Shares of packaged food companies and restaurant chains fall after the U.S. FDA approved Novo Nordisk’s (NOVOb.CO) pill version of Wegovy weight-loss drug
Confectionery maker Hershey (HSY.N) down 2%, while rival Mondelez (MDLZ.O) slips nearly 1%
Among restaurants, Chipotle (CMG.N) shares slip 1.7%, McDonald’s (MCD.N) and Tim Hortons owner Restaurant Brands (QSR.N) down about 1%, while coffee chain Starbucks (SBUX.O) off nearly 2.7%
Analysts expect Wegovy pills’ wider availability, ease of use and lower cost will prompt consumers to cut back on ultra-processed foods, ready-to-eat meals, sugary drinks and salty snacks
“From a retailer perspective, the wider adoption of GLP-1 drugs will have big implications on the mix of what gets sold in grocery stores,” said Steve Dennis, president of SageBerry Consulting
Shares of Slim Jim owner Conagra (CAG.N) and J.M. Smucker (SJM.N) down about 1% each
Stocks of Heinz ketchup maker Kraft Heinz (KHC.O) , Cheerios maker General Mills (GIS.N) and PepsiCo (PEP.O) drop about 2% each
“Restaurants and grocers will need to gain an edge through clever marketing and labeling, amplifying the functionality and quality of ingredients,” said Andrew Rocco, analyst at Zacks Investment Research

SBUX

Shares of packaged food and restaurant stocks fell after the FDA approved Novo Nordisk's Wegovy pill. Hershey, Mondelez, Chipotle, McDonald's, Restaurant Brands, Starbucks, Conagra, J.M. Smucker, Kraft Heinz, General Mills, and PepsiCo all saw declines. Analysts attribute this to the expected impact of Wegovy pills on consumer habits, potentially reducing demand for ultra-processed foods.

Reuters

Kraft Heinz

BUZZ-Packaged food, restaurant stocks fall as FDA clears Novo Nordisk’s Wegovy pill