Conagra Brands, Inc. (NYSE: CAG) is a leading U.S.-based food company known for its vast portfolio of brands, including Birds Eye, Duncan Hines, Healthy Choice, and Marie Callender’s. For the fourth quarter of fiscal 2025, Conagra reported net sales of $2.78 billion, a decrease of 4.3% from the prior year. The company’s organic net sales fell by 3.5%, influenced by a 1.0% drop in price/mix and a 2.5% reduction in volume.

Operating margin for the quarter was reported at 11.5%, while adjusted operating margin stood at 13.8%. The company recorded diluted earnings per share of $0.53, and adjusted EPS was at $0.56, representing a decline of 8.2% year over year. Gross profit decreased 12.1% to $707 million, with adjusted gross profit down 10.7% to $717 million, primarily attributed to cost of goods sold inflation. Gross margin fell 228 basis points to 25.4% in the fourth quarter, with adjusted gross margin decreasing 184 basis points to 25.8%.

For the full year ending in May 2025, Conagra’s net sales were $11.61 billion, down 3.6%. Organic net sales for the year decreased by 2.9%, alongside operating profit increasing 60% to $1.36 billion. The reported operating margin for fiscal 2025 improved by 467 basis points to 11.8%, but adjusted operating margin decreased by 188 basis points to 14.1%. Reported diluted EPS soared by 233% to $2.40, while adjusted EPS saw a decrease of 13.9% to $2.30.

In the fourth quarter, the Grocery & Snacks segment experienced a net sales decline of 2.1%, with organic net sales down 3.3%. Conversely, operating profit for this segment increased by 19.6% to $210 million, although adjusted operating profit fell 11.7% to $226 million due to the impacts of lower net sales. The Refrigerated & Frozen segment saw net sales decrease 4.4% to $1.1 billion, resulting from a 2.3% decline in price/mix and a 2.1% volume decrease.

The International segment’s sales dropped 13.8% to $230 million, reflecting a significant decrease from both foreign exchange and M&A impacts, yet saw organic growth of 0.8%. In terms of operations and strategic investment, Conagra projected continued cost of goods sold inflation in fiscal 2026, estimating an inflation rate of approximately 7%, which combines core inflation (4%) and the impact of tariffs (3%).

Going forward, Conagra expects fiscal 2026 organic net sales growth in a range of -1% to 1%. The adjusted operating margin is forecasted to be between 11.0% and 11.5%, with expected adjusted EPS between $1.70 and $1.85. The company is focused on enhancing its supply chain resilience and driving volume growth, especially in its frozen and snacks segments while continuing disciplined cost management.