Brase John P purchased $511K of CAG

U.S. consumer confidence in food safety dropped to 65%, a record low, following a large Cyclospora outbreak. Trust in federal oversight also fell to 47%. McCormick and Conagra forecasted inflation of up to 7% and 6%, respectively, due to rising costs. McCormick's acquisition of Unilever's food business awaits UK approval. Recalled units surged to 941.2 million in early 2026.

Argus lowered its target price for Conagra Brands (CAG) to $12.00. The company generates most of its revenue in the U.S. (91% in fiscal 2025).

Conagra Brands reported a 1.4% decline in Q1 net sales to $2.6B but improved profitability, with net income up 6% to $174M. Gross profit fell 3.4% to $619M, while adjusted EPS rose 5.1% to $0.41. Sales varied by segment, with International and Foodservice growing. The company reduced debt by $193M but saw negative operating cash flow. Conagra reaffirmed its fiscal 2027 outlook, expecting organic sales to decline 1-3%.

U.S. consumers are switching to cheaper self-brand products due to high prices, impacting food companies. McCormick reported Q3 sales of $2.02B, slightly above estimates, but saw a 0.3% overall sales decline and a 2.5% drop in U.S. consumer unit sales. Conagra Brands also reported a 2.1% sales decline and expects a mid-single-digit sales decline this year. Both companies are facing challenges from increased price sensitivity among consumers and rising costs.

U.S. stocks ended the week lower, with the Dow down 1.93%, S&P 500 down 1.25%, and Nasdaq down 0.90%. The Russell 2000 underperformed, falling 1.16%. The 10-year Treasury yield rose 6 basis points to 5.24%. Earnings reports from McCormick (MKC), Conagra (CAG), Recon Technology (RCON), Yiren Digital (YRD), and RedHill Biopharma (RDHL) were released.

RBC Capital reiterated a Sector Perform rating and $14.00 price target for ConAgra Brands (CAG) after Q1 results. The stock is down 25% over the past year. Q1 organic sales were solid, but profitability was boosted by nonrecurring items. RBC noted challenges ahead, including pricing elasticity and inflation management. CAG reported Q1 adjusted EPS of $0.41, beating estimates, with revenue of $2.6B.