Conagra is expanding frozen entree capacity, modernizing its baked chicken facility and adding fried chicken lines to meet surging protein demand, with service levels now back above 98% following earlier disruptions.
The company forecasts 7% overall inflation for the year (4% core, 3% from tariffs) and expects to mitigate 5.5% through pricing, cost actions and hedging, despite double-digit inflation in its protein basket.
Prioritizing volume growth, Conagra has kept promotional lifts at pre-COVID levels and deferred broad-based price hikes in frozen and snacks to rebuild household penetration, foregoing margin for market share.
Capital allocation remains balanced: planned 16% increase in CapEx, $700 million targeted debt reduction, and a maintained dividend, with no opportunistic share buybacks this year.
While remaining open to M&A and divestitures, management plans to shift the portfolio toward higher-growth frozen and snack businesses, with shelf-stable grocery products declining as a share of sales.

8 days ago

Transcript

Conagra Brands reports Q1 FY2026 results and outlook

CAG

Earnings

Guidance Update

New Projects/Investments

Service levels restored to 98% in Q1, enabling resumed merchandising and strong consumer uptake of frozen and snack innovations (e.g., Dolly Parton line).
Expects a low-single-digit volume decline in Q2 due to timing and tough comps, but projects positive organic sales growth in H2 driven by frozen volume momentum, protein snacks, and inflation-justified pricing.
Annual inflation guided at ~7% (4% core, 3% tariffs) with 85% coverage in Q2 and 60–65% for the full year; animal proteins remain the primary pressure point.
Q1 net debt fell by ~$400 million (down $1.1 billion on a 12-month basis); on track to pay down $700 million in debt in FY26, with Q1 inventory build deemed a planned timing to support service levels.
Management reaffirms FY26 guidance as prudent, citing potential for margin expansion beyond FY26 via productivity gains, inflation relief, supply chain investments (e.g., chicken plant upgrades), pricing, and AI-driven efficiencies.

Oct 1, 2025, 1:30 PM

Transcript

Conagra Brands reports Q1 FY26 results

CAG

Earnings

Guidance Update

Organic net sales of $2,611 M declined 0.6% YoY; adj. EPS was $0.39 (–26.4%) and adj. operating margin fell to 11.8% (–244 bps) in Q1 FY26.
Price/Mix contributed +0.6% while volume was –1.2%; Grocery & Snacks net sales declined 1.0%, Refrigerated & Frozen rose 0.2%, International fell 3.5% and Foodservice grew 0.2%.
Completed divestitures of Chef Boyardee and frozen seafood, generating $644 M of proceeds and reducing net debt by >$400 M to $7,582 M, lowering net leverage to 3.55x.
Supply chain delivered 98% service levels, though management noted persistent inflation (now expected in the low 7% range) and weak consumer sentiment.
Reaffirmed FY26 guidance: organic net sales growth –1% to +1%, adj. operating margin ~11.0–11.5%, adj. EPS $1.70–$1.85, and maintained annual dividend of $1.40.

Oct 1, 2025, 1:30 PM

Presentation

Conagra Brands reports Q1 FY2026 results

CAG

Earnings

Guidance Update

Net sales of $2.6 billion, down 5.8% YoY; organic net sales decreased 0.6%.
Operating margin at 13.2% (down 118 bps) and adjusted operating margin at 11.8% (down 244 bps); reported EPS of $0.34 (−64.9%), adjusted EPS $0.39 (−26.4%).
Free cash flow of $(26) million vs. $135.6 million in Q1 FY2025; net debt reduced 12.3% to $7.6 billion, with a 3.55× net leverage ratio.
Reaffirmed FY2026 guidance: organic net sales growth of (1)%–1%, adjusted operating margin of ~11.0%–11.5%, and adjusted EPS of $1.70–$1.85.

Oct 1, 2025, 11:32 AM

8-K

Conagra Brands reports Q1 FY26 results

CAG

Earnings

Guidance Update

Dividends

Conagra Brands reported net sales of $2.6 billion, down 5.8%; organic net sales decreased 0.6%.
Reported operating margin was 13.2% (adjusted 11.8%), and EPS was $0.34, a 64.9% decline; adjusted EPS was $0.39, down 26.4%.
The company generated $121 million in net cash from operations, free cash flow of $(26 million), and ended the quarter with $7.6 billion of net debt (3.55x leverage).
Conagra reaffirmed FY26 guidance: organic net sales growth of –1% to +1%, adjusted operating margin of 11.0–11.5%, and adjusted EPS of $1.70–$1.85.
The board declared a $0.35 per share quarterly dividend.

Oct 1, 2025, 11:30 AM

Press Release

Conagra Brands reports Q1 FY2026 results

CAG

Earnings

Guidance Update

M&A

Conagra’s organic net sales of $2.6 billion declined 0.6% year-over-year; adjusted operating margin was 11.8% and adjusted EPS was $0.39.
The company achieved 98% service levels in Q1, overcame frozen supply chain constraints, and reduced net debt by over $400 million through divestitures of Chef Boyardee, Van de Camps and Mrs. Paul’s.
Productivity gains exceeded 5% of COGS, mitigating a significant portion of ~7% total inflation (including tariffs).
Conagra reaffirmed FY2026 guidance: organic net sales growth of -1% to +1%, adjusted operating margin of 11%–11.5%, and adjusted EPS of $1.70–$1.85.

Oct 1, 2025, 11:00 AM

Transcript

Conagra Brands reports Q1 FY2026 results

CAG

Earnings

Guidance Update

Reported Q1 FY26 organic net sales of $2.61 B, down 0.6%, with price/mix +0.6% partially offset by volume (−1.2%) and M&A (−5.1%) impacts.
Achieved adjusted operating margin of 11.8%, down 244 bps YoY, driven by COGS inflation (−5.1%) and partially offset by productivity gains (+3.4%).
Q1 adjusted EPS was $0.39, a 26.4% decrease YoY, and net debt declined by over $400 M to $7.6 B following Q1 divestitures.
Reaffirmed FY26 guidance for organic net sales growth of (1)% to +1%, adj. operating margin ~11.0%–11.5%, and adj. EPS $1.70–$1.85.

Oct 1, 2025, 11:00 AM

Presentation

CONAGRA BRANDS INC. issues $1 billion senior notes

CAG

Debt Issuance

Conagra Brands priced $500 million 5.000% Senior Notes due August 1, 2030 at 99.674% and $500 million 5.750% Senior Notes due August 1, 2035 at 99.915% of par ; net proceeds were $496.62 million and $497.325 million, respectively.
The offering was conducted under an underwriting agreement dated July 15, 2025, with BofA Securities, Goldman Sachs & Co. LLC, and Mizuho Securities USA LLC as representatives.
The notes bear interest semi-annually on February 1 and August 1, with maturities in 2030 and 2035, and include a company call option and a change-of-control repurchase at 101% of principal.
Proceeds are earmarked for general corporate purposes, notably the repayment of a portion of Conagra’s 4.600% Senior Notes due November 2025.

Jul 22, 2025, 12:00 AM

8-K

Conagra Brands reports Q4 2025 results and provides FY 2026 guidance

CAG

Earnings

Guidance Update

Dividends

Conagra returned to absolute volume growth in Q2 FY 2025 through targeted investments in frozen and snacks, and resolved supply constraints to achieve ~98% service levels in Q4 FY 2025.
FY 2026 organic net sales are guided to –1% to +1%, with sales expected to be down slightly in H1 and up slightly in H2.
The company anticipates 4% core inflation plus 3% tariffs, partly offset by >5% productivity, leading to temporary margin compression but targeting margin expansion in FY 2027 through productivity, supply-chain resiliency and AI-enabled process improvements.
CapEx is planned to be +16%, with 90% cash conversion, $700 million of debt paydown and the dividend to be maintained.

Jul 10, 2025, 3:45 PM

Conagra Brands enters $2.0 B revolving credit facility

CAG

Debt Issuance

On June 27, 2025, Conagra Brands entered into a Third Amended and Restated Revolving Credit Agreement providing a $2.0 billion unsecured revolver, replacing its prior facility that matured in 2027.
The new facility matures on June 27, 2030 and may be extended annually by one or two years upon lender consent.
Borrowings bear interest at either Term SOFR + 0.805%–1.30% or Bank of America’s Base Rate + 0.00%–0.30%, with a 0.07%–0.20% per annum facility fee based on the company’s debt ratings.
The agreement includes customary investment-grade covenants—such as a maximum net leverage ratio and minimum interest coverage ratio—and standard events of default.

Jun 30, 2025, 12:00 AM

8-K

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