Conagra Brands (CAG) is expected to report weak Q3 results due to supply chain issues, especially in its refrigerated and frozen segment, RBC Capital Markets said in a note Monday.

The company has lowered its financial outlook for fiscal 2025, including sales and earnings, mainly because of problems supplying frozen chicken meals and frozen vegetables, the investment firm said.

The company's market share for frozen vegetables, mainly through the Birds Eye brand, has significantly declined and remains weak, according to the note.

Recovery seems uncertain and possibly slow because of ongoing consumer spending challenges and persistent supply chain problems extending into fiscal 2026, making the outlook unclear, RBC noted.

RBC has a sector perform rating and $27 price target for Conagra Brands.

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