Conagra Brands Inc at JPMorgan US Opportunities Forum Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Thomas Palmer - JPMorgan Chase & Co - Analyst : Thanks for that. And I think that does explain a lot of the private label share gains that we have seen in certain categories. But recently, we have also seen a bit more from larger brands -- sorry, from larger brands losing share to smaller, maybe perceived better-for-you brands. What are your thoughts on how large food companies and maybe how you are currently responding to that environment and maybe what's to come?

Question: Thomas Palmer - JPMorgan Chase & Co - Analyst : Right. Thanks. Switching over to frozen entrees, I mean that has been one area where maybe you've had heightened investments here ongoing. You've got the baked chicken line coming online here soon and then later this year, fried chicken or I guess, later this fiscal year. Maybe we could cover just what drove the need for this expansion, get an update on kind of where we stand in progress. And what are the benefits maybe that we might see through the P&L as we think about these facilities coming online in coming periods?

Question: Thomas Palmer - JPMorgan Chase & Co - Analyst : Thanks for that. I think one of the extensions maybe of what we saw a year ago when, as you noted, the very strong volume performance was aided by merchandising and promotional activity. I know you've been asked a lot on your views on promotional activity over the years, but maybe an update on where we stand today in terms of ramping back up to promotional levels that you would like to target to drive that volume growth and the response you're seeing maybe across some different categories?

Question: Thomas Palmer - JPMorgan Chase & Co - Analyst : Thanks. Maybe switching over to the margin side. This year, excluding tariffs, main sources of inflation as it relates to protein. You've indicated, I think, that roughly 12% of your COGS basket would be protein exposed maybe within that basket, any update on trends that you're seeing and kind of what the key protein types and within it, maybe the key protein cuts that we should be thinking about?

Question: Thomas Palmer - JPMorgan Chase & Co - Analyst : Thank you. On the tariff front, I think that's been another source of inflation you've called out. Maybe just an update on where we stand today? Are you seeing pockets of relief as we see early trade deals come across? And I know that the main exposure is China where maybe less likely to see near-term relief, but just an update, I guess, on where we stand here.

Question: Thomas Palmer - JPMorgan Chase & Co - Analyst : Thank you. So the -- I guess, the extension of all this would be the pricing actions and maybe offsetting pricing actions down the line as potentially some of this inflation eases. So what is your view on, one, pricing for these inflationary items over the last year or so? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 12, 2025 / 2:55PM, CAG.N - Conagra Brands Inc at JPMorgan US Opportunities Forum And two, your view on whether there might be some give back or some maybe incremental promotion to stimulate demand if we do see a more favorable cost environment?

Question: Thomas Palmer - JPMorgan Chase & Co - Analyst : Thanks for that. We started off our discussion a little bit recap over the last couple of years and maybe some volume trends broadly and the root causes. Today, I think we're in a bit of an evolving environment. So when we think about the current quarter and what we're seeing October into November, maybe an update on consumer behaviors that you're seeing just with some of the timing of SNAP, the hurricane laps and kind of how you see that playing out as we look towards the conclusion of your second quarter?

Question: Thomas Palmer - JPMorgan Chase & Co - Analyst : Thanks for that. In the back half of this fiscal year, there is embedded a bit of an improvement in terms of some underlying volume trends. And I think specific to Conagra, A portion of that is the lapse from a year ago and some of the pullback in merchandising and then a portion of it maybe is taking a bit of a view on how the consumer environment progresses. So one, maybe get a kind of overview of how you're seeing those two items. And as we think about the back half, the main swing items that might put you more to the high end or low end of your outlook?

Question: Thomas Palmer - JPMorgan Chase & Co - Analyst : Thanks for that Okay. And look, I know it's early. But I will ask on very early thoughts, I guess, on fiscal '27. I think 1 thing you've laid out here today is the potential for some outsized earnings growth should inflationary really ease and you get a swing the other direction. As we think about kind of the progress you expect to see in the '26, what carries over into 2027? And what can you kind of build on as we move into '27 above and beyond what we expect to see in the back half of '26?

Question: Thomas Palmer - JPMorgan Chase & Co - Analyst : Okay. Shifting over a bit to capital allocation. Your net-debt to EBITDA running a bit higher than your long-term target. Your dividend payout, and I know free cash flow is probably going to be meaningfully higher than EPS this year. But the dividend payout is running higher than you've seen in the past and I think probably higher than you would target over time. How do you balance targeted debt reduction with the desire to maintain the dividend? Because it seems like, at least for this year, the decision leads to maybe a little bit less debt reduction. Is this largely contingent on seeing some earnings recovery in coming years? Just any update there?

Question: Thomas Palmer - JPMorgan Chase & Co - Analyst : Thanks. Sticking to capital allocation for a moment. We have seen both opportunistic acquisitions in recent years, such as the Fatty acquisition, also tactically some divestitures in certain businesses like we saw with Chef Boyardee. As you look forward, how do you feel about the portfolio composition today? Are there categories where it might make sense to be more tactical with kind of adding brands to areas that you're maybe already strong, but could fill in from maybe a positioning standpoint?

Question: Thomas Palmer - JPMorgan Chase & Co - Analyst : Maybe I'll follow up quickly on that last topic and ask a bit differently. How intertwined -- you have multiple temperature states in your business. How intertwined are the two sides of that business, the shelf stable versus the refrigerated in from a supply chain standpoint?

Question: Thomas Palmer - JPMorgan Chase & Co - Analyst : Thanks. Wanted to ask on Ardent Mills. It's a business where we have seen -- I think it doesn't necessarily fit in with the rest of what you do, but it also does generate a good bit of earnings for you and we've seen quite a bit of earnings improvement in recent years relative to where it might have been five or six years ago. How do you view the role of Ardent Mills within Conagra? What's kind of the future for that business? And as we think nearer term about its earnings profile, should we think about it as and I guess, consistent with guidance, it's more consistent with recent years versus still opportunity there for growth.

Question: Thomas Palmer - JPMorgan Chase & Co - Analyst : Sean, Dave, thanks so much for being with us today.