Conagra Brands Inc.

Overview Key strengths Key risks Good position in frozen foods and snacks. Slower-than-expected volume recovery due to heightened competition and consumer pullback. Satisfactory product diversity within key categories. Commodity cost volatility. Commitment to reducing leverage to company-defined net leverage of 3x. Large, debt-financed acquisitions that could delay deleveraging. . Conagra Brands Inc.'s volumes declined about 3.3% for the fiscal-year-ended May 26, 2024. Volume recovery is proving difficult, but we expect a gradual sequential recovery in fiscal 2025 as promotions increase and consumers shift more spending back to food at home from away-from-home. High retail prices and cautious consumer behavior have hurt packaged food industry volumes. Conagra expects it will continue to reinvest in trade spend to support volume growth. Notably,

...We expect volume recovery will take longer. Conagra Brands Inc.'s volumes declined about 3.3% for the fiscal-year-ended May 26, 2024. Volume recovery is proving difficult, but we expect a gradual sequential recovery in fiscal 2025 as promotions increase and consumers shift more spending back to food at home from away-from-home. High retail prices and cautious consumer behavior have hurt packaged food industry volumes. Conagra expects it will continue to reinvest in trade spend to support volume growth. Notably, its investments in refrigerated and frozen resulted in a 0.9% increase in volume and market share gains during the fourth quarter in that segment. S&P Global Ratings forecasts modest volume and revenue growth and slightly lower EBITDA margin in 2025 due to the need to reinvest, despite easing inflation pressures and higher cost savings benefits....

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