CAG
Conagra Brands incoming CEO on knife edge
Article Summary
SELL- Conagra Brands (NYSE: CAGR) announced the appointment of John Brase as president and CEO, replacing Sean Connolly, who stepped down after 11 years at the helm with shares down 4.4% on Monday and down 18% year-to-date.
- The company's shares have lost 62% in five years and 44% over the past 12 months, with analysts suggesting the board may have lost patience after years of declining performance.
- Brase has no CEO experience, serving as JM Smucker's chief operating officer for retail, international, and foodservice operations before joining Procter & Gamble, while Connolly served as COO at ConAgra Foods.
- Analysts believe the suddenness of the announcement and narrow time for transition suggest the board wanted a change in direction, with some arguing that Conagra Brands lacks an internal succession plan.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | -4.7% | 25% | 0.0 ptsDeclining (-4.7%) - NOT a growth stock |
| EPS Growth Next 5Y ? | -8.2% | 25% | 0.0 ptsNegative (-8.2%) - Declining expectations |
| Target Price Upside ? | 12.5% | 20% | 50.0 ptsMeets Minimum (12.5%) - Target: $15.93 vs Current: $14.16 |
| Gross Margin % ? | 24.3% | 15% | 40.0 ptsModerate (24.3%) - Adequate margins |
| Drawdown from 52-Wk High ? | -46.1% | 15% | 100.0 ptsDeep Discount (-46.1%) - Best entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About CAG
- Conagra Brands, Inc., together with its subsidiaries, operates as a consumer packaged goods food company primarily in the United States.
- The company operates in four segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice.
- The Grocery & Snacks segment primarily offers shelf stable food products through various retail channels.
- The Refrigerated & Frozen segment provides temperature-controlled food products through various retail channels.
- The International segment offers food products in various temperature states through retail and foodservice channels outside of the United States.
- The Foodservice segment offers branded and customized food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for restaurants and other foodservice establishments.
- The company sells its products under the Birds Eye, Marie Callender's, Duncan Hines, Healthy Choice, Slim Jim, Reddi-wip, Angie's, BOOMCHICKAPOP brands.
- Conagra Brands, Inc. was incorporated in 1919 and is headquartered in Chicago, Illinois.