Q1 2026 Conagra Brands Inc Earnings Call

October 1, 2025

Come to the Conagra brands Q1 fiscal year 2026 earnings Q&A Conference call.

All participants will be in a listen only mode should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.

After todays presentation, there will be an opportunity to ask questions to ask a question you May press Star and then one to withdraw your question you May Press Star two.

Please note today's event is being recorded.

At this time I'd like to turn the floor over to Matthew <unk> head of Investor Relations. Please go ahead.

Good morning, everyone and thank you for joining us once again I'm joined this morning by Shaun Connolly, our CEO and Dave <unk> our CFO.

We may be making some forward looking statements and discussing non-GAAP financial measures during this session.

Please see our earnings release prepared remarks presentation materials and filings with the SEC, which can be found in the Investor Relations section of our website for more information, including descriptions of our risk factors GAAP to non-GAAP reconciliations and information on our comparability items.

I'll now ask the operator to introduce the first question.

And ladies and gentlemen at this time once again, if you would like to ask a question. Please press star one.

Our first question today comes from Andrew Lazar from Barclays. Please go ahead with your question.

Great. Thanks, so much.

Sean can add.

<unk> expects to return to positive organic sales growth in the fiscal second half, but also mentioned recent consumption trends and pointing to a low single digit decline expected in the second quarter.

What's driving the fiscal second half inflection or is it really just easier year ago comps.

And do recent consumption trends that you mentioned sort of give you any pause, particularly in light of the planned tactical pricing actions that you're taking and I guess, what do you attribute the recent consumption weakness.

Alright, good morning, Andrew let me tackle that in reverse order first.

I wouldn't be overly read into any recent consumption trends data to the degree you saw any softening at the end of Q1 that was tied primarily to the two things I mentioned in my prepared remarks, which is the shift of a major Angie spoon chicken pump promotional events in Q2 and the initial plan to last.

This is the effect of the inflation justified pricing that we took on Duncan Hines due to cocoa costs. So that's kind of the Q1 concept.

This quarter in Q2, some of our major frozen events are planned about a month or so later than year ago based on our our supply ramp up so pretty consistent with what we would expect in the full year, just a little bit of a shift in timing so not much else to really discuss there as for the <unk>.

Basis of our expectations for further sales progress in the second half it will be a combination of volume momentum on frozen where we wrap last year's supply constraints plus continued volume momentum on growing businesses like protein snacks and then you have to also.

What I'll call dollar momentum on inflationary businesses, where we're taking price.

That combination of factors reflect the horses for courses plan that we built and what I mean by that is we are investing to drive volume in frozen and snacks.

While maximizing cash via inflation justified pricing and staples.

Got it got it thank you for that and then first.

Fiscal first quarter came in ahead of expectations.

Fiscal second quarter was moderated a bit in terms of your outlook net.

Net net do you see fiscal first half.

Potentially coming in a bit better than originally planned and then Dave how much was the benefit from trade expense timing to organic sales growth in the quarter. Thanks, so much.

Yes, Andrew so taking the last part first it was about 50 basis points of benefit in Q1, the trade timing and then that will flip into Q2, so 50 basis points in terms of sales.

Okay.

So in terms of first half I would say given kind of the flip and timing of that given the fact that Q1, we had some benefit.

Inventory, where we delayed some of the tariff costs.

And now theyre going to be coming in in Q2, I would say generally we're still on track with our original plan for the first half.

Different pieces, we talked about in our guidance were a little favorable on an interest expense, but our tax rate is a bit higher so theres, obviously, some puts and takes but I think we're pretty much on our first half plan, yeah, and I would say Andrew that what I was looking for this quarter really were two things number one can we get the service issues behind us and getting to 98%.

Jack I am feeling good about that and second once we did that and could start to resume our merchandising activities in rolling out our innovation are we getting the consumer takeaway and are we seeing inflection on key businesses and check we saw that so the consumer is certainly not out of the woods, yet we're still seeing value seeking behavior, we're still having a.

Deal with inflation and tariffs but.

After a quarter I think we're feeling good about the setup for the balance of the year.

Thanks, so much.

Our last question comes from Peter Galbo from Bank of America. Please go ahead with your question.

Hi, good morning, Thanks for the questions.

Sean and Dave I, just wanted to maybe touch on the updated core inflation outlook that you gave I know you talked about some of the moving pieces within kind of the animal protein, but maybe you can just remind us.

A kind of kind of how you bought.

For the remainder of the year on some of those items are you kind of locked in now for the rest of the year.

Just given that some of these cuts are very volatile and have moved.

Particularly chicken over the past month as any move more favorably. So I just wanted to understand the flex in that inflation guide as we get in the back half.

Yeah.

Yes, so Peter our original guidance, our overall inflation was approximately 7% that split.

4% kind of core inflation, and then 3% gross tariffs than we had mitigation obviously on tariffs of about one to one 5% on that and then we have our productivity, which helps us offset our core inflation as we've gone through this quarter, we're seeing more pressure on the core inflation.

There has been a little bit of movement on the tariffs, but generally.

Immaterial, so that a 3% gross tariffs we estimated at the beginning of the year about the same.

Increase in the overall inflation for the year is really coming from the core inflation and Thats really driven by the animal proteins, and so, particularly beef pork, Turkey, and then to some extent AG relative to our original forecast.

To your question about kind of where we are.

<unk>.

From a kind of overall coverage perspective for.

For Q2 were about 85% covered.

Certain commodities are fully covered but then the animal proteins, which has been a pressure point that's more spot market overall, we do take positions and frees them. So we have capability to add coverage through us breathing.

Proteins, but generally that's more more market and spot based and so so about 85% covered Q2, and then for the full year, 60% to 65% coverage overall, but again those proteins.

We're exposed if theres additional inflation or if the inflation moderates, we'll see a benefit from that.

Great Thanks for that.

Helpful.

I wanted to pivot maybe too.

The balance sheet and cash flow, Dave I know, you've called out that there would be some debt pay down in the quarter.

I've gotten a few questions. This morning, just on the cash flow generation in the quarter. It was a bit maybe lighter than expectations in some of the inventory build so maybe you can unpack both the debt pay down and how we should think about that.

<unk> in the remainder of the year and then just anything around kind of inventory build that happened in the quarter. Thanks very much.

Sure. So let me, let me kind of start from the top when we gave our guidance.

We had forecasted that we would pay down $700 million in debt for fiscal 'twenty six.

Both the proceeds from the divestitures as well as $100 million from cash flow from operations to pay down debt. So we're still on track with that actually we included in our materials that we're going to have additional favorability from the tax legislation. We are estimating that at $75 million. So we haven't we haven't.

Built that into our specific free.

Free cash flow forecast, yet, but that's clearly going to be a benefit as it relates to Q1, yes. We have and this is just solely timing we built more inventory in the first quarter, because remember we were coming off supply disruptions and so we had to get back to service levels. So that was a priority we built build our inventory so.

We think we have a very balanced debt maturity profile well scattered over time, but we'll take it we'll take those opportunities.

Our normal seasonal build effects Q1, then we leaned in to make sure. We had the right safety stocks on the areas, where we had disruptions in so you'd normally we'll see that in Q1, it's a little bit more so our inventory on hand, we have more days on hand, but thats been planned that's timing and we still feel comfortable about our full year forecast.

Is the timing comes the.

Depending on market conditions, and we should take it from there.

And then thank you for that my second question is within Kashi and ask them why would protect us be climb towards beyond simple side here again, if we look at it as a 12 to 24 month timeframe you know stay.

Stay cool still potentially an area of interest or are you looking beyond that.

As it relates to inventory. So I would say we are on track Q1's, the normal build in the first quarter. Our net debt is down about a little over $400 million versus where we finished at the end of fiscal 'twenty five and as we said in the comments on a rolling 12, we have reduced our net debt by one.

Yes. Thank you it does show so I.

I think if you look at the next 12 to 18 months.

We will be primarily focused on our existing portfolio.

We believe that that existing portfolio is fundamentally on their values.

One 1 billion, so feel really good about cash flow generation, both where we are and how we're forecasting it for fiscal 'twenty just one other piece of perspective on that inventory inventory built on.

We think that there is a lot of value we can still unlock from that portfolio. It's a large portfolio still M. S.

Several of the peers in center store grocery have really struggled in the last year to generate consumer pull against their brands, even when investing we have not had that problem. So you may recall, we had six or seven quarters of straight line top line improvement as we invested in the pursuit of volume.

As you know we also have.

The third party capital still in JV consumer so the primary focus.

In the next 12 to 18 months will be the existing consumer portfolio.

We will use that period to look and analyze other opportunities as we think about the.

Last year, and we returned to growth in Q2, So we've got clear evidence that the brands and the innovation of working for consumers, but we ran into the supply interruption and we had to pull a lot of our merchandising. So now that we've got service levels back.

The future evolution of our consumer portfolio.

But I.

I don't expect.

Significant M&A in the consumer side in the next 12 to 18 months never say never but currently not.

Armed with that confidence that we can generate consumer coal because of these products. We are we are absolutely convinced having inventory in place. So we don't fall out of stock again failed to keep up with consumer demand, particularly going into holiday season is absolutely everything to do.

The expectation there is a lot to be done and.

In the existing portfolio.

So yesterday that we've announced the strategic review for Coty.

And there are many similar things, where we're working on across the portfolio.

Awesome. Thanks, guys.

Thank you.

My second tranche as well.

Our next question comes from Tom Palmer from Jpmorgan. Please go ahead with your question.

Keeping yourself at least 12 to 18 months.

Great. Thank you barak or should we be expecting potential M&A.

After we have John <unk> question about business.

Announced.

Mr. Palmer is it possible your phone is on mute.

You want to take that.

Happy to Frank.

Thanks for the question I think we were opportunistic in that space, but we are going to focus on long run into.

Integrating prosperity, well keep an open mind, but thats, our primary focus and then building on prosperity into a meaningful presence in the U S.

And just to confirm the speaker room are you able to hear me.

Okay, great. Thank you Greg.

Thanks, Patrick.

Yes, yes, yes, okay.

Can we get in pre owned next preamble rig upturn from Barclays capital.

Okay. It looks like it looks like we've got pharma number two in the queue. So why don't we go there and we'll come back to Tom.

Great can you hear me, Okay, yes perfect.

Our next question comes from David Palmer from Evercore ISI, Sir Please go with your question.

Perfect. Okay perfect. Thank you so much for hosting the call and taking our questions I apologize I got cut out a little bit. So this is a repeat.

Okay. Thank you good morning.

Frozen frozen entrees, obviously, it's been a great long term category for Conagra.

Please just bear with me.

You've talked a lot about balancing the portfolio and how happy you are in terms of.

Just looking at the recent recent data and I know there's reasons for this may be some overhang from some of the past supply and stuff, but I'm wondering what is what is your state of the union with which that category. It looks like you guys are losing share in the categories declining for years, you guys were driving the majority of growth in a category that was.

Some of the diversification that that provide should we expect about 50 50 mix it could be something that's targeted on an ongoing basis or is that something that you could continue to evaluate perhaps as opportunities.

Oftentimes growing or at least a little bit so wonder what youre frozen outlook is for us an entre in particular outlook is through the rest of the year and I have a quick follow up.

Don't themselves.

And I'm thinking about a little longer than for the next 12 to 18 months.

Yes so.

Thank you for your question, it's a great. It's a great question, but.

Sure David Yeah, our outlook is positive.

Look the way, we think about that is that solar so today.

The simple way to think about frozen meals is the category goes as conagra.

I think it's probably 90 10.

That's been the rule for the last seven or so years, when we didn't innovate back in the day the category didn't grow when we committed to innovating frozen category grew steadily for a long long time, so including by the way in Q2 last year I think our frozen business was up in the ballpark of 3%. So we're coming off of a back half of last year.

If you look at capital deployed between consumer and insurance and naturally.

We expect to balance debt more.

We don't have a hard $60 50 targets.

By the way, we take a very very long view here.

Where we had major service interruptions in that business, we walked away from major merchandising and that hence our merchandising to competitors, who then get in the plans customer plants for a period of time or we're working to get service levels back that contributed obviously to us.

Take five to 10 year view.

Getting to the final composition of the portfolio.

We're going to be on the one hand opportunistic.

It's difficult to sort of predict what kind of opportunities present themselves.

Being a share donated or which is the first time, that's happened in years and years and years, but that's obviously a temporary phenomenon.

We're going to also look at risk adjusted returns.

So the way, we think about deploying capital may may change across economic cycles, but obviously over time, we expect that the consumer or the insurance portfolio will grow faster than the consumer portfolio, but we don't have our hearts.

So what you're seeing now is our innovation is rolling into the marketplace. Our service levels are back to 98% and we're getting kind of back in the queue on on these major events and feel extremely bullish about it we've got some absolutely fantastic innovations that we rolled out last year that were interrupted role.

$2 50 target and if we would ever end up there I don't I didn't see that happening.

Our new ones this year and they're already off to a particularly strong start I will draw your attention to the new Dolly Parton frozen meals and frozen desserts.

In the midterm, it's going to take longer than that.

Okay. That's really helpful. And then you talked about the relative readiness in terms of Ipos for NBA and Panera are these both still something that we should think about as targeted for calendars.

That are new in the marketplace and performing extremely well and what's encouraging about that as well as they are not only performing well that's a premium priced product. So that's good mix for us too so.

By the end of calendar 'twenty, six or could that timeline.

I have tremendous confidence in our frozen business to win in frozen you've got to have scale and you got to have an innovation machine and we.

Possibly that would be at that longer.

Yeah.

We've got the best in the business. So we're looking forward to continued momentum on that business as we go through the year and wrap some of the weak spots in the last year's second half.

If it does take it is going to be very very late 2006.

I will say more 27.

Okay. Thank you and then as you start to monetize some of those opportunities in EMEA and <unk> got the cash inflow from J D.

And thank you for that and just very general Big picture question Youre going to have those easier comparisons in the second half of the year.

And youre going to be more on your front foot I'm wondering.

I guess going back to the prior question that we were discussing.

What are some I don't know if there is an exact metrics you can share, but what are the things you're going to be looking for in the second half that will really tell you that you can get back to a balanced sales and profit growth in fiscal 2007. If that is the goal here is to get back to it on algo in 'twenty seven.

Should we anticipate that that then starts to get deployed into some of those opportunities on building out the insurance business, whether it's organic or inorganic is that like a natural way to see some of that shift happen.

Yeah.

So there are a couple of a couple of components to this so first of all on your question around <unk>.

What what would kind of let you know you're there or not.

Clearly growing against some of these comparisons may not be enough for that so perhaps give us a sense of what you think would be quite good enough in the second half.

NVA and Panera post IPO.

The IPO.

Helps us to increase the liquidity of our portfolio.

Sure what you are really on track again thanks.

It also provides liquidity to our Lps, which are still invested.

Yeah.

David you want <unk> had a good piece of wisdom for me. He said you're a hero business has got to be heroes being frozen and snacks need to grow and I think that is well said I think for this company frozen and snacks are clear growth categories. It represents about 70% of our retail business, we've had tremendous momentum.

In EMEA Infinera.

The IPO doesn't necessarily mean, the JV to exit these businesses right. That's a decision we haven't taken yet the only decision. We have taken is that we will bring these assets to the public markets. When they are ready to provide liquidity to our Lps and provides.

On both of those businesses are leading up to the supply challenges, we had last year and by the time, we exit this year I want to see real momentum an inflection on those businesses. We've already got it within the key strategic snacks businesses for example, slim Jim.

Liquidity makes in our consumer portfolio, but it we will sell down post IPO has an entirely different question.

So that's got an MBA in Panera.

On your question.

How are redeploying the cash.

Now, it's tracking really well see stores coming back that's very encouraging and our new innovation on Slim, Jim which is our new Buffalo Wild wings Buffalo Chicken Slim Jim is performing really well out of the gate. That's a very positive sign on frozen it's all about getting back in the queue on merchandising events with customers.

As we said in the call yes.

Very significant available liquidity when we close GDP.

The way, we think about it is.

First and foremost.

<unk>.

Are we happy with your current financial policy or do we want to have a different financial policy. That's that's an ongoing debate in the firm.

And then making sure that innovation that we worked so hard to build performs and so far it looks good so.

Those businesses with a positive trajectory as we move through the year I think is a very very positive sign for next year. When we've got some of these margin clawback.

Once we land.

That will drive.

Our our investment decisions in the future.

Only thing I would say is that yes, we will definitely invest.

Opportunities in front of us so that'll be a combination of.

Good looking topline and an improving.

Via the headroom, we have on the new financial policy and insurance.

Gross margin line as well and I'm looking forward to that.

But we will also at the same time.

Thank you very much.

At new opportunities in consumer because we want to continue to develop both portfolio. So it will not be the case, if you will invest everything in insurance and nothing in consumer.

Our next question comes from Brian Adams from UBS. Please go ahead with your question.

Hey, good morning, guys. Thanks for the question, maybe just first a quick housekeeping one following up on David's question. There. So Q volume performance for refrigerated and frozen came in a lot better than I think maybe scanner trends would've suggested that I think in the <unk>.

We'll do that on an opportunistic way but.

A few to develop.

Portfolio in a balanced fashion.

Great. Thank.

Thank you for your question, yes very helpful. Thank you.

Thank you Frank.

<unk> remarks, he said volumes for frozen itself were up like 30% or so was there any like elevated shipment in the one in Q as you were finishing up restoring supply itself or is it pretty consistent with what the consumption trends that youre seeing.

Some of you have a fairly hotspot, but maybe let's do one last question can we run three minutes late.

Can we get the <unk>.

We think it might have just withdrawn his question Andreas rich.

Hey, Brian the 3% number that was what I was referring to Q2 last year. When we frozen was backlog growing strongly in Q2 so.

Go ahead.

We're a little bit ahead in the quarter, which is pretty typical at a time when <unk> been out of stock and you kind of replenishing.

I'm happy to go ahead can you hear me very well address if possible. Just one question just because the team is focused very short and very perfect. Thank you from my side for hosting this.

I wouldn't over think this because if you look at our company on kind of a rolling four quarter basis shipments and consumption are almost always equal so it.

Can you can you.

Her collaborate.

Given.

For us it doesn't really amount to much.

Maybe Pete.

Is it a major payer.

So I.

Payout of dividends to the Holdco.

I wouldn't I wouldn't over think that piece anything you'd add to that.

Great.

I would say just if you're just purely looking shipments that consumption within the quarter for rns that Hebrew obviously, because prior year shipments were really strong so there's a little bit of benefit shipments versus consumption related to Hebrew with in Q1 for R&M.

And generator of cash flow upstream.

B, leaving the portfolio.

Do you look at cash flows going forward.

It's gonna be interest income on the proceeds.

We depreciate some guidance how you look at the careful consultation on the Holdco level.

Okay awesome. Thanks, so much.

Potentially I guess there.

Yes, so the <unk>.

The margin fallback opportunities that you just actually spoke to can you kind of just run through those high level for us as we think about 2007.

Obviously the objective.

At the Holdco level is that there's more cash coming in than going out.

Ben when we close the GP transaction, our net interest expense will dramatically decrease.

Some of the stuffs some.

Other costs you had this year like tariffs like that's not necessarily something you can assume goes away, but then I also know you have.

Some work in process on the chicken and then I'm not really sure the puts and takes on SG&A, but do you mind just running through those.

So far.

We have reinvested.

The cash flows of our private companies in their balance sheets and in growth. So all of them have.

Sean as you see them today.

Sure absolutely yeah, I'll tick off five things that I mentioned last quarter that that remain intact and starts with productivity.

Have significantly delever.

And you know they.

We will have it.

If you include <unk>.

In fiscal 'twenty six this year between core productivity and tariff mitigation that number is just over 5%, which is very strong and by the way Q1 came in right at that above that level, which is a super strong quarter. So that that will continue supply chain team is doing a nice job.

The IPO in the mixture will have strong balance sheets.

When they when they are ready for prime time. So this is also the time for us to review.

The capital allocation.

Our private companies.

Second at some point, we're going to get inflation relief.

To see weather.

Somebody mentioned proteins, a little bit ago, hopefully back closer to our typical 2%.

They are in a position to start paying dividends to us.

Recognize that we lose.

If you look back a 100 years as we have anytime we've had these kind of runaway inflation cycles like this.

J D piece, which provides significant dividend inflow.

Always been relief on the other side of the hill. So at some point that will happen. We obviously can't call exactly one third the advancement of our supply chain resiliency investments, including the chicken plants will enable us to repatriate some of that outsourced production going forward at lower costs.

We still own a modest interest in ADP.

But as part of our new financial policy. We are also intentionally reviewing our capital allocation policies of our private companies.

To see how much dividends we expecting.

Fourth we are taking pricing in certain categories. So after you get past the initial lag inflation hits and you wait 90 days or so to get pricing and you get start to get the benefit of that and then fifth I mentioned last quarter, we were kicking off an ambitious initiative to reengineer, our work processes leveraging technology, including AI, we have kick.

One of the benefits of controlling.

Controlling stakes in those companies right I mean, we have so far prioritized investment in their balance sheets and in growth.

And obviously those priorities will change it will change over time.

Many thanks.

That work off too.

To accelerate growth and lower costs will have more to report on that going forward, but that's that's an exciting possibility. So between those actions and our ongoing efforts to reshape the portfolio for faster growth and better margins.

Thanks, David.

Thank you very much.

To the entire team fulfill thank you very much.

Thank you very much fooled investors.

Participants here.

Amount of questions and the engagement we.

We can deduce that this is helpful.

We do expect good margin expansion following fiscal 'twenty six.

Thank you very much will be chosen cool with that.

Thank you Dennis Thank you all bye everybody.

Okay really helpful. Thanks, Shawn Thanks stable Hudson.

You may now disconnect.

Thank you.

Our last question comes from Robert Moscow from TD Cowen. Please go ahead with your question.

Hi, Thanks, I have a phasing question about <unk> volume David Sean.

I'm, just looking at comparisons versus a year ago on volume and it would appear that you have.

The volume growth comp will get tougher in Q2 compared to <unk>.

Because of the Hebrew comparison, and also because you had a lot of frozen vegetable volume in <unk>. So should I assume that volume growth is.

But where volume declines are similar in <unk> as in <unk>, because of those comps or or as the merchandising activity enough to.

Provide some sequential improvement in volume.

Yeah, Rob this is David.

We have obviously a ton of brands and so theres a lot of moving pieces a lot of dynamics on merchandising generally speaking the volume that we had in Q1 should be similar in Q2.

When you net it altogether for total company.

In terms of growth Okay, yes in terms of volume very much year on year growth.

Yes.

Thanks, a lot.

Yes, and just for perspective, Rob on the year to go basis, we had strong investment profile in merchandising last year, we had to pull back on some of that in the second half we have a very strong.

And merchandising behind this innovation.

Year to go.

Period, as well and as.

As I mentioned some of those innovations, which just are getting growing now are already performing quite well. So we're looking forward to that and you saw the promotion chart I shared in the prepared remarks that while we've had some of the merchandising restored in Q1, there is room to go as we move through the back half.

Full year.

Got it thanks, Sean.

Our next question comes from Megan Clark from Morgan Stanley. Please go ahead with your question.

Hi, Thanks, Good morning, I wanted to start with maybe a follow up Sean to Andrew second question at the beginning just around how the quarter played out and how you're tracking so far.

You made a comment last quarter that is the end of fiscal 'twenty guidance Prudence, given the operating environment and you've talked a lot about a lot of encouraging thing is Don one Q at the same time consumer sentiment is weak you talked about value seeking behavior of cost inflation a bit higher so just putting all the puts and takes together I guess when you.

Think about the fiscal 'twenty guide today, you reiterated it would you still characterize it as prudent and maybe where is the guide in your mind.

Thank you.

Well I think I think it remains prudent.

I mentioned somebody this morning.

Two things I was really looking for in this quarter as we got to get service back right. Because we had a lot of momentum that momentum.

Very materially interrupted in the back half of last year because of service.

And we've got confidence that we get service back we will get the consumer takeaway in and so we got service back to 98% that's good and the fact that <unk>.

Nation is off to a strong start this year actually stronger than what we had last year. So we had a very strong innovation performance last year in terms of not only customer acceptance, but the velocity of that innovation right up to the point, where we pulled our merchandising, particularly in frozen.

And so it's good seed innovation navigates this year performing even higher level in terms of units per store per week velocities things like that so that's a positive and between that and the plans. We've got calendar it out for the balance of the year I think I think the.

The outlook is prudent and we're pretty optimistic about.

Building that momentum that I talked about with Dave Palmer, a few minutes ago as we move through the year specifically.

This is a horses for courses annual operating plan that we built there are some businesses, where we planned out the year to invest to drive volume growth, specifically frozen and snacks.

We're seeing movement in the right direction, there I expect to see more of that as we get to the back half. There are other businesses that we are facing more acute inflation because of things like in place tariffs, where we're taking more inflation justified pricing there. It's about dollars. So between the volume plans. We've got in the dollar plans that we've got I think it comes together.

And puts us in a prudent position.

Okay, great. Thanks, and that's a good segue to my follow up which is as you.

Think about implementing tariff related pricing, which is I think you said will come on late in the second quarter have your have your views on elasticity and the expected elasticity changed at all just given you're still seeing and values taking behavior with the consumer and if we just think bigger picture on the macro and the consumer is going to be seeing a lot of things.

Inflation, driven pricing start to start to roll in and around the same time. Thank you.

Good question, we track Elasticities weekly and we've kind of built in our historical elasticity expectation in categories as we built the plan.

Specifically, what we've seen is within our categories Conagra's average elasticity is a bit better than our competitors across channels and then further at a company level. If you look at just total pricing versus total volume change you'll also see that our elasticity has been a bit better than most peers over the past year. So I don't.

Feel like we are assuming anything heroic in terms of elasticity is going forward even in face of the pricing actions that we've got.

Awesome. Thank you.

Thank you.

Our next question because our Max Gulfport from BNP Paribas. Please go ahead with your question.

Thanks for the question, Sean I'm curious for an update on the value seeking behavior that youre still seeing it.

In a few years now so I'm just wondering how you see the cycle playing out and how you are positioning conagra to come out of this cycle in a better place thanks very much.

Yes, I mean, I think you're probably hearing the same thing from just about everybody.

Consumer packaged goods on this is it is kind of this barbell economy, where you've got higher income consumers better showing more resiliency and they're still spending you've got lower income consumers across different age groups that are being more discerning they are absolutely.

Doing what they've got to do to kind of maximize their household balance sheet. So we've got it.

To deal with that but clearly there is more value seeking behavior.

That is evident in the lower income groups. So our job is to give those consumers the value, they're seeking and with the portfolio scope that we have there are a lot of great value choices and that's a big part of why sales are improving and so our share. So going forward. We will continue to put that value lens on our innovate.

<unk> and marketing effort, because it matters and if you werent seeing this kind of behavior I think if you look at our innovation.

Late over the last 10 years, you've probably seen it skewed toward more premium <unk> products, but when you have a large cohort of consumers that are value oriented you would take a different lens around your innovation for both price pack architecture and the kinds of innovation that you want to deliver why because the benefit of superior relative value.

<unk> is a benefit that's going to move the sales line and so you should imagine that we.

We not only have a good slate of great value offerings already out there, but it does inform our innovation pipeline going forward to make sure that we've got products that are very provocative not because of a maybe an ultra premium benefit, but because of the value benefits.

Yeah.

Great and then as a follow up it was nice to see service levels get back to 98% and then that enabling a recovery to some degree and quality merchandising and improved volume share performance as well as we look to the remainder of the year is there any color or guardrails. So you could provide on how you expect year promotional levels and your.

Volume share purpose to progress from here, thanks very much.

Yes.

To some data that I shared last quarter, which is if you look across the group.

Specifically, the near end kind of center store peers, what you've seen is that promotional levels in terms of percent of total volume sold on promotion has kind of migrated back to just about pre COVID-19 levels. Its uncanny, it's almost pre COVID-19 levels company by company and so were a little lower than that because we're so.

Operator: Good morning, everyone, and welcome to the Conagra Brands Q1 FY 2026 Earnings Q&A Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one. To withdraw your questions, you may press star and two. Please note today's event is being recorded. At this time, I'd like to turn the floor over to Matthew Neisius, Head of Investor Relations. Please go ahead.

Operator: Good morning, everyone, and welcome to the Conagra Brands Q1 Fiscal Year 2026 Earnings Q&A conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one. To withdraw your questions, you may press star and two. Please note today's event is being recorded. At this time, I'd like to turn the floor over to Matthew Neisius, Head of Investor Relations. Please go ahead. Good morning, everyone, and thank you for joining us. Once again, I'm joined this morning by Sean Connolly, our CEO, and Dave Marberger, our CFO. We may be making some forward-looking statements and discussing non-GAAP financial measures during this session.

Your innovation for both price pack architecture, and the kinds of innovation that you want to deliver why because the benefit of superior relative value is a benefit thats going to move the sales line and so you should imagine that.

We're recovering recovering from supply interruption, but moving back towards that but I have not seen promotional levels go above that kind of pre COVID-19 norm. So that's a positive sign I think and then the second metric. We track is kind of depth of discount are we seeing this more broad based desire to have a return to volume.

We not only have a good slate of great value offerings already out there, but it does inform our innovation pipeline going forward to make sure that we've got products that are very provocative not because of maybe an ultra premium benefit, but because of a value benefit.

Growth now leading to deeper discounts and the answer is no we've not seen that and that's been that way for several quarters running and I think thats positive because I think what it shows is that it.

A rational environment everybody is to some degree investing margin in the service of volume and.

Matthew Neisius: Good morning, everyone, and thank you for joining us. Once again, I'm joined this morning by Sean Connolly, our CEO, and Dave Marburger, our CFO. We may be making some forward-looking statements and discussing Non-GAAP financial measures during this session. Please see our earnings release, prepared remarks, presentation materials, and filings with the SEC, which can be found in the Investor Relations section of our website for more information, including descriptions of our risk factors, GAAP to Non-GAAP reconciliations, and information on our comparability items. I'll now ask the operator to introduce the first question.

I think that kind of keeps your feet on the ground here. So it's.

It's been a rational environment and I think there's room for us to do more in terms of Mercury.

And your volume share purpose to progress from here, thanks very much.

In the right direction, but we're not back to where we were.

Operator: Please see our earnings release, prepared remarks, presentation materials, and filings with the SEC, which can be found in the Investor Relations section of our website for more information, including descriptions of our risk factors, GAAP to non-GAAP reconciliations, and information on our comparability items. I'll now ask the operator to introduce the first question. Ladies and gentlemen, at this time, once again, if you would like to ask a question, please press star and one. Our first question today comes from Andrew Lazar from Barclays. Please go ahead with your question.

But obviously do it in a very rational way so thats our intent.

Yes.

To some data that I shared last quarter, which is if you look across the.

The group's specific specifically the near end kind of center store peers, what you've seen is that promotional levels in terms of percent of total volumes sold on promotion has kind of migrated back to just about pre COVID-19 levels. Its uncanny, it's almost pre COVID-19 levels company by company and so we're a little.

And our next question comes from Scott marks from Jefferies. Please go ahead with your question.

Hey, good morning, Sean Dave Thanks, So much for taking my questions.

First thing I wanted to ask about coming back to some of the recovery of the supply chain disruption from earlier. This year you spoken about obviously recovery in your own service levels rebuilding of your own inventories as well wondering how youre seeing it from the retailer side in terms of their inventory levels relative to where they were prior.

Operator: Ladies and gentlemen, at this time, once again, if you would like to ask a question, please press star and one. Our first question today comes from Andrew Lazar from Barclays. Please go ahead with your question.

Lower than that because we're still we're recovering recovering from supply interruption, but moving back towards that but I have not seen promotional levels go above that kind of pre COVID-19 norm. So that's a positive sign I think and then the second metric. We track is kind of depth of discount are we seeing this more broad based.

Andrew Lazar: Great. Thanks so much. Sean, Conagra expects to return to positive organic sales growth in the fiscal second half, but also mentioned recent consumption trends in pointing to a low single-digit decline expected in the second quarter. What's driving the fiscal second half inflection, or is it really just easy year-ago comps? And do recent consumption trends that you mentioned sort of give you any pause, particularly in light of the planned tactical pricing actions that you're taking? And I guess, to what do you attribute the recent consumption weakness?

[Analyst]: Great, thanks so much. Sean, Conagra Brands expects to return to positive organic sales growth in the fiscal second half, but also mentioned recent consumption trends in pointing to a low single-digit decline expected in the second quarter. What's driving the fiscal second half inflection, or is it really just easy year-ago comps? Do recent consumption trends that you mentioned sort of give you any pause, particularly in light of the planned tactical pricing actions that you're taking? To what do you attribute the recent consumption weakness?

Two the disruption on frozen vegetables, and some chicken products.

Yeah. Good question Scott.

It's probably not a lot of drama and the answer though we're not seeing anything, particularly noteworthy so I would say pretty typical and.

<unk> desire to have a return to volume growth now leading to deeper discounts and the answer is no. We've not seen that and that's been that way for several quarters running and I think thats positive because I think what it shows is that.

Nothing that I can report that would really be.

Of any real news anything you'd add to that Dave.

It's a rational environment everybody is to some degree investing margin in the service of volume and.

When we use the term service levels Theyre very specific metrics in terms of where they are with their levels in inventory and so.

Sean Connolly: All right. Good morning, Andrew. Let me tackle that in reverse order. First, I wouldn't overly read into any recent consumption trend data. To the degree you saw any softening at the end of Q1, that was tied primarily to the two things I mentioned in my prepared remarks, which is the shift of a major Angie's BOOMCHICKAPOP promotional event to Q2 and the initial planned elasticity effect of the inflation-justified pricing that we took on Duncan Hines due to cocoa costs. So that's kind of the Q1 concept. This quarter, in Q2, some of our major frozen events are planned about a month or so later than a year ago based on our supply ramp-up. So pretty consistent with what we would expect in the full year, just a little bit of a shift in timing. So not much else to really discuss there.

I think that kind of keeps your feet on the ground here so.

Sean Connolly: All right, good morning, Andrew. Let me tackle that in reverse order. First, I wouldn't overly read into any recent consumption trend data. To the degree you saw any softening at the end of Q1, that was tied primarily to the two things I mentioned in my prepared remarks, which is the shift of a major Angie's King Chicken Pop promotional event to Q2 and the initial planned elasticity effect of the inflation-justified pricing that we took on Duncan Hines due to cocoa costs. That's kind of the Q1 concept. This quarter in Q2, some of our major frozen events are planned about a month or so later than a year ago based on our supply ramp-up. That is pretty consistent with what we would expect in the full year, just a little bit of a shift in timing. Not much else to really discuss there.

Customers are kind of back where they need to be generally speaking.

It's been a rational environment and I think there is room for us to do more in terms of merch, we've moved back in the right direction, but we're not back to where we were.

Got it thanks for that and then follow up question just on some of the chicken facility Modernizations I know you made the comment that you are still expecting the baked chicken facility to be completed in Q2, I think you are still working through our fried chicken monetization that's expected a little bit later.

But obviously do it in a very rational way so thats our intent.

And our next question comes from Scott <unk> from Jefferies. Please go ahead with your question.

How should we be thinking about maybe cadence of recovery.

Hey, good morning, Sean Dave Thanks, So much for taking my questions.

Of the margin, let's say I know you spoke about some benefits in each two but just trying to gauge.

First thing I wanted to ask about coming back to some of the recovery of the supply chain disruption from earlier. This year. He has spoken about obviously recovery in your own service levels rebuilding of your own inventories as well wondering how youre seeing it from the retailer side in terms of their inventory levels relative to where they were prior.

How we should be thinking about the restoration of margin from that perspective.

Sure well the big chicken.

Bob project, that's the one we kind of started with so that's farther along and then the fried chicken is kind of a newer development because the demand for fried chicken has just exploded in the last couple of years and we had tremendous success last year with our banquet Mega fillet. So that's that's an investment that will go on.

Two the disruption on frozen vegetables, and some of the chicken products. Thanks.

Sean Connolly: As for the basis of our expectations for further sales progress in the second half, it will be a combination of volume momentum on frozen, where we wrap last year's supply constraints, plus continued volume momentum on growing businesses like protein snacks. And then you have to also add what I'll call dollar momentum on inflationary businesses where we're taking price. That combination of factors reflects the horses-for-courses plan that we built. And what I mean by that is we are investing to drive volume in frozen and snacks while maximizing cash via inflation-justified pricing and staples.

Sean Connolly: As for the basis of our expectations for further sales progress in the second half, it will be a combination of volume momentum on frozen, where we wrapped last year's supply constraints, plus continued volume momentum on growing businesses like protein snacks. You have to also add what I'll call dollar momentum on inflationary businesses where we're taking price. That combination of factors reflects the horses for courses plan that we built. What I mean by that is we are investing to drive volume in frozen and snacks while maximizing cash via inflation-justified pricing and staples.

Yeah. Good question Scott.

It's probably not a lot of drama and the answer though we're not seeing anything, particularly noteworthy so I would say pretty typical and.

A little bit longer and in the meantime, it'll be an investment that.

Nothing that I can report that would really be.

That moves some of that production out of house, which is kind of a double whammy in that we lose the absorption of not producing it ourselves and we pay a tolling fee for that but that will correct as we go forward as well so.

Of any real news anything you'd add to that Dave.

When we use the term service levels Theyre very specific metrics in terms of where they are with their levels in inventory and so.

Customers are kind of back where they need to be generally speaking.

Baked comes on first in terms of the benefit and fried will follow that I mean, the good news here is.

Got it thanks for that and then follow up question just on some of the chicken facility Modernizations I know you made the comment that you're still expecting the baked chicken facility to be completed in Q2, I think you are still working through our fried chicken modernization, that's expected a little bit later.

We sell a lot of healthy meals in frozen and these days, but ones that contain protein are the ones that not surprisingly people are really buying unfortunately, it's also been the inflationary part of it.

Andrew Lazar: Got it. Got it. Thank you for that. And then fiscal first quarter came in ahead of expectations. Fiscal second quarter was moderated a bit in terms of your outlook. Net-net, do you see fiscal first half as potentially coming in a bit better than originally planned? And then, Dave, how much was the benefit from trade expense timing to organic sales growth in the quarter? Thanks so much.

[Analyst]: Got it. Thank you for that. Fiscal first quarter came in ahead of expectations. Fiscal second quarter was moderated a bit in terms of your outlook. Net-net, do you see fiscal first half as potentially coming in a bit better than originally planned? Dave, how much was the benefit from trade expense timing to organic sales growth in the quarter? Thanks so much.

The basket. So we've got that's where we had a decision to make in terms of what are we after short term volume or margin and we fundamentally believe that the best thing for the future cash flows of our frozen business is to keep that consumer pull is strong and keep our market share is strong and that's why we're we're investing some.

How should we be thinking about maybe cadence of recovery of.

Of the margin, let's say I know you spoke about some benefits in each two but just trying to gauge.

How we should be thinking about the restoration of margin from that perspective. Thanks.

Sean Connolly: Yeah, Andrew. Taking the last part first, it was about 50 basis points of benefit in Q1, the trade timing, and then that will flip to Q2. 50 basis points in terms of sales. In terms of the first half, I would say given the flip in timing of that, given the fact that Q1 we had some benefit in inventory where we delayed some of the tariff costs, and now they're going to be coming in in Q2, I would say generally we're still on track with our original plan for the first half. There are different pieces we talked about in our guidance. We're a little favorable in interest expense, but our tax rate's a bit higher. There are obviously some puts and takes, but I think we're pretty much on our first half plan. Yeah.

Sean Connolly: Yeah, Andrew, so taking the last part first, it was about 50 basis points of benefit in Q1, the trade timing, and then that will flip to Q2. So 50 basis points in terms of sales. So in terms of first half, I would say, given kind of the flip in timing of that, given the fact that Q1 we had some benefit in inventory where we delayed some of the tariff costs, and now they're going to be coming in in Q2, I would say generally we're still on track with our original plan for the first half. There's kind of different pieces we talked about in our guidance, were a little favorable in interest expense, but our tax rate's a bit higher. So there's obviously some puts and takes, but I think we're pretty much on our first half plan.

The margin in the short term to really get that volume cranking.

Sure well the big chicken.

Bob Project is that's the one we kind of started with so that's farther along and then the fried chicken is kind of a newer development because the demand for fried chicken has just exploded in the last couple of years and we had tremendous success last year with our banquet Mega fillet. So that's that's an investment that will go on.

Got it and pass it on thanks very much.

Thank you.

And our next question comes from Tom Palmer from Jpmorgan. Please go ahead with your question.

Thank you Ron.

Round two here you can hear me.

Got you.

Alright, a third Palmer on the call.

A little bit longer and in the meantime, it'll be an investment that.

I wanted to just ask on the timing of inflation and kind of how it plays out over the course of the year.

That moves some of that production out of house, which has kind of a double whammy in that we lose the absorption of not producing it ourselves and we pay a tolling fee for that but that will correct as we go forward as well so.

I think from the materials it seems like.

To start off the year, maybe it was a little bit favorable to that kind of 7% plus.

Is is <unk> just given what we're seeing with protein maybe heightened or just just I guess any help on kind of the cadence over the next three quarters as you see it today.

Baked comes on first in terms of the benefit and fried will follow that I mean, the good news here is.

Sean Connolly: Yeah, and I would say, Andrew, that what I was looking for this quarter really were two things. Number one, can we get the service issues behind us and getting to 98%? Check. I'm feeling good about that. And second, once we did that and could start to resume our merchandising activities and rolling out our innovation, are we getting the consumer takeaway and are we seeing inflection on key businesses? And check, we saw that. So the consumer is certainly not out of the woods yet. We're still seeing value-seeking behavior. We're still having to deal with inflation and tariffs. But after a quarter, I think we're feeling good about the setup for the balance of the year.

Sean Connolly: I would say, Andrew, that what I was looking for this quarter really were two things. Number one, can we get the service issues behind us and getting to 98%? Check. I'm feeling good about that. Second, once we did that and could start to resume our merchandising activities and rolling out our innovation, are we getting the consumer takeaway and are we seeing inflection on key businesses? Check, we saw that. The consumer is certainly not out of the woods yet. We're still seeing value-seeking behavior. We're still having to deal with inflation and tariffs. After a quarter, I think we're feeling good about the setup for the balance of the year.

We sell a lot of healthy meals in frozen and these days, but ones that contain protein are the ones that not surprisingly, we're really buying unfortunately, it's also been the inflationary part of it.

Yes, Tom it's Dave.

The Q1.

Real favorability there was for tariffs and timing on tariffs the core inflation was kind of where we thought it would be actually a little bit tad bit higher. So when you kind of look at Q2 through Q4, and you look at overall inflation thats pretty consistent from a percentage perspective through the full year guide of slightly above seven.

Percent Theres no.

There is no material change.

Andrew Lazar: Great. Thanks so much.

[Analyst]: Great, thanks so much.

Change in the percent year on year percentage of the inflation.

Margin in the short term to really get that volume cranking.

Operator: Our next question comes from Peter Galbo from Bank of America. Please go ahead with your question.

Okay.

Understood.

Got it I'll pass it on thanks very much.

Thank you for that and then Shawn I just wanted to kind of clarify I guess, one item and I know, it's been asked about already a little bit but.

Sean Connolly: Hi, good morning. Thanks for the questions. Sean and Dave, I just wanted to maybe touch on the updated core inflation outlook that you gave. I know you talked about some of the moving pieces within kind of the animal protein, but maybe you can just remind us, A, kind of how you're bought for the remainder of the year on some of those items. Are you kind of locked in now for the rest of the year? Just given that some of these cuts are very volatile and have moved, particularly chicken over the past month has maybe moved more favorably. I just want to understand the flex in that inflation guide as we get in the back half. Yeah. Peter, our original guidance, our overall inflation was approximately 7%. That's split 4% core inflation, and then 3% gross tariffs.

Peter Galbo: Hi, good morning. Thanks for the questions. Sean and Dave, I just wanted to maybe touch on the updated core inflation outlook that you gave. I know you talked about some of the moving pieces within kind of the animal protein, but maybe you can just remind us, A, kind of how you're bought for the remainder of the year on some of those items. Are you kind of locked in now for the rest of the year? Just given that some of these cuts are very volatile and have moved, particularly chicken over the past month has maybe moved more favorably. So just want to understand the flex in that inflation guide as we get into the back half.

Thank you.

And our next question comes from Tom Palmer from Jpmorgan. Please go ahead with your question.

It seems like you are seeing benefits from from promotional activity, but at the same time as you have kind of taken some pricing initially maybe.

Thank you Ron.

Round two here you can hear me.

Got you alright.

Alright, a third Palmer on the call.

I wanted to just ask on the timing of inflation and kind of how it plays out over the course of the year. It's I think from the materials it seems like.

You noted a little bit lower elasticity than you might see in the past I mean look I get some of this is maybe we're talking about different products, where these two are applied but.

To start off the year, maybe it was a little bit favorable to that kind of 7% plus is is <unk> just given what we're seeing with protein maybe heightened or just I guess any help on kind of the cadence over the next three quarters as you see it today.

I guess in the current environment are you guys kind of baking in that that one of these two sides shifts a little bit to converge.

Sean Connolly: Yeah. So Peter, our original guidance, our overall inflation was approximately 7%. That split 4% kind of core inflation and then 3% gross tariffs. Then we had mitigation, obviously, on tariffs of about 1% to 1.5% on that. And then we have our productivity, which helps us offset our core inflation. As we've gone through this quarter, we're seeing more pressure on the core inflation. There's been a little bit of movement on the tariffs, but generally that's immaterial. So the 3% gross tariffs we estimated at the beginning of the year are about the same. The increase in the overall inflation for the year is really coming from the core inflation, and that's really driven by the animal proteins. And so particularly beef, pork, turkey, and then to some extent eggs relative to our original forecast.

I think what we're baking in Tom has said.

Yes, Tom it's Dave.

That as we rollout our innovation and our marketing support, including our advertising and our merchants are our major merchandising events click we're going to have the kind of consumer pull that we've seen in the past. So that's on the more volume oriented businesses and then I'll make more dollars oriented businesses I think we.

Q1.

The real favorability there was was for tariffs and timing on tariffs.

Sean Connolly: Then we had mitigation, obviously, on tariffs of about 1 to 1.5% on that. We have our productivity, which helps us offset our core inflation. As we've gone through this quarter, we're seeing more pressure on the core inflation. There's been a little bit of movement on the tariffs, but generally, that's immaterial. The 3% gross tariffs we estimated at the beginning of the year are about the same. The increase in the overall inflation for the year is really coming from the core inflation, and that's really driven by the animal proteins. Particularly beef, pork, turkey, and then to some extent eggs relative to our original forecast. To your question about where we are from an overall coverage perspective, for Q2, we're about 85% covered. Certain commodities are fully covered, but then the animal proteins, which has been a pressure point, that's more spot market overall.

Core inflation was kind of where we thought it would be actually a little bit tad bit higher. So when you kind of look at Q2 through Q4, and you look at overall inflation, it's pretty consistent from a percentage perspective through the full year guide of slightly above 7% there is no.

Baked in a historically accurate elasticity level, usually thats around a minus one.

There is no material change.

And we have not seen any elasticity to suggest that that is an overly optimistic point of view at all so I think in total.

Change in the percent year on year percentage of the inflation.

Okay.

Understood.

The outlook for both sides.

Thank you for that and then Shawn I just wanted to kind of clarify I guess, one item and I know, it's been asked about already a little bit but.

The horses for courses concept is that it's prudent and.

I expect.

It seems like you are seeing benefits from from promotional activity, but at the same time as you have kind of taken some pricing initially maybe.

Good consumer response in the areas, where we're investing to drive volume on frozen and snacks as the year progresses, and I expect there will be an elasticity effect on canned goods and some other things that we're taking price on but there'll be they should be fairly predictable effects consistent with history.

Sean Connolly: To your question about kind of where we are, from a kind of overall coverage perspective for Q2, we're about 85% covered. Certain commodities are fully covered, but then the animal proteins, which has been a pressure point, that's more spot market overall. We do take positions and freeze them, so we have capability to add coverage through freezing proteins, but generally that's more market and spot-based. And so about 85% covered Q2. And then for the full year, 60% to 65% coverage overall. But again, those proteins were exposed. If there's additional inflation or if the inflation moderates, we'll see a benefit from that.

You noted a little bit lower elasticity than you might see in the past I mean look I get some of this is maybe we're talking about different products, where these two are applied but.

Thank you for that.

Sean Connolly: We do take positions and freeze them. We have capability to add coverage through freezing proteins, but generally that's more market and spot-based. About 85% covered Q2. For the full year, 60 to 65% coverage overall. Again, those proteins, we're exposed. If there's additional inflation or if the inflation moderates, we'll see a benefit from that. Great. Thanks for that, Dave. Very helpful. I wanted to pivot maybe to the balance sheet and the cash flow. Dave, I know you called out that there would be some debt pay down in that quarter. I've gotten a few questions this morning just on the cash flow generation in the quarter. It was a bit maybe lighter than expectations in some of the inventory builds.

And ladies and gentlemen at this time, we will conclude today's question and answer session I would like to turn the floor back over to Matthew <unk> for closing remarks.

I guess in the current environment are you guys kind of baking in that that one of these two sides shifts a little bit to converge.

Thank you Jamie and thank you all for joining US today, please reach out to Investor relations with any additional questions have a great day.

I think what we're baking in Tom has said.

That as we rollout our innovation and our marketing support including our advertising and our merchants are major merchandising events click we're going to have the kind of consumer pull that we've seen in the past. So that's on them more volume oriented businesses and then on the more dollar oriented businesses I think we.

And ladies and gentlemen, with that we'll conclude today's conference call and presentation. We do thank you for joining you may now disconnect your lines.

Peter Galbo: Great. Thanks for that, Dave. Very, very helpful. I wanted to pivot maybe to the balance sheet and the cash flow. Dave, I know you called out that there would be some debt paid out in the quarter. I've gotten a few questions this morning just on the cash flow generation in the quarter. It was a bit maybe lighter than expectations and some of the inventory build. So maybe you can unpack both the debt pay down, how we should think about that in Q2 and the remainder of the year, and then just anything around kind of inventory build that happened in the quarter. Thanks very much.

Baked in a historically accurate elasticity level, usually that's around a minus one.

And we have not seen any elasticity to suggest that that is an overly optimistic point of view at all so I think in total.

Sean Connolly: Maybe you can unpack both the debt pay down and how we should think about that in Q2 and the remainder of the year, and then just anything around kind of inventory build that happened in the quarter. Thanks very much. Sure. Let me start from the top. When we gave our guidance, we had forecasted that we would pay down $700 million in debt for fiscal 2026. That's from both the proceeds from the divestitures as well as $100 million from, you know, cash flow from operations to pay down debt. We're still on track with that. Actually, we included in our materials that we're going to have additional favorability from the tax legislation. We are estimating that at $75 million. We haven't built that into our specific pre-cash flow forecast yet, but that's clearly going to be a benefit.

The outlook for both sides.

The horses for courses concept is that it is prudent and.

Sean Connolly: Sure. So let me kind of start from the top. When we gave our guidance, we had forecasted that we would pay down $700 million in debt for fiscal '26. That's from both the proceeds from the divestitures, as well as $100 million from cash flow from operations to pay down debt. So we're still on track with that. Actually, we included in our materials that we're going to have additional favorability from the tax legislation. We are estimating that at $75 million. So we haven't built that into our specific free cash flow forecast yet, but that's clearly going to be a benefit. As it relates to Q1, yeah, we have, and this is just solely timing, we built more inventory in the first quarter because remember, we were coming off supply disruptions, and so we had to get back to service levels. So that was a priority.

I expect.

Thank you for that.

And ladies and gentlemen at this time, we will conclude today's question and answer session I would like to turn the floor back over to Matthew <unk> for closing remarks.

Thank you Jamie and thank you all for joining US today, please reach out to Investor relations with any additional questions have a great day.

Sean Connolly: As it relates to Q1, we have, and this is just solely timing. We built more inventory in the first quarter because remember, we were coming off supply disruptions, and we had to get back to service levels. That was a priority. We built our inventory, so our normal seasonal build affects Q1. We leaned in to make sure we had the right safety stocks on the areas where we had disruptions. You normally will see that in Q1. It's a little bit more. Our inventory on hand, we have more days on hand, but that's been planned. That's timing. We still feel comfortable about our full-year forecast as it relates to inventory. I would say we're on track. Q1's the normal build. In the first quarter, our net debt is down about a little over $400 million versus where we finished at the end of fiscal 2025.

And ladies and gentlemen, with that we'll conclude today's conference call and presentation. We do thank you for joining you may now disconnect your lines.

Sean Connolly: We built our inventory. So our normal seasonal build affects Q1. Then we leaned in to make sure we had the right safety stocks on the areas where we had disruptions. And so you normally will see that in Q1. It's a little bit more. So our inventory on hand, we have more days on hand, but that's been planned. That's timing. And we still feel comfortable about our full year forecast as it relates to inventory. So I would say we are on track. Q1's the normal build. And in the first quarter, our net debt is down a little over $400 million versus where we finished at the end of fiscal 2025. And as we said in the comments, on a rolling 12, we've reduced our net debt by $1.1 billion.

Sean Connolly: As we said in the comments, on a rolling 12, we've reduced our net debt by $1.1 billion. We feel really good about cash flow generation, both where we are and how we're forecasting it for fiscal 2026. Just one other piece of perspective on that inventory build. Several of the peers in Center Store Grocery have really struggled in the last year to generate consumer pull against their brands, even when investing. We have not had that problem. You may recall we had six or seven quarters of straight line top line improvement as we invested after in the pursuit of volume last year, and we returned to growth in Q2. We have clear evidence that the brands and the innovation are working for consumers, but we ran into the supply interruption and we had to pull a lot of our merchandising.

Sean Connolly: So feel really good about cash flow generation, both where we are and how we're forecasting it for fiscal '26. Just one other piece of perspective on that inventory build. Several of the peers in Center Store Grocery have really struggled in the last year to generate consumer pull against their brands, even when investing. We have not had that problem. So you may recall we had six or seven quarters of straight line, top line improvement as we invested in the pursuit of volume last year, and we returned to growth in Q2. So we've got clear evidence that the brands and the innovation are working for consumers, but we ran into the supply interruption, and we had to pull a lot of our merchandising.

Sean Connolly: Now that we've got service levels back, armed with that confidence that we can generate consumer pull because of these products, we are absolutely convinced, having inventory in place so we don't fall out of stock again and fail to keep up with consumer demand, particularly going into holiday season, is absolutely the right thing to do.

Sean Connolly: Now that we've got service levels back, armed with that confidence that we can generate consumer pull because of these products, we are absolutely convinced having inventory in place so we don't fall out of stock again and fail to keep up with consumer demand, particularly going into holiday season, is absolutely the right thing to do.

[Analyst]: Awesome. Thanks, guys.

Peter Galbo: Awesome. Thanks, guys.

Sean Connolly: Thank you.

Operator: Our next question comes from Tom Palmer from JP Morgan. Please go ahead with your question. Mr. Palmer, is it possible your phone is on mute? Just to confirm, the speaker room, are you able to hear me?

Operator: Our next question comes from Tom Palmer from JPMorgan. Please go ahead with your question. Mr. Palmer, is it possible your phone is on mute? And just to confirm, the speaker room, are you able to hear me?

Sean Connolly: Yes. Yes. We can.

Sean Connolly: Yes, yes.

Operator: We can hear you. Okay.

Sean Connolly: It looks like we've got Palmer number two in the queue. Why don't we go there and we'll come back to Tom in a bit.

Sean Connolly: It looks like we've got Palmer number two in the queue. So why don't we go there, and we'll come back to Tom in a bit.

Operator: All right. Our next question comes from David Palmer from Evercore ISI. Sir, please go ahead with your question.

Peter Galbo: Okay. Thank you. Good morning. Frozen entrees, obviously, it's been a great long-term category for Conagra. Just looking at the recent data, and I know there's reasons for this, maybe some overhangs from some of the past supply chain stuff, but wondering what is your state of the union with that category? It looks like you guys are losing share, and the category is declining. For years, you guys were driving the majority of growth in a category that was oftentimes growing at least a little bit. So, wonder what your frozen outlook is, frozen entree in particular outlook is through the rest of the year, and I have a quick follow-up.

David Palmer: Okay. Thank you. Good morning. Frozen entrees, obviously, it's been a great long-term category for Conagra. Just looking at the recent data, and I know there's reasons for this, maybe some overhangs from some of the past supply chain stuff, but wondering what is your state of the union with that category? It looks like you guys are losing share, and the category is declining. For years, you guys were driving the majority of growth in a category that was oftentimes growing at least a little bit. So, wonder what your frozen outlook is, frozen entree in particular outlook is through the rest of the year, and I have a quick follow-up.

[Analyst]: Okay. Thank you. Good morning. Frozen entrees, obviously, it's been a great long-term category for Conagra Brands. Just looking at the recent data, and I know there's reasons for this, maybe some overhangs from some of the past supply chain stuff, but wondering, you know, what is your state of the union with that category? It looks like you guys are losing share and the category is declining. For years, you guys were driving the majority of growth in the category that was oftentimes growing at least a little bit. I wonder what your frozen outlook is, frozen entree in particular outlook is through the rest of the year, and I have a quick follow-up.

Sean Connolly: Sure. All right, David. Yeah, our outlook is positive. You know, the simple way to think about frozen meals is the category goes as Conagra Brands goes. That's been the rule for the last seven or so years. When we didn't innovate back in the day, the category didn't grow. When we committed to innovating frozen, the category grew steadily for a long, long time. Including, by the way, in our Q2 last year, I think our frozen business was up in the ballpark of 3%. We're coming off of a back half of last year where we had major service interruptions in that business. We walked away from major merchandising, and that hands our merchandising to competitors who then get in the plans, customer plans for a period of time while we're working to get service levels back.

Sean Connolly: Sure. All right, David. Yeah, our outlook is positive. The simple way to think about frozen meals is the category goes as Conagra goes. That's been the rule for the last seven or so years. When we didn't innovate back in the day, the category didn't grow. When we committed to innovating frozen, the category grew steadily for a long, long time. So including, by the way, in our Q2 last year, I think our frozen business was up in the ballpark of 3%. So we're coming off of a back half of last year where we had major service interruptions in that business. We walked away from major merchandising, and that hands our merchandising to competitors who then get in the plans, customer plans for a period of time while we're working to get service levels back.

Sean Connolly: That contributed, obviously, to us being a shared donator, which is the first time that's happened in years and years and years, but that's obviously a temporary phenomenon tied to our supply interruption. So what you're seeing now is our innovation is rolling into the marketplace. Our service levels are back to 98%, and we're getting kind of back in the queue on these major events and feel extremely bullish about it. We've got some absolutely fantastic innovations that we rolled out last year that were interrupted. We're rolling out new ones this year, and they're already off to a particularly strong start. I will draw your attention to the new Dolly Parton frozen meals and frozen desserts that are new in the marketplace and performing extremely well. And what's encouraging about that as well is they're not only performing well, that's a premium-priced product.

Sean Connolly: That contributed, obviously, to us being a share donator, which is the first time that's happened in years and years and years. That's obviously a temporary phenomenon tied to our supply interruptions. What you're seeing now is our innovation is rolling into the marketplace. Our service levels are back to 98%. We're getting kind of back in the queue on these major events and feel extremely bullish about it. We've got some absolutely fantastic innovations that we rolled out last year that were interrupted. We're rolling out new ones this year, and they're already off to a particularly strong start. I will draw your attention to the new Dolly Parton frozen meals and frozen desserts that are new in the marketplace and performing extremely well. What's encouraging about that as well is they're not only performing well, that's a premium-priced product. That's a good mix for us too.

Sean Connolly: So that's a good mix for us too. So I have tremendous confidence in our frozen business. To win in frozen, you've got to have scale, and you've got to have an innovation machine, and we've got the best in the business. So we're looking forward to continued momentum on that business as we go through the year and wrap some of the weak spots in the last year or second half.

Sean Connolly: I have tremendous confidence in our frozen business. To win in frozen, you've got to have scale and you've got to have an innovation machine. We've got the best in the business. We're looking forward to continued momentum on that business as we go through the year and wrap some of the weak spots in the last year or second half.

[Analyst]: Thank you for that. Just a very general big-picture question. You're going to have those easier comparisons in the second half of the year, and you're going to be more on your front foot. I'm wondering, what are some, I don't know if there's exact metrics that you can share, but what are the things that you're going to be looking for in the second half that would really tell you that you get back to balanced sales and profit growth in fiscal 2027? If that is, the goal here is to get back to an on-algo in 2027, what would kind of let you know you're there? Clearly, growing against some of these comparisons may not be enough for that. Perhaps give us a sense of what you think would be "good enough" in the second half to show us you're really on track again.

Peter Galbo: Yeah. Thank you for that. Just a very general big-picture question. You're going to have those easier comparisons in the second half of the year, and you're going to be more on your front foot. I'm wondering what are some, I don't know if there's exact metrics you can share, but what are the things you're going to be looking for in the second half that will really tell you that you get back to balanced sales and profit growth in fiscal '27? If that is the goal here, is to get back to an ongoing in '27, what would kind of let you know you're there? Clearly, growing against some of these comparisons may not be enough for that. Perhaps give us a sense of what you think would be "good enough" in the second half to show us you're really on track again. Thanks.

David Palmer: Yeah. Thank you for that. Just a very general big-picture question. You're going to have those easier comparisons in the second half of the year, and you're going to be more on your front foot. I'm wondering what are some, I don't know if there's exact metrics you can share, but what are the things you're going to be looking for in the second half that will really tell you that you get back to balanced sales and profit growth in fiscal '27? If that is the goal here, is to get back to an ongoing in '27, what would kind of let you know you're there? Clearly, growing against some of these comparisons may not be enough for that. Perhaps give us a sense of what you think would be "good enough" in the second half to show us you're really on track again. Thanks.

Sean Connolly: Thanks. You know, Dave, you once said a good piece of wisdom for me. You said your hero business has got to be heroes, meaning frozen snacks need to grow. I think that is well said. I think, you know, for this company, frozen snacks are clear growth categories. It represents about 70% of our retail business. We've had tremendous momentum on both of those businesses leading up to the supply challenges we had last year. By the time we exit this year, I want to see real momentum and inflection on those businesses. We've already got it within the key strategic snacks businesses. For example, Slim Jim right now is tracking really well. SeaStore is coming back. That's very encouraging. Our new innovation on Slim Jim, which is our new Buffalo Wild Wings Buffalo Chicken Slim Jim, is performing really well out of the gate.

Sean Connolly: David, you once had a good piece of wisdom for me. You said, "Your hero business has got to be heroes," meaning frozen and snacks need to grow. And I think that is well said. I think for this company, frozen and snacks are clear growth categories. It represents about 70% of our retail business. We've had tremendous momentum on both of those businesses leading up to the supply challenges we had last year. And by the time we exit this year, I want to see real momentum and inflection on those businesses. We've already got it within the key strategic snacks businesses. For example, Slim Jim right now is tracking really well. C-store is coming back. That's very encouraging. And our new innovation on Slim Jim, which is our new Buffalo Wild Wings Buffalo Chicken Slim Jim, is performing really well out of the gates.

Sean Connolly: That's a very positive sign. On frozen, it's all about getting back in the queue on merchandising events with customers and then making sure that it's innovation that we work so hard to build performs, and so far it looks good. So those businesses with a positive trajectory as we move through the year, I think, is a very, very positive sign for next year when we've got some of these margin clawback opportunities in front of us. So that'll be a combination of a good-looking top line and an improving gross margin line as well. And I'm looking forward to that.

Sean Connolly: That's a very positive sign. On frozen, it's all about getting back in the queue on merchandising events with customers and then making sure that the innovation that we worked so hard to build performs. So far, it looks good. Those businesses with a positive trajectory as we move through the year, I think is a very, very positive sign for next year when we've got some of these margin clawback opportunities in front of us. That'll be a combination of a good-looking top line and an improving gross margin line as well. I'm looking forward to that.

Peter Galbo: Thank you very much.

David Palmer: Thank you very much.

Operator: Thank you very much. Our next question comes from Brian Adams from UBS. Please go ahead with your question.

Operator: Our next question comes from Brian Adams from UBS. Please go ahead with your question.

Brian Adams: Hey, morning, guys. Thanks for the question. Maybe just first a quick housekeeping one following up on David's question there. So Q1 volume performance for refrigerated and frozen came in a lot better than I think maybe scanner trends would have suggested. And I think in the prepared remarks, you said volumes for frozen itself were up like 3% or so. Was there any elevated shipments in the Q1 as you were finishing up restoring supply at shelf, or is this pretty consistent with the consumption trends that you were seeing?

Bryan Adams: Hey, morning, guys. Thanks for the question. Maybe just first a quick housekeeping one following up on David's question there. So Q1 volume performance for refrigerated and frozen came in a lot better than I think maybe scanner trends would have suggested. And I think in the prepared remarks, you said volumes for frozen itself were up like 3% or so. Was there any elevated shipments in the Q1 as you were finishing up restoring supply at shelf, or is this pretty consistent with the consumption trends that you were seeing?

[Analyst]: Hey, morning, guys. Thanks for the question. Maybe just first a quick housekeeping one following up on David's question there. Q1 volume performance for refrigerated and frozen came in a lot better than I think maybe scattered trends would have suggested. I think in the prepared remarks, you said volumes for frozen itself were up like 3% or so. Was there any elevated shipments in the Q1 as you were finishing up restoring supply at shelf, or is this pretty consistent with other consumption trends that you were seeing?

Sean Connolly: Hey, Brian, the 3% number, that was the I was referring to Q2 last year when frozen was back growing strongly in Q2. Shipments were a little bit ahead in the quarter, which is pretty typical at a time when you've been out of stock and you're kind of replenishing. I wouldn't overthink this because if you look at our company on kind of a rolling four-quarter basis, shipments to consumption are almost always equal. For us, it doesn't really amount to much. I wouldn't overthink that piece. Anything you'd add? The only thing I would say is just if you're just purely looking at shipments to consumption within the quarter for R&F, that hit here, obviously, because the prior year, shipments were really strong. There's a little bit of benefit, shipments versus consumption related to hit here within Q1 for R&F.

Sean Connolly: Hey, Brian, the 3% number, that was Q1. I was referring to Q2 last year when frozen was back growing strongly in Q2. So shipments were a little bit ahead in the quarter, which is pretty typical at a time when you've been out of stock and you're kind of replenishing. I wouldn't overthink this because if you look at our company on kind of a rolling four-quarter basis, shipments and consumption are almost always equal. So for us, it doesn't really amount to much. So I wouldn't overthink that piece. Anything to add to that?

Peter Galbo: The only thing I would say, just if you're just purely looking shipments to consumption within the quarter for R&F, that Hebrew, obviously, because prior year shipments were really strong. So there's a little bit of benefit shipments versus consumption related to Hebrew within Q1 for R&F.

David Marberger: The only thing I would say, just if you're just purely looking shipments to consumption within the quarter for R&F, that Hebrew, obviously, because prior year shipments were really strong. So there's a little bit of benefit shipments versus consumption related to Hebrew within Q1 for R&F.

Brian Adams: Okay. Awesome. Thanks. Yeah. Not my best reading comprehension, I guess, there. On the margin clawback opportunities that you just actually spoke to, can you kind of just run through those high level for us as we think about 2027? Because some of the stuff, like some of the costs you've had this year, like tariffs, that's not necessarily something you can assume goes away. But then I also know you have some work in process on the chicken, and then I'm not really sure the puts and takes on SG&A. But do you mind just running through those, Sean, as you see them today?

Bryan Adams: Okay. Awesome. Thanks. Yeah. Not my best reading comprehension, I guess, there. On the margin clawback opportunities that you just actually spoke to, can you kind of just run through those high level for us as we think about 2027? Because some of the stuff, like some of the costs you've had this year, like tariffs, that's not necessarily something you can assume goes away. But then I also know you have some work in process on the chicken, and then I'm not really sure the puts and takes on SG&A. But do you mind just running through those, Sean, as you see them today?

[Analyst]: Okay. Awesome. Thanks. Yeah, not my best reading comprehension, I guess, there. On the margin clawback opportunities that you just actually spoke to, can you kind of just run through those high level for us as we think about '27? Some of the stuff, you know, like some of the costs you've had this year, like tariffs, that's not necessarily something you can assume goes away. I also know you have some work in process on the chicken, and then I'm not really sure the puts and takes on SG&A. Do you mind just running through those, Sean, as you see them today?

Sean Connolly: Sure. Absolutely. I'll tick off five things that I mentioned last quarter that remain intact. It starts with productivity. In fiscal 2026 this year, between core productivity and tariff mitigation, that number is just over 5%, which is very strong. By the way, Q1 came in right at that, above that level, which is a super strong quarter. That will continue. The supply chain team is doing a nice job. Second, at some point, we're going to get inflation relief. You said somebody mentioned proteins a little bit ago. Hopefully back closer to our typical 2%. If you look back 100 years as we have, anytime we've had these kind of runaway inflation cycles like this, there's always been relief on the other side of the hill. At some point, that'll happen. We obviously can't recall exactly when.

Sean Connolly: Sure. Absolutely. Yeah. I'll tick off five things that I mentioned last quarter that remain intact. It starts with productivity. So in fiscal '26 this year, between core productivity and tariff mitigation, that number is just over 5%, which is very strong. And by the way, Q1 came in right above that level, which is a super strong quarter. So that will continue. Supply chain team is doing a nice job. Second, at some point, we're going to get inflation relief. Somebody mentioned proteins a little bit ago. Hopefully, back closer to our typical 2%. If you look back 100 years as we have, anytime we've had these kind of runaway inflation cycles like this, there's always been relief on the other side of the hill. So at some point, that'll happen. We obviously can't call exactly when.

Sean Connolly: Third, the advancement of our supply chain resiliency investments, including the chicken plants, will enable us to repatriate some of that outsourced production going forward at lower costs. Fourth, we are taking pricing in certain categories. After you get past the initial lag of inflation hits and you wait 90 days or so to get pricing in, you start to get the benefit of that. Fifth, I mentioned last quarter, we were kicking off an ambitious initiative to re-engineer our core work processes, leveraging technology, including AI. We have kicked that work off to accelerate growth and lower costs. We'll have more to report on that going forward. That's an exciting possibility. Between those actions and our ongoing efforts to reshape the portfolio for faster growth and better margins, we do expect a good margin expansion following fiscal 2026.

Sean Connolly: Third, the advancement of our supply chain resiliency investments, including the chicken plants, will enable us to repatriate some of that outsourced production going forward at lower costs. Fourth, we are taking pricing in certain categories. So after you get past the initial lag of inflation hits and you wait 90 days or so to get pricing in, you start to get the benefit of that. And then fifth, I mentioned last quarter, we were kicking off an ambitious initiative to re-engineer our core work processes, leveraging technology, including AI. We have kicked that work off to accelerate growth and lower costs. We'll have more to report on that going forward, but that's an exciting possibility. So between those actions and our ongoing efforts to reshape the portfolio for faster growth and better margins, we do expect good margin expansion following fiscal '26.

Brian Adams: Okay. Really helpful. Thanks, Sean. Thanks, David. Pass it on.

Bryan Adams: Okay. Really helpful. Thanks, Sean. Thanks, David. Pass it on.

[Analyst]: Okay. Really helpful. Thanks, Sean. Thanks, Dave. I'll pass it on.

Sean Connolly: Thank you.

Operator: Our next question comes from Robert Moskow from TD Cowen. Please go ahead with your question.

[Analyst]: Hi, thanks. I have a phasing question about Q2 volume, Dave and Sean. I'm just looking at comparisons versus a year ago on volume, and it would appear that, you know, the volume growth comp would get tougher in Q2 compared to Q1 because of the Hebrew comparison and also because you had a lot of frozen vegetable volume in Q2. Should I assume that volume growth is, or volume declines are similar in Q2 as in Q1 because of those comps, or is the merchandising activity enough to provide some sequential improvement in volume?

Robert Moskow: Hi. Thanks. I have a phasing question about Q2 volume, Dave and Sean. I'm just looking at comparisons versus a year ago on volume, and it would appear that the volume growth comp would get tougher in Q2 compared to Q1 because of the Hebrew comparison and also because you had a lot of frozen vegetable volume in Q2. So should I assume that volume growth is or volume declines are similar in Q2 as in Q1 because of those comps, or is the merchandising activity enough to provide some sequential improvement in volume?

Sean Connolly: Yeah, Rob, this is Dave. We have obviously a ton of brands, and so there's a lot of moving pieces, a lot of dynamics on merchandising. Generally speaking, the volume that we had in Q1 should be similar in Q2. When you net it all together for total company.

Peter Galbo: Yeah, Rob, this is Dave. We have obviously a ton of brands, and so there's a lot of moving pieces, a lot of dynamics on merchandising. Generally speaking, the volume that we had in Q1 should be similar in Q2 when you net it all together for total company.

David Marberger: Yeah, Rob, this is Dave. We have obviously a ton of brands, and so there's a lot of moving pieces, a lot of dynamics on merchandising. Generally speaking, the volume that we had in Q1 should be similar in Q2 when you net it all together for total company.

Robert Moskow: In terms of growth.

[Analyst]: In terms of growth, okay.

Peter Galbo: Okay.

David Marberger: Okay.

Sean Connolly: Yeah, in terms of volume and year-on-year growth.

Robert Moskow: Yeah. In terms of volume.

Peter Galbo: Thank you very much.

David Marberger: Thank you very much.

Robert Moskow: Growth.

Peter Galbo: Yeah.

David Marberger: Yeah.

[Analyst]: Yeah, thanks a lot.

Robert Moskow: Thanks a lot.

Sean Connolly: Yeah. And just for perspective, Rob, on the year-to-go basis, we had a strong investment profile in merchandising last year. We had to pull back on some of that in the second half. We have a very strong investment in merchandising behind this innovation for the year-to-go period as well. And as I mentioned, some of those innovations which just are getting growing now are already performing quite well. So we're looking forward to that. And you saw in the promotion chart I shared in the prepared remarks that while we've had some of the merchandising restored in Q1, there is room to go as we move through the back half of the full year.

Sean Connolly: Yeah. Just for perspective, Rob, on the year-to-go basis, we had a strong investment profile in merchandising last year. We had to pull back on some of that in the second half. We have a very strong investment in merchandising behind this innovation for the year-to-go period as well. As I mentioned, some of those innovations which just are getting going now are already performing quite well. We are looking forward to that. You saw in the promotion chart I shared in the prepared remarks that while we've had some of the merchandising restored in Q1, there is room to go as we move through the back half of the full year.

Robert Moskow: Got it. Thanks, Sean.

[Analyst]: Got it. Thanks, Sean.

Operator: Our next question comes from Megan Klapp from Morgan Stanley. Please go ahead with your question.

Operator: Our next question comes from Megan Clapp from Morgan Stanley. Please go ahead with your question.

Megan Clapp: Hi. Thanks. Good morning. I wanted to start with maybe a follow-up, Sean, to Andrew's second question at the beginning just around how the quarter played out and how you're tracking so far. You made a comment last quarter that you viewed the fiscal '26 guide as prudent given the operating environment. And you've talked about a lot of encouraging things that you saw in Q1. At the same time, consumer sentiment's weak. You talked about value-seeking behavior. Cost inflation's a bit higher. So just putting all the puts and takes together, I guess when you think about the fiscal '26 guide today, you reiterated it. Would you still characterize it as prudent, and maybe where is the guide in your mind the most conservative? Thank you.

[Analyst]: Hi. Thanks. Good morning. I wanted to start with maybe a follow-up, Sean, to Andrew's second question at the beginning, just around how the quarter played out and how you're tracking so far. You made a comment last quarter that you viewed the fiscal 2026 guide as prudent given the operating environment. You've talked a lot about a lot of encouraging things that you saw in Q1. At the same time, consumer sentiment's weak. You've talked about value-seeking consumer behavior. Cost inflation's a bit higher. Just putting all those puts and takes together, I guess when you think about the fiscal 2026 guide today, you reiterated it. Would you still characterize it as prudent? Maybe where is the guide in your mind, you know, the most conservative? Thank you.

Sean Connolly: Well, I think it remains prudent. As I mentioned to somebody this morning, the two things I was really looking for in this quarter is we got to get service back, right, because we had a lot of momentum. That momentum was very material. They interrupted in the back half of last year because of service. And we got confidence that if we get service back, we will get the consumer takeaway. And so we got service back to 98%. That's good. And the fact that the innovation is off to as strong a start this year, actually stronger than what we had last year. So we had a very strong innovation performance last year in terms of not only customer acceptance, but the velocity of that innovation right up to the point where we pulled our merchandising, particularly frozen.

Sean Connolly: I think it remains prudent. As I mentioned to somebody this morning, the two things I was really looking for in this quarter are we got to get service back, right? We had a lot of momentum. That momentum was very material. It was interrupted in the back half of last year because of service. We've got confidence that if we get service back, we will get the consumer takeaway. We got service back to 98%. That's good. The fact that the innovation is off to as strong a start this year, actually stronger than what we had last year. We had a very strong innovation performance last year in terms of not only customer acceptance, but the velocity of that innovation right up to the point where we pulled our merchandising, particularly in frozen.

Sean Connolly: It's good to see innovation out of the gates this year performing at an even higher level in terms of units per store per week velocities, things like that. That's a positive. Between that and the plans we've got calendared out for the balance of the year, I think the outlook is prudent. We're pretty optimistic about building that momentum that I talked about with Dave Marberger a few minutes ago as we move through the year. Specifically, this is a horses for courses annual operating plan that we built. There are some businesses where we've planned out the year to invest to drive volume growth, specifically frozen and snacks. We're seeing movement in the right direction there. I expect to see more of that as we get to the back half.

Sean Connolly: It's good to see innovation at a gate this year performing even higher level in terms of units per store, per week, velocities, things like that. That's a positive. Between that and the plans we've got calendared out for the balance of the year, I think the outlook is prudent, and we're pretty optimistic about building that momentum that I talked about with David Palmer a few minutes ago as we move through the year. Specifically, this is a horses-for-courses annual operating plan that we built. There are some businesses where we've planned out the year to invest to drive volume growth, specifically, frozen and snacks. We're seeing movement in the right direction there. I expect to see more of that as we get to the back half.

Sean Connolly: There are other businesses that we are facing more acute inflation because of things like imported tariffs, where we're taking more inflation-justified pricing. There, it's about dollars. So between the volume plans we've got and the dollar plans that we've got, I think it comes together and puts us in a prudent position.

Sean Connolly: There are other businesses where we are facing more acute inflation because of things like in-place tariffs, where we're taking more inflation-justified pricing. There, it's about dollars. Between the volume plans that we've got and the dollar plans that we've got, I think it comes together and puts us in a prudent position.

Megan Clapp: Okay. Great. Thanks. And that's a good segue to my follow-up, which is, as you think about implementing tariff-related pricing, which I think you said will come on late in the second quarter, have your views on elasticity and the expected elasticity change at all, just given you're still seeing some value-seeking behavior with the consumer? And if we just think bigger picture around the macro, the consumer is going to be seeing a lot of, it seems like, inflation-driven pricing start to roll in around the same time. Thank you.

[Analyst]: Okay, great. Thanks. That's a good segue to my follow-up, which is, as you think about implementing tariff-related pricing, which I think you said will come on late in the second quarter, have your views on elasticity and the expected elasticity changed at all, just given you're still seeing some value-seeking behavior with the consumer? If we just think bigger picture around the macro, the consumer is going to be seeing a lot of, it seems like, inflation-driven pricing start to roll in around the same time. Thank you.

Sean Connolly: Good question. We track elasticities weekly, and we've kind of built in a historical elasticity expectation in categories as we built the plan. Specifically, what we've seen is within our categories, Conagra's average elasticity is a bit better than our competitors across channels. And then further, at a company level, if you look at just total pricing versus total volume change, you'll also see that our elasticity has been a bit better than most peers over the past year. So I don't feel like we are assuming anything heroic in terms of elasticities going forward, even in the face of the pricing actions that we've got.

Sean Connolly: Good question. We track elasticities weekly, and we've kind of built in a historical elasticity expectation in categories as we built the plan. Specifically, what we've seen is within our categories, Conagra Brands' average elasticity is a bit better than our competitors' across channels. Further, at a company level, if you look at just total pricing versus total volume change, you'll also see that our elasticity has been a bit better than most peers over the past year. I don't feel like we are assuming anything heroic in terms of elasticities going forward, even in the face of the pricing actions that we've got.

Megan Clapp: Awesome. Thank you.

[Analyst]: Awesome. Thank you.

Peter Galbo: Thank you.

Sean Connolly: Thank you.

Operator: Our next question comes from Max Gumpfort from BNP Paribas. Please go ahead with your question.

Operator: Our next question comes from Max Gumpert from BNP Paribas. Please go ahead with your question.

Brian Adams: Hey. Thanks for the question. Sean, I'm curious for an update on the value-seeking behavior that you're still seeing. It's been a few years now. So I'm just wondering how you see this cycle playing out and then how you're positioning Conagra to come out of this cycle in a better place. Thanks very much.

Max Gumport: Hey. Thanks for the question. Sean, I'm curious for an update on the value-seeking behavior that you're still seeing. It's been a few years now. So I'm just wondering how you see this cycle playing out and then how you're positioning Conagra to come out of this cycle in a better place. Thanks very much.

[Analyst]: Hey, thanks for the question. Sean, I'm curious for an update on the value-seeking behavior that you're still seeing. It's been a few years now. I'm just wondering how you see this cycle playing out and how you're positioning Conagra Brands to come out of this cycle in a better place. Thanks very much.

Sean Connolly: Yeah. I mean, I think you're probably hearing the same thing from just about everybody in consumer packaged goods on this. It is kind of this barbell economy where you've got higher-income consumers that are showing more resiliency, and they're still spending. You've got lower-income consumers across different age groups that are being more discerning. They are absolutely doing what they've got to do to kind of maximize their household balance sheet. So we've got to deal with that. But clearly, there is more value-seeking behavior that is evident in the lower-income group. So our job is to give those consumers the value they're seeking. And with the portfolio scope that we have, there are a lot of great value choices, and that's a big part of why sales are improving and so are shares.

Sean Connolly: Yeah, I mean, I think you're probably hearing the same thing from just about everybody in consumer packaged goods on this. It is kind of this barbell economy where you've got higher-income consumers that are showing more resiliency and they're still spending. You've got lower-income consumers across different age groups that are being more discerning. They are absolutely doing what they've got to do to maximize their household balance sheet. We have to deal with that. Clearly, there is more value-seeking behavior that is evident in the lower-income group. Our job is to give those consumers the value they're seeking. With the portfolio scope that we have, there are a lot of great value choices. That's a big part of why sales are improving and so are shares. Going forward, we'll continue to put that value lens on our innovation and marketing effort because it matters.

Sean Connolly: So going forward, we'll continue to put that value lens on our innovation and marketing effort because it matters. And if you weren't seeing this kind of behavior, I think if you look at our innovation slate over the last 10 years, you've probably seen it skew toward more premiumized products. But when you have a large cohort of consumers that are value-oriented, you take a different lens around your innovation for both price-pack architecture and the kinds of innovation that you want to deliver. Why? Because the benefit of superior relative value is a benefit that's going to move the sales line.

Sean Connolly: If you weren't seeing this kind of behavior, I think if you look at our innovation slate over the last 10 years, you've probably seen it skew toward more premiumized products. When you have a large cohort of consumers that are value-oriented, you take a different lens around your innovation for both price-pack architecture and the kinds of innovation that you want to deliver. Why? Because the benefit of superior relative value is a benefit that's going to move the sales line. You should imagine that we not only have a good slate of great value offerings already out there, but it does inform our innovation pipeline going forward to make sure that we've got products that are very provocative, not because of maybe an ultra-premium benefit, but because of a value benefit.

Sean Connolly: And so you should imagine that we not only have a good slate of great value offerings already out there, but it does inform our innovation pipeline going forward to make sure that we've got products that are very provocative, not because of maybe an ultra-premium benefit, but because of a value benefit.

Brian Adams: Great. Then as a follow-up, it was nice to see service levels get back to 98%, and then that enabling a recovery to some degree in quality merchandising and improved volume share performance as well. As we look to the remainder of the year, is there any color or guardrails you could provide on how you expect your promotional levels and your volume share performance to progress from here? Thanks very much.

Max Gumport: Great. Then as a follow-up, it was nice to see service levels get back to 98%, and then that enabling a recovery to some degree in quality merchandising and improved volume share performance as well. As we look to the remainder of the year, is there any color or guardrails you could provide on how you expect your promotional levels and your volume share performance to progress from here? Thanks very much.

[Analyst]: Great. As a follow-up, it was nice to see service levels get back to 98%, enabling a recovery to some degree in quality merchandising and improved volume share performance as well. As we look to the remainder of the year, is there any color or guardrails you could provide on how you expect your promotional levels and your volume share performance to progress from here? Thanks very much.

Sean Connolly: Yeah. I'll point to some data that I shared last quarter, which is, if you look across the group, specifically the near-end kind of Center Store peers, what you've seen is that promotional levels in terms of percent of total volume sold on promotion has kind of migrated back to just about pre-COVID levels. It's uncanny. It's almost pre-COVID levels company by company. And so we're a little lower than that because we're recovering from supply interruption, but moving back toward that. But I have not seen promotional levels go above that kind of pre-COVID norm. So that's a positive sign, I think. And then the second metric we track is kind of depth of discount. Are we seeing this more broad-based desire to have a return to volume growth now leading to deeper discounts? And the answer is no.

Sean Connolly: Yeah, I'll point to some data that I shared last quarter, which is if you look across the group, and specifically the near-end kind of center store peers, what you've seen is that promotional levels in terms of % of total volume sold on promotion has kind of migrated back to just about pre-COVID levels. It's uncanny. It's almost pre-COVID levels company by company. We're a little lower than that because we're still recovering from supply interruption, but moving back toward that. I have not seen promotional levels go above that kind of pre-COVID norm. That's a positive sign, I think. The second metric we track is kind of depth of discount. You know, are we seeing this more broad-based desire to have a return to volume growth now leading to deeper discounts? The answer is no. We've not seen that. That's been that way for several quarters running.

Sean Connolly: We've not seen that, and that's been that way for several quarters running. I think that's positive because I think what it shows is that it's a rational environment. Everybody is, to some degree, investing margin in the service of volume. I think that kind of keeps your feet on the ground here. It's been a rational environment, and I think there's room for us to do more in terms of merch. We've moved back in the right direction, but we're not back to where we were, but obviously do it in a very rational way. That's our intent.

Sean Connolly: I think that's positive because I think what it shows is that it's a rational environment. You know, everybody is to some degree investing margin in the service of volume. I think that kind of keeps your feet on the ground here. It's been a rational environment, and I think there's room for us to do more in terms of merch. We've, you know, back in the right direction, but we're not back to where we were. Obviously do it in a very rational way. That's our intent.

Operator: Our next question comes from Scott Marks from Jefferies. Please go ahead with your question.

[Analyst]: Hey, good morning, Sean, Dave. Thanks so much for taking our questions. The first thing I wanted to ask about, coming back to some of the recovery of the supply chain disruption from earlier this year, you've spoken about obviously recovery in your own service levels, rebuilding of your own inventories as well. I'm wondering how you're seeing it from the retailer side in terms of their inventory levels relative to where they were prior to the disruption on frozen vegetables and some of the chicken products. Thanks.

Brian Adams: Hey. Good morning, Sean, Dave. Thanks so much for taking our questions. First thing I wanted to ask about coming back to some of the recovery of the supply chain disruption from earlier this year. You've spoken about, obviously, recovery in your own service levels, rebuilding of your own inventories as well. Wondering how you're seeing it from the retailer side in terms of their inventory levels relative to where they were prior to the disruption on frozen vegetables and some of the chicken products. Thanks.

Scott Marks: Hey. Good morning, Sean, Dave. Thanks so much for taking our questions. First thing I wanted to ask about coming back to some of the recovery of the supply chain disruption from earlier this year. You've spoken about, obviously, recovery in your own service levels, rebuilding of your own inventories as well. Wondering how you're seeing it from the retailer side in terms of their inventory levels relative to where they were prior to the disruption on frozen vegetables and some of the chicken products. Thanks.

Sean Connolly: Yeah, good question, Scott. It's probably not a lot of drama in the answer, though. We're not seeing anything particularly noteworthy. I would say pretty typical and nothing that I could report that would really be of any real news. Anything you'd add to that, Dave? Yeah, no. When we use the term service levels, they're very specific metrics in terms of where they are with their levels and inventory. Customers are kind of back where they need to be, generally speaking.

Sean Connolly: Yeah. Good question, Scott. It's probably not a lot of drama in the answer, though. We're not seeing anything particularly noteworthy. So I would say pretty typical and nothing that I can report that would really be of any real news. Anything you'd add to that, Dave?

Peter Galbo: Yeah. No. When we use the term service levels, there's very specific metrics in terms of where they are with their levels and inventory. And so customers are kind of back where they need to be, generally speaking.

David Marberger: Yeah. No. When we use the term service levels, there's very specific metrics in terms of where they are with their levels and inventory. And so customers are kind of back where they need to be, generally speaking.

Brian Adams: Got it. Thanks for that. And then follow-up question just on some of the chicken facility modernizations. I know you made the comment that you're still expecting the baked chicken facility to be completed in Q2. I think you're still working through a fried chicken modernization that's expected a little bit later. How should we be thinking about maybe cadence of recovery of the margin, let's say? I know you spoke about some benefits in H2, but just trying to gauge how we should be thinking about the restoration of margin from that perspective. Thanks.

Scott Marks: Got it. Thanks for that. And then follow-up question just on some of the chicken facility modernizations. I know you made the comment that you're still expecting the baked chicken facility to be completed in Q2. I think you're still working through a fried chicken modernization that's expected a little bit later. How should we be thinking about maybe cadence of recovery of the margin, let's say? I know you spoke about some benefits in H2, but just trying to gauge how we should be thinking about the restoration of margin from that perspective. Thanks.

[Analyst]: Got it. Thanks for that. A follow-up question just on some of the chicken facility modernizations. I know you made the comment that you're still expecting the baked chicken facility to be completed in Q2. I think you're still working through a fried chicken modernization that's expected a little bit later. How should we be thinking about maybe cadence of recovery of the margin, let's say? I know you spoke about some benefits in H2, but just trying to gauge how we should be thinking about the restoration of margin from that perspective. Thanks.

Sean Connolly: Sure. Well, the baked chicken project, that's the one we kind of started with. So that's farther along. And then the fried chicken is kind of a newer development because the demand for fried chicken has just exploded in the last couple of years. And we had tremendous success last year with our Banquet mega-filets. So that's an investment that will go on a little bit longer. And in the meantime, it'll be an investment that moves some of that production out of house, which has kind of a double whammy in that we lose the absorption of not producing it ourselves, and we pay a tolling fee for that. But that'll correct as we go forward as well. So baked comes on first in terms of the benefit, and fried will follow that. I mean, the good news here is we sell a lot of healthy meals in frozen.

Sean Connolly: Sure. The baked chicken project, that's the one we kind of started with. That's farther along. The fried chicken is kind of a newer development because the demand for fried chicken has just exploded in the last couple of years. We had tremendous success last year with our Banquet Mega Filet. That's an investment that will go on a little bit longer. In the meantime, it'll be an investment that moves some of that production out of house, which has kind of a double whammy in that we lose the absorption of not producing it ourselves, and we pay a tolling fee for that. That'll correct as we go forward as well. Baked comes on first in terms of the benefit, and fried will follow that. The good news here is we sell a lot of healthy meals and frozen.

Sean Connolly: These days, the ones that contain protein are the ones that, not surprisingly, people are really buying. Unfortunately, it's also been the inflationary part of the basket. We've got, you know, that's where we had a decision to make in terms of what are we after, short-term volume or margin. We fundamentally believe that the best thing for the future cash flows of our frozen business is to keep that consumer pull strong and keep our market share strong. That's why we're investing some margin in the short term to really get that volume cranking.

Sean Connolly: And these days, the ones that contain protein are the ones that, not surprisingly, people are really buying. Unfortunately, it's also been the inflationary part of the basket. So that's where we had a decision to make in terms of what are we after: short-term volume or margin. And we fundamentally believe that the best thing for the future cash flows of our frozen business is to keep that consumer pull strong and keep our market share strong. And that's why we're investing some margin in the short term to really get that volume cranking.

[Analyst]: Got it. We'll pass it on. Thanks very much.

Brian Adams: Got it. We'll pass it on. Thanks very much.

Scott Marks: Got it. We'll pass it on. Thanks very much.

Peter Galbo: Thank you.

Sean Connolly: Thank you.

Operator: Our next question comes from Tom Palmer from JPMorgan. Please go ahead with your question.

Operator: Our next question comes from Tom Palmer from JP Morgan. Please go ahead with your question.

Operator: Our next question comes from Tom Palmer from JPMorgan. Please go ahead with your question.

Brian Adams: Hey. Thank you. Is round two here? You can hear me?

Tom Palmer: Hey. Thank you. Is round two here? You can hear me?

[Analyst]: Thank you. Is round two here? You can hear me?

Sean Connolly: We got you, Tom.

Operator: We got you, Tom.

Brian Adams: All right. Tom Palmer on the call. I wanted to just ask on the timing of inflation and kind of how it plays out over the course of the year. I think from the materials, it seems like to start off the year, maybe it was a little bit favorable to that kind of 7% plus. Is Q2, just given what we're seeing with protein, maybe heightened? Or just, I guess, any help on kind of the cadence over the next three quarters as you see it today?

Tom Palmer: All right. Tom Palmer on the call. I wanted to just ask on the timing of inflation and kind of how it plays out over the course of the year. I think from the materials, it seems like to start off the year, maybe it was a little bit favorable to that kind of 7% plus. Is Q2, just given what we're seeing with protein, maybe heightened? Or just, I guess, any help on kind of the cadence over the next three quarters as you see it today?

[Analyst]: All right. A third Palmer on the call. I wanted to just ask on the timing of inflation and kind of how it plays out over the course of the year. I think from the materials, it seems like to start off the year, maybe it was a little bit favorable to that kind of 7% plus. Is Q2, just given what we're seeing with protein, maybe heightened or just, I guess any help on kind of the cadence over the next three quarters as you see it today?

Sean Connolly: Yeah, Tom, it's Dave. The Q1, the real favorability there was for tariffs and timing on tariffs. The core inflation was kind of where we thought it would be, actually a little bit a tad bit higher. When you kind of look at Q2 through Q4 and you look at overall inflation, it's pretty consistent from a percentage perspective to the full-year guide of slightly above 7%. There's no material change in the year-on-year percentage of the inflation.

Sean Connolly: Yeah. Tom, it's Dave. The Q1, the real favorability there was for tariffs and timing on tariffs. The core inflation was kind of where we thought it would be, actually a little bit tad bit higher. So when you kind of look at Q2 through Q4 and you look at overall inflation, it's pretty consistent from a percentage perspective to the full-year guide of slightly above 7%. There's no material change in the year-on-year percentage of the inflation.

Brian Adams: Okay. Understood. Thank you for that. And then, Sean, I just wanted to kind of clarify, I guess, one item. And I know it's been asked about already a little bit, but it seems like you are seeing benefits from promotional activity. But at the same time, as you have kind of taken some pricing initially, maybe you noted a little bit lower elasticity than you might see in the past. I mean, look, I guess some of this is maybe we're talking about different products where these two are applied. But I guess in the current environment, are you guys kind of baking in that one of these two sides shifts a little bit to converge?

Tom Palmer: Okay. Understood. Thank you for that. And then, Sean, I just wanted to kind of clarify, I guess, one item. And I know it's been asked about already a little bit, but it seems like you are seeing benefits from promotional activity. But at the same time, as you have kind of taken some pricing initially, maybe you noted a little bit lower elasticity than you might see in the past. I mean, look, I guess some of this is maybe we're talking about different products where these two are applied. But I guess in the current environment, are you guys kind of baking in that one of these two sides shifts a little bit to converge?

[Analyst]: Okay. Understood. Thank you for that. Sean, I just wanted to kind of clarify, I guess, one item, and I know it's been asked about already a little bit, but it seems like you are seeing benefits from promotional activity. At the same time, as you have kind of taken some pricing initially, maybe you noted a little bit lower elasticity than you might see in the past. I mean, look, I get some of this is maybe we're talking about different products where these two are applied, but I guess in the current environment, are you guys kind of baking in that one of these two sides shifts a little bit to converge?

Sean Connolly: I think what we're baking in, Tom, is that as we roll out our innovation and our marketing support, including our advertising and our major merchandising events, like, we're going to have the kind of consumer pull that we've seen in the past. So that's on the more volume-oriented businesses. And then on the more dollar-oriented businesses, I think we've baked in a historically accurate elasticity level. Usually, that's around a minus one. And we have not seen any elasticities to suggest that that is an overly optimistic point of view at all. So I think in total, the outlook for both sides of the horses-for-courses concept is that it's prudent. And I expect good consumer response in the areas where we're investing to drive volume on frozen and snacks as the year progresses.

Sean Connolly: I think what we're baking in, Tom, is that as we roll out our innovation and our marketing support, including our advertising and our major merchandising events, we're going to have the kind of consumer pull that we've seen in the past. That's on the more volume-oriented businesses. On the more dollar-oriented businesses, I think we've baked in a historically accurate elasticity level. Usually, that's around a minus one. We have not seen any elasticities to suggest that that is an overly optimistic point of view at all. I think in total, the outlook for both sides of the horses for courses concept is that it's prudent. I expect good consumer response in the areas where we're investing to drive volume on frozen and snacks as the year progresses. I expect there will be an elasticity effect on canned goods and some other things that we're taking price on.

Sean Connolly: I expect there will be an elasticity effect on canned goods and some other things that we're taking price on. But they should be fairly predictable effects consistent with history.

Sean Connolly: They should be fairly predictable effects consistent with history.

Brian Adams: Thank you for that.

Tom Palmer: Thank you for that.

[Analyst]: Thank you for that.

Operator: Ladies and gentlemen, at this time, we'll conclude today's question and answer session. I'd like to turn the floor back over to Matthew Neisius for closing remarks.

Robert Moskow: Thank you, Jamie. Thank you all for joining us today. Please reach out to Investor Relations with any additional questions. Have a great day.

Matthew Neisius: Thank you, Jamie. Thank you all for joining us today. Please reach out to Investor Relations with any additional questions. Have a great day.

Matthew Neisius: Thank you, Jamie, and thank you all for joining us today. Please reach out to Investor Relations with any additional questions. Have a great day.

Operator: Ladies and gentlemen, with that, we'll conclude today's conference call and presentation. We do thank you for joining. You may now disconnect your lines.

Q1 2026 Conagra Brands Inc Earnings Call

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