Conagra Brands Inc: FY27 Guidance Falls Short With Dividend Moving Lower (As Expected)

Research evidence excerpt

Conagra Brands Inc: FY27 Guidance Falls Short With Dividend Moving Lower (As Expected)

Global Research

15 July 2026ab

First Read

EquitiesConagra Brands Inc

FY27 Guidance Falls Short With Dividend United States

Moving Lower (As Expected) Food Products

12-month rating Neutral

12m price target US$13.00

Initial Reaction: Slightly Negative

Heading into the print, our conversations suggested sentiment leaned mixed/negative.

Many investors expected the quarter itself to be a non-event, with much of the focus Price (15 Jul 2026) US$14.15

centered on initial FY27 guide and potential changes to the dividend policy. The base RIC: CAG.N BBG: CAG US

expectation heading into this morning was for a conservative FY27 outlook below Street

Trading data and key metrics

estimates and a cut in the dividend. Against this backdrop, we think the print itself will

be viewed as modestly disappointing as organic sales and total company operating 52-wk range US$20.02-12.58

profit fell short with EPS upside largely stemming from a lower tax rate. From a guidance Market cap. US$6.77b

standpoint, the company's FY27 EPS outlook came in below Street expectations at the Shares o/s 478m (COM)

midpoint, as expected, driven by weaker organic sales growth, and the company cut Free float 99%

their dividend by roughly 50%. On the surface, we think the print, outlook, and shift in Avg. daily volume ('000) 4,374

dividend policy would be viewed as disappointing and be enough to drive the stock Avg. daily value (m) US$60.4

lower. That said, we do not think it is surprising and while we are not necessarily sure it Common s/h equity (05/26E) US$8.22b

will be viewed as a clearing event, it could limit the downside on the day (shares P/BV (05/26E) 0.8x

currently indicating down -3.8%).