Navigating Growth Amidst Market …

This article first appeared on GuruFocus.

Release Date: December 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Conagra Brands Inc (NYSE:CAG) expects organic net sales growth in the second half of the fiscal year.

• The company has successfully reclaimed market share in its frozen single-serve meals segment.

• Conagra Brands Inc (NYSE:CAG) is seeing strong growth in its snacks segment, particularly with Slim Jim and FATTY.

• The company is implementing Project Catalyst to reengineer core business processes using AI for more efficiency.

• Conagra Brands Inc (NYSE:CAG) has completed its baked chicken facility, which is expected to improve margins by repatriating production.

• Conagra Brands Inc (NYSE:CAG) is facing headwinds from absorption due to inventory management efforts.

• The company has experienced a sustained decline in stock price, leading to an impairment charge.

• Inflation remains a challenge, particularly in beef and pork, affecting cost management.

• Conagra Brands Inc (NYSE:CAG) has not seen the expected downward slope in commodity prices post-inflation peaks.

• The company is cautious about the volatile environment, maintaining a wider EPS guidance range.

Q: Sean, are you expecting positive year-over-year organic sales in fiscal 3Q given the delayed shipments and other factors? A: Sean Connolly, CEO: We expect organic net sales growth in the second half. While we don’t provide formal quarterly guidance, incorporating today’s information into your models will give a more accurate balance between Q3 and Q4.

Q: Are you seeing higher costs of volume as shoppers wait to buy more on promotion? A: Sean Connolly, CEO: We haven’t seen that dynamic. Our plan was to invest margin for continued volume growth in frozen and snacks, and what we’re seeing is consistent with our expectations.

Q: Can you clarify the impact of Ardent’s performance on your annual outlook? A: David Marberger, CFO: Despite Ardent’s shortfall, our operating profit and margin performance are strong. We have favorability in areas like chicken inflation and core productivity programs, which help cover the shortfall and keep us within the EPS range.

Q: What is the potential impact of Project Catalyst on cost savings and investments? A: Sean Connolly, CEO: Project Catalyst involves reengineering core business processes using AI for more efficiency. While there will be costs and time to complete, we’re excited about its potential and will provide more details in calendar ’26.