Conagra Cuts Profit Outlook Amid Supply Woes, Currency Headwinds
Conagra Brands has lowered its profit and operating margin forecasts due to supply chain disruptions and foreign exchange fluctuations.
Supply Chain Issues
Conagra has faced customer service interruptions for frozen meals containing chicken and vegetables, highlighting ongoing supply chain challenges.
Currency Impact
A stronger dollar is weighing on Conagra's international sales, further impacting its financial performance.
Consumer Shifts
Consumers, facing elevated grocery prices, have shifted towards private-label brands, reducing sales for Conagra and other packaged food companies.
Margin Pressure
The company has increased spending on promotions and price cuts to combat the competitive landscape, which has eroded margins.
Financial Impact
Conagra has reduced its annual adjusted profit forecast to $2.35 per share, down from $2.45-$2.50. It has also lowered its adjusted operating margin expectation to 14.4% from 14.8%.
Recent Performance
Shares of Conagra have lost nearly 4% in the past year and declined roughly 9% since the start of 2025.