Yahoo Finance Conagra's (CAG) Upcoming Launches Reinforce Focus on Innovation
Conagra Brands, Inc. CAG maintains its focus on investing in innovation, considering it the primary asset in its strategic approach and essential for enhancing its brands and fostering sustainable growth. In its latest release, the company announced that it is launching an impressive array of more than 50 new products this summer.
These innovations span single-serve and multi-serve frozen meals, frozen vegetables and snacks, enhancing Conagra's extensive portfolio of top-tier brands. With strong brands like Dolly Parton's and Chef Boyardee leading the way, coupled with strategic enhancements in healthier choices and plant-based options, Conagra is positioned to capitalize on evolving consumer trends.
Some of the innovations that are likely to grace consumers’ summer plates include Dolly Parton's Homestyle Macaroni & Cheese, Decadent Chocolate Pie and Original Whipped Cheesecake, Chef Boyardee's Spaghetti & Meatballs, Chicken Alfredo and Cheese Ravioli, Birds Eye's Maple Glazed Carrots and Parmesan Truffle Broccoli, Healthy Choice's Balsamic Garlic Steak and Salsa Verde Chicken, Purple Carrot's Vegetable Tikka Masala and Sweet & Sour Cauliflower, and Gardein Ultimate Plant-Based's Crispy Breaded F'Sh and Chick'n Fried Rice Bowl, among others.
The introduction of these diverse offerings underscores Conagra's proactive strategy to capture consumer preferences and drive sales growth.
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Conagra on Growth Path
Conagra continues to be driven by its focus on brand-building through innovation, merchandising and advertising. Prudent innovations have been helping the company modernize its portfolio and meet consumers’ changing needs aptly. These actions, focused on re-engaging consumers with existing products and introducing them to new innovations, give the company confidence in driving momentum through multifaceted brand-building investments.
Conagra has been witnessing market share gains in the frozen category. In the third quarter of fiscal 2023, the frozen business remained strong despite a challenging landscape. This reflects the forte of the company’s brands and the effective execution of the Conagra Way playbook. The company experienced a 1-point unit share gain in the frozen category during the third quarter despite a challenging landscape.
On a volume basis, Conagra’s frozen business outperformed the market. The company has made several investments in the innovation of key brands of the frozen business, which are yielding a favorable response. During the third quarter, CAG saw improvements in frozen sides, frozen breakfasts, frozen seafood and frozen single-serve meals.
Wrapping Up
Strategic initiatives across innovation, merchandising and advertising give out positive signals for long-term growth, albeit with short-term margin considerations. For fiscal 2024, management envisions an adjusted EPS in the band of $2.60-$2.65 compared with an adjusted EPS of $2.77 reported in fiscal 2023. Shares of CAG have dropped 3.9% in the past three months compared with the industry’s decline of 7.8%.
However, the aforementioned extensive product expansion not only enhances revenue potential but also reinforces Conagra's competitive edge in the competitive food industry landscape.
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Vital Farms Inc. VITL offers a range of pasture-raised products. It currently sports a Zacks Rank #1 (Strong Buy). VITL has a trailing four-quarter average earnings surprise of 102.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vital Farms’ current financial-year sales and earnings indicates growth of 22.5% and 59.3%, respectively, from the year-ago reported numbers.
Utz Brands Inc. UTZ, which manufactures a diverse range of salty snacks, currently carries a Zacks Rank #2 (Buy). UTZ has a trailing four-quarter earnings surprise of 2%, on average.
The consensus estimate for Utz Brands’ current financial-year earnings indicates growth of 26.3% from the year-ago reported numbers.
Ingredion Incorporated INGR, which manufactures and sells sweeteners, starches, nutrition ingredients and biomaterial solutions, currently carries a Zacks Rank of 2. The Zacks Consensus Estimate for INGR’s current fiscal-year earnings indicates growth of 3.6% from the year-ago reported figure.
Ingredion Incorporated has a trailing three-quarter earnings surprise of 10.1%, on average.
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Conagra Brands (CAG) : Free Stock Analysis Report
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