[Note: CAG’s fiscal year 2023 ended May 28, 2023]
Conagra Brands (NYSE: CAG) engages in the manufacture and sale of processed and packaged foods. It operates through the following segments: Grocery and Snacks, Refrigerated and Frozen, International, and Foodservice. There are numerous brands owned by the company, including Hunt’s, Slim Jim, Marie Callender’s, and many others. The company’s stock currently trades at $27 per share, around 30% below its level of $39 seen on June 5, 2021 (pre-inflation shock high), and has the potential for gains. CAG saw its stock trading at around $31 on June 18, 2022, when the Fed kept increasing rates, and now remains down by about 13% from those levels. The retailer’s stock decline can be attributed to shifting consumer sentiment and slowing company sales. Despite a modest 10% rise in net sales over the past three years, net income has actually declined by nearly 50%. It should be mentioned that the company’s growth has been driven by pricing rather than the volume during this period.
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