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Persistent inflation has eroded budgets at many American households and forced consumers to trade down from branded packaged food products to cheaper private-label alternatives, hurting companies that have been steadily raising product prices over the past few years to counter spiraling costs.
Shares of Conagra, known for its Act II Microwave Popcorn and Chef Boyardee brands, fell nearly 1% in premarket trading.
Revenue in the fourth quarter ended May fell short of expectations after a cybersecurity incident at a cold storage partner, caused disruptions to parts of Conagra’s frozen and refrigerated business.
Conagra’s net sales rose to $2.97 billion from $2.91 billion a year earlier, while analysts on average had expected $2.99 billion.
Still, the Chicago-based company raised its quarterly dividend to 35 cents a share from 33 cents.
It expects 2024 organic net sales growth to be 1% higher than 2023, while analysts on average were expecting an increase of 2.77%, according to Refinitiv estimates.
Full-year adjusted EPS is expected between $2.70 and $2.75, compared with analysts’ average estimate of $2.85 per share.
