Conagra Brands reports Q4 2026 results: Snack sales rising
Conagra Brands has officially released its fourth-quarter and full-year earnings for fiscal 2026. The report marks the first major update under new president and chief executive officer John Brase, who outlined immediate plans to simplify the business, invest in core brands, and adjust the company's dividend payout.
For convenience store retailers, the report highlights a mixed bag: Volume share gains in key on-the-go categories like meat snacks and seeds, offset by ongoing corporate restructuring and heavy non-cash write-downs.
New leadership strategy and dividend cut
Brase, who recently took over as CEO as of June 1, 2026, addressed the transition and outlined near-term priorities to stabilize the business.
"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," Brase said.
To support these goals and increase financial flexibility, Conagra’s board of directors approved a reduction in its dividend to an annualized rate of $0.70 per share.
A quarterly dividend payment of $0.175 per share will be paid on September 2, 2026, to stockholders of record as of July 30, 2026.
Look ahead: Fiscal year 2027 guidance
Conagra has established the following financial targets for fiscal year 2027:
Their Organic Net Sales are xpected to change between (3)% and (1)% compared to fiscal 2026. Their Adjusted Operating Margin is projected between 10.0% and 10.5%.
Conagra Brands' Adjusted EPS is anticipated between $1.40 and $1.50. and their capital expenditures are expected to be approximately $550 million. The Net Leverage Ratio is projected to be approximately 4.0x by the end of the fiscal year.
The big picture: Q4 and full-year financials
During the fourth quarter, Conagra’s total reported net sales increased 3.6% to $2.9 billion. However, the company reported a net loss of $1.6 billion (or $3.37 per diluted share).
This loss was driven by $2.0 billion in non-cash goodwill and brand impairment charges—a formal accounting term meaning the calculated value of the company's brands was written down, triggered by a decline in Conagra's stock price and market capitalization.
When pulling out these one-time charges:
- Adjusted Net Income for Q4 was $228 million (or $0.47 per share).
- Adjusted Operating Margin was 11.7% (compared to a reported operating margin of negative 57.5%).
For the full fiscal year 2026, total net sales decreased 2.9% to $11.3 billion, resulting in a reported full-year loss of $4.00 per share (adjusted EPS was $1.72).
Key performance by c-store category
Despite the overall net loss, Conagra gained volume share in several categories critical to convenience store shelves during the quarter. These include:
- Grocery and snacks: Meat snacks, seeds, and pudding.
- Refrigerated and frozen Foods: Frozen single-serve meals, multi-serve meals, and frozen vegetables.
Here is how Conagra's main retail segments performed in the fourth quarter:
1. Grocery and snacks segment
This segment—which includes the company's shelf-stable snack portfolio—saw overall net sales increase 0.3% to $1.2 billion.
Organic net sales for grocery and snacks are up 0.5%, driven by a 4.0% increase in price/mix, which helped offset a 3.5% drop in volume.
The segment experienced a $13 million operating loss due to the brand write-downs mentioned above. However, its adjusted operating profit was $216 million (down 4.1% due to inflation and higher operating costs).
2. Refrigerated and frozen segment
Net sales for Conagra's cold cases grew 5.3% to $1.2 billion in Q4.
The company's organic net sales are down 0.5%; volume has increased slightly by 0.3%, but was offset by a 0.8% decrease in price/mix.
The segment recorded a reported operating loss of $1.6 billion due to goodwill write-downs. Adjusted operating profit fell 18.5% to $139 million as higher productivity was offset by inflation and increased SG&A (selling, general, and administrative) expenses.
