Conagra Brands, Inc. (CAG)'s Sector Needs A "Great Merger," Says Jim Cramer

We recently published 13 Stocks That Jim Cramer Discussed. Conagra Brands, Inc. (NYSE:CAG) is one of the stocks Jim Cramer recently discussed.

Food products firm Conagra Brands, Inc. (NYSE:CAG)’s shares have lost 29.7% year-to-date to join its peers in disappointing performance for the food stock sector. Given the drop, Cramer has been full of words for what might be the reason. He believes that Conagra Brands, Inc. (NYSE:CAG) is struggling to attract young people with its products. Additionally, Cramer has previously commented that the firm’s inability to gain pricing power has affected its margins. This time, the CNBC TV host shared a solution to Conagra Brands, Inc. (NYSE:CAG)’s woes:

“You have to begin the great merger of this sector. You have to start putting together big deals, take out big costs. You know Kraft Heinz, Conagra, you know I mean that kind of thing. They have to just become, this should be like a big three. It’s over. You can’t grow.”

As for Conagra Brands, Inc. (NYSE:CAG)’s pricing and margins, here is what Cramer believes:

“Very tough, very tough situation. Conagra’s got 7% inflation. They got problem with tin cans. They can’t, it’s killing them… The margins aren’t that good. The brands aren’t enabling them to be able to take any price. I have to tell you, the one thing that was important was that, on the conference call, they did say that they think they have no problem paying the dividend. A company that has to answer about whether it has a problem paying the dividend or not is a company that I say [don’t buy, don’t buy, don’t buy].”

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Disclosure: None. This article is originally published at Insider Monkey.