CONAGRA BRANDS REPORTS FOURTH QUARTER AND FULL YEAR RESULTS

CONAGRA BRANDS REPORTS FOURTH QUARTER AND FULL YEAR RESULTS

PR Newswire

CHICAGO, July 15, 2026

CHICAGO, July 15, 2026 /PRNewswire/ -- Today Conagra Brands, Inc. (NYSE: CAG) reported results for the fourth quarter and full fiscal year 2026, which ended on May 31, 2026. All comparisons are against the prior year fiscal period, unless otherwise noted.

HighlightsFourth quarter fiscal 2026:Reported net sales increased 3.6%; organic net sales were approximately flatReported operating margin was (57.5)%; adjusted operating margin was 11.7%Reported diluted loss per share was $3.37, primarily as a result of certain non-cash goodwill and brand impairment charges; adjusted earnings per share (EPS) were $0.47Full year fiscal 2026:Reported net sales decreased 2.9%; organic net sales decreased 0.4%Reported operating margin was (14.4)%; adjusted operating margin was 11.3%Reported diluted loss per share was $4.00; adjusted EPS was $1.72The company is providing fiscal 2027 guidance to reflect:Organic net sales change of (3)% to (1)% compared to fiscal 2026Adjusted operating margin between 10.0% and 10.5%Adjusted EPS between $1.40 and $1.50CEO PerspectiveJohn Brase, president and chief executive officer of Conagra Brands, commented, "I am honored to step into the role of CEO and energized by the opportunities ahead. Conagra has an exceptional portfolio of iconic brands, talented employees, strong customer relationships, and leading positions in attractive categories. In fiscal 2026, our team delivered results within our guidance ranges, navigating a dynamic operating environment while demonstrating the resilience of our business and disciplined execution across the organization."He continued, "As I immerse myself in the business, I see several near-term opportunities to strengthen the business including stabilizing and restoring our margin profile, increasing investment behind our brands and supply chain, driving simplicity and reducing complexity across the organization, and enhancing our financial flexibility. Taking action against these opportunities will improve our competitiveness, build a strong foundation for growth, and help unlock the full potential of our portfolio. Consistent with these priorities, and as approved by our Board of Directors, we are announcing today a reduction in our dividend to an annualized rate of $0.70 per share. While there is important work to do, I am confident in the strength of our brands, our people, and our ability to improve performance and deliver attractive long-term returns for shareholders."Total Company Fourth Quarter ResultsIn the quarter, reported net sales increased 3.6% to $2.9 billion reflecting:a 0.5% increase from the favorable impact of foreign exchange,a 4.6% decrease from the impact of M&A,a 7.7% increase from the impact of the 53rd week, andflat organic net sales.Organic net sales were driven by a 1.6% positive impact from price/mix and a 1.6% decrease in volume. In the quarter, the company gained volume share in categories including frozen single-serve meals, frozen multi-serve meals, frozen vegetables, meat snacks, seeds, and pudding.Gross profit decreased 0.4% to $704 million in the quarter and adjusted gross profit decreased 1.6% to $706 million versus the prior year as productivity, approximately $6 million in tariff refunds, and the impact of the 53rd week were more than offset by the negative impact of cost of goods sold inflation and unfavorable operating leverage. Gross margin decreased 99 basis points to 24.4% in the quarter, and adjusted gross margin decreased 130 basis points to 24.5%.Selling, general, and administrative expense (SG&A), which includes advertising and promotional expense (A&P), increased 20.4% to $401 million in the quarter primarily due to certain restructuring charges, higher incentive compensation expense, and the impact of the 53rd week. Adjusted SG&A, which includes A&P, increased 11.0% to $369 million primarily due to the incentive compensation and 53rd week impacts previously mentioned. A&P increased 8.4% to $67 million compared to the prior year quarter.In the quarter, the company incurred $2.0 billion of non-cash goodwill and brand impairment charges primarily triggered by a sustained decline in the company's share price and market capitalization.Pension and postretirement non-service income was $28 million in the quarter compared to $17 million of income in the prior year period. Adjusted pension and postretirement non-service income increased $2 million to $5 million in the quarter.In the quarter, equity method investment earnings decreased 25.8% to $43 million and adjusted equity method investment earnings decreased 26.1% to $45 million as results from the company's joint venture, Ardent Mills, were impacted by lower commodity trading revenue and unfavorable operating leverage.Net interest expense was $100 million in the quarter. Compared to the prior year period, net interest expense decreased 2.0% or $2 million, due to a reduction in total debt.In the quarter, the effective tax rate was 4.2% compared to 12.7% in the prior year. The adjusted effective tax rate was 20.6% compared to 22.3% in the prior year period driven by a one-time benefit related to foreign currency translations.In the quarter, net loss attributable to Conagra Brands was $1.6 billion, or $3.37 per diluted share. Adjusted net income attributable to Conagra Brands was $228 million, or $0.47 per diluted share.Adjusted EBITDA, which includes adjusted equity method investment earnings and adjusted pension and postretirement non-service income, was $484 million in the quarter.The average diluted share count in the quarter was 479 million shares.In the quarter, the company paid a dividend of $0.35 per share.Total Company Fiscal 2026 ResultsFor the full fiscal year, net sales decreased 2.9% to $11.3 billion reflecting:a 0.3% increase from the favorable impact of foreign exchange,a 4.6% decrease from the impact of M&A,a 1.8% increase from the impact of the 53rd week, anda 0.4% decrease in organic net sales.For the full fiscal year, gross profit decreased 10.2% to $2.7 billion and adjusted gross profit decreased 9.4% to $2.7 billion as higher productivity and the favorable impact of the 53rd week were more than offset by lower organic net sales, the negative impact of cost of goods sold inflation, and unfavorable operating leverage. Gross margin decreased 194 basis points to 23.9% and adjusted gross margin decreased 175 basis points to 24.0%.For the full fiscal year, diluted loss per share was $4.00, primarily as a result of the non-cash goodwill and brand impairment charges outlined above, and adjusted EPS was $1.72.Grocery & Snacks Segment Fourth Quarter ResultsNet sales for the Grocery & Snacks segment increased 0.3% to $1.2 billion in the quarter, reflecting: an 8.0% decrease from the impact of M&A,a 7.8% increase from the impact of the 53rd week, anda 0.5% increase in organic net sales.The increase in organic net sales was driven by a price/mix increase of 4.0% and a volume decrease of 3.5%. Operating loss for the segment was $13 million in the quarter as a result of the brand impairment charges outlined above. Adjusted operating profit decreased 4.1% to $216 million as higher organic net sales, higher productivity, and the impact from the 53rd week were more than offset by the negative impact of cost of goods sold inflation, unfavorable operating leverage, and higher SG&A.Refrigerated & Frozen Segment Fourth Quarter ResultsNet sales for the Refrigerated & Frozen segment increased 5.3% to $1.2 billion in the quarter, reflecting:a 1.8% decrease from the impact of M&A,a 7.6% increase from the impact of the 53rd week, anda 0.5% decrease in organic net sales.The decrease in organic net sales was driven by a price/mix decrease of 0.8% and a volume increase of 0.3%.Operating loss for the segment was $1.6 billion as a result of the non-cash goodwill and brand impairment charges outlined above. Adjusted operating profit decreased 18.5% to $139 million as higher productivity and the impact from the 53rd week were more than offset by lower organic net sales, the negative impact of cost of goods sold inflation, unfavorable operating leverage, and higher SG&A.International Segment Fourth Quarter ResultsNet sales for the International segment increased 6.3% to $244 million in the quarter, reflecting:a 6.0% increase from the favorable impact of foreign exchange,a 4.9% decrease from the impact of M&A,a 7.6% increase from the impact of the 53rd week, anda 2.4% decrease in organic net sales.The decrease in organic net sales was driven by a price/mix increase of 0.6% and a volume decrease of 3.0%.Operating profit for the segment decreased 8.0% to $32 million in the quarter and adjusted operating profit decreased 7.1% to $33 million as higher productivity, favorable foreign exchange rates, and the impact of the 53rd week were more than offset by lower organic net sales, the negative impact of cost of goods sold inflation, unfavorable operating leverage, and higher SG&A.Foodservice Segment Fourth Quarter ResultsNet sales for the Foodservice segment increased 8.1% to $302 million in the quarter, reflecting:a 1.4% decrease from the impact of M&A,a 7.7% increase from the impact of the 53rd week, anda 1.8% increase in organic net sales.The increase in organic net sales was driven by a price/mix increase of 2.6% and a volume decrease of 0.8%. Operating profit and adjusted operating profit for the segment decreased 6.9% to $29 million in the quarter as higher organic net sales, higher productivity, and the impact of the 53rd week were more than offset by the negative impact of cost of goods sold inflation, unfavorable operating leverage, and higher SG&A.Cash Flow and Debt UpdateFor the full fiscal year, the company generated $1.4 billion in net cash flows from operating activities compared to $1.7 billion in the prior year period, driven primarily by lower operating profit and lapping the accelerated receipt of a portion of the company's outstanding receivables, partially offset by favorable inventory management. Capital expenditures were $423 million compared to $389 million in the prior year period, and free cash flow was $979 million compared to $1.3 billion in the prior year. Dividends paid were approximately unchanged versus the prior year at $670 million.The company ended the year with net debt of $7.1 billion, representing an 11.9% reduction in net debt versus the prior year, resulting in a 3.83x net leverage ratio at fiscal year end.Dividend UpdateThe company announced today that its Board of Directors approved a quarterly dividend payment of $0.175 per share of Conagra common stock to be paid on September 2, 2026 to stockholders of record as of the close of business on July 30, 2026. On an annualized basis, the dividend rate for the company's common stock is $0.70 per share.OutlookThe company is providing the following guidance for fiscal 2027:Organic net sales change of (3)% to (1)% compared to fiscal 2026Adjusted operating margin between 10.0% and 10.5%Adjusted EPS between $1.40 and $1.50Key assumptions incorporated in the above guidance include:Equity earnings contribution of approximately $140 millionPension income of approximately $25 millionInterest expense of approximately $360 millionAdjusted effective tax rate of approximately 24%Capital expenditures of approximately $550 millionFree cash flow conversion of greater than 90%Net leverage ratio at fiscal year end of approximately 4.0xThe inability to predict the amount and timing of the impacts of foreign exchange, acquisitions, divestitures, and other items impacting comparability makes a detailed reconciliation of forward-looking non-GAAP financial measures impracticable. For the same reasons, the company is unable to address the probable significance of these items, which could be material to future results. Please see the end of this release for more information.Discussion of Results and OutlookConagra Brands will issue pre-recorded remarks prior to hosting a live Q&A conference call and webcast at 9:30 a.m. Eastern time today to discuss the company's results and outlook. The live audio webcast Q&A conference call, pre-recorded remarks, transcript of the pre-recorded remarks, and presentation slides will be available on www.conagrabrands.com/investor-relations under Events & Presentations. The Q&A conference call may be accessed by dialing 1-877-883-0383 for participants in the U.S. and 1-412-902-6506 for all other participants and using passcode 4873871. Please dial in 10 to 15 minutes prior to the call start time. A replay of the Q&A conference call will be available on www.conagrabrands.com/investor-relations under Events & Presentations until July 15, 2027.About Conagra BrandsConagra Brands, Inc. (NYSE: CAG), is one of North America's leading branded food companies. We combine a 100-year history of making quality food with agility and a relentless focus on collaboration and innovation. The company's portfolio is continuously evolving to satisfy consumers' ever-changing food preferences. Conagra's brands include Birds Eye®, Duncan Hines®, Healthy Choice®, Marie Callender's®, Reddi-wip®, Slim Jim®, Angie's® BOOMCHICKAPOP®, and many more. As a corporate citizen, we aim to do what's right for our business, our employees, our communities and the world. Headquartered in Chicago, Conagra Brands generated fiscal 2026 net sales of over $11 billion. For more information, visit www.conagrabrands.com.Note on Forward-Looking StatementsThe information contained in this document includes forward-looking statements within the meaning of the federal securities laws. Examples of forward-looking statements include statements regarding our expected future financial performance or position, results of operations, business strategy, plans and objectives of management for future operations, legal matters, costs and cost savings, impairments, and dividends, as well as other statements that are not historical facts. You can identify forward-looking statements by their use of forward-looking words, such as "may", "will", "anticipate", "expect", "believe", "estimate", "intend", "plan", "should", "seek", or comparable terms.Readers of this document should understand that these forward-looking statements are not guarantees of performance or results. Forward-looking statements provide our current expectations and beliefs concerning future events and are subject to risks, uncertainties, and factors relating to our business and operations, all of which are difficult to predict and could cause our actual results to differ materially from the expectations expressed in or implied by such forward-looking statements. These risks, uncertainties, and factors include, among other things: risks associated with general economic and industry conditions, including inflation, oil, energy and fuel costs, reduced consumer confidence and spending, increased tariffs and taxes, actual or threatened hostilities or war and/or other geopolitical conflicts, declining benefits or changing eligibility requirements under government food assistance programs for consumers, rising unemployment, recessions, supply chain challenges, labor cost increases or shortages, interest rate and currency rate fluctuations; risks related to the availability and prices of commodities and other supply chain resources, including raw materials, packaging, energy, and transportation, weather conditions, pandemics, epidemics, and disease, in humans, plants, and animals; disruptions or inefficiencies in our supply chain and/or operations; risks related to the effectiveness of our hedging activities and ability to respond to volatility in commodities; risks related to the ultimate impact of, including reputational harm caused by, any product recalls and product liability or labeling litigation; risks related to our ability to execute operating and value creation plans and achieve returns on our investments and targeted operating efficiencies from cost-saving initiatives, and to benefit from trade optimization programs; risks related to our ability to deleverage on currently anticipated timelines, and to continue to access capital on acceptable terms or at all; risks related to the Company's competitive environment, cost structure, and related market conditions; risks related to our ability to respond to changing consumer preferences including health and wellness perceptions and the success of our innovation and marketing investments; risks associated with actions by our customers, including changes in distribution and purchasing terms; risks related to the seasonality of our business; risks associated with our contract manufacturing arrangements and other third-party service provider dependencies; risks associated with actions of governments and regulatory bodies that affect our businesses, including regulations or interpretations designed to address climate change; risks related to the Company's ability to execute on its strategies or achieve expectations related to environmental, social, and governance matters, including as a result of evolving legal, regulatory, and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs, the availability of requisite financing, and changes in carbon pricing or carbon taxes; risks related to a material failure in or breach of our or our vendors' information technology systems and other cybersecurity incidents; risks related to our ability to identify, attract, hire, train, retain and develop qualified personnel; risk of increased pension, labor or people-related expenses; risks and uncertainties associated with intangible assets, including any future goodwill or intangible assets impairment charges; risks relating to our ability to protect our intellectual property rights; risks relating to acquisition, divestiture, joint venture or investment activities; the amount and timing of future dividends, which remain subject to Board approval and depend on market and other conditions; the amount and timing of future stock repurchases; and other risks described in our reports filed from time to time with the U.S. Securities and Exchange Commission (the "SEC"). We caution readers not to place undue reliance on any forward-looking statements included in this document, which speak only as of the date of this document. We undertake no responsibility to update these statements, except as required by law.Note on Non-GAAP Financial MeasuresThis document includes certain non-GAAP financial measures, including adjusted EPS, organic net sales, adjusted gross profit, adjusted operating profit, adjusted SG&A, adjusted corporate expenses, adjusted gross margin, adjusted operating margin, adjusted effective tax rate, adjusted pension income, adjusted net income attributable to Conagra Brands, free cash flow, net debt, net leverage ratio, adjusted EBITDA, and adjusted equity method investment income. Management considers GAAP financial measures as well as such non-GAAP financial information in its evaluation of the company's financial statements. We believe these non-GAAP financial measures provide useful supplemental information to investors to facilitate year-over-year comparisons by removing non-recurring items and other items impacting comparability such as the impacts of foreign exchange, divested businesses and acquisitions, as well as the impact of any 53rd week, as noted in more detail for each measure below. We also believe the below financial measures are used by investors and analysts to assess the company's operating performance and financial position. These measures should be viewed in addition to, and not in lieu of, the company's diluted earnings per share, operating performance and financial measures as calculated in accordance with GAAP.Organic net sales excludes, from reported net sales, the impacts of foreign exchange, divested businesses and acquisitions, as well as the impact of any 53rd week to provide a more transparent view of year-over-year comparability. All references to changes in volume and price/mix throughout this release are on an organic net sales basis.Free cash flow is net cash from operating activities less additions to property, plant and equipment. Free cash flow conversion is free cash flow divided by adjusted net income attributable to Conagra Brands, Inc. We use this non-GAAP financial measure to provide additional information about the amount of cash available for debt repayment, dividend distributions, acquisition opportunities, and share repurchases after all of the company's business needs and obligations are met.References to adjusted items throughout this release refer to measures computed in accordance with GAAP less the impact of items impacting comparability. Items impacting comparability are income or expenses (and related tax impacts) that management believes have had, or are likely to have, a significant impact on the earnings of the applicable business segment or on the total corporation for the period in which the item is recognized, and are not indicative of the company's core operating results. We exclude these items that we believe affect comparability of underlying results from period to period and may obscure trends in our underlying profitability.References to earnings before interest, taxes, depreciation, and amortization (EBITDA) refer to net income attributable to Conagra Brands before the impacts of discontinued operations, income tax expense (benefit), interest expense, depreciation, and amortization. For adjusted EBITDA, we exclude items resulting from infrequently occurring events or items that we believe significantly affect the year-to-year assessment of the company's operating results.Hedge gains and losses are generally aggregated, and net amounts are reclassified from unallocated corporate expense to the operating segments when the underlying commodity or foreign currency being hedged is expensed in segment cost of goods sold. The net change in the derivative gains (losses) included in unallocated corporate expense during the period is reflected as a comparability item, corporate hedging derivative gains (losses). Since our hedging contracts are generally for future periods, this adjustment facilitates year-over-year comparisons of cost of goods sold, matching the derivative gains and losses with the underlying economic exposure being hedged for the period.References to adjusted equity method investment income refer to equity method investment income adjusted to exclude the impact of certain restructuring activities and unusual tax items, as applicable, from the Ardent Mills JV.Note on Forward-Looking Non-GAAP Financial MeasuresOur fiscal 2027 guidance includes certain non-GAAP financial measures (organic net sales change, adjusted operating margin, adjusted EPS, net leverage ratio, free cash flow conversion, adjusted effective tax rate) that are presented on a forward-looking basis. Historically, the company has calculated these non-GAAP financial measures excluding the impact of certain items such as, but not limited to, foreign exchange, acquisitions, divestitures, restructuring expenses, the extinguishment of debt, hedging gains and losses, impairment charges, legacy legal contingencies, and unusual tax items. Reconciliations of these forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures are not provided because the company is unable to provide such reconciliations without unreasonable effort, due to the uncertainty and inherent difficulty of predicting the timing and financial impact of such items. For the same reasons, the company is unable to address the probable significance of the unavailable information, which could be material to future results.Conagra Brands, Inc.Consolidated Statements of Operations(in millions)(unaudited)FOURTH QUARTERFourteen Weeks EndedThirteen Weeks EndedMay 31, 2026May 25, 2025Percent ChangeNet sales$2,882.1$2,781.83.6 %Cost of goods sold2,178.02,074.65.0 %Gross profit$704.1$707.2(0.4) %Selling, general and administrative expenses401.1333.020.4 %Goodwill impairment charges1,611.1—100.0 %Other intangible asset impairment charges350.253.2558.7 %Operating profit (loss)$(1,658.3)$321.0N/APension and postretirement non-service income27.616.667.1 %Interest expense, net99.7101.8(2.0) %Equity method investment earnings42.657.4(25.8) %Income (loss) before income taxes$(1,687.8)$293.2N/AIncome tax (benefit) expense(70.9)37.2N/ANet income (loss) attributable to Conagra Brands, Inc.$(1,616.9)$256.0N/AEarnings (loss) per share - basicNet income (loss) attributable to Conagra Brands, Inc.$(3.37)$0.54N/AWeighted average shares outstanding479.2478.20.2 %Earnings (loss) per share - dilutedNet income (loss) attributable to Conagra Brands, Inc.$(3.37)$0.53N/AWeighted average share and share equivalents outstanding 1479.2479.5(0.1) %1 In Q4 FY26, we reported a GAAP net loss. In periods when we recognize a net loss, we exclude the impact of outstanding stock awards from the diluted loss per share calculation, as their inclusion would have an anti-dilutive effect. The weighted average diluted share count was 480.2 million shares.Conagra Brands, Inc.Consolidated Statements of Operations(in millions)(unaudited)FISCAL YEARFifty-Three Weeks EndedFifty-Two Weeks EndedMay 31, 2026May 25, 2025Percent ChangeNet sales$11,281.6$11,612.8(2.9) %Cost of goods sold8,583.28,609.3(0.3) %Gross profit$2,698.4$3,003.5(10.2) %Selling, general and administrative expenses1,439.41,537.3(6.4) %Goodwill impairment charges2,382.4—100.0 %Other intangible asset impairment charges547.272.1659.6 %Loss (gain) on divestitures(42.2)29.5N/AOperating profit (loss)$(1,628.4)$1,364.6N/APension and postretirement non-service income45.925.977.5 %Interest expense, net382.6416.7(8.2) %Equity method investment earnings140.7182.4(22.8) %Income (loss) before income taxes$(1,824.4)$1,156.2N/AIncome tax expense91.83.72345.1 %Net income (loss)$(1,916.2)$1,152.5N/ALess: Net income attributable to noncontrolling interests—0.1(100.0) %Net income (loss) attributable to Conagra Brands, Inc.$(1,916.2)$1,152.4N/AEarnings (loss) per share - basicNet income (loss) attributable to Conagra Brands, Inc.$(4.00)$2.41N/AWeighted average shares outstanding479.0478.30.1 %Earnings (loss) per share - dilutedNet income (loss) attributable to Conagra Brands, Inc.$(4.00)$2.40N/AWeighted average share and share equivalents outstanding 1479.0479.7(0.1) %1 In FY26, we reported a GAAP net loss. In periods when we recognize a net loss, we exclude the impact of outstanding stock awards from the diluted loss per share calculation, as their inclusion would have an anti-dilutive effect. The weighted average diluted share count was 479.8 million shares.Conagra Brands, Inc.Consolidated Balance Sheets(in millions)(unaudited)May 31, 2026May 25, 2025ASSETSCurrent assetsCash and cash equivalents$218.0$68.0Receivables, less allowance for doubtful accounts of $3.9 and $3.6658.2770.0Inventories1,905.42,048.3Prepaids and other current assets100.590.6 Current assets held for sale—94.1Total current assets2,882.13,071.0Property, plant and equipment6,843.36,558.1Less: Accumulated depreciation(3,980.4)(3,731.5)Property, plant and equipment, net2,862.92,826.6Goodwill8,119.310,501.9Brands, trademarks and other intangibles, net1,830.72,421.1Other assets1,566.41,571.0Noncurrent assets held for sale13.0542.3$17,274.4$20,933.9LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilitiesNotes payable$34.2$804.7Current installments of long-term debt778.21,028.8Accounts and other payables1,513.31,590.1Accrued payroll201.7146.0Other accrued liabilities660.6744.7 Current liabilities held for sale—2.7Total current liabilities3,188.04,317.0Senior long-term debt, excluding current installments6,456.06,234.1Deferred income taxes693.4810.3Other noncurrent liabilities579.4639.6Noncurrent liabilities held for sale—0.2Total liabilities10,916.812,001.2Common stockholders' equityCommon stock of $5 par value, authorized 1,200,000,000 shares; issued 584,219,2292,921.22,921.2Additional paid-in capital2,316.12,347.2Retained earnings4,171.76,759.1Accumulated other comprehensive income7.416.3Less treasury stock, at cost, common shares 105,666,163 and 106,846,304(3,058.8)(3,111.1)Total stockholders' equity6,357.68,932.7$17,274.4$20,933.9Conagra Brands, Inc. and SubsidiariesConsolidated Statements of Cash Flows(in millions)(unaudited)Fifty-Three Weeks EndedFifty-Two Weeks EndedMay 31, 2026May 25, 2025Cash flows from operating activities:Net income (loss)$(1,916.2)$1,152.5Adjustments to reconcile net income (loss) to net cash flows from operating activities:Depreciation and amortization396.0390.2Asset impairment charges2,950.9149.8Loss (gain) on divestitures(42.2)29.5Equity method investment earnings less than (in excess of) distributions0.4(22.1)Stock-settled share-based payments expense54.741.5Contributions to pension plans(11.4)(11.9)Pension benefit(37.4)(19.6)Other items(5.3)4.8Change in operating assets and liabilities excluding effects of business acquisitionsand dispositions:Receivables35.0173.8Inventories144.9(35.6)Deferred income taxes and income taxes payable, net(81.5)(224.0)Prepaid expenses and other current assets(13.2)(0.9)Accounts and other payables(56.0)49.6Accrued payroll58.4(45.9)Other accrued liabilities1.6(0.9)Litigation receivables, net of recoveries80.2(67.1)Litigation accruals, net of payments(156.8)128.2Net cash flows from operating activities1,402.11,691.9Cash flows from investing activities:Additions to property, plant and equipment(423.4)(389.3)Sale of property, plant and equipment38.93.4Purchase of businesses, net of cash acquired—(230.6)Proceeds from divestitures, net of cash divested648.976.8Other items(1.8)(2.5)Net cash flows from investing activities262.6(542.2)Cash flows from financing activities:Issuances of short-term borrowings, maturities greater than 90 days116.4338.0Repayment of short-term borrowings, maturities greater than 90 days(628.1)(135.3)Net repayment of other short-term borrowings, maturities less than or equal to 90 days(258.8)(328.3)Issuance of long-term debt1,000.0—Repayment of long-term debt(1,031.4)(281.3)Debt issuance costs(11.7)—Repurchase of Conagra Brands, Inc. common shares(15.3)(64.0)Cash dividends paid(669.7)(669.2)Exercise of stock options and issuance of other stock awards, including tax withholdings(19.8)(20.6)Other items2.32.4Net cash flows from financing activities(1,516.1)(1,158.3)Effect of exchange rate changes on cash and cash equivalents1.4(2.4)Net change in cash and cash equivalents, including cash balances classified as assets held for sale150.0(11.0)Less: Net change in cash balances classified as assets held for sale—(1.3)Net change in cash and cash equivalents150.0(9.7)Cash and cash equivalents at beginning of period68.077.7Cash and cash equivalents at end of period$218.0$68.0Conagra Brands, Inc.Reconciliation of Q4 FY26 and FY26 Organic Net Sales by Segment - YOY Change(in millions)Refrigerated &Total ConagraQ4 FY26Grocery & SnacksFrozenInternationalFoodserviceBrandsNet Sales$1,154.3$1,181.2$244.4$302.2$2,882.1Impact of foreign exchange 1——(13.2)—(13.2)Impact of 53rd week(83.0)(83.4)(16.7)(21.2)(204.3)Organic Net Sales$1,071.3$1,097.8$214.5$281.0$2,664.6Year-over-year change - Net Sales0.3 %5.3 %6.3 %8.1 %3.6 %Impact of foreign exchange (pp) 1——(6.0)—(0.5)Net sales from acquired businesses (pp)—————Net sales from divested businesses (pp)8.01.84.91.44.6Impact of 53rd week (pp)(7.8)(7.6)(7.6)(7.7)(7.7)Organic Net Sales0.5 %(0.5) %(2.4) %1.8 %— %Volume(3.5) %0.3 %(3.0) %(0.8) %(1.6) %Price/Mix4.0 %(0.8) %0.6 %2.6 %1.6 %Refrigerated &Total ConagraQ4 FY25Grocery & SnacksFrozenInternationalFoodserviceBrandsNet Sales$1,150.2$1,121.8$230.1$279.7$2,781.8Net sales from divested businesses(84.1)(18.3)(10.2)(3.6)(116.2)Organic Net Sales$1,066.1$1,103.5$219.9$276.1$2,665.6Refrigerated &Total ConagraFY26Grocery & SnacksFrozenInternationalFoodserviceBrandsNet Sales$4,610.1$4,641.8$913.9$1,115.8$11,281.6Impact of foreign exchange 1——(28.7)—(28.7)Net sales from acquired businesses(10.6)——(0.7)(11.3)Net sales from divested businesses(7.0)(4.9)(1.1)(0.2)(13.2)Impact of 53rd week(83.0)(83.4)(16.7)(21.2)(204.3)Organic Net Sales$4,509.5$4,553.5$867.4$1,093.7$11,024.1Year-over-year change - Net Sales(5.9) %(0.4) %(4.4) %1.9 %(2.9) %Impact of foreign exchange (pp) 1——(3.2)—(0.3)Net sales from acquired businesses (pp)(0.2)——(0.1)(0.1)Net sales from divested businesses (pp)7.81.57.01.64.7Impact of 53rd week (pp)(1.8)(1.8)(1.9)(2.0)(1.8)Organic Net Sales(0.1) %(0.7) %(2.5) %1.4 %(0.4) %Volume(2.4) %0.3 %(4.2) %(2.2) %(1.4) %Price/Mix2.3 %(1.0) %1.7 %3.6 %1.0 %Refrigerated &Total ConagraFY25Grocery & SnacksFrozenInternationalFoodserviceBrandsNet Sales$4,899.3$4,662.3$956.5$1,094.7$11,612.8Net sales from divested businesses(385.9)(76.8)(66.7)(16.2)(545.6)Organic Net Sales$4,513.4$4,585.5$889.8$1,078.5$11,067.21 Excludes the impact of foreign exchange related to divested businesses.Conagra Brands, Inc.Reconciliation of Q4 FY26 Adj. Operating Profit by Segment - YOY Change(in millions)Grocery &Refrigerated &CorporateTotal ConagraQ4 FY26SnacksFrozenInternationalFoodserviceExpenseBrandsOperating Profit (Loss)$(13.1)$(1,617.1)$32.3$29.3$(89.7)$(1,658.3)Restructuring plans14.49.70.6—5.229.9Goodwill and brand impairment charges215.01,746.3———1,961.3CEO separation costs————8.18.1Corporate hedging derivative losses (gains)————(4.5)(4.5)Adjusted Operating Profit$216.3$138.9$32.9$29.3$(80.9)$336.5Operating Profit (Loss) Margin(1.1) %(136.9) %13.2 %9.7 %(57.5) %Adjusted Operating Profit Margin18.7 %11.8 %13.4 %9.7 %11.7 %Year-over-year % change - Operating ProfitN/AN/A(8.0) %(6.9) %9.7 %N/AYear-over year % change - Adjusted Operating Profit(4.1) %(18.5) %(7.1) %(6.9) %3.4 %(12.5) %Year-over-year bps change - Operating ProfitN/AN/A(207) bps(156) bpsN/AYear-over-year bps change - Adjusted Operating Profit(87) bps(343) bps(195) bps(156) bps(215) bpsGrocery &Refrigerated &CorporateTotal ConagraQ4 FY25SnacksFrozenInternationalFoodserviceExpenseBrandsOperating Profit$209.5$126.5$35.2$31.5$(81.7)$321.0Restructuring plans4.92.00.1—4.011.0Brand impairment charges11.242.0———53.2Legal matter recoveries————(10.5)(10.5)Acquisitions and divestitures————0.80.8Corporate hedging derivative losses (gains)————9.19.1Adjusted Operating Profit$225.6$170.5$35.3$31.5$(78.3)$384.6Operating Profit Margin18.2 %11.3 %15.3 %11.3 %11.5 %Adjusted Operating Profit Margin19.6 %15.2 %15.4 %11.3 %13.8 %Conagra Brands, Inc.Reconciliation of FY26 Adj. Operating Profit by Segment - YOY Change(in millions)Grocery &Refrigerated &CorporateTotal ConagraFY26SnacksFrozenInternationalFoodserviceExpenseBrandsOperating Profit (Loss)$690.4$(2,235.9)$133.5$114.3$(330.7)$(1,628.4)Restructuring plans20.68.10.9—16.145.7Legal matter recoveries————(37.4)(37.4)Loss (gain) on sale of business(42.7)0.5———(42.2)Goodwill and brand impairment charges216.72,712.9———2,929.6Acquisitions and divestitures————1.51.5Environmental matters————5.45.4CEO separation costs————8.18.1Corporate hedging derivative losses (gains)————(3.6)(3.6)Adjusted Operating Profit$885.0$485.6$134.4$114.3$(340.6)$1,278.7Operating Profit (Loss) Margin15.0 %(48.2) %14.6 %10.2 %(14.4) %Adjusted Operating Profit Margin19.2 %10.5 %14.7 %10.2 %11.3 %Year-over-year % change - Operating Profit(30.2) %N/A(6.5) %(12.8) %(17.2) %N/AYear-over year % change - Adjusted Operating Profit(13.0) %(25.5) %(6.7) %(12.8) %10.2 %(21.8) %Year-over-year bps change - Operating Profit(522) bpsN/A(32) bps(172) bpsN/AYear-over-year bps change - Adjusted Operating Profit(156) bps(351) bps(35) bps(172) bps(274) bpsGrocery &Refrigerated &Corporate Total ConagraFY25SnacksFrozenInternationalFoodserviceExpenseBrandsOperating Profit$989.4$500.8$142.8$131.0$(399.4)$1,364.6Restructuring plans15.780.5(1.2)—6.7101.7Impairment of business held for sale—27.2———27.2Loss on sale of business——2.3——2.3Acquisitions and divestitures————1.11.1Brand impairment charges11.960.2———72.1Legal matters, net of recoveries————88.788.7Fire related insurance recoveries—(17.0)———(17.0)Consulting fees on tax matters————2.02.0Corporate hedging derivative losses (gains)————(8.2)(8.2)Adjusted Operating Profit$1,017.0$651.7$143.9$131.0$(309.1)$1,634.5Operating Profit Margin20.2 %10.7 %14.9 %12.0 %11.8 %Adjusted Operating Profit Margin20.8 %14.0 %15.1 %12.0 %14.1 %Conagra Brands, Inc.Reconciliation of Q4 FY26 Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net Income, and Adj. EPS - YOY(in millions)Q4 FY26Gross profitSelling, generalandadministrativeexpenses 1Operatingprofit (loss)Income (loss)before income taxesIncome tax expense(benefit)Income tax rateNet income(loss)attributable toConagra Brands, Inc.Diluted EPS from income (loss) attributable toConagra Brands, Inc. common stockholders 2Reported$704.1$401.1$(1,658.3)$(1,687.8)$(70.9)$4.2 %$(1,616.9)$(3.37)% of Net Sales24.4 %13.9 %(57.5) %Restructuring plans6.223.729.929.97.322.60.05Goodwill and brand impairment charges——1,961.31,961.3132.81,828.53.81Ardent JV restructuring activities———1.70.41.3—Ardent JV asset impairment———2.40.61.8—CEO separation costs—8.18.18.1—8.10.02Corporate hedging derivative losses (gains)(4.5)—(4.5)(4.5)(1.1)(3.4)(0.01)Pension settlement and valuation adjustment———(22.5)(5.4)(17.1)(0.03)Unusual tax items———(1.6)(4.6)3.00.01Rounding——————(0.01)Adjusted$705.8$369.3$336.5$287.0$59.120.6 %$227.9$0.47% of Net Sales24.5 %12.8 %11.7 %Year-over-year % of net sales change - reported(99) bps194 bpsN/AYear-over-year % of net sales change - adjusted(130) bps85 bps(215) bpsYear-over-year change - reported(0.4) %20.4 %N/AN/AN/AN/AN/AYear-over-year change - adjusted(1.6) %11.0 %(12.5) %(17.4) %(23.6) %(15.6) %(16.1) %Q4 FY25Gross profitSelling, general andadministrativeexpenses 1Operating profitIncome beforeincome taxesIncome tax expenseIncome tax rateNet income attributable toConagraBrands, Inc.Diluted EPSfrom income attributable toConagraBrands, Inc. common stockholdersReported$707.2$333.0$321.0$293.2$37.2$12.7 %$256.0$0.53% of Net Sales25.4 %12.0 %11.5 %Restructuring plans1.010.011.011.02.78.30.02Brand impairment charges——53.253.212.340.90.09Corporate hedging derivative losses (gains)9.1—9.19.12.36.80.01Legal matter recoveries—(10.5)(10.5)(10.5)(2.6)(7.9)(0.02)Acquisitions and divestitures—0.80.80.80.10.7—Ardent JV restructuring activities———3.60.82.80.01Valuation allowance adjustment————27.7(27.7)(0.06)Pension settlement gain———(13.0)(3.2)(9.8)(0.02)Adjusted$717.3$332.7$384.6$347.4$77.3$22.3 %$270.1$0.56% of Net Sales25.8 %12.0 %13.8 %1 Includes advertising and promotion (A&P) expense of $67.3 million and $62.1 million for Q4 FY26 and Q4 FY25, respectively. A&P as a percentage of net sales was 2.3% and 2.2% for Q4 FY26 and Q4 FY25, respectively.2 In Q4 FY26, we reported a GAAP net loss. In periods when we recognize a net loss, we exclude the impact of outstanding stock awards from the diluted loss per share calculation, as their inclusion would have an anti-dilutive effect. The adjusted diluted earnings per share calculation includes the impact of outstanding stock awards.Conagra Brands, Inc.Reconciliation of FY26 Adj. Gross Margin, Adj. Gross Profit, Adj. SG&A, Adj. Net Income, and Adj. EPS - YOY Change(in millions)FY26Gross profitSelling, general and administrativeexpenses 1Operating profit (loss)Income (loss) before income taxesIncome taxexpenseIncome tax rateNet income (loss) attributable toConagraBrands, Inc.Diluted EPS from income (loss) attributable toConagra Brands, Inc. common stockholders 2Reported$2,698.4$1,439.4$(1,628.4)$(1,824.4)$91.8$(5.0) %$(1,916.2)$(4.00)% of Net Sales23.9 %12.8 %(14.4) %Restructuring plans11.933.845.745.711.134.60.07Goodwill and brand impairment charges——2,929.62,929.6198.22,731.45.69Acquisitions and divestitures—1.51.51.50.41.1—Loss (gain) on sale of business——(42.2)(42.2)(73.9)31.70.07Legal matter recoveries—(37.4)(37.4)(37.4)(9.1)(28.3)(0.06)Ardent JV restructuring activities———7.51.85.70.01Ardent JV asset impairment———2.40.61.8—Environmental matters—5.45.45.41.34.10.01CEO separation costs—8.18.18.1—8.10.02Corporate hedging derivative losses (gains)(3.6)—(3.6)(3.6)(0.9)(2.7)—Pension settlement and valuation adjustment———(22.5)(5.4)(17.1)(0.03)Unusual tax items———(0.3)30.6(30.9)(0.06)Adjusted$2,706.7$1,428.0$1,278.7$1,069.8$246.5$23.0 %$823.3$1.72% of Net Sales24.0 %12.7 %11.3 %Year-over-year % of net sales change - reported(194) bps(48) bpsN/AYear-over-year % of net sales change - adjusted(175) bps99 bps(274) bpsYear-over-year change - reported(10.2) %(6.4) %N/AN/A2345.1 %N/AN/AYear-over-year change - adjusted(9.4) %5.4 %(21.8) %(24.7) %(22.6) %(25.3) %(25.2) %FY25Gross profitSelling, generaland administrativeexpenses 1OperatingprofitIncome before income taxesIncome tax expenseIncome tax rateNet income attributable toConagraBrands, Inc.Diluted EPS from income attributable toConagra Brands,Inc. common stockholdersReported$3,003.5$1,537.3$1,364.6$1,156.2$3.7$0.3 %$1,152.4$2.40% of Net Sales25.9 %13.2 %11.8 %Restructuring plans10.691.1101.7101.724.777.00.16Acquisitions and divestitures—1.11.11.10.20.9—Corporate hedging derivative losses (gains)(8.2)—(8.2)(8.2)(2.0)(6.2)(0.01)Fire related insurance recoveries(17.0)—(17.0)(17.0)(4.2)(12.8)(0.03)Pension settlement gain———(13.0)(3.2)(9.8)(0.02)Impairment of business held for sale——27.227.24.322.90.05Loss on sale of business——2.32.30.81.5—Brand impairment charges——72.172.116.755.40.12Consulting fees on tax matters—2.02.02.00.51.5—Legal matters, net of recoveries—88.788.788.721.767.00.14Ardent JV restructuring activities———7.21.75.50.01Valuation allowance adjustment————253.5(253.5)(0.53)Rounding——————0.01Adjusted$2,988.9$1,354.4$1,634.5$1,420.3$318.4$22.4 %$1,101.8$2.30% of Net Sales25.7 %11.7 %14.1 %1 Includes advertising and promotion (A&P) expense of $279.4 million and $263.2 million for FY26 and FY25, respectively. A&P as a percentage of net sales was 2.5% and 2.3% for FY26 and FY25, respectively.2 In FY26, we reported a GAAP net loss. In periods when we recognize a net loss, we exclude the impact of outstanding stock awards from the diluted loss per share calculation, as their inclusion would have an anti-dilutive effect. The adjusted diluted earnings per share calculation includes the impact of outstanding stock awards.Conagra Brands, Inc.Reconciliation of Q4 FY26 and FY26 Adj. Pension and Postretirement Non-service Income and Adj. Equity Method Investment Earnings(in millions)Q4 FY26Q4 FY25% ChangePension and postretirement non-service income$27.6$16.667.1 %Pension settlement and valuation adjustment(22.5)(13.0)73.1 %Adjusted pension and postretirement non-service income$5.1$3.641.7 %FY26FY25% ChangePension and postretirement non-service income$45.9$25.977.5 %Pension settlement and valuation adjustment(22.5)(13.0)73.1 %Adjusted pension and postretirement non-service income$23.4$12.981.4 %Q4 FY26Q4 FY25% ChangeEquity method investment earnings$42.6$57.4(25.8) %Ardent JV restructuring activities1.73.6(52.8) %Ardent JV asset impairment2.4—100.0 %Unusual tax items(1.6)—(100.0) %Adjusted equity method investment earnings$45.1$61.0(26.1) %FY26FY25% ChangeEquity method investment earnings$140.7$182.4(22.8) %Ardent JV restructuring activities7.57.24.2 %Ardent JV asset impairment2.4—100.0 %Unusual tax items(0.3)—(100.0) %Adjusted equity method investment earnings$150.3$189.6(20.7) %Conagra Brands, Inc.Reconciliation of FY26 Free Cash Flow, Net Debt, and Net Leverage Ratio(in millions)FY26FY25% ChangeNet cash flows from operating activities$1,402.1$1,691.9(17.1) %Additions to property, plant and equipment(423.4)(389.3)8.8 %Free cash flow$978.7$1,302.6(24.9) %May 31, 2026May 25, 2025Notes payable$34.2$804.7Current installments of long-term debt778.21,028.8Senior long-term debt, excluding current installments6,456.06,234.1Total Debt$7,268.4$8,067.6Less: Cash218.068.0Net Debt$7,050.4$7,999.6FY26Net Debt 1$7,050.4Net loss attributable to Conagra Brands, Inc.$(1,916.2)Add Back: Income tax expense91.8Interest expense, net382.6Depreciation352.9Amortization43.1Earnings (loss) before interest, taxes, depreciation, and amortization (EBITDA)$(1,045.8)Restructuring plans 237.7Goodwill and brand impairment charges2,929.6Acquisitions and divestitures1.5Gain on sale of business(42.2)Legal matter recoveries(37.4)Ardent JV restructuring activities7.5Ardent JV asset impairment2.4Environmental matters5.4CEO separation costs8.1Corporate hedging derivative losses (gains)(3.6)Pension settlement and valuation adjustment(22.5)Unusual tax items(0.3)Adjusted EBITDA$1,840.4Net Debt to Adjusted EBITDA 33.831 As of May 31, 20262 Excludes comparability items related to depreciation.3 The Company defines its net debt leverage ratio as net debt divided by adjusted EBITDA for the trailing twelve month period.Conagra Brands, Inc.Reconciliation of Q4 FY26 and FY26 EBITDA - YOY Change(in millions)Q4 FY26Q4 FY25% ChangeNet income (loss) attributable to Conagra Brands, Inc.$(1,616.9)$256.0N/AAdd Back: Income tax expense (benefit)(70.9)37.2Interest expense, net99.7101.8Depreciation91.582.0Amortization10.813.3Earnings (loss) before interest, taxes, depreciation, and amortization$(1,485.8)$490.3N/ARestructuring plans 125.310.7Goodwill and brand impairment charges1,961.353.2Ardent JV restructuring activities1.73.6Ardent JV asset impairment2.4—CEO separation costs8.1—Corporate hedging derivative losses (gains)(4.5)9.1Pension settlement and valuation adjustment(22.5)(13.0)Acquisitions and divestitures—0.8Legal matter recoveries—(10.5)Unusual tax items(1.6)—Adjusted Earnings before interest, taxes, depreciation, and amortization$484.4$544.2(11.0) %FY26FY25% ChangeNet income (loss) attributable to Conagra Brands, Inc.$(1,916.2)$1,152.4N/AAdd Back: Income tax expense91.83.7Interest expense, net382.6416.7Depreciation352.9336.5Amortization43.153.7Earnings (loss) before interest, taxes, depreciation, and amortization$(1,045.8)$1,963.0N/ARestructuring plans 137.799.2Goodwill and brand impairment charges2,929.672.1Acquisitions and divestitures1.51.1Loss (gain) on sale of business(42.2)2.3Legal matters, net of recoveries(37.4)88.7Ardent JV restructuring activities7.57.2Ardent JV asset impairment2.4—Environmental matters5.4—CEO separation costs8.1—Corporate hedging derivative losses (gains)(3.6)(8.2)Pension settlement and valuation adjustment(22.5)(13.0)Unusual tax items(0.3)—Fire related insurance recoveries—(17.0)Impairment of business held for sale—27.2Consulting fees on tax matters—2.0Adjusted Earnings before interest, taxes, depreciation, and amortization$1,840.4$2,224.6(17.3) %1 Excludes comparability items related to depreciation.For more information, please contact:MEDIA: Mike Cummins312-549-5257Michael.Cummins@conagra.comINVESTORS: Matthew Neisius312-549-5002IR@conagra.com