Conagra Brands 2026 Conference Summary Company Overview - **Company**: Conagra Brands (NYSE:CAG) - **Revenue**: $12 billion in organic net sales, with 92% of revenue generated in the United States [2][6] - **Market Position**: Competes in attractive categories such as frozen food, staples, and snacks, with 81% of revenue from market-leading brands [3][4] Core Business Insights - **Consumer Domains**: Focus on three domains: frozen, staples, and snacks, with frozen and snacks representing about 70% of revenue [5][6] - **Brand Portfolio**: Emphasis on diverse brands catering to various consumer preferences, including premium and value-oriented options [3][4] - **Innovation Focus**: Investments in product and packaging innovation, particularly in health and wellness [7][8] Financial Performance - **Growth Metrics**: 75% of the frozen and snacks portfolio is holding or gaining market share; frozen business has rebounded to 98% service levels after supply interruptions [9][10][60] - **Sales Growth**: Snacks reported a 5.3% growth quarter to date, outperforming broader snack categories [10] - **Cost Management**: Forecasting 5% cost savings as a percentage of cost of goods sold, with a focus on cash flow and capital allocation [60][61] Consumer Trends - **Diverse Consumer Base**: Notable shifts in consumer demographics, with a shrinking middle class and increased purchasing power among lower and upper-income consumers [18][19] - **Gen Z Preferences**: Gen Z consumers are driving demand for bold flavors, international foods, and on-the-go products [20][21] - **Health and Wellness**: Growing focus on health attributes in food, with a significant portion of the portfolio qualifying as "Clean Label" [8][31] Strategic Initiatives - **Superior Relative Provocativeness**: A framework for driving category growth and brand vitality by optimizing product offerings for diverse consumer sets [12][11] - **Project Catalyst**: A multi-year initiative aimed at modernizing operations and leveraging AI for improved performance [64][65] Future Outlook - **Guidance for Fiscal 2026**: Organic net sales expected to range from -1% to +1% compared to fiscal 2025, with adjusted operating margin projected between 11%-11.5% [62][63] - **Long-term Confidence**: Affirmation of long-term financial performance metrics, with expectations for continued top-line momentum and margin recovery [66] Key Innovations - **Product Launches**: Introduction of new products across various brands, including high-protein options and plant-based alternatives, to meet evolving consumer demands [35][41][46] - **Marketing Strategies**: Emphasis on digital and social media marketing to engage consumers and drive brand relevance [7][48] Conclusion - **Positioning**: Conagra Brands is well-positioned to navigate the dynamic food industry landscape, leveraging its diverse portfolio, innovative strategies, and strong financial management to drive growth and meet consumer needs [66]

SEAN CONNOLLY P R E S I D E N T A N D C H I E F E X E C U T IV E O FF I C E R C A G N Y 2026 1 Legal Disclosure Note on Forward-Looking Statements The presentation contains forward-looking statements regarding our expected future financial performance or position, results of operations, business strategy, plans and objectives, costs and cost savings, and dividends, and other statements that are not historical facts. Readers of this document should un derstand that these forward-looking statements are not gu ...

Core Viewpoint - Conagra Brands Inc. reaffirms its fiscal 2026 guidance ahead of the 2026 CAGNY presentation, highlighting expected financial performance and new product innovations for the year [1]. Financial Guidance - Adjusted EPS is projected to be between $1.70 and $1.85 [1]. - Adjusted operating margin is expected to be approximately 11.0% to 11.5% [1]. - Organic net sales change is forecasted to range from a decline of 1% to an increase of 1% compared to fiscal 2025 [1]. - Free cash flow conversion is now anticipated to be around 100% for the full year, an increase from the previous estimate of approximately 90% [1]. Company Overview - Conagra Brands is one of North America's leading branded food companies, with a history of over 100 years in quality food production [1]. - The company generated nearly $12 billion in net sales for fiscal 2025 [1]. - Conagra's brand portfolio includes well-known names such as Birds Eye®, Duncan Hines®, Healthy Choice®, and Slim Jim® [1].

Core Viewpoint - Conagra Brands (CAG) has not announced any significant new events recently, but there are ongoing market dynamics that may attract attention until February 13, 2026 [1] Financial Performance - The company released its latest quarterly earnings report on December 19, 2025, before the market opened, with total revenue expected to be $2.989 billion, reflecting a year-over-year decline of 5.10% [2] - Adjusted earnings per share are anticipated to be $0.44, which represents a year-over-year decrease of 34.99% [2] - Management discussed challenges related to cost structure, brand pricing strategies, and the retail environment in the earnings report [2] Institutional Perspectives - Analyst sentiment around the earnings report has been cautious, focusing on revenue decline and profit pressure [3] - Analysts noted that in a context where consumers are more price-sensitive, the company needs to balance sales volume and gross margin through cost optimization and promotional strategies [3]

Core Viewpoint - During turbulent market conditions, investors often seek dividend-yielding stocks, which typically have high free cash flows and provide substantial dividends to shareholders [1]. Group 1: Investment Strategy - Dividend-yielding stocks are favored by investors in uncertain market environments [1]. - Companies with high free cash flows are more likely to offer significant dividend payouts [1]. Group 2: Analyst Ratings - The article highlights the ratings of the most accurate analysts for three high-yielding stocks in the consumer staples sector [2]. - The identified companies include Altria Group Inc, Conagra Brands Inc, and Kraft Heinz Co [3].

Core Viewpoint - During turbulent market conditions, investors often seek dividend-yielding stocks, which typically belong to companies with high free cash flows that provide substantial dividends to shareholders [1]. Group 1: High-Yielding Stocks - Altria Group Inc (NYSE:MO) is identified as a high-yielding stock in the consumer staples sector [3]. - Conagra Brands Inc (NYSE:CAG) is also highlighted as a notable high-yielding stock [3]. - Kraft Heinz Co (NASDAQ:KHC) is mentioned as another significant player in the high-yielding stock category [3].

Core Thesis - Conagra Brands, Inc. is viewed positively due to its diversified portfolio and potential for future growth despite current challenges [1][2] Company Overview - Conagra Brands, Inc. is a U.S.-based packaged food company with a diverse range of products across Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice segments [2] - The company boasts a strong brand lineup including Birds Eye, Duncan Hines, Marie Callender's, and Slim Jim, supported by over 40 manufacturing facilities and approximately 18,300 employees [2] Current Challenges - The company faces margin pressures due to persistent commodity inflation in proteins and tariffs on tin-plate steel and aluminum, which have increased costs by roughly 3% [3] - Management anticipates a 2% year-over-year decline in organic net sales, exacerbated by temporary supply chain disruptions in frozen meals [3] Future Outlook - Conagra is implementing a "Fuel for Growth" initiative aimed at modernizing the supply chain, targeting $1 billion in cumulative cost savings over three years [4] - Successful execution of this initiative could restore margins and enhance free cash flow generation [4] Investment Appeal - As a consumer staples company, Conagra offers recession resilience, with stable demand for affordable at-home food products during economic downturns [5] - The stock features an approximately 8% dividend yield, appealing to income-oriented investors [5] Innovation Potential - The company plans to launch over 50 new frozen products, expand gluten-free offerings, and eliminate artificial dyes by the end of 2025 [6] - While historical revenue growth has been modest, successful innovation and cost-saving measures could stabilize performance and support a gradual rerating of the stock [6]

Core Viewpoint - Conagra Brands, Inc. will present its business strategies and financial outlook at the 2026 CAGNY Conference on February 17, 2026 [1] Company Overview - Conagra Brands, Inc. is one of North America's leading branded food companies with a history of over 100 years in quality food production [3] - The company generated nearly $12 billion in net sales for fiscal 2025 [3] - Conagra's brand portfolio includes well-known names such as Birds Eye®, Duncan Hines®, Healthy Choice®, and many others [3] Presentation Details - The presentation will feature Sean Connolly (CEO), Dave Marberger (CFO), and Bob Nolan (SVP of Growth Science) [1] - A video webcast and presentation slides will be available on the company's investor relations website [2] - The replay of the webcast will be accessible until February 17, 2027 [2]

Company Overview - Conagra Brands, Inc. (CAG) has a market cap of $8.9 billion and is a leading U.S. consumer packaged foods company, producing a variety of grocery, frozen, refrigerated, and snack products [1] - The company was founded in 1919 and is headquartered in Chicago, operating across retail, international, and foodservice channels with a strong portfolio of brands such as Birds Eye, Duncan Hines, Healthy Choice, and Slim Jim [1] Stock Performance - Over the past 52 weeks, CAG stock has declined by 29%, while the S&P 500 Index has gained 15.5% [2] - Year-to-date, CAG shares are up 6.2%, outperforming the S&P 500's increase of 1.9% [2] - CAG shares have also lagged behind the State Street Consumer Staples Select Sector SPDR Fund's (XLP) 7% rise over the past 52 weeks [3] Financial Challenges - The company's underperformance is attributed to weak fundamentals and soft consumer demand, leading to declining sales volumes and limited pricing power in a competitive packaged-foods sector [5] - Organic net sales and earnings have been pressured by cost inflation, tariffs, supply chain challenges, and consumers shifting to private-label alternatives, negatively impacting margins and investor confidence [5] - Revenue growth expectations are muted, with analysts predicting a 25.2% year-over-year decrease in adjusted EPS to $1.72 for the fiscal year ending in May 2026 [6] Analyst Sentiment - Among 16 analysts covering CAG, the consensus rating is a "Hold," consisting of two "Strong Buy" ratings, 11 "Holds," one "Moderate Sell," and two "Strong Sells" [7] - Morgan Stanley analyst Megan Alexander Clapp has cut her price target on CAG to $18 from $19 while maintaining an "Equal-Weight" rating, citing a challenging outlook for U.S. food stocks [8]

Core Insights - The breakfast bowls category is valued at $626 million, with consumers prioritizing protein as the main attribute in their purchasing decisions. Banquet MEGA Breakfast Bowls provide 30g of protein per bowl and offer 25% more food than the leading brand, positioning them as a substantial meal option [1][3]. Product Features - Banquet MEGA Breakfast Bowls utilize a tray-in-tray steaming technology that keeps sauce and ingredients separate while frozen, ensuring optimal texture after microwaving. This method results in fluffy eggs, tender potatoes, and juicy proteins, culminating in a cheesy breakfast experience [2]. Market Positioning - Conagra Brands, the parent company of Banquet, is a leader in single-serve frozen meals, breakfast pot pies, and frozen cooked sausage links. The introduction of Banquet MEGA Breakfast Bowls aligns with consumer demand for protein-rich meals and will be available in grocery and mass retail stores starting in February [3][4]. Brand Overview - Conagra Brands, Inc. is a prominent branded food company in North America, with a history of over 100 years. The company reported nearly $12 billion in net sales for fiscal 2025 and continues to adapt its portfolio to meet changing consumer preferences [4].