Conagra Brands, Inc. (CAG) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Conagra Brands, Inc. (CAG) Consumer Business Overview

Conagra Brands, Inc. is a North American packaged food company with a diverse portfolio of iconic brands like Birds Eye and Slim Jim. Operating through multiple segments, Conagra caters to retail and foodservice channels, facing competition in a mature market while adapting to evolving consumer preferences and supply chain dynamics.

What Is the Investment Thesis for CAG?

Conagra Brands, Inc. presents a mixed investment case. The company's established brand portfolio and diverse segment exposure offer stability in the consumer defensive sector. However, a negative profit margin of -0.4% raises concerns about operational efficiency and cost management. The high dividend yield of 9.91% may attract income-seeking investors, but its sustainability depends on improved profitability. Growth catalysts include innovation in product offerings and expansion in the international and foodservice segments. Potential risks include fluctuating commodity prices and intense competition within the packaged foods industry. Investors should closely monitor Conagra's efforts to improve profitability and manage its debt levels.

Based on FMP financials and quantitative analysis

CAG Key Highlights

Market capitalization of $7.79B reflects Conagra's significant presence in the packaged foods market.

• Gross margin of 24.2% indicates the profitability of Conagra's core product offerings after accounting for direct production costs.
• Dividend yield of 9.91% provides a substantial income stream for investors, but requires careful monitoring of the company's financial health.
• Beta of 0.03 suggests that Conagra's stock price is relatively insensitive to overall market movements, typical for consumer staples.
• Presence in four segments (Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice) diversifies Conagra's revenue streams and reduces reliance on any single market.

Who Are CAG's Competitors?

CAG is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CAG's Key Strengths?

Strong brand portfolio with iconic names.

• Diversified product offerings across multiple segments.
• Established distribution network in North America.
• Significant scale and market presence.

What Are CAG's Weaknesses?

Negative profit margin indicates operational challenges.

• High debt levels may limit financial flexibility.
• Susceptibility to commodity price fluctuations.
• Intense competition in the packaged foods industry.

What Could Drive CAG Stock Higher?

Launch of new product innovations in the frozen and snacking categories in Q3 2026.

• Efforts to improve operational efficiency and reduce costs through supply chain optimization.
• Expansion of e-commerce sales channels and partnerships.
• Marketing campaigns to strengthen brand awareness and drive consumer demand.

What Are the Key Risks for CAG?

Financial-distress signal — its Altman Z-Score of 1.07 sits in the distress zone (elevated bankruptcy risk).

• Negative return on equity (-0.5%) — the business is not currently generating profit on shareholder capital.
• Fluctuations in commodity prices, such as wheat, corn, and meat, could impact profitability.
• Changes in consumer preferences and dietary trends could reduce demand for certain products.
• Intense competition from other packaged foods companies and private label brands.
• Supply chain disruptions could impact production and distribution.
• High debt levels could limit financial flexibility and increase interest expense.

What Are the Growth Opportunities for CAG?

• Expansion in the frozen foods market: The frozen foods market is expected to grow as consumers seek convenient and affordable meal options. Conagra, with its Birds Eye and Marie Callender's brands, can capitalize on this trend by introducing new products and expanding its distribution network. The global frozen food market is projected to reach $380 billion by 2028, offering a significant growth opportunity for Conagra.
• Growth in the snacking category: The snacking category continues to expand, driven by changing lifestyles and consumer preferences for on-the-go consumption. Conagra's Slim Jim and Angie's BOOMCHICKAPOP brands are well-positioned to benefit from this trend. Innovation in flavors and product formats can further drive growth. The global snack food market is estimated at $480 billion.
• International market expansion: Conagra has the opportunity to expand its presence in international markets, particularly in emerging economies with growing middle classes. By adapting its product offerings to local tastes and preferences, Conagra can tap into new sources of revenue growth. Focus on key regions and strategic partnerships can accelerate this expansion. The international food market is a multi-trillion dollar market.
• Focus on e-commerce channels: The growth of e-commerce provides Conagra with a new avenue to reach consumers and expand its market share. By investing in its online presence and partnering with e-commerce platforms, Conagra can capitalize on the increasing trend of online grocery shopping. The e-commerce food and beverage market is experiencing double-digit growth.
• Product innovation and renovation: Continuous innovation and renovation of existing products are crucial for maintaining competitiveness in the packaged foods industry. Conagra can invest in research and development to create new products that meet evolving consumer needs and preferences, such as healthier options and sustainable packaging. Successful product launches can drive revenue growth and enhance brand image.

What Threats Does CAG Face?

• Changing consumer preferences and dietary trends.
• Increasing competition from private label brands.
• Rising input costs and supply chain disruptions.
• Economic downturns and reduced consumer spending.

What Are CAG's Competitive Advantages?

• Brand recognition: Conagra's portfolio includes well-known and trusted brands that have been around for decades.
• Scale: Conagra is one of the largest packaged foods companies in North America, giving it economies of scale in manufacturing, distribution, and marketing.
• Distribution network: Conagra has a well-established distribution network that allows it to reach a wide range of customers.

What Does CAG Do?

Conagra Brands, Inc. traces its roots back to 1861. Originally a flour milling company, it evolved through strategic acquisitions and divestitures to become a major player in the consumer packaged goods industry. Headquartered in Chicago, Illinois, Conagra operates across four key segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice. The Grocery & Snacks segment focuses on shelf-stable products sold through retail channels in the United States. The Refrigerated & Frozen segment offers temperature-controlled food products, also primarily in the U.S. market. The International segment extends Conagra's reach globally, offering food products through both retail and foodservice channels. The Foodservice segment caters to restaurants and other establishments with branded and customized culinary solutions. Conagra's brand portfolio includes well-known names such as Birds Eye, Duncan Hines, Healthy Choice, Marie Callender's, Reddi-wip, Slim Jim, Angie's BOOMCHICKAPOP, Duke's, Earth Balance, Gardein, and Frontera. In November 2016, the company changed its name from ConAgra Foods, Inc. to Conagra Brands, Inc., reflecting its focus on building and managing a portfolio of distinct brands.

What Products and Services Does CAG Offer?

• Manufactures and markets branded food products.
• Operates in four segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice.
• Offers shelf-stable food products through retail channels in the United States.
• Provides temperature-controlled food products through retail channels in the United States.
• Offers food products in various temperature states through retail and foodservice channels outside of the United States.
• Offers branded and customized food products for restaurants and other foodservice establishments in the United States.

How Does CAG Make Money?

• Conagra generates revenue by selling branded food products to retailers, foodservice operators, and consumers.
• The company focuses on building and managing a portfolio of iconic brands.
• Conagra invests in marketing and advertising to promote its brands and drive sales.

What Industry Does CAG Operate In?

Conagra Brands, Inc. operates in the competitive packaged foods industry, characterized by mature markets and evolving consumer preferences. The industry is influenced by trends such as increasing demand for healthier and convenient food options, as well as the growth of private label brands. Conagra competes with large multinational corporations and smaller, niche players. The company's success depends on its ability to innovate, manage costs, and adapt to changing consumer tastes. Competitors include SFD: Smithfield Foods, Inc., ACI: Albertsons Companies, Inc., PPC: Pilgrim's Pride Corporation, SFM: Sprouts Farmers Market, Inc., and TAP: Molson Coors Beverage Company.

Who Are CAG's Key Customers?

• Retail consumers who purchase Conagra's products in grocery stores and other retail outlets.
• Foodservice operators, including restaurants, cafeterias, and other establishments that serve food to consumers.
• Distributors who purchase Conagra's products and resell them to retailers and foodservice operators.

Over the past six months, Conagra Brands, Inc. insiders filed 15 SEC Form 4 transactions — 8 sales and 7 purchases. On net that is roughly 13K shares disposed (about $444K), a signal worth weighing alongside the fundamentals.

Quarterly Financial Performance: Conagra Brands, Inc.

Revenue for Conagra Brands, Inc. came in at $2.88B during Q2 2026, a 3.4% improvement versus the preceding quarter. The company recorded a net loss of $1.62B, with diluted EPS of $-3.37. Quarter-over-quarter revenue has been mixed, typical for a mid-cap company operating in Consumer Defensive. Across the four most recent quarters, CAG averaged $-1.00 in diluted EPS.

CAG Valuation & Market Position

With a $7.79B market cap, Conagra Brands, Inc. sits in the mid-cap segment of the market. Relative to its peer group, CAG's quantitative score of 39/100 is below the peer average of 61/100.

Return on equity for Conagra Brands, Inc. stands at -0.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -0.2%, showing how much profit it generates from its asset base. Its free cash flow yield is 13.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.90 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is -0.7%, the inverse of the P/E and a quick read on earnings relative to price.

Conagra Brands, Inc.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.07 places it in the distress zone, a signal of elevated financial risk.

Conagra Brands, Inc. has beaten Wall Street's EPS estimate in 4 of its last 8 reported quarters — more hits than misses. Reported results have landed about 0.8% above estimates on average.

Wall Street analysts project Conagra Brands, Inc. revenue of about $11.29B for fiscal 2026, with EPS near $1.70. The estimate reflects 12 contributing analysts.

Company Profile

Conagra Brands, Inc. operates in the Packaged Foods industry within the Consumer Defensive sector. It is headquartered in Chicago, US. The company is led by CEO John Brase. CAG has traded publicly since 1980.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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