CONAGRA BRANDS INC. Q3 FY2026 earnings call

Sean Connolly mentioned that the strategy of pivoting to restore volume growth in frozen and snacks starting from fiscal 24 has been effective with volume trajectory improving each quarter except for a brief supply constraint period. They are focused on being agile, with plans to continue volume momentum if inflation is benign or keep options open if inflation goes the other way. Dave Marburger talked about material spend coverage for fiscal 27, with roughly 60% covered for Q1 and 40% for the full year, noting differences in coverage across areas like steel, freight, crop-based ingredients, and proteins. Sean also discussed the horses for courses strategy, with growth businesses like frozen snacks focused on volume growth and staples business on cash maximization, having taken inflation - justified price on canned foods with good elasticity. They are focused on productivity, innovation, and have strong momentum in frozen snacks, strong shares, cash flow, and productivity. Dave mentioned positive organic net sales growth expected in Q4, innovation slate, and building blocks for operating margin including A&P percentage, 53rd week leverage, seasonality of trade, productivity, and inflation. Also, discussion on Arden Mills with core business margin tracking and commodity trading revenue affected by wheat prices and volatility, and conversations on fertilizer being dynamic. Project Catalyst and leveraging AI for inventory reduction were also highlighted.

There is no specific detailed forward - looking guidance provided in a way that can be directly summarized into bullet points here beyond the general statements about being agile, expecting positive organic net sales growth in Q4, and that more details will be given when guiding for fiscal 27. Also, mention of being focused on inventory reduction and free cash flow conversion targets.

Q: Andrew Lazar asked about ConAgra's ability to use pricing as a lever if there's another round of broad - based inflation and Dave Marburger's thoughts on cost visibility for fiscal 27.

A: Sean Connolly said the strategy of restoring volume growth in frozen and snacks has been effective and they will be agile. Dave Marburger talked about material spend coverage for fiscal 27.

Q: David Palmer asked about pricing power and if profitable growth can be driven if inflation goes over 3%.

A: Sean Connolly discussed the horses for courses strategy, portfolio responsiveness outpacing peers, and being agile.

Q: Megan Clapp asked about fourth quarter building blocks for top line and operating margin.

A: Sean Connolly talked about shipment vs consumption and Dave Marburger mentioned positive organic net sales growth in Q4, innovation slate, and building blocks for operating margin.

Q: Peter Galbo asked about Arden Mills and fertilizer.

A: Dave Marburger explained Arden Mills' revenue sources and Sean Connolly talked about fertilizer being dynamic.

Q: Tom Palmer asked about inflation and freight commentary and Arden's free cash flow.

A: Dave Marburger talked about freight contracts and free cash flow conversion related to Arden.

Q: Robert Moscow asked about tariff component and retail consumption data.

A: Dave Marburger talked about tariff mitigation and Sean Connolly explained different business priorities.

Q: Chris Carey asked about margin trajectory and medium - term productivity initiatives.

A: Sean Connolly talked about margin outlook, productivity, inflation relief, supply chain resiliency, price taking, and Project Catalyst.

Q: Scott Marks asked about volume growth drivers and baked chicken facility update.

A: Sean Connolly talked about volume growth drivers and update on baked chicken facility.

Q: Carla Casea's line was muted, so call was wrapped up