Packaged Food Companies Face Earnings Risks, High Leverage -- Market Talk

Dow Jones03-12 23:29

1129 ET - Conagra, Campbell's and General Mills all face earnings risk into fiscal 2027, high leverage and uncomfortable dividend payout ratios, say Wells Fargo analysts, who downgrade all three stocks to underweight. General Mills' dollar trends are still soft despite price investments, for Conagra, consumption is tracking negative and commodity inflation is likely to make margin expansion difficult and for Campbell's, dividend payout ratios are nearing 90%. "In the context of price investments (namely GIS, CPB), stubborn inflation $(CAG)$ which could actually grow, and generally tight models, negative catalysts unfortunately remain," the analysts say. (nicholas.miller@wsj.com)

(END) Dow Jones Newswires

March 12, 2026 11:29 ET (15:29 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment