Why Did Healthy Choice Parent Conagra’s Stock Drop 5%? | Global News Avenue

Investors lose some appetite for the Conagra brand (CAG) On Tuesday, food companies pruned their sales outlook for the year and dropped their shares more than 5%.

Conagra is a healthy choice to prepare meals and bird frozen vegetables, as well as other brands, modified prospect Monday was because of efforts to buy enough chicken and produce.

According to the press release, the company said it now expects its sales to fall by 2% throughout the fiscal year, rather than flat or down by as much as 1.5% instead of 2024. Conagra’s fiscal year Ended in late May.

“Due to these challenges, we are unable to meet all our needs in the third quarter, which will negatively affect both of us Sales and profits According to a transcript from Alphassense, CFO Dave Marberger said at an investor meeting on Tuesday. “We also expect this to be a temporary sales and profit impact.”

Conagra’s main chicken factory has “quality inconsistency”, forcing the company to close facilities, make adjustments, and start over at a slower pace, Conagra said. According to Marberger, when Conagra buys chicken from a third party, the fees rise.

Conagra reports doubled its demand for frozen vegetables

According to the press release, the plant will remain slower as the facility upgrades moved forward.

The company also has difficulty storing frozen vegetables in stores. The company said demand for frozen Conagra vegetables has almost doubled compared to a year ago. The food giant said it meets growth’s “increasing capacity” Require.

Conagra also made Slim Jim, Duncan Hines, Marie Callender’s and others express expectations Earnings per share (EPS) It hit $2.35 by the end of the year, rather than the previously forecasted $2.45 to $2.50.

The update is not getting along well with investors. Conagra shares fell more than 5% on Tuesday afternoon and fell more than 20% in the past six months.