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Conagra's (CAG) Faster Cage-Free Egg Transition to Cheer Consumers
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Conagra Brands, Inc. (CAG - Free Report) has been making concerted efforts to work in accordance with consumers’ preferences. This consumer packaged goods food company unveiled plans to speed up its transition to having 100% cage-free eggs. Incidentally, the company now plans to use 100% cage-free eggs by fiscal 2024-end compared with the earlier plan of sourcing 100% cage-free eggs by fiscal 2025.
To this end, Conagra targets converting nearly 20% of the eggs it uses to cage-free by fiscal 2021-end. Further, it plans to convert roughly 45-50% by the end of fiscal 2022; about 60-70% by fiscal 2023-end and finally directly source 100% cage-free eggs by fiscal 2024-end. Certainly, this goes in tandem with the company and consumers’ focus on animal welfare.
What Else Must You Know?
Conagra has been strongly committed to bolstering its portfolio and enhancing consumers’ experience. The company’s focus on innovation is clearly working well in this regard. Even amid the pandemic, the company remained focused on carrying out innovation for its customers and consumers. In fact, the company witnessed favorable consumer and customer responses for its new products during the third quarter of fiscal 2021.
Management, on its last earnings call, highlighted that its performance in terms of innovation exceeded the 15% target in the past the last two fiscal years and the past 52 weeks. Moreover, the company is beginning to see solid customer acceptance for its fiscal 2022 innovation. We note that the company’s focus on the Conagra Way playbook has been yielding results. Certainly, the company’s growth is rooted in its innovation platform, which is helping it aid category performance.
Image Source: Zacks Investment Research
Notably, Conagra has been focused on boosting the Frozen and Snacks businesses. In the third quarter of fiscal 2021, the company’s retail sales gained from growth in snacks, frozen and staples sales. During the quarter, total Conagra Frozen retail sales increased 12% year over year. We note that the company’s Frozen category has picked up more pace amid the pandemic, which led people to work from home and eat at home. During the third quarter, the company’s Grocery & Snacks business sales gained 10.8%. The company’s snacks business continued to gain from higher volumes stemming from rising at-home consumption. Management expects at-home eating trends to stay high for a while and is well positioned to tap opportunities related to the same.
Wrapping Up
Conagra’s Foodservice segment has been affected by the pandemic-led reduced away-from-home food demand. This was witnessed in the third quarter, wherein soft restaurant traffic hurt segment sales. Also, elevated input and pandemic-led costs weighed on the operating profit at the Foodservice segment. Nonetheless, with curbs being lifted and things opening up, these trends are likely to improve. Meanwhile, Conagra’s focus on consumer’s interests also keeps it well placed.
The Zacks Rank #3 (Hold) stock has gained 4.3% in the past year compared with the industry’s growth of 24.3%.
Darling Ingredients (DAR - Free Report) , with a Zacks Rank #1, has a trailing four-quarter earnings surprise of 29.8%, on average.
Nomad Foods (NOMD - Free Report) has a Zacks Rank #2 (Buy) and its bottom line outpaced the Zacks Consensus Estimate by 10.3% in the trailing four quarters, on average.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Image: Bigstock
Conagra's (CAG) Faster Cage-Free Egg Transition to Cheer Consumers
Conagra Brands, Inc. (CAG - Free Report) has been making concerted efforts to work in accordance with consumers’ preferences. This consumer packaged goods food company unveiled plans to speed up its transition to having 100% cage-free eggs. Incidentally, the company now plans to use 100% cage-free eggs by fiscal 2024-end compared with the earlier plan of sourcing 100% cage-free eggs by fiscal 2025.
To this end, Conagra targets converting nearly 20% of the eggs it uses to cage-free by fiscal 2021-end. Further, it plans to convert roughly 45-50% by the end of fiscal 2022; about 60-70% by fiscal 2023-end and finally directly source 100% cage-free eggs by fiscal 2024-end. Certainly, this goes in tandem with the company and consumers’ focus on animal welfare.
What Else Must You Know?
Conagra has been strongly committed to bolstering its portfolio and enhancing consumers’ experience. The company’s focus on innovation is clearly working well in this regard. Even amid the pandemic, the company remained focused on carrying out innovation for its customers and consumers. In fact, the company witnessed favorable consumer and customer responses for its new products during the third quarter of fiscal 2021.
Management, on its last earnings call, highlighted that its performance in terms of innovation exceeded the 15% target in the past the last two fiscal years and the past 52 weeks. Moreover, the company is beginning to see solid customer acceptance for its fiscal 2022 innovation. We note that the company’s focus on the Conagra Way playbook has been yielding results. Certainly, the company’s growth is rooted in its innovation platform, which is helping it aid category performance.
Notably, Conagra has been focused on boosting the Frozen and Snacks businesses. In the third quarter of fiscal 2021, the company’s retail sales gained from growth in snacks, frozen and staples sales. During the quarter, total Conagra Frozen retail sales increased 12% year over year. We note that the company’s Frozen category has picked up more pace amid the pandemic, which led people to work from home and eat at home. During the third quarter, the company’s Grocery & Snacks business sales gained 10.8%. The company’s snacks business continued to gain from higher volumes stemming from rising at-home consumption. Management expects at-home eating trends to stay high for a while and is well positioned to tap opportunities related to the same.
Wrapping Up
Conagra’s Foodservice segment has been affected by the pandemic-led reduced away-from-home food demand. This was witnessed in the third quarter, wherein soft restaurant traffic hurt segment sales. Also, elevated input and pandemic-led costs weighed on the operating profit at the Foodservice segment. Nonetheless, with curbs being lifted and things opening up, these trends are likely to improve. Meanwhile, Conagra’s focus on consumer’s interests also keeps it well placed.
The Zacks Rank #3 (Hold) stock has gained 4.3% in the past year compared with the industry’s growth of 24.3%.
3 Stocks Worth Relishing
Medifast (MED - Free Report) , which currently carries a Zacks Rank #1 (Strong Buy), has a trailing four-quarter earnings surprise of 12.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Darling Ingredients (DAR - Free Report) , with a Zacks Rank #1, has a trailing four-quarter earnings surprise of 29.8%, on average.
Nomad Foods (NOMD - Free Report) has a Zacks Rank #2 (Buy) and its bottom line outpaced the Zacks Consensus Estimate by 10.3% in the trailing four quarters, on average.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>