(Reuters) -Conagra Brands forecast annual revenue below estimates on Thursday, as cash-strapped shoppers turned to cheaper alternatives for their at-home meals as high living costs continued to weigh on sales volumes.
Shares of the company were down 4% in premarket trading after missing quarterly revenue expectations.
The packaged food industry has been struggling with lackluster volume recovery as higher living costs have squeezed budgets and forced cost-conscious consumers to look for even cheaper alternatives despite preferring to eat at home over dining out.
The company expects fiscal-year 2025 organic sales to decrease between 1.5% to flat, compared with analysts’ estimates of 1.54% rise, as per LSEG data.
Conagra Brands reported net sales of $2.91 billion for the quarter ending May 26, below analysts’ average estimates of $2.93 billion, according to LSEG data.
(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Tasim Zahid)
