Shares of the Slim Jim beef jerky maker, which also missed fourth-quarter revenue expectations, fell more than 4% in early morning trade.
Despite more consumers preferring to eat at home rather than dining out, the packaged food industry has struggled with volumes as higher living costs have driven people to seek cheaper alternatives.
The 1.8% volume decline seen in the fourth quarter was in line with the previous quarter, as Conagra reduced prices of some of its frozen products to lure back consumers
The price cuts helped its refrigerated and frozen food business — a major revenue contributor — drive 0.9% rise in volumes after several quarter of declines.
However volumes in the snacks category remained strained, falling 3.6% in the quarter, due to high pricing and a consumer shift towards private label brands.
Snacks giant PepsiCo (PEP.O) also missed expectations for quarterly revenue on Thursday.
Conagra expects fiscal-year 2025 organic sales to be flat to down 1.5%, compared with analysts' estimates of 1.54% rise, as per LSEG data.
The Healthy Choice cereal maker expects annual profit per share to range between $2.60 and $2.65 compared to analysts' estimates of $2.69 per share.
"National food brands like those in the Conagra portfolio face a tough road ahead," said Blake Droesch, analyst with eMarketer. "If a consumer adopts more budget-friendly shopping habits, they are unlikely to immediately return to their old ways once inflation stabilizes."
Conagra Brands reported net sales of $2.91 billion for the quarter ending May 26, below analysts' average estimates of $2.93 billion, according to LSEG data.
