July 11 (Reuters) -

Conagra Brands ( CAG ) forecast annual revenue and profit

below estimates after missing quarterly revenue expectations on

Thursday, as high living costs prompted cash-strapped shoppers

to turn to cheaper alternatives for their at-home meals.

Shares of the company, which also missed quarterly revenue

estimates, were down about 4% in premarket trading.

The packaged food industry has been struggling with

lackluster volume recovery as higher living costs have squeezed

budgets, forcing cost-conscious consumers to look for even

cheaper alternatives despite preferring to eat at home over

dining out.

Despite reducing product prices to attract more cautious

spenders, the maker of Slim Jim beef jerky still experienced

sluggish demand in its frozen food and snacking businesses.

Conagra's total volumes decreased 1.8% in the fourth quarter

after falling 7.7% last year.

"Looking ahead, we expect a gradual waning of the

challenging industry trends seen throughout fiscal year 2024, as

consumers adapt and establish new reference prices," CEO Sean

Connolly said.

The company expects fiscal-year 2025 organic sales to

decrease between 1.5% to flat, compared with analysts' estimates

of 1.54% rise, as per LSEG data.

The company beat quarterly estimates for profit but

forecasts fiscal 2025 profit below estimates.

The Healthy Choice cereal maker expects annual profit per

share to be in the range of $2.60 to $2.65 compared to analysts'

estimates of $2.69 per share.

Conagra Brands ( CAG ) reported net sales of $2.91 billion for the

quarter ending May 26, below analysts' average estimates of

$2.93 billion, according to LSEG data.