Conagra Brands

CAG

Market cap $6.76B

The new CEO is a veteran food industry executive. The change in leadership heightens the business's recent struggles, however.

Shares of Conagra Brands Inc (NYSE:CAG) were down more than 5.6% on Monday after the packaged food company announced that CEO Sean Connolly will step down. John Brase, most recently president and chief operating officer at Smucker's, will assume the CEO role at the consumer goods company.

Conagra Brands has tapped veteran consumer-products executive John Brase to replace Sean Connolly as president and chief executive of the food maker, effective June 1.

Conagra ​Brands named ‌John Brase as ​the ​new president and ⁠CEO, effective ​June ​1, 2026, succeeding Sean Connolly, ​who ​will step away ‌from ⁠his leadership roles and ​from ​the ⁠Board on ​May ​31, ⁠2026.

CHICAGO, April 13, 2026 /PRNewswire/ -- Conagra Brands, Inc. (NYSE: CAG), today announced that John Brase has been named President and Chief Executive Officer of the Company, effective June 1, 2026. Brase will also join Conagra's Board of Directors.

Conagra Brands, Inc. and Hormel Foods Corporation maintain Buy ratings, supported by protein-rich, health-oriented portfolios and resilient dividend policies amid industry headwinds. CAG offers a compelling ~9% dividend yield, strong cash flow, and a diversified product mix, though high leverage warrants close monitoring. HRL boasts a rock-solid balance sheet, 59 years of dividend increases, and steady growth, but faces greater cyclicality due to meat input costs.

Conagra Brands is rated a clear sell, with no visible path to growth despite a seemingly attractive 0.67x forward sales multiple and 9% yield. Gross margin compression, persistent SG&A inflation, and declining revenues highlight ongoing operational and structural challenges for CAG. Management's guidance for FY 2027 remains soft and uncertain, with inflation and commodity volatility posing continued risks to profitability and volume recovery.

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Shares of Nike, Kimberly-Clark, and Conagra Brands are all down more than 30% in the past five years. These businesses have strong brands, but they have been facing adversity.

Conagra is deeply undervalued, trading at a forward P/E of 9.25 and offering a near 9% dividend yield. Dividend coverage remains achievable with projected FY26 earnings of $1.70, though input and energy cost risks persist. I target $18.70 per share (forward P/E 11) as fair value, with contrarian upside and attractive option strategies available.