Big Food Gets Downgraded as GLP-1 Drugs Reshape What Americans Buy and Eat
Warning: side effects of weight loss drugs may include nausea, fatigue, and analyst downgrades. With GLP-1s emerging as a core threat, Bernstein slashed four of America’s biggest food companies to underperform in a single note. Inflation and the “Make America Healthy Again” agenda are piling on, as the sector faces pressure from multiple directions.
- General Mills, Conagra, Campbell’s, and Kraft Heinz received downgrades — boxed in as input costs rise and retailers reject their price increases.
- Wall Street’s verdict is nearly unanimous, as holds no buy — and the broader S&P packaged food gauge recently closed at its lowest level since Mar. 2020.
The ripple effect: What’s shrinking food company revenue is also flooding apparel retailers with returns. The share of exchanges in which shoppers sized down hit a record 14.6% in 2025, up from 12.6% in 2024. Return rates at some retailers climbed 50%, prompting doubled restocking fees — while Levi’s, Costco (COST), and Walmart all study the shift. Even so, with GLP-1s just getting cheaper as a pill version arrives, neither sector has yet seen peak pressure.
