ConAgra Foods (NYSE: CAG) stock fell 0.48% to 47.37 in the late morning on Thursday after a disappointing revenue report for the fiscal 2016 fourth quarter in quarterly net sales, missing analysts’ estimates due to the decrease in demand for its consumer foods, including Chef Boyardee pasta and Hunt’s ketchup.
“Both of our operating segments posted very good results, largely reflecting increased focus on expanding margins through continued supply chain productivity, better price/mix, and lower SG&A,” CEO Sean Connolly said.
Revenue declined 9.5% to $2.83 billion for this quarter ended on May 29, missing estimates of $2.89 billion.
The food company will move its headquarters from Omaha, Nebraska to Chicago and plan to spin off its Lamb Weston frozen potato business into a separate public company this fall.
“We’re squarely focused on Lamb Weston to really succeed on its own,” Chief Executive Officer Sean Connolly said. “We think the market will recognize the attractiveness of this really good business.”
Analysts familiar with ConAgra Foods said there are concerns for investors to be aware of, including the weak revenue, sales and blur company guidance.