Conagra Brands (CAG 3.09%), the packaged food company behind such mainstay supermarket brands as Birds Eye and Blue Bonnet, saw its share price slide on Tuesday after publishing a business update. The company reiterated its existing guidance for annual results, and investors showed their displeasure by trading the stock down by more than 4% on the day.
Guiding for disappointment
That morning, Conagra made a presentation at the annual Consumer Analyst Group conference. Ahead of the event, it offered a sneak preview, briefly addressing guidance.
Image source: Getty Images.
The company continues to expect a 1% decline to 1% growth in net sales for fiscal 2026 compared to 2025. The adjusted operating margin should land at roughly 11% to 11.5%, and net income not in accordance with generally accepted accounting principles (GAAP) is projected to be $1.70 to $1.85 per share.
Management did not provide any commentary about this in the update. Although it continues to expect a non-GAAP (adjusted) net profit for the year, the provided range is well under the $2.30 per share Conagra earned in 2025... and that, in turn, was almost 14% below the 2024 figure. The unchanged, essentially flat sales guidance didn't help investor morale either.
NYSE: CAG
Key Data Points
The fresher the better
Current trends aren't Conagra's friends. The consumer market has leaned toward fresher, healthier food choices, which doesn't bode well for a company built on packaged products. I haven't seen much justification for investing in this stock lately, and its holding to the rather uninspiring annual guidance doesn't change my view.
