Bernstein Cuts 4 Packaged Food Stocks to Underperform as Inflation, GLP-1 Use Bite
Updated
Updated · Bloomberg · Jun 5
Bernstein Cuts 4 Packaged Food Stocks to Underperform as Inflation, GLP-1 Use Bite
2 articles · Updated · Bloomberg · Jun 5
Summary
Bernstein analyst Alexia Howard downgraded General Mills, Conagra, Campbell’s and Kraft Heinz to underperform from market perform, turning bearish on some of the biggest U.S. packaged food names.
Rising oil prices drove her call, with higher freight, packaging and agricultural costs expected to squeeze margins across the sector.
GLP-1 weight-loss drugs and cuts to federal food assistance add demand pressure, threatening sales of junk foods and sugary drinks.
The Trump administration’s “Make America Healthy Again” agenda deepens that risk, pointing to a tougher backdrop for packaged food companies beyond near-term inflation.