Conagra reviews non-core assets after dividend cut, weak outlook

Conagra Brands said it is reviewing non-core assets after cutting its annual dividend to 70 cents a share from $1.40 and warning that profits will stay under pressure, a sharp reset for the Chicago packaged-food company. The move came as Conagra released fiscal 2026 fourth-quarter and full-year results and took a large impairment charge, adding fresh evidence that its pantry brands are losing some pricing power.

The company, known for Slim Jim and Healthy Choice, has been squeezed by inflation-fatigued shoppers, growing GLP-1 use and competition from smaller brands, forces that are pushing consumers toward cheaper or more selective food baskets. Conagra had previously announced a quarterly dividend of 35 cents per share in April 2024, before the payout was cut to the new annual rate on July 15.

The asset review opens the door to sales, separations or other portfolio changes as chief executive John Brase tries to sharpen the business around better-performing labels. Analysts have pointed to high net debt, eroding free cash flow and a payout ratio near 90%, leaving little cushion if organic sales keep sliding.

Conagra had already told investors on June 9 that it would release its fiscal 2026 fourth-quarter and full-year results on July 15. For shareholders, the immediate signal is that cash is being conserved rather than sent out, while for the broader packaged-food aisle it is another sign that major branded companies are having to fight harder for shoppers who are trading down.