US packaged food companies fall as Wells Fargo downgrades to 'underweight'

Campbells Co

12/03/2026 16:15

** Shares of U.S. packaged food companies Campbell's Co CPB.O, General Mills GIS.N and Conagra Brands CAG.N fall after Wells Fargo downgrades to "underweight" from "overweight"

** Points to sluggish consumption trends and rising inflation being a potential risk for gross margin

** We're potentially entering another FY of EPS risk with high leverage and valuations low but in reach with the past 20-year lows and unlikely a major catalyst for shares - Chris Carey, analyst at Wells Fargo

** Adds leverage and dividend payout ratios are nearing "still manageable but certainly uncomfortable" levels

** CPB down 3.6%, GIS  1.8% and CAG  2.1% at noon

** CPB has cut its annual sales and profit forecasts amid weak snacks demand and also paused share repurchases

** GIS, which is set to report Q3 results on March 18, cut its annual core sales and profit forecasts in February

** Including session moves, CPB, GIS and CAG down about 20%, 14% and 4%, respectively,  this year

(Reporting by Neil J Kanatt in Bengaluru)

((Neil.JKanatt@thomsonreuters.com;))