Conagra Brands saw its stock price drop after announcing a reduction in its annual dividend from $1.40 to $0.70 and providing profit guidance that fell short of Wall Street expectations. The company reported adjusted earnings of 47 cents per share for the fourth quarter, down from 56 cents a year prior, but slightly above the expected 46 cents. Future forecasts for fiscal 2027 adjusted earnings are set between $1.40 and $1.50 per share, compared to a predicted $1.56 by analysts. Sales for the quarter rose by 3.6% to $2.88 billion, aligning with analyst predictions.

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Conagra’s Dividend Cut, Weak Guidance Send the Stock Lower

By Kit Norton

July 15, 2026, 9:14 am EDT

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Conagra announced fourth-quarter earnings on Wednesday. (Photograph by Daniel Acker/Bloomberg)

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Conagra Brands shares fell after the company cut its annual dividend and issued profit guidance below Wall Street expectations.
The company reduced its annual dividend to 70 cents from its previous rate of $1.40.
Conagra forecasts fiscal 2027 adjusted earnings of $1.40 to $1.50 a share, below the $1.56 a share predicted by Wall Street.

Shares of Conagra Brands declined on Wednesday after the company reduced its annual dividend and issued profit guidance that came in below Wall Street expectations.

The packaged food company posted adjusted earnings of 47 cents a share for the quarter ended May 31, down from 56 cents a year ago but slightly above Wall Street’s expectation for 46 cents. Sales grew 3.6% to $2.88 billion, mostly in line with the analyst consensus call, according to FactSet.

Conagra stock fell 5.9% to $13.31 in premarket trading on Wednesday.

Looking ahead, Conagra forecasts fiscal 2027 adjusted earnings of $1.40 to $1.50 a share, with organic net sales expected to decline between 1% and 3%. Wall Street had been predicting a profit of $1.56 a share, according to FactSet.

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Along with the guidance, Conagra also announced Wednesday that it’s cutting its annual dividend to 70 cents, down from its previous rate of $1.40.

Barron’s warned on Tuesday that Conagra’s dividend could be at risk.

“Resetting our dividend to an annualized rate of $0.70 per share proactively realigns our capital allocation, accelerates progress toward our leverage target, supports critical investments, and strengthens our financial flexibility, including the ability to shape the portfolio over time,” CEO John Brase said in the release Wednesday.

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Write to Kit Norton at kit.norton@barrons.comExternal link

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Conagra Stock Falls as Guidance Disappoints and the Company Reduces Dividend

Conagra’s Dividend Cut, Weak Guidance Send the Stock Lower