Conagra Brands
Conagra Brands, Inc. (NYSE: CAG) is an American consumer packaged goods holding company headquartered in Chicago, Illinois, focused on manufacturing and marketing branded foods across categories such as frozen meals, snacks, baking mixes, and condiments.[1][2] With approximately 18,600 employees and 42 manufacturing facilities, the company reported net sales of nearly $12 billion in fiscal year 2025.[1][3] Its portfolio includes established brands like Birds Eye, Duncan Hines, Healthy Choice, Marie Callender's, Reddi-wip, and Slim Jim, alongside emerging ones such as Angie's BOOMCHICKAPOP and Gardein.[1] Tracing its origins to 1919, Conagra Brands evolved from Nebraska Consolidated Mills through expansions, acquisitions, and rebranding as ConAgra Foods in 1971, before adopting its current name in 2016 after spinning off the Lamb Weston potato business to concentrate on consumer products.[4][5] The firm has pursued portfolio optimization via recent divestitures, including Chef Boyardee in 2025 and Van de Kamp's and Mrs. Paul's brands, to enhance focus on core growth areas.[6][7] Notable controversies include a 2006–2007 Salmonella Tennessee outbreak tied to Peter Pan peanut butter produced at its Georgia facility, which sickened over 600 people across 47 states, prompted a nationwide recall, and resulted in an $11.2 million criminal penalty in 2016 for introducing adulterated food into commerce.[8][9][10]Company Overview
Corporate Profile
Conagra Brands, Inc. is an American multinational consumer packaged goods holding company headquartered in Chicago, Illinois. The company manufactures, markets, and distributes branded and private-label foods across various categories including grocery, snacks, frozen foods, and refrigerated products. It operates as a leading player in the U.S. food industry, with a portfolio of over 80 brands serving retail, foodservice, and export markets.[11][3] In fiscal year 2025, ending May 25, 2025, Conagra Brands generated net sales of $11.61 billion, reflecting a 3.64% decline from the prior year's $12.05 billion, amid challenges such as inflation and shifting consumer preferences. The firm employs approximately 18,500 people globally and maintains manufacturing facilities throughout North America. Its stock trades on the New York Stock Exchange under the ticker symbol CAG.[12][13][11] Sean M. Connolly serves as President and Chief Executive Officer, a position he has held since 2015, overseeing strategic initiatives focused on portfolio optimization, cost efficiencies, and innovation in response to market dynamics. The company's business model emphasizes value-driven brands, supply chain resilience, and sustainability efforts, though it has faced scrutiny over product quality issues in the past.[14][11]Leadership and Governance
Sean M. Connolly has served as President and Chief Executive Officer of Conagra Brands since April 2015, overseeing the company's strategic direction, including portfolio optimization and operational efficiencies.[14] Prior to his CEO role, Connolly held executive positions at Conagra, contributing to its shift toward consumer packaged goods. The executive leadership team reports to Connolly and includes key roles such as David S. Marberger as Executive Vice President and Chief Financial Officer, Tom McGough as Executive Vice President and Chief Operating Officer, and Charisse Brock as Executive Vice President and Chief Human Resources Officer, supporting functions across finance, operations, supply chain, and human capital.[14] The Board of Directors, elected by shareholders, provides strategic oversight and guidance to management, with a structure emphasizing independent directors to ensure effective governance.[15] Richard H. Lenny serves as Non-Executive Chairman since May 2018, having joined the board in March 2009; Lenny previously led The Hershey Company as Chairman, President, and CEO.[16] The board comprises 10 members as of fiscal 2025, with a majority independent, including professionals from industries such as consumer goods, finance, and technology: Anil Arora (since 2018), Thomas K. Brown (since 2013), Emanuel Chirico (since 2021), George Dowdie (since 2022), Francisco Fraga (since 2023), Melissa Lora (since 2019), Ruth Ann Marshall (since 2007), and Denise A. Paulonis (since 2022); Connolly also serves as a director.[16] Conagra Brands maintains four standing board committees to address specific oversight responsibilities: Audit/Finance for financial reporting and risk; Human Resources for compensation and talent; Nominating and Corporate Governance for director selection and governance policies; and Executive for interim leadership decisions.[17] Corporate governance principles outline the board's role in managing under stockholder direction, with commitments to ethical conduct via a Code of Conduct and senior officer ethics code, alongside annual self-evaluations by the board and committees.[18] These practices align with standard public company requirements for independence and accountability, as detailed in SEC filings.[19]Historical Development
Early Foundations (1919–1949)
Nebraska Consolidated Mills (NCM) was incorporated on September 29, 1919, in Grand Island, Nebraska, by Alva Kinney as a consolidation of four grain milling companies located in south-central Nebraska, including operations in Ravenna and other regional sites.[20][21] The formation capitalized on postwar wheat surpluses and the Midwest's expanding grain production, with initial activities centered on flour milling at these facilities.[20][4] By 1922, NCM had expanded its capacity through the acquisition of an Omaha mill, prompting a headquarters relocation to that city to better access transportation networks and markets.[20] Under Kinney's direction, the company prioritized efficient grain processing amid fluctuating agricultural conditions during the 1920s and the Great Depression of the 1930s, maintaining operations through diversified milling outputs. Kinney retired in 1936 and was succeeded by R. S. Dickinson, who oversaw continued focus on core flour production.[20] World War II stimulated demand for grain products, driving profitability as U.S. food needs surged for military and civilian use. In 1942, NCM ventured beyond Nebraska by opening a flour and animal feed mill in Alabama, its first out-of-state plant, to secure southern markets and raw materials.[20] By 1949, the company remained primarily a regional miller, with limited penetration into national prepared foods segments, where larger competitors like General Mills and Pillsbury dominated over 80% of the market share.[20]Mid-Century Expansion and Setbacks (1950–1970)
During the 1950s, Nebraska Consolidated Mills diversified into consumer packaged goods by licensing the Duncan Hines brand for cake mixes, which had achieved $140 million in retail sales by the late 1940s but captured only 10-12% market share amid competition from larger rivals holding up to 33%.[22] The company sold the Duncan Hines license to Procter & Gamble in 1956, redirecting focus toward commodity grains, feeds, and international operations to leverage core milling strengths.[23] This shift coincided with the construction of a $3 million grain processing facility in Puerto Rico in 1957-1958 through its Caribe Company subsidiary, enabling production of flour, corn meal, and animal feeds to serve local markets and reduce import reliance.[22][23] In the 1960s, the company pursued domestic expansion by establishing additional flour and animal feed mills along with distribution centers in the Southeast and Northwest United States, capitalizing on rising demand for integrated agribusiness supplies.[23] Internationally, it formed a joint venture with Bioter-Biona, S.A. in Spain in 1965 to produce animal feeds and poultry products, marking further penetration into European markets.[22] In Puerto Rico, operations under Molinos de Puerto Rico drove a near-doubling of animal feed consumption to 249,267 tons within five years, with imports dropping from 100,314 tons to 46,723 tons as local beef production expanded.[23] Diversification extended into poultry processing, with the development of integrated complexes in Georgia, Louisiana, and Alabama to vertically control feed-to-protein supply chains amid growing U.S. demand for affordable meat.[22] These moves positioned Nebraska Consolidated Mills as a multifaceted agribusiness player, emphasizing animal feeds over traditional flour milling.[23] However, the period also brought setbacks, particularly in core flour operations, where profits eroded due to stagnating domestic demand, intensified competition from European grain imports, and shifting consumer preferences toward higher-cost prepared foods.[22][23] The earlier struggles with Duncan Hines underscored challenges in capturing dominant shares in branded consumer products, prompting a retreat from that segment and highlighting vulnerabilities in transitioning from commodity milling to value-added goods.[22]Rebranding and Diversification (1971–1999)
In 1971, Nebraska Consolidated Mills rebranded to ConAgra, Inc., adopting a name derived from "con" for consolidated and "agra" for agriculture to signify its evolution from regional grain trading and milling into a broader agribusiness entity.[4][22] This change reflected the company's expansion beyond Nebraska-based operations and its initial forays into diversified commodities, amid challenges from volatile grain markets and failed ventures into fertilizers, catfish farming, and pet products during the early 1970s.[24] Under new CEO Charles M. "Mike" Harper, appointed in 1974, ConAgra stabilized finances and pivoted toward value-added food processing, acquiring United Agri Products in 1978 to bolster chemical distribution tied to agriculture.[25][26] The 1980s marked an aggressive diversification strategy through acquisitions, transforming ConAgra into a multifaceted food conglomerate. Key purchases included Banquet Foods in 1980, entering the frozen prepared foods market; Peavey Company in 1982, strengthening flour milling; Armour and Company in 1983, expanding meat processing; and Monfort Inc. in 1987, adding beef slaughtering capabilities.[23][22] These moves, often financed by debt and operational efficiencies like decentralized management, shifted focus from commodity trading to branded and processed products, with sales growing from $1.4 billion in 1980 to over $9 billion by 1990.[27] Harper's approach emphasized acquiring underperforming assets for turnaround, avoiding overpayment, and leveraging synergies across the food chain from farming to retail.[28] The 1990s accelerated branded consumer goods expansion, highlighted by the $1.34 billion acquisition of Beatrice Company in 1990, which added shelf-stable products like canned fruits and international brands, elevating ConAgra to the second-largest U.S. food company by sales.[29] Subsequent deals included Golden Valley Microwave Foods in 1992 for popcorn innovations and, throughout the decade, Hunt's tomatoes, Orville Redenbacher's popcorn, Wesson oils, Swiss Miss cocoa, La Choy Asian foods, ACT II popcorn, Hebrew National meats, and Marie Callender's pies.[4][30] Over two decades, ConAgra integrated approximately 200 companies, prioritizing consumer-facing brands while divesting non-core assets like some commodity trades, resulting in a portfolio dominated by packaged foods by 1999.[23] This era's growth, however, drew scrutiny for debt accumulation and antitrust concerns, though empirical performance metrics—such as compounded annual sales growth exceeding 15%—validated the strategy's causal effectiveness in scaling market share.[31]Transition to Consumer Packaged Goods (2000–2015)
In 2000, ConAgra rebranded from ConAgra, Inc. to ConAgra Foods, Inc., signaling a strategic emphasis on consumer-facing products over commodity agriculture and processing.[4] That year, the company acquired International Home Foods for approximately $1.63 billion in cash and stock plus assumed debt, incorporating established branded items such as Chef Boyardee canned pasta, PAM cooking spray, and Gulden's mustard into its portfolio.[32] This move expanded ConAgra's presence in shelf-stable consumer packaged goods, aligning with a broader pivot toward higher-margin branded foods amid pressures from volatile commodity markets.[4] Throughout the early 2000s, ConAgra systematically divested non-core operations to streamline its focus on branded consumer products. In 2002, it sold a majority stake in its fresh beef and pork processing unit, ConAgra Beef Company, for $1.4 billion to an investor group led by Swift & Company, retaining a minority interest initially.[33] By 2006, the company offloaded its refrigerated meats businesses—including brands like Butterball turkey, Armour processed meats, and Eckrich sausages—to Smithfield Foods for $575 million, eliminating exposure to cyclical meatpacking risks and generating capital for branded investments.[34] Additional sales included the Bumble Bee tuna brand and cheese operations in the mid-2000s, further shedding commodity-adjacent assets.[35] In 2008, ConAgra divested its ConAgra Trade Group, a grain and commodity trading arm, to an investor consortium for an undisclosed sum, which rebranded as Gavilon Group, LLC, allowing refocus on value-added food manufacturing.[36] ConAgra bolstered its consumer packaged goods lineup through targeted acquisitions of branded frozen, snack, and convenience foods. In 2007, it purchased Alexia Foods for frozen potato and snack products and Lincoln Snacks for brands like Poppycock and Fiddle Faddle.[4] The 2010 acquisitions of Marie Callender's and Claim Jumper frozen entrées, alongside the divestiture of Gilroy Foods & Flavors (an ingredients supplier), reinforced emphasis on retail-ready branded items over B2B commodities.[4] By 2012, ConAgra added Bertolli frozen meals, P.F. Chang's Home Menu, and Odom's Tennessee Pride sausages, enhancing its frozen and prepared foods segments.[4] The period's latter years highlighted refinement of this strategy, though not without experimentation. In 2013, ConAgra acquired Ralcorp Holdings for $4.95 billion in cash and stock, gaining private-label manufacturing capacity to diversify revenue.[37] However, integration challenges and writedowns—totaling about $2.2 billion by 2015—prompted a reversal; in June 2015, the company announced plans to divest its private brands unit, culminating in a $2.7 billion sale to TreeHouse Foods in November.[38] This, paired with the November 2015 announcement to spin off Lamb Weston potato operations into a separate entity, positioned ConAgra as a pure-play branded consumer packaged goods company by shedding lower-margin, less differentiated businesses.[39] These actions improved operational focus and margins, with branded sales comprising a growing share of revenue amid stagnant commodity performance.[4]Recent Restructuring and Strategic Shifts (2016–Present)
In 2016, ConAgra Foods rebranded to Conagra Brands, Inc., coinciding with the completion of its spin-off of the Lamb Weston frozen potato business into an independent public company on November 9, allowing the firm to concentrate resources on its consumer branded food portfolio.[40][41] This separation followed a strategic review that identified the commercial foods segment as misaligned with the core consumer focus, enabling targeted investments in retail-oriented products amid prior fiscal losses.[42][43] The company also divested its private label business during the year to further sharpen its emphasis on proprietary brands.[42] To accelerate growth in high-margin categories, Conagra pursued bolt-on acquisitions, most notably completing the purchase of Pinnacle Foods on October 26, 2018, in a $10.9 billion transaction combining cash and stock.[44][45] This deal integrated complementary brands such as Birds Eye frozen vegetables, Duncan Hines baking mixes, and Vlasic pickles, expanding Conagra's presence in frozen, grocery, and refrigerated segments while leveraging Pinnacle's established distribution networks.[44] Portfolio reshaping continued into the 2020s with selective divestitures of underperforming or non-core assets to fund innovation and reduce complexity. In early 2025, Conagra sold the Chef Boyardee brand to Hometown Food Company for a reported $600 million, finalized on June 3, as part of efforts to prioritize segments with stronger growth potential.[46][47] Later that month, on June 30, it divested the Van de Kamp's and Mrs. Paul's frozen seafood brands to High Liner Foods, streamlining its frozen offerings toward more dynamic categories.[7] These moves aligned with a broader modernization initiative targeting completion of frozen portfolio upgrades by the end of 2025.[48] Under CEO Sean Connolly, who assumed leadership in 2015, Conagra implemented operational shifts including zero-based budgeting for cost discipline, a pivot from heavy advertising and promotion spending to retailer-specific marketing, and heightened focus on product innovation to counter private-label competition and volume pressures from inflation.[49][50] By fiscal 2018's end, these efforts marked the third year of a multi-year transformation emphasizing targeted investments in brand equity and supply chain efficiency over broad promotional discounting.[49] The strategy rejected further corporate splits, citing benefits from integrated scale in negotiations and margins, while adapting to post-pandemic consumer shifts through pricing discipline and merchandising to sustain branded market share.[51][52]Products and Portfolio
Product Categories
Conagra Brands offers a diverse portfolio of consumer packaged goods primarily in the food sector, encompassing frozen entrees, snacks, baking mixes, condiments, and shelf-stable items.[53] The company's products are distributed through retail channels, including supermarkets and foodservice establishments, with a focus on both iconic legacy brands and emerging offerings.[1] In fiscal year 2024, frozen foods represented a significant portion of the portfolio, driven by brands emphasizing convenience and variety.[54] Frozen Foods: This category includes complete meals, sides, vegetables, and desserts, accounting for a core segment of Conagra's sales. Key brands include Healthy Choice for low-calorie entrees launched in 1989, Banquet for budget-friendly frozen dinners originating from 1953, Marie Callender's for pot pies and pies since the 1940s acquisition, and Birds Eye for frozen vegetables and steamable sides introduced in 1929.[53][55] In June 2025, Conagra introduced over 50 new frozen items across these brands, such as Birds Eye Steamfresh varieties and Healthy Choice Power Bowls.[56] Snacks and Confections: Conagra produces savory and sweet snacks, including meat sticks, popcorn, and popcorn-infused treats. Slim Jim, a jerky-style snack acquired in 1995, generated over $500 million in annual sales by 2020.[53] Other examples are Angie's BOOMCHICKAPOP for kettle corn since 2007, Andy Capp's flavored corn snacks from 1969, and BIGS sunflower seeds. Microwave popcorn brands like ACT II (since 1981) and Orville Redenbacher's (acquired 2008) fall here, with varieties emphasizing butter and low-fat options.[57][58] Grocery and Shelf-Stable Products: This includes sauces, canned goods, baking mixes, and toppings. Duncan Hines baking mixes, acquired in 2012, cover cakes and frostings with annual U.S. sales exceeding $400 million.[53] Condiments feature Hunt's tomato products and Vlasic pickles, while Bertolli offers frozen and jarred Italian sauces. Shelf-stable items like Armour Star canned meats and Swiss Miss hot cocoa mixes provide non-perishable options.[59][1] Reddi-wip aerosol whipped topping, introduced in 1948, remains a staple in dairy alternatives.[60] Emerging and Niche Categories: Conagra has expanded into plant-based proteins and ethnic foods, such as Gardein meat alternatives and Frontera salsas, reflecting consumer shifts toward healthier and diverse options. Canned entrees under Angela Mia and single-serve snacks under P.F. Chang's home menu target convenience.[55][58] These categories collectively support Conagra's strategy of portfolio breadth, with over 40 brands contributing to $12.1 billion in net sales for fiscal 2024.[61]Iconic Brands and Innovations
Conagra Brands maintains a portfolio of iconic brands that have shaped American consumer packaged goods, particularly in frozen foods, snacks, and convenience items. Healthy Choice, introduced in the late 1980s, pioneered low-fat, low-cholesterol frozen entrees amid rising health awareness, with its development stemming from internal research into reduced-sodium and heart-healthy options.[4] Slim Jim, originating in 1929 as a dried meat snack invented by Adolph Levis, gained prominence through its "snap, crackle, pop" texture and was acquired by Conagra in 1998 via Goodmark Foods, becoming a leading meat stick brand with annual sales exceeding $100 million.[4] [53] Reddi-wip, launched in 1948 by inventor Aaron "Bunny" Lapin using a patented aerosol valve for real whipped cream, revolutionized dessert toppings by enabling instant dispensing and was integrated into Conagra's dairy portfolio.[4] Banquet, acquired in 1980, traces its roots to 1892 and expanded Conagra's frozen food entry with affordable single-serve meals, later innovating microwave-safe trays by 1988 to align with household appliance trends.[4] Other flagship brands include Birds Eye, a leader in frozen vegetables since its acquisition strengthened Conagra's produce offerings; Marie Callender's, known for pot pies and desserts emphasizing home-style baking; and Duncan Hines, iconic for cake mixes dating to 1951 partnerships that popularized boxed baking.[53] These brands collectively generate significant revenue, with Conagra emphasizing their enduring appeal through targeted marketing and reformulations for modern preferences like convenience and portion control.[1] In terms of innovations, Conagra employs data-driven strategies, analyzing social media, health trends, and technologies to develop products across its portfolio, focusing on better-for-you options, bold flavors, and on-the-go formats as outlined in its 2025 snacking report.[62] Recent advancements include the "On Track" badge applied to 26 Healthy Choice items in January 2025, designating them GLP-1 friendly with high protein and low calories to support medication users; elimination of FD&C artificial colors across frozen brands like Birds Eye and Marie Callender's by end-2025; and new snack formats such as Vlasic Pickle Balls and Slim Jim Bites offering 6g protein per serving.[62] [48] The company also launched over 50 new frozen items in 2025, including grain-free power bowls under Healthy Choice, prioritizing steam-cooked gourmet flavors and air-fryer compatibility to enhance convenience without compromising taste.[63] These efforts reflect a quantitative overhaul in snacks and frozen categories, accelerating speed-to-market via analytics.[64]Business Strategy and Operations
Acquisitions, Mergers, and Divestitures
Conagra Brands, formerly ConAgra Foods, expanded its portfolio through numerous acquisitions beginning in the late 20th century. In 1980, the company entered the frozen food sector by acquiring Banquet Foods Company.[4] During the 1990s, it pursued aggressive growth, acquiring brands such as Hunt's, Orville Redenbacher's, Wesson, Swiss Miss, La Choy, ACT II, Hebrew National, and Marie Callender's, which bolstered its presence in canned goods, popcorn, oils, cocoa mixes, Asian cuisine, microwave popcorn, kosher meats, and frozen desserts.[4] A pivotal acquisition occurred in January 2013, when Conagra completed its purchase of Ralcorp Holdings for approximately $4.95 billion in cash ($90 per share), enhancing its private-label packaged foods operations to nearly $3 billion in annual sales.[65][66] This deal, announced in November 2012, positioned Conagra as a leader in store-brand manufacturing but later proved challenging due to integration issues and shifting market priorities.[67] In 2016, amid a strategic pivot toward branded consumer products, Conagra acquired the Frontera, Salpica, and Red Fork brands to strengthen its ethnic and premium sauce offerings.[5] The company's largest deal to date was the $10.9 billion acquisition of Pinnacle Foods, announced on June 27, 2018, and closed on October 26, 2018, adding brands like Birds Eye, Duncan Hines, and Vlasic to its portfolio and expanding frozen and grocery segments.[68] More recently, on August 9, 2024, Conagra acquired Sweetwood Smoke & Co., producer of FATTY Smoked Meat Sticks, to enter the premium snack meat category.[69] To streamline operations and focus on core branded goods, Conagra executed significant divestitures starting in the mid-2010s. In November 2015, it agreed to sell its private brands business—largely derived from Ralcorp—to TreeHouse Foods for $2.7 billion, a transaction aimed at shedding lower-margin operations; the deal closed in 2016.[70] The company spun off its Lamb Weston frozen potato business as a separate public entity on November 9, 2016, distributing shares to shareholders in a tax-free transaction to concentrate on consumer packaged goods.[71] Additional sales included JM Swank to Platinum Equity in June 2016.[72] In recent years, Conagra continued divesting non-strategic assets. On June 6, 2025, it announced the sale of Van de Kamp's and Mrs. Paul's brands to High Liner Foods, completed on June 30, 2025, to refocus on higher-growth categories.[73] Similarly, in May 2025, Conagra agreed to sell the Chef Boyardee brand to Hometown Food Company for $600 million in cash, with closure expected in the second quarter of 2025, as part of ongoing portfolio optimization.[74] These moves reflect a broader strategy to prioritize profitable, branded consumer products amid competitive pressures in the food industry.[7]Supply Chain, Manufacturing, and Distribution
Conagra Brands operates 42 manufacturing facilities primarily in the United States, with additional sites in Mexico, producing over 5,000 consumer and commercial food products.[1][75] These facilities are distributed across multiple states, including Arkansas (Fayetteville, Russellville), California (Oakdale, Azusa), Colorado (Aurora), Illinois, Indiana, Iowa, Kentucky (Louisville), Maryland (Hagerstown), Michigan, Minnesota, Missouri (Affton), Nebraska, Ohio (Archbold), Oregon (Boardman), and Wisconsin (Beaver Dam), among others.[76][77][78] In Mexico, plants are located in Irapuato and Guanajuato.[79] The company's manufacturing operations employ a significant portion of its approximately 18,600 total workforce, focusing on production, packaging, and quality control for brands in categories such as frozen foods, snacks, and proteins.[1][80] Distribution is handled through a network of 25 centers in the United States, supporting efficient delivery to retailers and consumers nationwide.[75] Recent expansions include a $333 million automated warehouse in Georgia, operational as of 2025 through a partnership with NewCold, enhancing cold chain capabilities for frozen products.[81] Conagra has committed to modernizing this network, prioritizing investments to maintain inventory levels at retail stores and improve logistics efficiency amid fluctuating demand.[82] The overall supply chain integrates procurement, manufacturing, and logistics under the oversight of Executive Vice President and Chief Supply Chain Officer Alexandre Eboli.[14][83] Suppliers and contract manufacturers must comply with Conagra's standards on business practices, environmental impacts, and risk management, with annual assessments via the Supplier Excellence Program.[84][85] Sourcing emphasizes responsible practices for ingredients and packaging, evaluating environmental, social, and economic factors.[86] In fiscal 2025, Conagra allocated part of its $450 million capital expenditure budget to bolster supply chain resiliency, including increased production capacity for high-demand items like chicken products.[87][88] Waste diversion efforts reached 90% of solid waste from facilities through recycling and donations, aligning operational efficiency with sustainability goals.[89]Financial Performance
Revenue, Profitability, and Growth Metrics
Conagra Brands' net sales for fiscal year 2025, ending May 25, 2025, totaled $11.6 billion, a 3.6% decrease from $12.1 billion in fiscal year 2024.[3] Organic net sales declined 2.9% year-over-year, driven by volume reductions across segments such as grocery and snacks (-1.1%) and refrigerated and frozen (-0.7%), partially offset by price/mix adjustments in international and foodservice operations.[90] In the first quarter of fiscal year 2026, reported net sales fell 5.8% to $2.63 billion, with organic net sales down 0.6%.[91] Profitability metrics improved markedly in fiscal year 2025 despite the revenue contraction. Gross profit stood at $3.0 billion, yielding a gross margin of 25.9%, down from 27.7% in fiscal year 2024 due to lower volumes and input cost inflation.[90] Operating profit rose 60.1% to $1.36 billion, supporting an operating margin of 11.8%; the adjusted operating margin was 14.1%, though this declined 188 basis points from the prior year amid strategic cost controls and productivity gains.[3] Net income reached $1.15 billion, a 232% increase from $348 million in fiscal year 2024, boosting the net profit margin to 9.9%.[90] Diluted earnings per share accordingly climbed to $2.40 from $0.72.[3] Historical trends reflect modest long-term revenue growth averaging 1% annually over recent years, punctuated by contractions in fiscal years 2024 and 2025 amid competitive pressures and shifting consumer demand in packaged foods.[92]| Fiscal Year | Net Sales ($ billions) | Year-over-Year Change (%) | Net Income ($ millions) | Net Margin (%) |
|---|---|---|---|---|
| 2023 | 12.3 | - | 684 | 5.6 |
| 2024 | 12.1 | -1.8 | 348 | 2.9 |
| 2025 | 11.6 | -3.6 | 1,153 | 9.9 |
Stock Performance and Market Position
Conagra Brands, Inc. (NYSE: CAG) has experienced volatile stock performance in recent years, reflecting broader challenges in the consumer packaged goods (CPG) sector such as inflation pressures, shifting consumer preferences toward private labels, and reduced demand for processed foods. As of October 24, 2025, the stock closed at $18.29 per share, down 0.97% from the previous session, with a market capitalization of approximately $8.85 billion.[95][96] The 52-week high reached $29.91, while the all-time closing high was $35.81 on January 6, 2023, indicating a roughly 38% decline over the past year amid declining revenues and profitability margins.[95][97]| Key Stock Metrics (as of October 24, 2025) | Value |
|---|---|
| Closing Price | $18.29 |
| Market Capitalization | $8.85 billion |
| 52-Week Range | $17.89–$29.91 |
| Trailing P/E Ratio | 10.84 |
| Enterprise Value | $16.76 billion |