Reshaping Leads To Dividend Cut And Modest De-Leveraging; Maintain Sell

Research evidence excerpt

Reshaping Leads To Dividend Cut And Modest De-Leveraging; Maintain Sell

Food: Food Producers

B&G Foods

TD SECURITIES (USA) LLC EARNINGS UPDATE

May 13, 2026

Price: $5.07 (05/12/2026) Reshaping Leads To Dividend Cut And Modest

Price Target: $4.00 De-Leveraging; Maintain Sell

SELL (3)

ESG SCORE: 56/100

Robert Moskow THE TD COWEN INSIGHT

646 562 1474

B&G announced a 50% dividend cut as part of its portfolio reshaping and reiterated leverage

robert.moskow@tdsecurities.com

reduction to 6x EBITDA by 2Q. The core business showed signs of stabilization in 1Q with

Victor Ma results in-line to slightly above internal expectations, largely due to stronger private label

646 562 1306 sales. That said, we foresee more volatility ahead from cost inflation and persistent challenges

victor.ma2@tdsecurities.com

from B&G's debt burden.

Sergio Matsumoto

646 562 1339 Dividend Cut Of 50%

sergio.matsumoto@tdsecurities.com

The company reduced their dividend by $30M annually (dividend yield now 7.5%) as they

Jacob Henry, CFA rebalanced their capital allocation priorities between deleveraging and paying a dividend off

646 562 1380

a smaller cash flow and sales base. Cash proceeds from closing the sale of GG Canada will

jacob.henry@tdsecurities.com

reduce their leverage by 0.25x. The dividend cut presumably helps their negotiating power

Seamus Cassidy with lenders when $509M comes due in Sep 2027.

646 562 1319

seamus.cassidy@tdsecurities.com Implications For Food Sector.

Key Data Many investors have asked us whether Conagra's stock valuation already "bakes in" an

Symbol NYSE: BGS assumption of a divided cut, similar to what B&G just announced. We expect Conagra's board

Beta: 0.63 to watch B&G's stock reaction closely given some of the similarities in their capital profile