Conagra Brands, Inc. (CAG)

Conagra reported on September 30, 2026 that net sales for the first quarter of fiscal 2027 fell 1.4% to $2.6 billion 1. Organic net sales, which leave out currency, deals and divestitures, fell 1.1%, as a 2.1% drop in volume outweighed a 1.0% gain from price and mix 1.

Adjusted earnings per share, a profit measure that leaves out one-off items, were $0.41, up 5.1% 1. The company reaffirmed its fiscal 2027 outlook, which includes adjusted earnings of $1.40 to $1.50 per share and an adjusted operating margin of 10.0% to 10.5% 1.

John Brase, who has led the company since June 1, 2026, said it is acting on priorities that include restoring margins, increasing investment and reducing complexity 12.

On July 15, 2026 the company cut its quarterly dividend from $0.35 to $0.175 per share, and Reuters reported the new chief executive said the reset frees cash for the business 24.

The open question is what the company does with its non-core businesses: in its first quarter of fiscal 2027 it approved a multi-year initiative to evaluate strategic options for them 3. It gave no timing or cost estimate for any resulting charges 3.

Conagra began as a Midwestern flour-milling company and was incorporated in Nebraska in 1919, then moved its home to Delaware in 1976 2. Over time it left commodity businesses behind and became a branded packaged food company 2.

Its largest modern deal was the Pinnacle Foods purchase, which brought Birds Eye into the portfolio, and the acquired brands were recorded at fair value in fiscal 2019 26.

Net sales were $12,050.9 million in fiscal 2024, $11,612.8 million in fiscal 2025 and $11,281.6 million in fiscal 2026 2. Fiscal 2026 had an extra 53rd week, which added 1.8% to sales in the Grocery & Snacks and Refrigerated & Frozen segments 2.

The main reason sales slipped was that higher prices cost volume 2. In Grocery & Snacks, organic volume fell 2.4% in fiscal 2026 while price and mix rose 2.3%, which the company tied to inflation-driven pricing and shoppers buying less 2.

The company also sold businesses it saw as less central 3. It completed the sale of Chef Boyardee in the first quarter of fiscal 2026 for net proceeds of $607.0 million 3.

In the same quarter it sold its frozen fish business, which includes the Van de Kamp's and Mrs. Paul's brands, for net proceeds of $41.9 million 2. In fiscal 2025 it sold its 51.8% stake in Agro Tech Foods for $76.8 million 2.

The biggest break came in fiscal 2026 2. In the second quarter the company wrote down goodwill, the extra amount paid in past deals over what was bought, by $771.3 million in its Refrigerated & Frozen unit 2.

In the fourth quarter it wrote down a further $1.61 billion in that unit, and total brand write-downs for the year were $547.2 million, including Birds Eye, Armour, Bertolli and Wish-Bone 2. Diluted loss per share was $4.00, against earnings of $2.40 a year earlier 2.

Leadership changed too 6. Reuters reported on April 13, 2026 that the board named Brase to succeed Sean Connolly, who had led the company since 2015 6. The change came less than a month after the company lowered its annual profit forecast, Reuters said 6.

What it sells

Conagra calls itself one of North America's leading branded food companies, with brands including Birds Eye, Duncan Hines, Healthy Choice, Marie Callender's, Reddi-wip, Slim Jim and Angie's BOOMCHICKAPOP 2. It also sells under licences, including Dolly Parton, Bertolli, Wendy's and Libby's 2.

It reports four segments: Grocery & Snacks (shelf-stable food), Refrigerated & Frozen (temperature-controlled food), International, and Foodservice, which sells meals and sauces to restaurants and institutions 2.

In the first quarter of fiscal 2027, Grocery & Snacks net sales fell 2.6% to $1.1 billion and Refrigerated & Frozen fell 2.1% to $1.1 billion 1. International rose 2.7% to $218 million and Foodservice rose 3.2% to $273 million 1.

The company said it gained dollar share in the quarter in frozen vegetables, pudding, chili, frozen breakfast, hot dogs and frozen desserts 1. Reuters reported it is investing in snacks such as Slim Jim meat sticks, nuts and seeds 6.

Shifting tastes linked to appetite-suppressing weight-loss drugs are a pressure, Reuters reported 6. The company's annual report says shoppers seeking portion-controlled, high-protein and high-fiber foods fit its portfolio 2.

People and plants

John Brase, 58, has been chief executive and a director since June 1, 2026, after serving as president and chief operating officer of Smucker 26.

David Marberger has been chief financial officer since August 2016, Carey Bartell general counsel since June 2022, and Charisse Brock chief human resources officer since November 2015 2.

On May 31, 2026 it had about 17,400 employees, mostly in the United States, and about 48% of them were covered by collective bargaining agreements 2.

As of July 15, 2026 it had 37 domestic plants in states from Arkansas to Wisconsin, plus plants in Canada and Mexico 2. It owns most of its plants, and most are shared across segments 2.

Customers, rivals and problems

Walmart and its affiliates bought about 29% of net sales in fiscal 2026, and the 10 largest customers about 60% 2.

The annual report names no rivals but says some are larger, and that branded, private-label and customized foods all compete with its products 2. Reuters reported inflation is pushing shoppers to cheaper private-label foods 4.

Costs are the main problem 2. In the first quarter inflation was about 5%, MarketBeat reported from the earnings call 7. Selling and administrative expense rose 4.4% to $350 million, mostly from legacy legal matters 1.

The umbrella, in words

Conagra owns its main brands directly and runs much of its business through subsidiaries, which pay it dividends and loans 2.

It owns 44% of Ardent Mills, a milling business, and 50% of one other joint venture, together carried at $947.4 million at the end of fiscal 2026 2. Its share of Ardent Mills earnings was $140.7 million that year 2.

In August 2024 it bought Sweetwood Smoke & Co., maker of FATTY smoked meat sticks, for a cash price of $179.4 million, and in July 2024 a contract manufacturer 2.

Its common stock is listed on the New York Stock Exchange, and the annual report counts about 11,053 stockholders of record at June 28, 2026 2.

The company expects fiscal 2027 organic net sales to change by minus 3% to minus 1%, with an adjusted operating margin of 10.0% to 10.5% and adjusted earnings of $1.40 to $1.50 per share 1.

For the second quarter, MarketBeat reported, it expects organic net sales to fall about 2% with adjusted operating margin in the high single digits 7. It aims to end the year near 4 times net leverage, a measure of debt against earnings 7.

The company expects to pay or refinance $500.0 million of 5.3% notes and $262.5 million of 7.125% notes that mature in October 2026 2.

Brase said he would raise annual advertising spending by about 14%, and that the portfolio had been too large and complex for too long, Reuters reported 5. He said most benefits of cutting complexity should come over 12 to 18 months, MarketBeat reported 7.

In its first quarter of fiscal 2027 management approved a multi-year transformation plan called Project Catalyst, and it is still defining the initiatives under it 3.