Conagra Brands (CAG) Shares Plunge 2.43% to 20-Year Low on Earnings Slump, Macro Worries

Conagra Brands (CAG) shares plunged 2.43% on Thursday, hitting a two-decade low not seen since May 2009, with the intraday drop reaching 2.48%. The selloff reflects mounting concerns over the company’s earnings performance and broader macroeconomic headwinds.

The recent earnings slump follows a string of underwhelming quarterly results, including a sharp miss in fiscal Q4 2024, where adjusted EPS of $0.56 fell short of estimates, and organic sales declined by 3.5% due to weak consumer demand and unfavorable pricing trends. Management’s cautious guidance for fiscal 2026, projecting adjusted EPS of $1.70–$1.85 versus $2.21 expected by analysts, has deepened investor skepticism about near-term recovery.

Institutional activity has further amplified volatility, with mixed trading patterns observed. While firms like Cullen Capital Management added significant stakes, others, including Gries Financial LLC, reduced holdings, signaling divergent views on the company’s strategic direction. Analysts have largely maintained “Hold” ratings, citing risks from inflation, supply chain constraints, and sector-wide pressures from GLP-1 weight-loss drugs, which threaten consumption of processed foods.

Conagra’s cost-cutting measures and dividend stability have offered limited reassurance, as persistent COGS inflation—driven by tariffs and commodity costs—continues to compress margins. The company’s focus on frozen and snack categories remains central to its growth strategy, but investors are demanding more transformative innovation to counter structural challenges. With macroeconomic uncertainty and sector-specific risks persisting, the stock remains under pressure until clearer signs of operational resilience emerge.