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ConAgra Foods Separated Its Lamb Weston Business

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Nov. 20 2020, Updated 12:27 p.m. ET

Price movement

ConAgra Brands (CAG) has a market cap of $15.2 billion. It fell 28.3% to close at $34.30 per share on November 10, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -27.2%, -27.0%, and -16.8%, respectively, on the same day.

CAG is trading 27.9% below its 20-day moving average, 25.5% below its 50-day moving average, and 23.7% below its 200-day moving average.

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Related ETF and peers

The iShares Russell 3000 ETF (IWV) invests 0.09% of its holdings in ConAgra Foods. The ETF tracks a cap-weighted index that measures the investable US equities market, covering the entire market-cap spectrum, including micro-caps. The YTD price movement of IWV was 8.1% on November 10.

The market caps of ConAgra Brands’s competitors are as follows:

  • General Mills (GIS) — $36.3 billion
  • J.M. Smucker (SJM) — $14.9 billion
  • TreeHouse Foods (THS) — $4.6 billion

Latest news on ConAgra Brands

ConAgra Foods has completed the spin-off of its Lamb Weston Business. Now, the company’s name has changed to ConAgra Brands (CAG). Lamb Weston Holdings (LW) will now operate as an independent company. ConAgra Brands expects annualized net sales of ~$8 billion.

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Performance of ConAgra Foods in fiscal 1Q17

ConAgra Foods (CAG) reported fiscal 1Q17 net sales of $2.7 billion, a fall of 4.3% from net sales of $2.8 billion in fiscal 1Q16. Sales of the Grocery & Snacks, Refrigerated & Frozen, International, Foodservice, and Commercial segments fell 5.4%, 8.1%, 5.7%, 1.0%, and 2.0%, respectively, between fiscal 1Q16 and fiscal 1Q17.

Its net income and EPS (earnings per share) rose to $186.2 million and $0.42, respectively, in fiscal 1Q17, compared with -$1.2 billion and -$2.65, respectively, in fiscal 1Q16. It reported EPS from continuing operations of $0.61 in fiscal 1Q17, a rise of 48.8% from fiscal 1Q16.

CAG’s cash and cash equivalents fell 4.8% and its inventories rose 3.5% between fiscal 4Q16 and fiscal 1Q17. Its current ratio rose to 1.44x and its debt-to-equity ratio fell to 2.4x in fiscal 1Q17, compared with 1.41x and 2.5x, respectively, in fiscal 4Q16. This earnings report is the last from ConAgra Foods, due to the spin-off that will result in ConAgra Brands and Lamb Weston.

Next, we’ll discuss Michael Kors Holdings (KORS).

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