An announcement from Conagra Brands ( (CAG) ) is now available.
On May 1, 2025, Conagra Brands announced the sale of its Chef Boyardee shelf-stable product line to Hometown Food Company for $600 million in cash, expected to close in the first quarter of fiscal year 2026. This divestiture is part of Conagra’s strategy to reshape its portfolio for long-term growth and focus on its frozen and healthy-snacking businesses, while using the proceeds to pay down debt. The transaction, contributing approximately $450 million to fiscal 2024 net sales, is anticipated to be four percent dilutive to adjusted earnings per share if completed at the start of fiscal year 2025.
Spark’s Take on CAG Stock
According to Spark, TipRanks’ AI Analyst, CAG is a Neutral.
Conagra Brands’ overall stock score of 68 reflects a stable but challenged financial performance. The company’s strong balance sheet and cash flow generation are significant positives. However, profitability and revenue growth issues, coupled with technical weakness and high P/E ratio, weigh on the score. The earnings call highlighted both operational strengths and external challenges, notably in supply chain and inflation, impacting future performance.
To see Spark’s full report on CAG stock, click here.
More about Conagra Brands
Conagra Brands, Inc. is a leading branded food company in North America, known for its diverse portfolio of quality food products. With a history spanning over a century, the company focuses on innovation and collaboration to meet evolving consumer preferences. Its brands include Birds Eye, Duncan Hines, Healthy Choice, Marie Callender’s, Reddi-wip, Slim Jim, and Angie’s BOOMCHICKAPOP, among others. Headquartered in Chicago, Conagra generated over $12 billion in net sales for fiscal 2024.
YTD Price Performance: -8.41%
Average Trading Volume: 6,314,798
Technical Sentiment Signal: Buy
Current Market Cap: $11.8B
See more data about CAG stock on TipRanks’ Stock Analysis page.