In the third quarter of 2024, Conagra Brands experienced manufacturing challenges at the primary facility that prepares and cooks its chicken used in frozen meals. When the company began to see product quality inconsistencies coming off the production lines, it promptly took corrective action. This included temporarily stopping production, implementing operational adjustments and restarting at a slower pace to restore product consistency. The company also engaged with third-party manufacturers. While these actions enabled the company to resume production that meets its quality standards, the net impact of this issue is lower volume, net sales and profit in the second half of the fiscal year.

Conagra had previously planned to implement substantial modernizing upgrades to this facility in summer 2025. That work remains on track, with targeted completion by the end of the first quarter of fiscal 2026. To ensure supply during this period, the company is continuing to work with third-party manufacturers to build up inventory ahead of the planned upgrades. In the short term, the facility will maintain operations at a reduced pace.