(Reuters) -Conagra Brands ( CAG ) reported first-quarter sales on Wednesday that missed analysts' estimates as budget-conscious consumers prioritized shopping for lower-priced alternatives over the company's higher-priced pantry staples.

The company's shares were down about 3% in premarket trading.

Conagra, like other U.S. packaged food companies, has seen demand take a hit from prior price hikes on its frozen meals and Slim Jim beef jerky, with shoppers opting for cheaper private label brands.

The company's quarterly net sales fell 3.8% to $2.79 billion. Analysts had expected $2.84 billion, according to data compiled by LSEG.

Conagra's quarterly gross margin fell 189 basis points to 26.5%.