CHICAGO - In a move aimed at assisting Americans managing diabetes and weight loss, Conagra Brands (NYSE:CAG) has announced the introduction of a new "On Track" badge for its Healthy Choice product line. The badge will be featured on 26 items starting in January 2025, signaling that these products are high in protein, low in calories, and a good source of fiber, making them suitable for those using GLP-1 medications. According to InvestingPro data, Conagra maintains a strong financial position with $11.9 billion in revenue over the last twelve months and a "GOOD" overall Financial Health Score.
The "On Track" badge is designed to help consumers easily identify food options that align with their dietary needs, whether they are using GLP-1 medications, transitioning off them, or simply focusing on a healthy lifestyle. GLP-1 medications, which are used by nearly 15 million U.S. adults, suppress appetite and can lead to reduced nutrient intake. Conagra Brands has leveraged its food-first philosophy to curate these Healthy Choice options to meet the specific needs of GLP-1 users. InvestingPro analysis indicates the company is well-positioned for growth, with analysts forecasting increased net income this year. Subscribers can access 8 additional ProTips and comprehensive financial analysis through the Pro Research Report.
Bob Nolan, Vice President of Demand Science at Conagra Brands, stated that the increased use of GLP-1 medications presents an opportunity to support Americans in their health management efforts. The "On Track" badge reflects Conagra's commitment to providing accessible, healthy meal options.
The badge will make its debut on Healthy Choice Café Steamers and Simply Steamers due to their smaller portion sizes and affordability, with prices set at $3.49 and $3.99 respectively. This pricing strategy ensures that the meals are accessible, especially given the significant costs often associated with GLP-1 medications.
Conagra Brands emphasizes that the badge highlights existing products that are already well-suited for GLP-1 users, and no changes have been made to the meals themselves. The USDA has reviewed and approved all products carrying the badge, ensuring they meet regulatory standards.
Consumers can find the "On Track" Healthy Choice Café Steamers and Simply Steamers at major retailers nationwide and online. While the new packaging will begin rolling out in January 2025, availability may vary by location.
Based on a press release statement, Conagra Brands, Inc. (NYSE: CAG) is a leading North American branded food company with a portfolio that includes Birds Eye, Duncan Hines, Marie Callender's, and many others. Headquartered in Chicago, the company generated over $12 billion in net sales for fiscal 2024. Trading near its 52-week low, the stock currently offers a notable 5.05% dividend yield and has maintained dividend payments for 49 consecutive years. InvestingPro's Fair Value analysis suggests the stock is currently undervalued.
In other recent news, Conagra Brands has been busy with several recent developments. The company is set to introduce a new label for a selection of its Healthy Choice frozen meals, branding them as "GLP-1 friendly," starting in January. This initiative aims to cater to consumers who are reducing their food intake, particularly those using GLP-1 drugs for weight loss.
Conagra is also exploring the sale of its Chef Boyardee brand, with the brand's valuation expected to exceed $500 million. This potential divestiture is part of Conagra's strategy to shed lower-growth segments amid a challenging sales environment.
Analyst firms Jefferies and TD Cowen have adjusted their outlooks on Conagra. Jefferies reduced the price target to $28 from the previous $30 while maintaining a Hold rating on the stock. TD Cowen, on the other hand, increased the stock's price target to $30.00 from the previous $28.00, while reaffirming a Hold rating on the shares.
Lastly, despite facing significant challenges in the first quarter of fiscal 2025, including a manufacturing disruption at its Hebrew National hot dog plant that led to a substantial revenue drop, Conagra maintains its fiscal year goals. The company aims to achieve $1 billion in cost savings by fiscal 2025 end, with $350 million expected from productivity initiatives.
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