Core Insights - Conagra Brands (CAG) reported quarterly earnings of $0.45 per share, exceeding the Zacks Consensus Estimate of $0.44 per share, but down from $0.7 per share a year ago, indicating an earnings surprise of +2.27% [1] - The company posted revenues of $2.98 billion for the quarter ended November 2025, missing the Zacks Consensus Estimate by 0.35% and down from $3.2 billion year-over-year [2] - Conagra Brands shares have declined approximately 35.9% year-to-date, contrasting with the S&P 500's gain of 15.2% [3] Earnings Outlook - The future performance of Conagra Brands' stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $2.74 billion, and for the current fiscal year, it is $1.75 on revenues of $11.25 billion [7] Industry Context - The Food - Miscellaneous industry, to which Conagra Brands belongs, is currently ranked in the bottom 20% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5][6]

Financial Performance - Q2 FY26 - Conagra's Q2 FY26 organic net sales decreased by 30% compared to the previous year, totaling $2975 million[51, 52, 53] - Adjusted EPS for Q2 FY26 was $045, a decrease of 357% year-over-year[51] - Adjusted operating margin for Q2 FY26 was 113%, a decrease of 406 bps compared to the previous year[51, 54, 55, 57] - For H1 FY26, organic net sales decreased by 19% to $5586 million[51, 76] - Adjusted EPS for H1 FY26 was $085, a decrease of 309% year-over-year[51] Segment Performance - Q2 FY26 - Grocery & Snacks net sales were $1209 million, with a 15% organic net sales decrease[53] - Refrigerated & Frozen net sales were $1251 million, with a 51% organic net sales decrease[53] - International net sales were $230 million, with a 29% organic net sales decrease[53] - Foodservice net sales were $288 million, with a 02% organic net sales increase[53] Key Business Trends - Frozen retail volume sales showed a return to growth on a two-year basis, with a +08% change in Q2 FY26[14, 15] - 90% of frozen products held or gained volume share vs 2 years ago[15] - Conagra's frozen single-serve meals volume share of category was 529% in Q2 FY26, a +05 percentage point change vs 2 years ago[18, 19, 20, 21] - Conagra's frozen vegetables volume % change was +91% vs 2 years ago[22, 23] - Conagra's frozen vegetables volume share of category was 191% in Q2 FY26, a +13 percentage point change vs 2 years ago[24, 25]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Group 1 - The presentation is led by Matthew Neisius, Senior Director of Investor Relations, who introduces the Conagra Brands Second Quarter Fiscal 2026 Earnings [1] - The CEO, Sean Connolly, and CFO, Dave Marberger, will make forward-looking statements during the presentation, emphasizing that these statements are made in good faith based on current information [2] - A live question-and-answer session will follow the prepared remarks, accessible via webcast on the investor relations website [1][2] Group 2 - The company will discuss non-GAAP financial measures, with reconciliations and comparability items available in the earnings release and presentation materials [2]

Core Insights - Conagra Brands reported in-line revenue for Q2, with a slight profit beat and reaffirmed its full-year outlook [2] Segment Performance - The Grocery & Snacks segment experienced a decline of 8.5%, with net sales reaching $1.2 billion [2] - The Refrigerated & Frozen segment also saw a decrease, although specific figures were not provided in the excerpt [2]

Core Insights - Conagra experienced a decline in sales during its latest quarter as consumers reduced spending on its products [1] Company Summary - The company reported lower sales figures compared to previous periods, indicating a shift in consumer behavior towards spending less on its offerings [1]

Financial Data and Key Metrics Changes - Conagra's organic net sales for Q2 were approximately $3 billion, reflecting a 3% decline compared to the prior year [18] - Adjusted gross margin was 23.4% and adjusted operating margin was 11.3%, both down from the previous year but slightly better than expectations [18] - Adjusted earnings per share were $0.45, down $0.25 year-over-year [18] Business Line Data and Key Metrics Changes - Grocery and snacks segment net sales were $1.2 billion, a 1.5% decline in organic net sales versus the prior year [22] - Refrigerated and frozen segment delivered $1.3 billion in sales, with organic net sales down 5.1% due to lower volumes [22] - Food service segment posted organic net sales growth of 0.2% over the prior year, driven by favorable pricing [22] Market Data and Key Metrics Changes - International segment organic net sales declined 2.9% versus the prior year, with growth in Mexico but softness in Canada and global markets [22] - The overall market environment remained challenging, with weak consumer sentiment and inflationary pressures impacting low and middle-income consumers [5][6] Company Strategy and Development Direction - The company is executing a tailored portfolio segmentation strategy to drive volume growth in frozen and snacks while maximizing cash in staples [3] - Project Catalyst was launched to leverage AI and new technologies to unlock value across operations, with more details expected in 2026 [4][15] - The company plans to increase advertising and promotional spending in the second half to support growth businesses [17] Management's Comments on Operating Environment and Future Outlook - Management expressed high confidence in returning to organic net sales growth in the second half, supported by robust investment and improving consumption trends [16] - The company noted that the government shutdown and weather dynamics had a significant impact on retailer ordering and inventory levels [5][6] - Management reaffirmed full-year guidance, expecting organic net sales change of -1% to +1% versus fiscal 2025 [27] Other Important Information - The company achieved record service levels in the supply chain, with approximately 99% service levels in Q2 [15] - Net debt was reduced by nearly $850 million, with net leverage at 3.83 times, favorable to expectations [25] - Adjusted equity earnings from the joint venture Ardent Mills are now expected to be approximately $170 million, down from prior expectations [26] Q&A Session Summary Question: What are the expectations for organic net sales growth in the second half? - Management expects to return to overall organic net sales growth driven by the wrap of frozen supply constraints and inflation-justified pricing actions [28] Question: How is the company addressing inflationary pressures? - The company has taken inflation-justified pricing actions and is focused on optimizing working capital to manage costs effectively [23][29] Question: What is the outlook for advertising and promotional spending? - Management indicated that A&P spending is expected to increase in the second half, peaking at over 3% in Q3 to support growth initiatives [29]

Financial Data and Key Metrics Changes - Conagra's organic net sales for Q2 were approximately $3 billion, representing a 3% decline compared to the prior year [18] - Adjusted gross margin was 23.4% and adjusted operating margin was 11.3%, both down from the previous year but slightly better than expectations [18] - Adjusted earnings per share were $0.45, down $0.25 year-over-year [18] Business Line Data and Key Metrics Changes - Grocery & Snacks segment net sales were $1.2 billion, a 1.5% decline in organic net sales versus the prior year [21] - Refrigerated & Frozen segment delivered $1.3 billion in sales, with organic net sales down 5.1% due to lower volumes and unfavorable mix [21] - Foodservice segment posted organic net sales growth of 0.2% over the prior year, driven by favorable pricing [22] Market Data and Key Metrics Changes - International segment organic net sales declined 2.9% versus the prior year, with growth in Mexico but softness in Canada and global markets [22] - The overall market environment remained challenging, with consumer sentiment weak and value-seeking behavior prevalent among low and middle-income consumers [5][4] Company Strategy and Development Direction - The company is executing a tailored portfolio segmentation strategy to drive volume growth in frozen and snacks while maximizing cash in staples [3] - Project Catalyst was launched to leverage AI and new technologies to unlock value across operations, with more details expected in calendar 2026 [4][15] - The company plans to increase advertising and promotional spending in the second half to support growth businesses [17] Management's Comments on Operating Environment and Future Outlook - Management expressed high confidence in plans to return to organic net sales growth in the second half, supported by recent inflation-justified pricing actions and robust investment [16] - The company noted that underlying consumption trends and inventory dynamics are expected to normalize, contributing to positive momentum [16] - Management acknowledged challenges from the macro environment, including a government shutdown and unseasonal weather impacting consumption [5][6] Other Important Information - The company reported a reduction in net debt by nearly $850 million, ending the quarter with net leverage at 3.83x [25] - Capital expenditures totaled $219 million, and dividends paid were $335 million for the first half [25] - Adjusted equity earnings from the joint venture Ardent Mills are now expected to be approximately $170 million, down from prior expectations [26] Q&A Session Summary Question: What are the expectations for organic net sales growth in the second half? - Management expects to return to overall organic net sales growth driven by the wrap of frozen supply constraints and robust investment plans [28] Question: How is the company managing inflationary pressures? - The company has taken inflation-justified pricing actions and is focused on optimizing working capital to manage costs effectively [23][29] Question: What is the outlook for advertising and promotional spending? - The company plans to increase advertising and promotional spending in the second half, particularly in frozen categories, to support growth [17]

Financial Data and Key Metrics Changes - Conagra's organic net sales for Q2 were approximately $3 billion, reflecting a 3% decline compared to the prior year [19] - Adjusted gross margin was 23.4% and adjusted operating margin was 11.3%, both down from the previous year but slightly better than expectations [19] - Adjusted earnings per share were $0.45, down $0.25 year-over-year [19] Business Line Data and Key Metrics Changes - Grocery and snacks segment net sales were $1.2 billion, a 1.5% decline in organic net sales versus the prior year [21] - Refrigerated and frozen segment delivered $1.3 billion in sales, with organic net sales down 5.1% [22] - Food service segment posted organic net sales growth of 0.2% over the prior year [23] Market Data and Key Metrics Changes - International segment organic net sales declined 2.9% versus the prior year, with growth in Mexico but softness in Canada and global markets [23] - The overall market environment remained challenging, with consumer sentiment weak and value-seeking behavior prevalent among low and middle-income consumers [5] Company Strategy and Development Direction - The company is executing a tailored portfolio segmentation strategy to drive volume growth in frozen and snacks while maximizing cash in staples [3] - Project Catalyst was launched, leveraging AI and new technologies to unlock value across operations [4][16] - The company is reaffirming its full-year guidance, expecting a return to organic net sales growth in the second half of the fiscal year [18][29] Management's Comments on Operating Environment and Future Outlook - Management noted that household budgets are strained, impacting consumer behavior, particularly among lower-income groups [5] - The company expressed confidence in returning to organic net sales growth based on underlying consumption trends and inventory dynamics [17] - Management highlighted the importance of upcoming merchandising events and promotional activities to drive sales in the second half [28] Other Important Information - The company achieved record service levels in its supply chain, with approximately 99% service levels in Q2 [16] - Capital expenditures totaled $219 million, and dividends paid were $335 million for the first half, both in line with the prior year [26] - Adjusted equity earnings from the joint venture Ardent Mills are now expected to be approximately $170 million, down from prior expectations [27] Q&A Session Summary Question: What are the expectations for organic net sales growth in the second half? - Management expects to return to overall organic net sales growth driven by the wrap of frozen supply constraints and recent pricing actions [28] Question: How is the company managing inflationary pressures? - The company has taken inflation-justified pricing actions and is focused on optimizing working capital to manage costs [24] Question: What is the outlook for the snacks business? - The snacks business continues to outperform, with strong demand for protein-centric products, positioning the company well for sustained growth [11]

Core Viewpoint - Conagra Brands has maintained its annual sales and profit forecasts despite challenges from pressured consumer spending and stiff competition affecting demand for its pantry staples [1] Group 1: Company Performance - Conagra Brands continues to project stable annual sales and profit forecasts, indicating confidence in its financial outlook [1] - The company faces challenges due to reduced consumer spending, which is impacting demand for its products [1] Group 2: Market Conditions - Stiff competition in the market is contributing to the pressure on demand for Conagra's pantry staples, such as Slim Jim meat snacks [1]