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Key Takeaways
- Conagra Brands gave a disappointing fiscal 2025 outlook, citing a tough consumer environment.
- The processed food company said it expects the consumer to remain challenged in the fiscal year ahead.
- Conagra posted better-than-expected profit in its fiscal 2024 fourth quarter, although revenue declined.
Conagra Brands (CAG) shares fell Thursday as the processed food giant gave weaker-than-expected guidance amid what it called a “difficult consumer environment.”
The provider of brands such as Birds Eye and Slim Jim said it sees fiscal 2025 adjusted earnings per share (EPS) in a range of $2.60 to $2.65, below estimates. It anticipates organic revenue to be flat to down 1.5% from this year.
CEO Sean Connolly said the company believes “the consumer will remain challenged” in its fiscal 2025 year, but that it would “gradually transition toward a more normalized operating environment as consumers adapt.”
The downbeat outlook came as Conagra reported fiscal 2024 fourth quarter adjusted earnings EPS of $0.61, better than forecasts. Revenue fell 2.3% to $2.91 billion.
Weighing on net sales, the company said, was “a decrease in volume, primarily due to continued lower consumption trends.”
Shares of Conagra Brands fell 2.4% as of about midday.
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