Conagra Brands Inc (CAG.N) raised its annual forecasts on Thursday, after handily beating expectations for quarterly profit, as it mainly benefited from higher prices for its snacks and ready-to-eat meals.
Shares of the company, known for its brands Birds Eye and Chef Boyardee, rose about 4% in premarket trading.
Companies across the packaged food industry in North America have undergone multiple rounds of price increases in the past year to shield their profit margins from higher costs associated with labor, freight and raw materials.
But people have accepted the higher prices with little push back, as they find eating out far more expensive than cooking at home.
Conagra’s upbeat results follow peers Campbell Soup Co (CPB.N), General Mills Inc (GIS.N) and Kellogg Co (K.N), who have also echoed in recent months that price hikes have not yet dented demand significantly for them.
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