U.S. Food: Chicago 2026: Second Year of Uncertainty in the Second City

Research evidence excerpt

U.S. Food: Chicago 2026: Second Year of Uncertainty in the Second City

Barclays | U.S. Food

pursuing more meaningful portfolio optimization, particularly as it relates to Hostess. General

Mills, by contrast, remains more challenged, as improving competitiveness is being offset by

incremental category slow-down while discrete FY27 headwinds lead us to see downside risk to

already muted Consensus expectations. At Conagra Brands, tangible progress on volumes is

now giving way to heightened uncertainty as a new CEO steps in very shortly amid a difficult

backdrop, increasing the likelihood, we think (along with most others we speak with) of an

earnings, and potentially also a dividend, reset. Lamb Weston Holdings has clearly made

meaningful operational progress under new leadership and is executing well in North America,

but management framed FY27 more as a stabilization year at a time when price/mix pressure

(mostly mix) and international challenges are expected to continue to persist – which we think

heightens the sense of urgency around more structural actions, particularly with new board

members and CFO. The Kraft Heinz Company is beginning to see early signs of share recovery

and has gained incremental flexibility following a modest 1Q26 beat versus low expectations,

with management confident its $600mm reinvestment plan will be enough to position the

company among the eventual winners in the space, though investors understandably remain

focused on whether investment levels ultimately need to rise even further. Finally, Utz Brands

continues to execute relatively well within salty snacks, reaffirming confidence in +2-3% YOY

organic sales growth in 2026 despite softer April data and heightened competitive pricing