Conagra cuts dividend amid ongoing sales and margin declines, plans debt reduction and brand divestitures

Conagra Brands is facing continued declines in margins, sales, and earnings, with guidance for fiscal year 2027 indicating further deterioration. New CEO John Brase has halved the dividend to 4.3% to free up capital for reducing debt, investing in core brands, and improving productivity. The company plans to divest non-core brands and simplify operations, targeting a net leverage ratio of 3.0, although leverage is expected to rise to 4.0 in FY27. These moves aim to stabilize the company after a roughly 60% drop in share price over the past 45 months due to prolonged financial challenges.