ConAgra Foods Inc.
), one of the leading processed and packaged food makers in North
America, inched up 2 cents after the food company announced
expansion worth roughly $100 million in Russellville, Arkansas.
The company intends to expand its plant in the Russellville area
to accommodate making of Bertolli and P.F. Chang's frozen meals.
The expansion is likely to create at least 80 new jobs. ConAgra's
presence in this part of world can be dated back to 1965 with
roughly 1,350 employees working for it currently.
In August 2012, ConAgra Foods completed the acquisition of Home
Menu frozen meals brands--Bertolli® and P.F. Chang's® from
) for a total cash consideration of $267 million. The acquisition
of frozen meals businesses includes a license for use of the
Bertolli brand name in favor of ConAgra. Also, the acquisition
entails transfer of Unilever's existing license for use of Home
Menu brand name of P.F. Chang to the food maker.
Such strategic acquisitions, which comprehensively embrace the
principal businesses along with the use of licenses, add value to
ConAgra; helping the company to further expand its portfolio of
Marie Callender's®, Banquet®, Healthy Choice®, Slim Jimand Kid
ConAgra Foods Inc. with its wide array of brands in almost 97%
of America's households, serves grocery retailers, restaurants and
other foodservice establishments. Thus, the company's strategic
acquisitions fit in well with the existing capabilities of ConAgra
Foods as it expands its business portfolio and presence across the
food market. Moreover, its promotional campaigns, strong sales
force, dedicated customer-serving teams, and category leadership
continue to add depth and dynamism to its existing product
The current Zacks Consensus Estimate for the fiscal second
quarter of 2013 (ending November 2012) is 53 cents, representing a
year-over-year increase of 13.4%. Estimates for fiscal 2013 and
2014 are $2.06 and $2.15, reflecting annual growth of 12.1% and
We have a Neutral recommendation on ConAgra over the long term.
Also, ConAgra has a Zacks #2 Rank, implying a short-term (1-3
months) Buy rating. The company's prime competitors are
HJ Heinz Co.
Kraft Foods Inc.
CONAGRA FOODS (CAG): Free Stock Analysis Report
HEINZ (HJ) CO (HNZ): Free Stock Analysis Report
KRAFT FOODS INC (KFT): Free Stock Analysis
UNILEVER PLC (UL): Free Stock Analysis Report
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