Food Fight—Macro Weighs into Off-Calendar Earnings

Research evidence excerpt

Food Fight—Macro Weighs into Off-Calendar Earnings

Equity Research

Multi Company Update — June 4, 2026

Food

Food Fight—Macro Weighs into Off-Calendar

Earnings

Lower EPS (Again) on CAG, CPB, GIS, SJM

Our Call Chris Carey

Even as we acknowledge pockets of improving consumption, the reality is downside to Equity Analyst | Wells Fargo Securities, LLC

Chris.Carey@wellsfargo.com | 212-214-6059

forward estimates seems substantial across the off-calendar food companies reporting in

Joe Lachky, CFAthe coming weeks, with our EPS on CAG, CPB, GIS, and SJM well below Street.

Associate Equity Analyst | Wells Fargo Securities, LLC

Joe.Lachky@wellsfargo.com | 314-922-3635

Food Fight. We don't think downside to food EPS is novel, but is nevertheless likely Marc Torrente, CFA, CPA

more than anticipated, with our EPS for CAG/CPB/GIS/SJM now -12/-16/-11/-6% vs Equity Analyst | Wells Fargo Securities, LLC

Street. Share loss is a factor, but more so the macro weighing heavy (softer category + Marc.Torrente@wellsfargo.com | 314-749-9940

unrelenting inflation). What to do: 1) CAG - reset + div cut needed...negativity may cool Eve Ticktin

thereafter 2) CPB/GIS - worsening trend may linger post update; 3) SJM - downside Associate Equity Analyst | Wells Fargo Securities, LLC

probably understood, EPS growing at least is relatively differentiated. Eve.Ticktin@wellsfargo.com | 212-214-5320

Michael Ruch

CAG - time to cut dividend. While below Street on FQ426 (org sales +0.3% vs +1.0%, Associate Equity Analyst | Wells Fargo Securities, LLC Michael.Ruch@wellsfargo.com | 332-214-6326

EPS $0.45 vs $0.46), more important: 1) our FY27e EPS is -12c to $1.44, -12% vs Street,

anchored by our inflation models; 2) FY27e FCF $652mn, 94% conversion, is ~$18mn

below the dividend.