Omaha Mayor Jean Stothert met with ConAgra CEO Sean Connolly Wednesday and she says he promised an answer by the end of this week on the company’s reorganization plans.
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ConAgra Foods, Inc. (NYSE:CAG) is the packaged food company.
ConAgra is cutting about 1,500 jobs, or approximately 30 percent of its global, office-based workforce, and moving its headquarters to Chicago from Omaha, Nebraska, the company said Thursday.
Processed food companies have also been under pressure since Brazilian private equity firm 3G Capital Partners, famous for aggressive cost-cuts, formed Kraft Heinz Co earlier this year and said it would cut $1.5 billion in annual costs by 2017. The company also said that plant positions not will be eliminated in connection with the restructuring. The maker of Slim Jim beef jerky and Chef Boyardee pasta said it expects to save at least $300 million in the next three years due to the cost cuts.
Beginning in the summer of 2016, approximately 700 employees will be located to new offices in Chicago’s Merchandise Mart, including the company’s senior leadership team and certain functions of the Consumer Foods business, which are now located in Omaha and Naperville, Ill.
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ConAgra will continue to maintain a presence in Omaha, including about 1,200 employees within key administrative, research and development and supply chain roles. The Company provides branded and private branded food in households, in addition to commercial foods business serving restaurants and foodservice businesses. On average, equities research analysts anticipate that ConAgra Foods will post $2.22 EPS for the current fiscal year. The company reported $0.45 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.40 by $0.05. Finally, Sanford C. Bernstein increased their price target on ConAgra Foods from $37.00 to $44.00 and gave the company a market perform rating in a research report on Friday, June 19th.
