Cramer said ConAgra hasn't had a good track record ever since it bought private label Ralcorp Holdings, and he wants to know what ConAgra has to say about that, especially in light of the activist investors insisting on a strategic review, among other demands.
Cramer wants management to say, we understand how our share base really isn't happy with us and we will take the charge and get rid of the private label. ConAgra has a new CEO in Sean Connolly, which is why this issue is "front and center."
In addition, Cramer said to keep an eye Pinnacle Foods (PF) and on TreeHouse Foods (THS) as potential buyers of Ralcorp. He says TreeHouse in particular could make this work. Activists have been pressuring ConAgra to change its board in an effort to help turn the company around, which has helped to push the stock up, but the brands remain weak, Cramer said.
Analysts are expecting ConAgra to post earnings of 59 cents a share and revenue of $4.14 billion for the quarter. ConAgra took a charge of $1.3 billion in March related to the Ralcorp deal. The company then lowered its full year 2015 earnings projections. At the midrange, which would be around $2.15 a share, it still would be a decline year-over-year of 1%, according to Cramer. Investors will want to see if the packaged foods maker has managed to put its troubles behind it. They'll look for new marketing plans from the company as well as any cost-cutting initiatives.