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Conagra Brands, Inc. cites consumption declines in revised 2020 outlook

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February 17, 2020

Conagra Brands, Inc. is revising its fiscal 2020 outlook as a result of softer than expected category performance during the company's fiscal third quarter, which ends on Feb. 23, according to a press release. The company now expects fiscal 2020 organic net sales growth to be flat to 0.5%. Adjusted operating margin is now expected to be 15.8% to 16.2%. The company expects adjusted diluted earnings per share from continuing operations of $2 to $2.07.

"Consumption softness in the quarter first emerged in the food service industry, with holiday restaurant traffic weaker than last year,” Sean Connolly, president and chief executive officer of Conagra Brands, said in the press release. “Softness pivoted to retail in January and impacted numerous categories across food, including several in which we compete. While we planned for tougher year-over-year comparable results in the third quarter, we did not plan for this level of category softness. Accordingly, we are updating our fiscal 2020 outlook."