Conagra Brands Inc 10-Q for FY2026 Q2

Conagra Brands Inc. (CAG)

10-Q 2025-12-19 For: 2025-11-23

Added on April 08, 2026

About this 10-Q

Conagra Brands Inc filed this 10-Q on December 19, 2025, covering the quarter ended November 23, 2025 (FY2026 Q2).

Headline figures

Quarter ended November 23, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.98B; down 6.8% from $3.2B a year earlier
Net loss: $663.6M; compared with net income of $284.5M a year earlier
Diluted EPS: -$1.39; compared with $0.59 a year earlier

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Delaware	47-0248710
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

222 W. Merchandise Mart Plaza, Suite 1300 Chicago, Illinois	60654
(Address of principal executive offices)	(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $5.00 par value	CAG	New York Stock Exchange


Large accelerated filer ☒	Accelerated filer ☐	Non-accelerated filer ☐	Smaller reporting company ☐	Emerging growth company ☐


PART I. FINANCIAL INFORMATION		1

Item 1	Financial Statements	1

	Unaudited Condensed Consolidated Statements of Operations for the Thirteen and Twenty-Six Weeks Ended November 23, 2025 and November 24, 2024	1

	Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) for the Thirteen and Twenty-Six Weeks Ended November 23, 2025 and November 24, 2024	2

	Unaudited Condensed Consolidated Balance Sheets as of November 23, 2025 and May 25, 2025	3

	Unaudited Condensed Consolidated Statements of Cash Flows for the Twenty-Six Weeks Ended November 23, 2025 and November 24, 2024	4

	Notes to Unaudited Condensed Consolidated Financial Statements	5

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3	Quantitative and Qualitative Disclosures About Market Risk	29

Item 4	Controls and Procedures	30

PART II. OTHER INFORMATION		31

Item 1	Legal Proceedings	31

Item 1A	Risk Factors	31

Item 5	Other Information	31

Item 6	Exhibits	31

Signatures		32


		Thirteen Weeks Ended						Twenty-Six Weeks Ended
		November 23, 2025			November 24, 2024			November 23, 2025		November 24, 2024
Net sales		$	2,979.1		$	3,195.1		$	5,611.7	$	5,990.0
Cost of goods sold			2,283.1			2,348.4			4,275.1		4,404.0
Gross profit		$	696.0		$	846.7		$	1,336.6	$	1,586.0
Selling, general and administrative expenses			325.1			425.2			660.7		760.6
Goodwill impairment charges			771.3			—			771.3		—
Other intangible asset impairment charges			197.0			18.9			197.0		18.9
Loss (gain) on divestitures			0.2			—			(42.2)		2.3
Operating profit (loss)		$	(597.6)		$	402.6		$	(250.2)	$	804.2
Pension and postretirement non-service income			6.1			3.1			12.2		6.2
Interest expense, net			96.0			108.2			189.8		214.0
Equity method investment earnings			32.2			48.5			61.6		77.6
Income (loss) before income taxes			(655.3)			346.0			(366.2)		674.0
Income tax expense (benefit)			8.3			61.5			132.9		(77.4)
Net income (loss)		$	(663.6)		$	284.5		$	(499.1)	$	751.4
Less: Net income attributable to noncontrolling interests			—			—			—		0.1
Net income (loss) attributable to Conagra Brands, Inc.		$	(663.6)		$	284.5		$	(499.1)	$	751.3
Earnings (loss) per share — basic
Net income (loss) attributable to Conagra Brands, Inc. common stockholders		$	(1.39)		$	0.60		$	(1.04)	$	1.57
Earnings (loss) per share — diluted
Net income (loss) attributable to Conagra Brands, Inc. common stockholders		$	(1.39)		$	0.59		$	(1.04)	$	1.57


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	May 25, 2025
Current assets	$	69.2
Noncurrent assets (including goodwill of $230.4 million)		488.8
Current liabilities		2.7
Noncurrent liabilities		0.2


	May 25, 2025
Current assets	$	24.9
Noncurrent assets (including goodwill of $17.1 million)		18.6


	Grocery &			Refrigerated
	Snacks			& Frozen			International			Corporate			Total
Accelerated depreciation	$	0.4		$	—		$	—		$	—		$	0.4
Other cost of goods sold		0.7			0.1			—			—			0.8
Total cost of goods sold		1.1			0.1			—			—			1.2
Severance and related costs		(0.1)			—			0.3			6.8			7.0
Asset impairment (net of gains on disposal)		(0.6)			(7.3)			—			(0.4)			(8.3)
Contract/lease termination		—			—			—			0.2			0.2
Other SG&A		2.1			0.5			—			0.2			2.8
Total SG&A		1.4			(6.8)			0.3			6.8			1.7
Total	$	2.5		$	(6.7)		$	0.3		$	6.8		$	2.9


					Costs
					Incurred and
		Balance as of			Charged to			Costs Paid or			Changes in			Balance as of
		May 25, 2025			Expense			Otherwise Settled			Estimates			November 23, 2025
Severance and related costs		$	14.6		$	7.6		$	(6.4)		$	(0.6)		$	15.2
Contract/lease termination			—			0.2			(0.2)			—			—
Other costs			2.8			3.6			(4.9)			—			1.5
Total		$	17.4		$	11.4		$	(11.5)		$	(0.6)		$	16.7


		Grocery & Snacks			Refrigerated & Frozen ¹			International			Foodservice			Total
Balance as of May 25, 2025		$	4,663.1		$	4,916.6		$	202.1		$	720.1		$	10,501.9
Currency translation			—			—			(1.2)			—			(1.2)
Impairment			—			(771.3)			—			—			(771.3)
Balance as of November 23, 2025		$	4,663.1		$	4,145.3		$	200.9		$	720.1		$	9,729.4


		November 23, 2025						May 25, 2025
		Gross						Gross
		Carrying			Accumulated			Carrying			Accumulated
		Amount			Amortization			Amount			Amortization
Non-amortizing intangible assets
Brands and trademarks		$	1,603.6		$	—		$	1,800.5		$	—
Amortizing intangible assets
Customer relationships and intellectual property			1,215.2			616.5			1,215.9			595.3
		$	2,818.8		$	616.5		$	3,016.4		$	595.3


		Location in Condensed Consolidated Statements of Operations of Gains (Losses)		Gains (Losses) Recognized on Derivatives in Condensed Consolidated Statements of Operations for the Thirteen Weeks Ended
Derivatives Not Designated as Hedging Instruments		Recognized on Derivatives		November 23, 2025			November 24, 2024
Commodity contracts		Cost of goods sold		$	(2.8)		$	2.5
Foreign exchange contracts		Cost of goods sold			0.9			5.2
Total gains (losses) from derivative instruments not designated as hedging instruments				$	(1.9)		$	7.7


		Pension Plans
		Thirteen Weeks Ended						Twenty-Six Weeks Ended
		November 23, 2025			November 24, 2024			November 23, 2025			November 24, 2024
Service cost		$	1.3		$	1.3		$	2.7		$	2.7
Interest cost			22.2			33.4			44.2			67.4
Expected return on plan assets			(27.8)			(35.8)			(55.6)			(72.4)
Amortization of prior service cost			0.4			0.4			0.8			0.8
Pension cost (benefit) — Company plans			(3.9)			(0.7)			(7.9)			(1.5)
Pension cost (benefit) — multi-employer plans			2.8			3.0			5.1			5.2
Total pension cost (benefit)		$	(1.1)		$	2.3		$	(2.8)		$	3.7


		November 23, 2025			May 25, 2025
ASSETS
Current assets
Cash and cash equivalents		$	46.6		$	68.0
Receivables, less allowance for doubtful accounts of $4.3 and $3.6			835.5			770.0
Inventories			2,199.8			2,048.3
Prepaid expenses and other current assets			144.4			90.6
Current assets held for sale			—			94.1
Total current assets			3,226.3			3,071.0
Property, plant and equipment			6,656.9			6,574.1
Less accumulated depreciation			(3,855.2)			(3,738.2)
Property, plant and equipment, net			2,801.7			2,835.9
Goodwill			9,729.4			10,501.9
Brands, trademarks and other intangibles, net			2,202.3			2,421.1
Other assets			1,576.2			1,571.0
Noncurrent assets held for sale			4.4			533.0
		$	19,540.3		$	20,933.9
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Notes payable		$	388.0		$	804.7
Current installments of long-term debt			776.9			1,028.8
Accounts and other payables			1,526.9			1,590.1
Accrued payroll			128.5			146.0
Other accrued liabilities			799.4			744.7
Current liabilities held for sale			—			2.7
Total current liabilities			3,619.7			4,317.0
Senior long-term debt, excluding current installments			6,459.0			6,234.1
Deferred income taxes			784.0			810.3
Other noncurrent liabilities			586.8			639.6
Noncurrent liabilities held for sale			—			0.2
Total liabilities			11,449.5			12,001.2
Common stockholders' equity
Common stock of $5 par value, authorized 1,200,000,000 shares; issued 584,219,229			2,921.2			2,921.2
Additional paid-in capital			2,300.5			2,347.2
Retained earnings			5,924.3			6,759.1
Accumulated other comprehensive income			9.5			16.3
Less treasury stock, at cost, 105,849,754 and 106,846,304 common shares			(3,064.7)			(3,111.1)
Total stockholders' equity			8,090.8			8,932.7
		$	19,540.3		$	20,933.9


		Twenty-Six Weeks Ended
		November 23, 2025			November 24, 2024
Cash flows from operating activities:
Net income (loss)		$	(499.1)		$	751.4
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization			192.3			196.6
Asset impairment charges			975.0			87.6
Loss (gain) on divestitures			(42.2)			2.3
Equity method investment earnings in excess of distributions			(3.3)			(28.9)
Stock-settled share-based payments expense			33.1			29.8
Contributions to pension plans			(5.3)			(5.9)
Pension benefit			(7.9)			(1.5)
Other items			(16.3)			(0.2)
Change in operating assets and liabilities excluding effects of business acquisitions and dispositions:
Receivables			(137.5)			15.4
Inventories			(149.5)			(73.8)
Deferred income taxes and income taxes payable, net			27.0			(206.4)
Prepaid expenses and other current assets			(58.0)			(40.4)
Accounts and other payables			6.9			97.3
Accrued payroll			(14.9)			(66.2)
Other accrued liabilities			67.6			15.4
Litigation receivables, net of recoveries			75.5			5.7
Litigation accruals, net of payments			(112.2)			(24.0)
Net cash flows from operating activities			331.2			754.2
Cash flows from investing activities:
Additions to property, plant and equipment			(218.6)			(215.4)
Sale of property, plant and equipment			37.8			2.7
Purchase of businesses, net of cash acquired			—			(230.6)
Proceeds from divestitures, net of cash divested			648.9			76.8
Other items			(0.9)			0.5
Net cash flows from investing activities			467.2			(366.0)
Cash flows from financing activities:
Issuance of short-term borrowings, maturities greater than 90 days			62.1			70.6
Repayment of short-term borrowings, maturities greater than 90 days			(567.5)			(66.3)
Net issuance of other short-term borrowings, maturities less than or equal to 90 days			88.7			260.1
Issuance of long-term debt			1,000.0			—
Repayment of long-term debt			(1,022.3)			(270.2)
Debt issuance costs			(11.7)			—
Repurchase of Conagra Brands, Inc. common shares			(15.3)			(64.0)


		November 23, 2025			May 25, 2025
Raw materials and packaging		$	286.5		$	300.8
Work in process			298.5			243.5
Finished goods			1,502.4			1,393.0
Supplies and other			112.4			111.0
Total		$	2,199.8		$	2,048.3


		Conagra Brands, Inc. Stockholders' Equity
													Accumulated
							Additional						Other
		Common		Common			Paid-in			Retained			Comprehensive			Treasury			Total
		Shares		Stock			Capital			Earnings			Income			Stock			Equity
Balance at May 25, 2025		584.2		$	2,921.2		$	2,347.2		$	6,759.1		$	16.3		$	(3,111.1)		$	8,932.7
Stock option and incentive plans								(60.2)									61.1			0.9
Currency translation adjustments														1.1						1.1
Repurchase of common shares																	(15.0)			(15.0)
Derivative adjustments														(0.4)						(0.4)
Pension and postretirement healthcare benefits														(0.3)						(0.3)
Dividends declared on common stock; $0.35 per share											(167.7)									(167.7)
Net income attributable to Conagra Brands, Inc.											164.5									164.5
Balance at August 24, 2025		584.2		$	2,921.2		$	2,287.0		$	6,755.9		$	16.7		$	(3,065.0)		$	8,915.8
Stock option and incentive plans								13.5			(0.6)						0.6			13.5
Currency translation adjustments														(4.9)						(4.9)
Repurchase of common shares																	(0.3)			(0.3)
Derivative adjustments														(1.6)						(1.6)
Pension and postretirement healthcare benefits														(0.7)						(0.7)
Dividends declared on common stock; $0.35 per share											(167.4)									(167.4)
Net loss attributable to Conagra Brands, Inc.											(663.6)									(663.6)
Balance at November 23, 2025		584.2		$	2,921.2		$	2,300.5		$	5,924.3		$	9.5		$	(3,064.7)		$	8,090.8


		Postretirement Plans
		Thirteen Weeks Ended						Twenty-Six Weeks Ended
		November 23, 2025			November 24, 2024			November 23, 2025			November 24, 2024
Service cost		$	0.1		$	0.1		$	0.1		$	0.1
Interest cost			0.5			0.6			1.1			1.2
Amortization of prior service cost (benefit)			(0.5)			(0.5)			(0.9)			(0.9)
Recognized net actuarial gain			(0.9)			(1.2)			(1.8)			(2.3)
Total postretirement cost (benefit)		$	(0.8)		$	(1.0)		$	(1.5)		$	(1.9)


								Affected Line Item in the Condensed Consolidated Statement of
		Thirteen Weeks Ended						Operations¹
		November 23, 2025			November 24, 2024
Net derivative adjustments:
Cash flow hedges		$	(0.6)		$	(0.6)		Interest expense, net
Cash flow hedges			(0.8)			(1.2)		Equity method investment earnings
			(1.4)			(1.8)		Total before tax
			0.4			0.4		Income tax expense
		$	(1.0)		$	(1.4)		Net of tax
Pension and postretirement liabilities:
Net prior service cost (benefit)		$	(0.1)		$	—		Pension and postretirement non-service income
Net actuarial gain			(0.9)			(1.2)		Pension and postretirement non-service income
			(1.0)			(1.2)		Total before tax
			0.3			0.4		Income tax expense
		$	(0.7)		$	(0.8)		Net of tax


		Level 1			Level 2			Level 3			Net Value
Assets:
Derivative assets		$	3.6		$	3.5		$	—		$	7.1
Deferred compensation assets			6.3			—			—			6.3
Available-for-sale debt securities			—			—			2.0			2.0
Total assets		$	9.9		$	3.5		$	2.0		$	15.4
Liabilities:
Derivative liabilities		$	—		$	1.7		$	—		$	1.7
Deferred compensation liabilities			79.7			—			—			79.7
Total liabilities		$	79.7		$	1.7		$	—		$	81.4


	Thirteen Weeks Ended November 23, 2025
			Grocery & Snacks		Refrigerated & Frozen		International		Foodservice		Total
Net sales		$	1,209.1	$	1,251.2	$	230.4	$	288.4	$	2,979.1
Segment cost of goods sold¹			863.5		1,011.3		170.1		236.3		2,281.2
Segment SG&A expenses²			114.4		112.4		28.2		20.8		275.8
Segment operating profit		$	231.2	$	127.5	$	32.1	$	31.3	$	422.1
General corporate expenses³											58.4
Other intangible asset impairment charges											197.0
Goodwill impairment charges											771.3
Loss on divestitures											0.2
Other charges, net⁴											(7.2)
Operating loss										$	(597.6)
Pension and postretirement non-service income											6.1
Interest expense, net											96.0
Equity method investment earnings											32.2
Loss before income taxes										$	(655.3)


	Thirteen Weeks Ended November 24, 2024
			Grocery & Snacks		Refrigerated & Frozen		International		Foodservice		Total
Net sales		$	1,321.0	$	1,338.5	$	243.4	$	292.2	$	3,195.1
Segment cost of goods sold¹			906.6		1,034.8		175.3		236.4		2,353.1
Segment SG&A expenses²			118.7		105.6		28.7		20.0		273.0
Segment operating profit		$	295.7	$	198.1	$	39.4	$	35.8	$	569.0
General corporate expenses³											69.9
Other intangible asset impairment charges											18.9
Other charges, net⁴											77.6
Operating profit										$	402.6
Pension and postretirement non-service income											3.1
Interest expense, net											108.2
Equity method investment earnings											48.5
Income before income taxes										$	346.0


	Twenty-Six Weeks Ended November 23, 2025
			Grocery & Snacks		Refrigerated & Frozen		International		Foodservice		Total
Net sales		$	2,288.7	$	2,327.4	$	442.7	$	552.9	$	5,611.7
Segment cost of goods sold¹			1,616.4		1,878.2		321.5		454.2		4,270.3
Segment SG&A expenses²			220.3		207.3		51.4		39.7		518.7
Segment operating profit		$	452.0	$	241.9	$	69.8	$	59.0	$	822.7
General corporate expenses³											150.7
Other intangible asset impairment charges											197.0
Goodwill impairment charges											771.3
Gain on divestitures											(42.2)
Other charges, net⁴											(3.9)
Operating loss										$	(250.2)
Pension and postretirement non-service income											12.2
Interest expense, net											189.8
Equity method investment earnings											61.6
Loss before income taxes										$	(366.2)


	Twenty-Six Weeks Ended November 24, 2024
			Grocery & Snacks		Refrigerated & Frozen		International		Foodservice		Total
Net sales		$	2,503.7	$	2,424.9	$	502.5	$	558.9	$	5,990.0
Segment cost of goods sold¹			1,734.8		1,869.5		368.1		449.9		4,422.3
Segment SG&A expenses²			219.9		198.2		59.2		38.1		515.4
Segment operating profit		$	549.0	$	357.2	$	75.2	$	70.9	$	1,052.3
General corporate expenses³											162.1
Other intangible asset impairment charges											18.9
Loss on divestitures											2.3
Other charges, net⁴											64.8
Operating profit										$	804.2
Pension and postretirement non-service income											6.2
Interest expense, net											214.0
Equity method investment earnings											77.6
Income before income taxes										$	674.0


		Net Sales
($ in millions)		Thirteen Weeks Ended								Twenty-Six Weeks Ended
Reporting Segment		November 23, 2025			November 24, 2024			% Inc (Dec)		November 23, 2025			November 24, 2024			% Inc (Dec)
Grocery & Snacks		$	1,209.1		$	1,321.0		(8.5)%		$	2,288.7		$	2,503.7		(8.6)%
Refrigerated & Frozen			1,251.2			1,338.5		(6.5)%			2,327.4			2,424.9		(4.0)%
International			230.4			243.4		(5.4)%			442.7			502.5		(11.9)%
Foodservice			288.4			292.2		(1.3)%			552.9			558.9		(1.1)%
Total		$	2,979.1		$	3,195.1		(6.8)%		$	5,611.7		$	5,990.0		(6.3)%


		Operating Profit
($ in millions)		Thirteen Weeks Ended								Twenty-Six Weeks Ended
Reporting Segment		November 23, 2025			November 24, 2024			% Inc (Dec)		November 23, 2025			November 24, 2024			% Inc (Dec)
Grocery & Snacks		$	231.2		$	295.7		(21.8)%		$	452.0		$	549.0		(17.7)%
Refrigerated & Frozen			127.5			198.1		(35.6)%			241.9			357.2		(32.3)%
International			32.1			39.4		(18.4)%			69.8			75.2		(7.1)%
Foodservice			31.3			35.8		(12.6)%			59.0			70.9		(16.8)%


		Fair Value Impact
In Millions		November 23, 2025			November 24, 2024
Energy commodities		$	2.3		$	2.1
Agriculture commodities			7.4			7.8
Foreign exchange			10.4			8.3

EXHIBIT		DESCRIPTION

3.1		Restated Certificate of Incorporation of Conagra Brands, Inc., incorporated herein by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the SEC on September 23, 2024

3.2		Amended and Restated Bylaws of Conagra Brands, Inc., incorporated by reference to Exhibit 3.1 of Conagra Brands' Current Report on Form 8-K filed with the SEC on May 21, 2024

31.1		Section 302 Certificate of Chief Executive Officer

31.2		Section 302 Certificate of Chief Financial Officer

32		Section 906 Certificates

101		The following materials from Conagra Brands' Quarterly Report on Form 10-Q for the quarter ended November 23, 2025, formatted in Inline XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Statements of Operations, (ii) the Condensed Consolidated Statements of Comprehensive Income (Loss), (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Cash Flows, (v) Notes to Unaudited Condensed Consolidated Financial Statements, and (vi) document and entity information.

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


	CONAGRA BRANDS, INC.

	By:	/s/ DAVID S. MARBERGER
		David S. Marberger
		Executive Vice President and Chief Financial Officer

	By:	/s/ MELISSA C. NAPIER
		Melissa C. Napier
		Senior Vice President and Corporate Controller


Date: December 19th, 2025

/s/ SEAN M. CONNOLLY
Sean M. Connolly
Chief Executive Officer


December 19th, 2025

/s/ SEAN M. CONNOLLY
Sean M. Connolly
Chief Executive Officer