Conagra Brands swung to a loss in the fiscal fourth quarter and cut its dividend, as its new chief executive aims to strengthen the company with a more conservative spending strategy.

The food manufacturer, which owns Orville Redenbacher's popcorn and Slim Jim meat sticks, on Wednesday posted a loss of $1.62 billion, or $3.37 a share, compared with a profit of $256 million, or 53 cents a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were 47 cents, ahead of the 46 cents anticipated by analysts, according to FactSet.

Fourth-quarter revenue rose 3.6% to $2.88 billion. Analysts surveyed by FactSet forecast revenue of $2.89 billion.

In the fourth quarter, sales in the grocery and snacks category rose 0.3%, while refrigerated and frozen food revenue increased 5.3%.

Conagra lowered its annual dividend to 70 cents a share, or 17.5 cents quarterly. In March, the company approved a quarterly dividend payment of 35 cents, which would equate to $1.40 annually.

John Brase, who stepped in as chief executive last month, said the reduced dividend is part of his strategy to improve Conagra's financial situation. Brase also aims to strengthen the business by restoring Conagra's margins, increasing investment in its brands and reducing complexity across the business, he said.

"Taking action against these opportunities will improve our competitiveness, build a strong foundation for growth, and help unlock the full potential of our portfolio," Brase said.

Conagra incurred a $2 billion non-cash goodwill and brand impairment charge in the quarter, primarily triggered by a sustained decline in the company's share price and market capitalization.

Through Tuesday's close, Conagra's stock was down 18% this year. It fell 3% to $13.74 in pre-market trading Wednesday.

For the new fiscal year, Conagra expects adjusted earnings per share will be $1.40 to $1.50. Analysts were forecasting $1.56 a share.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

July 15, 2026 08:08 ET (12:08 GMT)

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