Conagra Brands is investing to expand existing manufacturing operations at its Fayetteville, Arkansas site.
The US-based frozen foods and snacks maker has committed a multi-year investment of around $220m to add new capacity at the factory.
Conagra said in a statement that the project is expected to create more than 100 jobs over the next five years, “strengthening the region’s manufacturing workforce and economy”.
The listed company added the expansion will “significantly increase” chicken production capacity at the Fayetteville plant.
Conagra's supply chain senior vice president Craig Weiss said: “This significant investment in our Fayetteville facility will allow us to continue to grow our leading frozen-foods business.
“Conagra is committed to investing in innovation across the company, including our supply chain. We are also pleased to continue growing in Fayetteville, where Conagra has a long history."
The Fayetteville facility currently produces ready-to-eat meals under brands such as Hungry-Man, Banquet, Gardein, and Healthy Choice. It delivers around 15 million cases of food annually.
Construction work for the expansion is scheduled to begin later this year.
The company said the expansion will also support “future growth” and “innovation in its protein portfolio”.
The investment was also confirmed by the Arkansas Economic Development Commission (AEDC) in a separate statement.
AEDC executive director Clint O’Neal said: “Conagra has been a valued member of Arkansas’ business community for years, and the company is doubling down on our state with an approximately $220m expansion in Fayetteville.
“We want companies like Conagra to succeed in Arkansas and are excited to see their growth in Fayetteville.”
Chicago-headquartered Conagra Brands operates production sites across North America. According to its website, the company had 41 production facilities and 18,300 employees as of fiscal 2025.
In Arkansas, Conagra also operates a facility in Russellville, and employs around 2,000 people in the state.
In May last year, the company announced an investment of almost $30m to upgrade equipment at a Missouri plant that produces Healthy Choice and Marie Callender’s meals.
Conagra is due to report its third-quarter results on 1 April.
The company booked $968m of non-cash goodwill and brand impairment charges in the second quarter linked to a decline in its share price and market capitalisation. The shares have fallen 31% over the past 12 months to last trade at $19.02.
Issued in December, the second-quarter results to 23 November showed reported sales dropped 6.8% to $3bn, while organic revenue was down 3%.
It delivered a net loss of $664m due to the impairment versus a $284.5m profit a year earlier.
Adjusted EBITDA declined 25.2% to $478m. Basic earnings per share posted a $1.39 loss compared to a positive $0.60 a year earlier.
