Conagra Brands fell short of the sales expectations set by Wall Street in the third quarter. Supply chain issues in its frozen food and refrigerated business impacted its ability to keep up with demand. The company's stock, known for brands like Slim Jim and Duncan Hines, dropped by 3.5% before the market opened due to broader market declines.

Conagra is dealing with both slower sales growth as budget-conscious consumers opt for cheaper private-label options, as well as disruptions in its chicken preparation and cooking facility that affect the supply of its frozen meals.

CEO Sean Connolly mentioned that although shipments fell behind consumption due to supply constraints, progress is being made in restoring inventory and improving customer service standards.

During the quarter, the company's net sales decreased from $3.03 billion to $2.84 billion year-over-year, missing the average analyst estimate of $2.90 billion.