May quarter end earnings preview – MKC, CAG, LW, GIS & STZ

研报英文原文证据摘录

May quarter end earnings preview – MKC, CAG, LW, GIS & STZ

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Food and Beverages

May quarter end earnings preview – MKC,

CAG, LW, GIS & STZ

Estimate Change

MKC: maintain 2Q/FY26 EPSe & PO of $65 12 June 2026

Maintain 2Q26/FY26 adj. EPS of $0.70/$3.09 (vs. consensus $0.70/$3.10), with only FX Equity

updates to our model since our late-May update. Near-term catalysts remain limited as United States

the company awaits the ULVR deal closure in mid-2027, though we continue to view the Food and Beverages

strategic rationale and synergy opportunity as compelling longer-term (see our deep- Peter T. Galbo, CFA

dive note here). Near-term margin pressure from freight and McCormick de Mexico Research Analyst

acquisition appears to be timing related vs structural, with underlying cost savings and BofAS+1 646 743 0175

productivity intact. Maintain Buy and $65 PO on 20x our CY27E EPSe. peter.galbo@bofa.com

CAG: maintain FY26 EPSe & PO of $13 ChrisResearchDowningAnalyst

BofAS

Maintain 4Q26/FY26 adj. EPS of $0.45/$1.69, unchanged since our May update. While +1 646 855 4345

4Q should benefit from improved shipment/consumption trends, trade timing, and 53rd christopher.downing@bofa.com

week, the broader earnings profile remains pressured. The quarter will also mark the first Christian Junquera

Research Analyst

under new CEO John Brase (see recent note from our lunch meeting), who is expected to BofAS

outline a FY27 framework. Looking ahead, we see limited ability to offset inflation +1 646 855 5195 christian.junquera@bofa.com

through pricing, alongside elevated leverage and a high dividend payout (~80%). As a Yasmine Deswandhy

result, we continue to see downside risk to earnings and model FY27 EPSe at $1.50. Research Analyst