The Top 5 Analyst Questions From Conagra's Q1 Earnings Call

Conagra’s first quarter results fell short of Wall Street expectations, as the company faced challenges from declining sales and margin compression. Management cited persistent inflation, shifting consumer preferences, and ongoing supply chain disruptions as key factors weighing on performance. CEO Sean Connolly pointed to continued strength in consumer demand for its brands despite a more value-seeking consumer environment and highlighted that inventory rebuilding and weather-driven timing of shipments in certain categories, particularly snacks, played a role in the quarter’s outcomes. Connolly acknowledged, “We have to keep the relationship between the consumer and our brands, and we made the investment to do that, and we've seen very strong connectivity.”

Is now the time to buy CAG? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Conagra’s Q1 Earnings Call

• Andrew Lazar (Barclays) asked about the outlook for next year given macro uncertainty. CEO Sean Connolly said it is too early to give specifics, stressing the need to monitor inflation, tariffs, and consumer sentiment before issuing guidance.
• Ken Goldman (JPMorgan) inquired about the impact of weak convenience store trends on snacks. Connolly acknowledged softness in the channel but noted strong total consumption across other channels.
• Lee Jordan (Goldman Sachs) questioned progress toward the leverage target and capital spending. CFO Dave Marberger cited strong cash flow and debt paydown, explaining that lower capital expenditures this year were due to project timing, not cuts.
• Tom Palmer (Citi) asked about risks from tariffs and imported ingredients. Connolly described the situation as volatile, with management tracking developments closely and considering alternative suppliers if needed.
• Max Gunport (BNP Paribas) asked why Conagra’s snack volumes outperformed the industry. Connolly attributed this to the company’s focus on protein-dense and “on-trend” snack subcategories, as well as successful integration of recent acquisitions.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be watching (1) the pace of inventory rebuilding and its effect on normalized shipment volumes, (2) the impact of continued supply chain modernization on gross margins, and (3) how Conagra navigates inflation, tariffs, and regulatory shifts affecting input costs. The company’s ability to maintain consumer demand in a value-driven market will also be a key marker of execution.

Conagra currently trades at $20.44, down from $26.37 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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