Consumer & Retail: Tender-hearted

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Consumer & Retail: Tender-hearted

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Consumer & Retail

Tender-hearted

Earnings Review

Earnings soothe, liability management/strategic actions tick up 11 May 2026

Markets pushed forward last week as earnings season showed hardiness, economic data High Grade Credit

was reassuring (April unemployment held at 4.3%), and U.S.-Iran sentiment was United States

supported by a new proposal to gradually reopen the Strait of Hormuz, pushing oil -7% Retailing & Consumer

w/w. The ICE BofA IG Index tightened -2bps (+0.35% TR) w/w. Consumer Cyclicals (-

Brian Callen, CFA

1bp, +0.35%) traded in line, and Non Cyclicals (-2bps) slightly outperformed at Research Analyst

+0.43% return. New issuance totaled $39.1bn for the week, including $1.5bn from Clorox BofAS +1 646 855 8987

to term out M&A financing and $500mn from Constellation Brands. brian.callen@bofa.com

Avantika Pedamallu

In Food (-3bps), Kraft Heinz 1Q beat our estimates, albeit partially aided by storms and Research Analyst

Easter shift, with early signs of improving market share momentum following the initial BofAS+1 646 855 7557

investment wave. FY26 guidance was reaffirmed, as 2Q will see some reversal and cost avantika.pedamallu@bofa.com

inflation is creeping into 2H. Net leverage is expected ≤3.3x in FY26, with a path back to

3.0x in 2 years, in line with our model. Consistent with the non-USD issuance and liability

management optionality we discussed following our March meeting, KHC subsequently Exhibit 1: Markets week ending 5/08/26

announced €1bn issuance to fund a $1.1bn tender of $ 2046 (+100) and 2049 (+116) Last week's market performance

Notes. Tyson Foods modestly beat 2Q expectations as pricing more than offset volume Market Value WoW

declines, with margins largely in line.