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Conagra Brands Is Handing Out $7 Million in Worker Bonuses

By Rhian Hunt - May 20, 2020 at 11:34AM

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The company also expects good results to continue in the near term.

As new coronavirus infections continue to be diagnosed at nearly 20,000 per day in the U.S., packaged-food maker Conagra Brands (CAG -0.14%) has decided to pay its workers another bonus, totaling more than $7 million. The company already handed out one bonus to its frontline employees earlier in the pandemic, but is now preparing to issue a second reward as a thank-you payment and incentive to workers still on the job.

The bonuses will go to workers in the United States as well as Canada and Mexico, three countries where Conagra operates approximately 50 production plants and distribution facilities. While the press release didn't specify the size of the individual payments, the previous round of cash distributions saw full-time workers pocketing $500 each, with part-time employees receiving half that.

Canned food being processed.

Image source: Getty Images.

CEO Sean Connolly added that he gives his "deepest appreciation and thanks to our employees for their refuse-to-lose attitude in continuing to work safely and effectively to deliver our products to customers." The company also highlighted its various safety measures, including staggered shifts, social distancing, use of face masks, and heavy-duty scrubbing of facilities, among other protocols.

Conagra was among the food companies that benefited strongly from COVID-19 panic buying earlier in the year. Though sales may now decline through late spring and into summer, the company is expected to deliver solid results with its next quarterly report as well. Conagra's executives believe that net sales growth and organic sales growth, adjusted earnings per share (EPS), and adjusted operating margin will all beat analyst consensus estimates during the current quarter.

Rhian Hunt has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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