The Zacks Food-Miscellaneous industry is navigating a difficult consumer landscape and rising operational costs. However, strategic brand-building and cost-savings position MDLZ, KHC, MKC and CAG well for growth.
Conagra Brands has agreed to sell the nearly century-old brand to private-equity firm Brynwood Partners for $600 million.
I give a 'Sell' rating for Conagra Brands due to expected margin pressures from tariffs and input cost inflation, risking earnings growth. CAG's 3Q25 earnings were weak, with organic sales declining 5.2% y/y and gross margin contracting by 390 bps y/y to 24.8%. Tariffs on key inputs like tinplate steel and palm oil pose significant risks, with limited time for the Company to mitigate these impacts.
That's not to say the report was a total washout. Revenue of $2.84 billion was slightly below the $2.92 billion expected, and Conagra reported earnings per share (EPS) of 51 cents, which was a penny below estimates.
Lamb Weston NYSE: LW and Conagra Brands NYSE: CAG are trading at value levels and offering historically high yields for investors in 2025. While Lamb Weston trades at a premium to Conagra, both are at the low ends of their historical ranges and well below broad market averages, and there are reasons.
CAG misses fiscal third-quarter estimates as sales decline amid supply constraints. The company maintains its fiscal 2025 guidance.
Conagra Brands, Inc. (NYSE:CAG ) Q3 2025 Earnings Q&A Conference Call April 3, 2025 9:30 AM ET Company Participants Matthew Neisius - Senior Director, IR Sean Connolly - CEO David Marberger - CFO Conference Call Participants Andrew Lazar - Barclays Ken Goldman - JPMorgan Leah Jordan - Goldman Sachs Tom Palmer - Citi Chris Carey - Wells Fargo Alexia Howard - Bernstein Megan Clapp - Morgan Stanley Max Gumport - BNP Paribas Operator Good morning and welcome to the Conagra Brands Third Quarter Fiscal 2025 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.
While the top- and bottom-line numbers for Conagra Brands (CAG) give a sense of how the business performed in the quarter ended February 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Conagra Brands (CAG) came out with quarterly earnings of $0.51 per share, missing the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.69 per share a year ago.
Conagra Brands, Inc. (NYSE:CAG ) Q3 2025 Earnings Conference Call April 3, 2025 8:30 AM ET Company Participants Matthew Neisius - Senior Director, Head of Investor Relations Sean Connolly - President and Chief Executive Officer David Marberger - Executive Vice President and Chief Financial Officer Matthew Neisius Good morning. Thank you for listening to our prepared remarks for the Conagra Brands Third Quarter Fiscal 2025 Earnings.
Shares of Conagra Brands (CAG) moved lower in premarket trading Thursday after the snack giant reported worse-than-expected fiscal 2025 third-quarter results.
Conagra Brands Inc. CAG-0.83% shares are down 2% in premarket trades after fiscal third-quarter earnings missed Wall Street's estimates as the food giant tackles a supply issue.