Jim Cramer Calls Conagra a “Very Tough Situation”

Conagra Brands, Inc. (NYSE:CAG) is one of the stocks in Jim Cramer’s spotlightt. When Cramer was asked about the company during the lightning round, he stated:

“Very tough, very tough situation. Conagra’s got 7% inflation. They got problem with tin cans. They can’t, it’s killing them… The margins aren’t that good. The brands aren’t enabling them to be able to take any price. I have to tell you, the one thing that was important was that, on the conference call, they did say that they think they have no problem paying the dividend. A company that has to answer about whether it has a problem paying the dividend or not is a company that I say [don’t buy, don’t buy, don’t buy].”

A worker assembling a meal in a food production facility.

Conagra (NYSE:CAG) produces and sells a wide range of packaged food products, including frozen meals, snacks, sauces, and shelf-stable items. The company’s portfolio includes well-known brands like Birds Eye, Healthy Choice, Slim Jim, and Duncan Hines.

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Disclosure: None. This article is originally published at Insider Monkey.