Renowned North American food company, ConAgra Foods, Inc. (CAG - Free Report) recently enriched its product portfolio by acquiring the Salpica, Red Fork and Frontera brands from Red Fork LLC and Frontera Foods, Inc. Financial details of the deal have not been revealed.
Frontera Foods is a premium gourmet Mexican food producer. The company offers sauces, salsa, snacks and meals under the Salpica and Frontera brands. Red Fork LLC is well-known for its unique American cooking sauces.
Henceforth, ConAgra aims to improve the quality of the three newly acquired brands. This will, in turn, boost its popularity within the market moving ahead. However, the company stated that the deal does not include any Frontera-branded restaurants.
ConAgra is undergoing rigorous structural changes, by divesting its less profitable businesses and acquiring new brands, for boosting revenues and margins.
In May 2015, the company bought the premium organic and natural frozen meal producer, Blake’s All Natural Foods. In Nov 2015, ConAgra successfully divested its private level business arm to TreeHouse Foods. In Jul 2016, this popular food company received approximately $488 million by spinning off its JM Swank and Spicetec Flavors & Seasonings business.
CONAGRA FOODS Price
ConAgra’s stock price was $43.04 per share as of Sep 26, 2016.
ConAgra is slated to report its first-quarter fiscal 2017 results on Sep 29 before the opening bell.
Notably, ConAgra plans to segregate its business in two separate pure play public companies – ConAgra Brands and Lamb Weston – by the end of calendar year 2016. This decision reflects the company’s focus on greater commercial flexibility and its intention to boost near-term profits.
Stocks to Consider
ConAgra currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks that warrant a look are Omega Protein Corporation (OME - Free Report) , Tate & Lyle plc (TATYY - Free Report) and US Foods Holding Corp. (USFD - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Omega Protein Corporation: Over the last 60 days, the Zacks Consensus Estimate for the stock has been revised upward by 25.7% for 2016 and 14.6% for 2017.
Tate & Lyle plc: The Zacks Consensus Estimate for the stock has been revised upward by 1.8% for fiscal 2017 and 5.9% for fiscal 2018, over the same time frame.
US Foods Holding Corp.: The Zacks Consensus Estimate for the stock has increased by 9.2% for 2016 and 10.3% for 2017, over the last 60 days.
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