ConAgra Foods (CAG) Stock Up, Names CEO of Lamb Weston Spinoff

ConAgra Foods (CAG) stock is advancing this morning as it named a CEO and chairman of its Lamb Weston unit.
By Rachel Graf ,

NEW YORK (TheStreet) -- Shares of ConAgra Foods (CAG) - Get Report are rising 0.78% to $48.09 in late-morning trading on Wednesday after naming Thomas Werner and Timothy McLevish CEO and executive chairman, respectively, of its Lamb Weston division once the unit has been spun off. 

Werner currently heads ConAgra's commercial-foods unit, while Timothy McLevish is currently a director.

The spinoff of the packaged food company's Lamb Weston potato business is expected to be completed in the fall, ConAgra CEO Sean Connolly said in a statement.

The split will allow ConAgra to focus on its grocery-store brands by ridding it of its commercial customers such as restaurants, the Wall Street Journal notes.

ConAgra's consumer foods business will include brands such as Marie Callender's, Hunt's, Ro*Tel, Reddi-wip, Slim Jim, Chef Boyardee, Orville Redenbacher's, P.F. Chang's and Healthy Choice

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.

Conagra's strengths such as its reasonable valuation levels and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and weak operating cash flow.

You can view the full analysis from the report here: CAG

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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