CAG · 10-K · 2026A · Full report

Supply Chain Constraints

CONAGRA BRANDS INC. · 2026-07-15 · Importance 41 · Surprise 42 · No source text

Conagra disclosed temporary manufacturing disruptions in its Hebrew National business that negatively affected fiscal 2025 net sales by an estimated $24 million during the key grilling season and reduced gross profits by approximately $10 million due to lost profits, abnormal manufacturing variances, and inventory write-offs. The disruptions affected both Refrigerated & Frozen net sales and Foodservice results and are explicitly quantified by management. Broader supply chain pressures—input cost inflation, labor and energy costs, tariffs on packaging materials—also contributed to margin compression in fiscal 2026. Management cites productivity initiatives and pricing actions as partial offsets but continues to flag supply chain risk to volumes, costs and earnings.

Key facts

• Unconditional purchase obligations totaled approximately $2.72 billion as of May 31, 2026, with approximately $1.63 billion due in fiscal 2027; open purchase orders and supply agreements approximately $1.26 billion; warehousing service agreements approximately $826 million. source
• Fiscal 2025 net sales were impacted by approximately $24 million due to temporary manufacturing disruptions in our Hebrew National business during the key grilling season. source

Impact estimates