Conagra Brands reported a higher fiscal first-quarter profit despite lower sales, logging $174.3 million, or 36 cents a share, compared with $164.5 million a year earlier. On an adjusted basis, earnings came in at 41 cents a share, beating analyst estimates of 28 cents. Net sales slipped 1.4% to $2.6 billion, roughly in line with expectations.

On an organic basis, sales were down 1.1%. Sales across the grocery and snacks segment decreased 2.6%, while the refrigerated and frozen unit saw a 2.1% decline. John Brase, who stepped into Conagra's top role in June, called the quarter a solid start to fiscal 2027, citing progress on restoring margins and reducing complexity.

Looking ahead, Conagra reaffirmed its outlook, projecting organic net sales to fall between 3% and 1%, with adjusted earnings between $1.40 and $1.50 a share. The food manufacturer, which owns Orville Redenbacher's popcorn and Slim Jim meat sticks, operates in a challenging environment but remains focused on restoring margins and rebalancing capital allocation. Brase emphasized the importance of previously outlined priorities including increasing investment and reducing complexity across the business.