million tariff-related cost impacting this quarter. Management plans increased spending on advertising and promotions, particularly in frozen meals and meat snacks, but notes that new pricing strategies will not reach shelves until mid-second quarter.
Operating margins are under pressure, with full-year projections between 10% and 10.5%, well below the historic level of near 16%. The first-quarter adjusted operating margin is expected to be in the high-single-digit range, down from 11.8% last year. Analyst consensus remains cautious, with a Hold rating from 13 analysts and an average 12-month price target of $13.73, implying about 3% downside from current levels.
To address long-term efficiency, Conagra cut its quarterly dividend to $0.175 per share earlier this year to free up roughly $1 billion over three years for factory upgrades and supply chain investments. The company targets productivity gains above 4% of cost of goods sold for fiscal 2027. Despite these strategic shifts, the stock faces headwinds from slow grocery volume growth and margin compression, leading some major banks like Bank of America and Goldman Sachs to maintain Sell ratings.
📉 Revenue projected near $2.59 billion, down roughly 2% year-over-year.
💰 EPS estimated at 31 cents, a decline of approximately 21%.
📦 Full-year inflation costs expected between 5% and 6%.
💸 A $40 million tariff cost anticipated to hit hardest in Q1.
🏦 Wall Street consensus is Hold with a $13.73 price target.
📉 Conagra Brands is expected to report a tough fiscal first quarter with revenue projected near $2.59 billion, down roughly 2% from last year.
💰 Analysts estimate earnings per share of 31 cents, representing a decline of approximately 21% compared to the same period last year.
📦 The company faces higher costs across ingredients, packaging, and shipping, with full-year inflation costs expected between 5% and 6%.
💸 A $40 million tariff-related cost is anticipated to hit hardest in this first quarter, exacerbating margin pressures.
📉 Full-year operating margins are projected between 10% and 10.5%, significantly below the company's historic level near 16%.
🚫 New pricing moves will not reach shelves until mid-second quarter, leaving little room to offset current quarterly pressure.
🏦 Wall Street consensus remains cautious with a Hold rating from 13 analysts and an average 12-month price target of $13.73.
💸 Conagra cut its quarterly dividend to $0.175 per share earlier this year to free up roughly $1 billion for factory upgrades over three years.
🎯 The company targets productivity gains above 4% of cost of goods sold for fiscal 2027 through supply chain investments.
🛒 Shoppers are trading down to cheaper food options, which is negatively impacting the company's top line and volume growth.
Bullish Signals
Plans $1B factory upgrades over three years.
Targets >4% COGS productivity gains by FY2027.
Risk Factors
Revenue drops 2% as shoppers trade down to cheaper options.
Bullish Signals
Conagra Brands plans to invest roughly $1 billion over three years in factory upgrades and supply chain investment following its dividend cut.
The company targets productivity gains above 4% of cost of goods sold for fiscal 2027, aiming to improve long-term efficiency.
Risk Factors
Analysts project revenue near $2.59 billion, a drop of about 2% from last year due to shoppers trading down to cheaper food options.
Earnings estimates point to 31 cents per share, marking a decline of roughly 21% from the same period last year.
The company expects full-year inflation costs between 5% and 6%, with a $40 million tariff-related cost expected to hit hardest in this first quarter.
Full-year operating margins are projected between 10% and 10.5%, which is well below the company's historic level near 16%.
For the first quarter alone, adjusted operating margin is expected in the high-single-digit range, a step down from last year's 11.8%.
New pricing moves won't reach shelves until mid-second quarter, leaving little room to offset current pressure this quarter.
Wall Street ratings on CAG stock stay mostly cautious with a Hold consensus from 13 analysts and an average 12-month price target of $13.73 implying about 3% downside.
Conagra Brands stock fell 1.5% to $14.45 on September 25, 2026, following a downgrade by RBC Capital which cut its price target from $16.00 to $14.00 while maintaining a Sector Perform rating. The analyst firm identified freight and logistics costs as the primary incremental risk to fiscal 2027 guidance, citing these pressures as the central issue ahead of the next earnings release.
The company reported quarterly revenue of $2.88 billion against consensus expectations of $2.89 billion, slightly missing estimates despite a 3.6% year-over-year increase. Earnings per share (EPS) came in at $0.47, beating the consensus of $0.46 by one cent. This performance occurred as Conagra prepares to release its fiscal 2027 first-quarter results on September 30, 2026.
Conagra maintains a quarterly dividend of $0.175, which annualizes to $0.70 and offers a yield of approximately 4.7%. The stock currently trades at a market capitalization of roughly $6.9 billion with a 52-week range between $12.53 and $20.32. Investors will be watching the upcoming earnings report to determine if projected cost pressures align with current guidance ranges.
📉 RBC lowered price target to $14.00 after stock dropped 1.5%.
📊 Revenue missed consensus at $2.88 billion for the quarter.
💰 EPS beat expectations, reaching $0.47 per share.
⚠️ Freight and logistics costs pose biggest risk to 2027 guidance.
💵 Maintains quarterly dividend of $0.175 with 4.7% yield.
📉 Conagra Brands stock dropped 1.5% to $14.45 after RBC Capital lowered its price target from $16.00 to $14.00.
📊 The company reported quarterly revenue of $2.88 billion, slightly missing the $2.89 billion consensus estimate.
💰 EPS reached $0.47, beating analyst expectations of $0.46 by one cent.
⚠️ RBC Capital identified freight and logistics costs as the biggest incremental risk to fiscal 2027 guidance.
📅 Conagra is scheduled to release fiscal 2027 first-quarter results on September 30, 2026.
💵 The company maintains a quarterly dividend of $0.175, providing an annualized yield of 4.7%.
Bullish Signals
EPS beat at $0.47 vs $0.46 consensus.
Revenue grew 3.6% despite cost headwinds.
Risk Factors
RBC cut price target from $16.00 to $14.00 due to freight/logistics costs.
Revenue of $2.88B missed expectations of $2.89B.
Bullish Signals
Conagra Brands beat earnings per share expectations with a result of $0.47 versus the consensus of $0.46.
The company achieved revenue growth of 3.6% from the comparable period despite facing cost headwinds.
Risk Factors
RBC Capital cut its price target from $16.00 to $14.00, citing freight and logistics as the biggest incremental cost risk.
Quarterly revenue of $2.88 billion missed analyst expectations of $2.89 billion.
Conagra Brands stock opened flat on September 24, 2026, following a close at USD 14.78 with no change from the previous session. The shares traded within a range of USD 14.51 to USD 14.93 on the NYSE, recording a volume of 12,685,055 shares. Despite the flat performance, the stock outperformed the broader S&P 500 index, which fell 0.75 percent to close at 7,706.03 during the same trading session.
Shareholders approved proposed changes to the executive compensation program at the company's annual meeting held on September 23, 2026. The proposal passed on an advisory basis, though proxy adviser ISS had raised concerns regarding declining financial performance and unclear targets associated with the plan. This governance update occurred alongside the stock trading USD 5.54 below its 52-week high of USD 20.32.
Conagra Brands is scheduled to release its fiscal 2027 first-quarter results on September 30, 2026, with an earnings conference call set for 7:00 a.m. ET. This upcoming report represents the next significant company-specific event for investors tracking the ticker. The current stock price sits USD 2.25 above its 52-week low of USD 12.53 as the market awaits further financial data.
The market anticipates Conagra Brands (CAG) will report a year-over-year decline in earnings and revenue for the quarter ended August 2026, with results expected on September 30. Analysts project quarterly earnings of $0.31 per share, representing a -20.5% decrease from the prior year, while revenues are forecast at $2.59 billion, down 1.4%.
Recent analyst activity shows a divergence in sentiment regarding the company's immediate prospects. The Zacks Consensus Estimate has been revised lower by 1.47% over the last 30 days, yet the Most Accurate Estimate remains higher than the consensus, resulting in a positive Earnings ESP of +3.22%. This suggests some analysts have recently become more bullish on earnings prospects despite the overall downward revision trend.
Despite the positive Earnings ESP, Conagra Brands currently holds a Zacks Rank of #4 (Sell), which complicates predictions regarding an upcoming earnings beat. Historical data indicates the company has beaten consensus estimates three times in the last four quarters, with a recent surprise of +2.17%. However, the combination of a Sell rating and negative ESP makes it difficult to predict a definitive positive outcome for this specific earnings release.
📉 Earnings expected at $0.31/share, down 20.5% year-over-year.
💰 Revenue forecast is $2.59B, a 1.4% contraction.
📊 Zacks Consensus EPS revised down 1.47% recently.
🔍 Positive Earnings ESP of +3.22% vs consensus.
📈 Stock beat EPS estimates three times in last four quarters.
📉 Conagra Brands is expected to report quarterly earnings of $0.31 per share, marking a significant year-over-year decline of -20.5%.
💰 Revenue forecasts stand at $2.59 billion for the quarter ended August 2026, reflecting a slight contraction of 1.4% compared to the year-ago period.
📊 The Zacks Consensus EPS estimate has been revised down by 1.47% over the last 30 days as analysts reassess their initial predictions.
🔍 The company exhibits a positive Earnings ESP of +3.22%, indicating that the Most Accurate Estimate is currently higher than the Zacks Consensus Estimate.
⚠️ Conagra Brands carries a Zacks Rank of #4 (Sell), which historically makes it difficult to predict an earnings beat with high confidence.
📈 The stock has beaten consensus EPS estimates three times over the last four quarters, including a +2.17% surprise in the most recent quarter.
Bullish Signals
Earnings ESP is +3.22% above consensus.
Beat EPS estimates 3 of last 4 quarters.
Risk Factors
Analysts lowered EPS estimate by 1.47% in last 30 days.
Expected quarterly earnings drop 20.5% year-over-year to $0.31.
Bullish Signals
The company's Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +3.22%.
Conagra Brands has beaten consensus EPS estimates three times out of the last four quarters reported.
Risk Factors
Analysts have collectively revised their consensus EPS estimate lower by 1.47% over the last 30 days.
The company is expected to post quarterly earnings of $0.31 per share, representing a sharp year-over-year decline of -20.5%.
Conagra Brands stock fell 2.12% to close at $14.81 on the NYSE on September 21, 2026, as the company reported a sharp deterioration in fiscal 2026 profitability. The annual net sales for the year ended May 31, 2026, declined to $11.28 billion from $11.61 billion in the prior year, signaling underlying top-line weakness alongside the stock's decline.
The financial results were heavily impacted by a massive non-cash goodwill and brand impairment charge of $2.00 billion recorded in the quarter ended May 31, 2026. This accounting charge significantly contributed to the reported operating loss of $1.66 billion for the quarter, which contrasts sharply with an operating profit of $321 million a year earlier.
Annually, Conagra Brands swung from a net income of $1.15 billion to a net loss attributable to the company of $1.92 billion. The impairment charge explains much of the reported loss, but the $330 million decline in annual sales indicates that the core business is also facing challenges beyond just accounting adjustments.
Market data shows Conagra trading within its 52-week range of $12.53 to $20.32 with a market capitalization of $7.09 billion. The combination of falling revenue and the substantial impairment charge has created a negative market narrative, pushing shares closer to their yearly low.
📉 Stock fell 2.12% after poor quarterly and annual results.
💸 Fiscal 2026 net sales dropped $330 million to $11.28 billion.
📉 Operating loss hit $1.66 billion, reversing last year's profit.
💥 Recorded a massive $2.00 billion goodwill impairment charge.
📉 Annual net income turned into a $1.92 billion loss.
📉 Conagra Brands stock closed down 2.12% at $14.81 on September 21, 2026, reflecting poor quarterly and annual financial results.
💸 Fiscal 2026 net sales declined to $11.28 billion, representing a $330 million decrease from the prior year.
📉 The company reported an operating loss of $1.66 billion for the quarter ended May 31, 2026, compared to a profit of $321 million last year.
💥 A massive non-cash goodwill and brand impairment charge of $2.00 billion was recorded in the most recent quarter.
📉 Annual net income reversed into a net loss of $1.92 billion attributable to Conagra Brands for fiscal 2026.
📊 The stock trades at a market capitalization of $7.09 billion, sitting closer to its 52-week low than its high.
Risk Factors
Fiscal 2026 net sales declined $330 million year-over-year.
Operating loss hit $1.66 billion in Q2 2026.
Recorded $2.00 billion goodwill and brand impairment charge.
Net income reversed to $1.92 billion loss for fiscal 2026.
Stock fell 2.12% to $14.81, nearing 52-week low.
Risk Factors
Fiscal 2026 net sales declined by $330 million year-over-year to $11.28 billion, indicating underlying top-line weakness.
The company recorded a significant operating loss of $1.66 billion for the quarter ended May 31, 2026, down from an operating profit of $321 million in the prior year.
A massive non-cash goodwill and brand impairment charge of $2.00 billion was recorded in the latest quarter, contributing heavily to reported losses.
Net income reversed into a net loss of $1.92 billion attributable to Conagra Brands for fiscal 2026 compared to $1.15 billion profit last year.
The stock price fell 2.12% to close at $14.81, moving closer to the 52-week low of $12.53 than the high of $20.32.
Conagra Brands stock opened on September 21, 2026, following a session on September 18 where shares closed at USD 15.10 on the New York Stock Exchange. The stock finished down 0.55 percent for the day, trading between USD 15.01 and USD 15.18 as the broader S&P 500 index slipped modestly. This performance kept Conagra roughly in line with the wider market but highlighted its weaker trajectory compared to other consumer staples names.
As of September 18, 2026, the shares were approximately 12.8 percent below their level at the start of the year, reflecting a challenging year-to-date performance. Analyst consensus price targets stand at USD 14.10 per share, implying about 6.6 percent downside from the recent closing price. The stock currently carries an average rating score around the hold range, with more hold and sell recommendations than buy ratings according to MarketBeat data.
Market attention is focused on broader consumer and inflation data, sector sentiment, and potential updates regarding packaged food demand or input cost trends that could influence expectations for the next quarterly results. Analyst discussions are heavily influenced by Conagra's strategy around branded snacks and its positioning relative to changing consumer health preferences. Specifically, the impact of GLP-1 weight loss medications on appetite and food consumption patterns has become a recurring theme in market analysis.
Recent coverage emphasizes that record demand for the Slim Jim brand and management's ongoing commentary on GLP-1 related consumption changes have featured prominently in recent market analysis. Any fresh remarks from the company or covering analysts on these topics today could shape sentiment ahead of the next earnings release, making these specific product dynamics critical to the stock's near-term outlook.
📉 Stock closed at $15.10, down 12.8% from year-open.
🎯 Consensus price target is $14.10, implying 6.6% downside.
📊 Analyst ratings are predominantly hold with more sells than buys.
💊 GLP-1 weight loss drugs impact consumer appetite and food patterns.
🍖 Record Slim Jim demand monitored amid changing health preferences.
📉 Conagra Brands stock closed at USD 15.10 on September 18, 2026, down 0.55 percent and roughly 12.8 percent below its year-opening level.
🎯 The consensus price target stands at USD 14.10 per share, implying about 6.6 percent downside from the recent closing level.
📊 Analyst ratings are predominantly in the hold range, with more hold and sell recommendations than buy ratings according to MarketBeat.
💊 GLP-1 weight loss medications impacting appetite and food consumption patterns have become a recurring theme in analyst discussions regarding Conagra's positioning.
🍖 Record demand for the Slim Jim brand is being closely monitored as a key indicator of performance amidst changing consumer health preferences.
📈 Investors are watching for updates on packaged food demand or input cost trends that could influence expectations for the next quarterly results.
Bullish Signals
Slim Jim demand hits record levels amid health trends.
Stock trades at $15.10, above $14.10 consensus target.
Risk Factors
Shares down 12.8% YTD amid weaker performance.
Analysts favor holds and sells over buys.
Bullish Signals
Conagra Brands is experiencing record demand for its Slim Jim brand, which serves as a key indicator of performance amidst changing consumer health preferences.
The current market price of USD 15.10 stands modestly above the consensus price target of USD 14.10, indicating that the stock trades at a premium to analyst fair value estimates.
Risk Factors
Conagra Brands shares are down approximately 12.8 percent year-to-date as of September 18, 2026, underscoring weaker performance compared to broader consumer staples names.
Analyst consensus ratings are predominantly in the hold range with more sell recommendations than buy ratings, suggesting cautious sentiment from market professionals.
Conagra Brands (CAG) closed at $15.10 on September 18, 2026, trading approximately 6.6% above its consensus price target of $14.10 but down roughly 12.8% from the start of 2026. The company recently garnered headlines for a Guinness World Record-breaking 429-foot Slim Jim stunt and strategic product positioning to cater to consumers using GLP-1 weight-loss medications.
Despite recent marketing buzz, Wall Street maintains a cautious stance on the stock. MarketBeat data indicates an average analyst rating score of 1.72 based on a mix of buy, hold, and sell recommendations, with the consensus price target implying potential downside from current levels. The market appears to be weighing sector pressures against company-specific concerns regarding growth and margins.
From a valuation perspective, Conagra Brands presents as a defensive value play with a market capitalization of approximately $9.16 billion and a trailing P/E ratio of 8.32. The stock offers an attractive dividend yield of 4.59%, based on a payout of $0.18 per share, which provides income appeal to shareholders despite the subdued year-to-date price performance.
📉 Stock closed at $15.10, down 12.8% from start of 2026.
🏆 Broke Guinness record with 429-foot Slim Jim snack.
🥗 Positioning Healthy Choice meals as GLP-1 friendly.
💰 Trades at P/E 8.32 with 4.59% dividend yield.
📊 Analysts rate cautiously with $14.10 price target.
📉 Conagra Brands stock closed at $15.10 on September 18, 2026, representing a decline of roughly 12.8% from the start of 2026.
🏆 The company recently broke the Guinness World Record for the longest meat snack with a 429-foot Slim Jim at its Omaha campus.
🥗 Conagra is positioning its Healthy Choice frozen meals as GLP-1 friendly to capture demand from users of weight-loss drugs.
💰 The stock trades at a P/E ratio of 8.32 and offers a dividend yield of 4.59% based on a $0.18 per share payout.
📊 Analyst sentiment remains cautious with an average rating score of 1.72, reflecting a consensus price target of $14.10.
Bullish Signals
Stock trades 6.6% above consensus price target.
Offers high dividend yield of 4.59%.
Reinforced flagship meat snack brand visibility.
Risk Factors
Stock declined 12.8% YTD amid sector pressure.
Analysts rate cautiously: 1 buy, 11 hold, 6 sell.
Bullish Signals
Conagra Brands stock is trading at approximately 6.6% above its consensus price target of $14.10 as of September 18, 2026.
The company offers a high dividend yield of 4.59%, providing significant income appeal compared to broad equity indices.
Conagra successfully reinforced its flagship meat snack brand visibility by breaking the Guinness World Record for the longest Slim Jim.
Risk Factors
The stock has declined roughly 12.8% year-to-date, reflecting broader sector pressure and specific concerns around growth and margins.
Wall Street maintains a cautious stance with an average analyst rating score of 1.72 based on 1 buy, 11 hold, and 6 sell recommendations.
Conagra Brands stock is trading around USD 15.20 as of mid-September 2026, positioning the packaged food group above its consensus analyst price target of roughly USD 14.10. Despite this recovery, analysts maintain a cautious outlook with a consensus rating of Reduce based on coverage from 18 analysts, comprising 1 buy, 11 holds, and 6 sell ratings. The average price target implies single-digit downside from recent levels, suggesting the market has outpaced the fundamental valuation narrative.
Deutsche Bank recently raised its 12-month price target for Conagra Brands from USD 12.00 to USD 13.00 while maintaining a Hold rating. This move highlights a divergence between quantitative valuation frameworks, which suggest the stock trades about 38.3 percent below its modeled intrinsic value of USD 24.65, and fundamental analysts who advise restraint due to limited upside versus intrinsic value estimates.
The investment case for Conagra Brands centers on upcoming earnings expectations and income characteristics. The consensus analyst estimate for the next quarterly earnings per stand is USD 0.46, with investors scrutinizing whether the recent 15.9 percent share-price advance can be justified by future performance in a challenging cost environment. The company offers an indicated dividend yield of about 4.60 percent and trades with a market capitalization around USD 7.29 billion.
📈 Stock trades near USD 15.20 above consensus analyst target of USD 14.10.
📉 Analyst consensus remains Reduce with 6 sell ratings among 18 total analysts.
💰 Company offers 4.60% dividend yield with market cap around USD 7.29 billion.
⚠️ Shares trade 38.3% below GuruFocus modeled intrinsic value of USD 24.65.
🛑 Risks include margin pressure from input-cost volatility and competitive food dynamics.
📈 Conagra Brands stock trades near USD 15.20, sitting above the consensus analyst price target of roughly USD 14.10.
📉 The broader analyst consensus remains Reduce with a distribution of 1 buy, 11 holds, and 6 sell ratings among 18 analysts.
🏦 Deutsche Bank raised its 12-month price target to USD 13.00 while maintaining a Hold rating on the stock.
💰 The company offers an indicated dividend yield of approximately 4.60 percent with a market cap around USD 7.29 billion.
📅 Analysts expect the next quarterly earnings per share to be USD 0.46, serving as the primary near-term catalyst.
⚠️ The stock trades about 38.3 percent below GuruFocus's modeled intrinsic value of USD 24.65 according to quantitative metrics.
📊 Shares have risen roughly 15.9 percent over the past three months, moving closer to the upper part of their 52-week range.
🛑 Risk factors include pressure on margins from input-cost volatility and competitive dynamics in branded food products.
Conagra Brands (CAG) stock has declined 41.1% over the past five years, prompting a re-evaluation of its valuation relative to current sales and business resets. The company is implementing strategic changes including new 'GLP-1 friendly' product labels, a significant impairment-driven net loss, a 50% dividend cut, and plans for increased spending on brands and supply chains.
Analysts are divided on the stock's future trajectory, with valuations split between a bullish case suggesting the shares are 23% undervalued due to successful brand optimization and acquisitions, and a bearish view that prices them as roughly fairly valued or even overvalued given cost inflation pressures. The company currently trades at a Price-to-Sales ratio of 0.6x, which aligns with industry averages but may reflect investor caution regarding the timing of profitability recovery from recent restructuring efforts.
Simply Wall St analysis highlights that while the current P/S multiple appears reasonable compared to peers, the discount suggests investors are weighing how quickly strategic moves like product refreshes can translate into steadier margins. The article notes that high-return acquisitions and robust performance in specific snack subsegments support a bullish thesis, whereas incremental cost inflation and lowered analyst targets support a bearish outlook.
📉 Stock down 41.1% in five years amid impairment-driven net losses.
🔄 Executing reset with new GLP-1 labels and 50% dividend cut.
💰 Trades at 0.6x sales, matching industry average multiples.
📈 Bullish analysts see 23% undervaluation from successful brand optimization.
📉 Bearish targets lowered to $12-$14 due to cost inflation pressures.
📉 Conagra Brands stock has fallen 41.1% over the last five years, raising questions about current valuation relative to sales.
🔄 The company is executing a business reset involving new GLP-1 friendly labels and a 50% dividend cut to preserve cash.
💸 A large impairment-driven net loss has impacted recent earnings performance and investor sentiment.
📈 Bullish analysts view the stock as 23% undervalued citing successful brand optimization and rapid scaling of key products like Fatty Meat Sticks.
📉 Bearish analysts have lowered price targets to the US$12-US$14 range, citing incremental cost inflation as a key pressure on earnings.
💰 The stock trades at a Price-to-Sales ratio of 0.6x, matching both the food industry average and peer group multiples.
🏭 Management plans for higher spending on brands and supply chains aim to reshape future margins and cash flow timing.
📊 Simply Wall St analysis suggests the current valuation discount reflects investor caution regarding the speed of profitability recovery.
Bullish Signals
Analysts see stock as 23% undervalued.
Robust growth in snack subsegments via Fatty Meat Sticks.
Risk Factors
Large impairment-driven net loss impacted financial results.
50% dividend cut preserves cash for investments.
Bearish analysts lowered targets to $12-$14 due to cost inflation.
Bullish Signals
Bullish analysts view the stock as 23% undervalued, citing recent high-return acquisitions and successful brand optimization strategies.
The company demonstrates robust performance in lucrative snack subsegments, exemplified by the rapid scaling of Fatty Meat Sticks.
Risk Factors
The company recently recorded a large impairment-driven net loss that has impacted its financial results.
Management announced a 50% dividend cut as part of a strategic reset to preserve cash for future investments.
Bearish analysts have lowered price targets to the US$12-US$14 range, highlighting incremental cost inflation as a key pressure on earnings power.
We use cookies to run the site and, only if you allow it, for live chat, analytics, personalization and ad measurement.
We use cookies to:
Deliver and maintain our services, protect against spam, fraud and abuse
Offer a live chat with our team (Enuchat, optional)
Measure audience engagement and site statistics to understand how our services are used (Google Analytics, optional)
Remember your quiz progress and tailor the knowledge base to your skill level (optional)
Measure how our ads on Facebook and Instagram perform, including whether a visit leads to a confirmed sign-up, matched to your Facebook or Instagram account using hashed contact details you enter (Meta Pixel, optional)
Optional cookies are only set if you allow them. You can accept all, reject all or choose per category, and change your choice at any time via the "Manage Cookies" link in the footer. Google and Meta may process this data in the USA. More in our Privacy Policy.
Manage cookie preferences
Necessary cookiesAlways active
Required for the website to function. These cannot be disabled.
Cookie
Purpose
Duration
PHPSESSID
Session identifier for login, security tokens, and site functionality
Session
cookie_consent
Stores your cookie preferences
1 year
Functional cookies
Show the live chat button so you can message our team. The Enuchat chat widget stores a visitor ID in your browser and sends your chat messages to Enuchat. When this is off, the chat is not loaded.
Cookie
Purpose
Duration
enuchat_visitor_id
Keeps your chat conversation linked to this browser (Enuchat, browser storage)
Until you clear it or turn this off
Analytics cookies
Help us understand how visitors use our website with Google Analytics, provided by Google LLC. Google receives pages visited, device data and an IP address, and may process them in the USA. If you also allow marketing cookies, the Google tag can detect contact details you enter or see on our pages, such as your email address, phone number, name or address, hash them before sending and pass them to Google so it can match your visits to a Google account for measuring our ads. Hashed details are still personal data. See how Google uses information from sites that use its services.
Cookie
Purpose
Duration
_ga
Distinguishes unique visitors (Google Analytics)
2 years
_ga_*
Maintains session state (Google Analytics)
2 years
Personalization cookies
Remember your quiz progress and work out your investing level so we can recommend knowledge-base articles and the right reading depth for you. Stored only on your device.
Cookie
Purpose
Duration
bes_user_level
Your quiz-derived investing level, used to tailor content
1 year
Marketing cookies
Let Meta (Facebook and Instagram) measure how our ads perform, using the Meta Pixel. Meta Platforms Ireland Ltd. receives the pages you visit and, when you confirm the email address of a new account, a "completed registration" event, together with browser identifiers and your IP address. Meta's automatic advanced matching also reads contact details you type into forms on our site, such as your email address or name, hashes them in your browser and sends them with these events so Meta can match them to a Facebook or Instagram account. Hashed details are still personal data. These events are sent from your browser and may also be forwarded to Meta through Meta's Conversions API Gateway. Our own server also sends page visits and completed-registration events directly to Meta's Conversions API, with your IP address, browser user agent and Meta browser identifiers, so Meta can count it once. To help Meta match these visits, your browser and our server also send a random visitor ID from our own cookie and, if you are signed in, your account ID, your confirmed email address and the name, city, postal code and country saved in your profile, all hashed first. We and Meta are joint controllers for collecting and sending this data, and Meta's further use, which may include processing in the USA, is described in the Meta Privacy Policy. When this is off, the Meta Pixel is not loaded and no page visit or registration event is sent to Meta. Together with analytics cookies, this choice also lets Google receive hashed contact details, as described under Analytics cookies.
Cookie
Purpose
Duration
_fbp
Identifies browsers for Meta ad measurement (Meta Pixel)
3 months
_fbc
Stores the Meta ad click that brought you here (Meta Pixel)
3 months
_bes_meid
Random visitor ID, sent to Meta only hashed, so your visits can be matched (Meta Pixel and Conversions API)