Conagra Brands (Conagra Brands) Gross Margin %

: 28.32% (As of Feb. 2024)

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Gross Margin % is calculated as gross profit divided by its revenue. Conagra Brands's Gross Profit for the three months ended in Feb. 2024 was $859 Mil. Conagra Brands's Revenue for the three months ended in Feb. 2024 was $3,033 Mil. Therefore, Conagra Brands's Gross Margin % for the quarter that ended in Feb. 2024 was 28.32%.

Warning Sign:

Conagra Brands Inc gross margin has been in long-term decline. The average rate of decline per year is -2.5%.

The historical rank and industry rank for Conagra Brands's Gross Margin % or its related term are showing as below:

CAG' s Gross Margin % Range Over the Past 10 Years
Min: 24.61 Med: 27.79 Max: 29.95
Current: 27.33

During the past 13 years, the highest Gross Margin % of Conagra Brands was 29.95%. The lowest was 24.61%. And the median was 27.79%.

CAG's Gross Margin % is ranked better than
55.7% of 1808 companies
in the Consumer Packaged Goods industry
Industry Median: 24.995 vs CAG: 27.33

Conagra Brands had a gross margin of 28.32% for the quarter that ended in Feb. 2024 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Conagra Brands was -2.50% per year.

Conagra Brands Gross Margin % Historical Data

The historical data trend for Conagra Brands's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Conagra Brands Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

Gross Margin %

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27.81

27.77

28.42

24.61

26.59

Conagra Brands Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Gross Margin %	Get a 7-Day Free Trial															27.18	26.35	28.34	26.39	28.32

Competitive Comparison

For the Packaged Foods subindustry, Conagra Brands's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Conagra Brands Gross Margin % Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Conagra Brands's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Conagra Brands's Gross Margin % falls into.

Conagra Brands Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Conagra Brands's Gross Margin for the fiscal year that ended in May. 2023 is calculated as

Gross Margin % (A: May. 2023 )	=	Gross Profit (A: May. 2023 )	/	Revenue (A: May. 2023 )
	=	3264.8	/	12277
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(12277 - 9012.2)	/	12277
	=	26.59 %

Conagra Brands's Gross Margin for the quarter that ended in Feb. 2024 is calculated as

Gross Margin % (Q: Feb. 2024 )	=	Gross Profit (Q: Feb. 2024 )	/	Revenue (Q: Feb. 2024 )
	=	858.8	/	3032.9
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(3032.9 - 2174.1)	/	3032.9
	=	28.32 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Conagra Brands (NYSE:CAG) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Conagra Brands had a gross margin of 28.32% for the quarter that ended in Feb. 2024 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Conagra Brands Gross Margin % Related Terms

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Conagra Brands (Conagra Brands) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Conagra Brands Inc (NYSE:CAG) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

CAO:Germany CAO:Germany

Address

222 W. Merchandise Mart Plaza, Suite 1300, Chicago, IL, USA, 60654

Website

https://www.conagrabrands.com

Conagra Brands is a packaged food company that operates predominantly in the United States (over 90% of revenue and profits). Most of its revenue comes from frozen food, including brands like Marie Callender's, Healthy Choice, Banquet, and Birds Eye. Conagra also sells snacks, shelf-stable staples, and refrigerated food through brands like Duncan Hines, Hunt's, Slim Jim, Vlasic, Orville Redenbacher's, Reddi-wip, Wish-Bone, and Chef Boyardee. The company primarily sells through the U.S. retail channel, with just 8% of fiscal 2023 revenue coming from international markets and 9% from foodservice.

Executives

Richard H Lenny	director	ILLINOIS TOOL WORKS INC., 155 HARLEM AVE., GLENVIEW IL 60025
Francisco Fraga	director	222 MERCHANDISE MART PLAZA, SUITE 1300, CHICAGO IL 60654
Thomas M Mcgough	officer: EVP and Co-COO	C/O CONAGRA FOODS, INC., ONE CONAGRA DRIVE, MS 1-330, OMAHA NE 68102
William Eric Johnson	officer: SVP, Corporate Controller	222 MERCHANDISE MART PLAZA, SUITE 1300, CHICAGO IL 60654
Charisse Brock	officer: EVP, Chief HR Officer	C/CONAGRA FOODS, INC., ONE CONAGRA DRIVE, MS1-330, OMAHA NE 68102
Robert G Wise	officer: SVP, Corporate Controller	C/O CONAGRA FOODS, INC., ONE CONAGRA DRIVE, OMAHA NE 68102
Carey Bartell	officer: EVP, GC and Corp. Secretary	C/O CONAGRA BRANDS, INC., 222 W. MERCHANDISE MART PLAZA, STE. 1300, CHICAGO IL 60654
Denise Paulonis	director	8000 BENT BRANCH DRIVE, IRVING TX 75063
Emanuel Chirico	director	7 NEW YORK PLACE, BRONSVILLE NY 10708
Batcheler Colleen	officer: SVP and General Counsel	ONE CONAGRA DRIVE, OMAHA NE 68102
Darren Serrao	officer: EVP and Co-COO	C/CONAGRA FOODS, INC., ONE CONAGRA DRIVE, MS1-330, OMAHA NE 68102
George Dowdie	director	C/O CONAGRA BRANDS, INC., 222 W. MERCHANDISE MART PLAZA, STE 1300, CHICAGO IL 60654
Fran Horowitz-bonadies	director	6301 FITCH PATH, NEW ALBANY OH 43054
Alexandre Eboli	officer: EVP,Chief Supply Chain Officer	C/O CONAGRA BRANDS, INC., 222 W. MERCHANDISE MART PLAZA, STE. 1300, CHICAGO IL 60654
Jana Partners Llc	director, other: See Remarks	767 FIFTH AVENUE, 8TH FLOOR, NEW YORK NY 10153