Consumer staple stocks stumbled again Friday, extending their losses in the wake of Walmart ‘s warning about a dip in food purchases from consumers taking weight-loss drugs.
The damage to the sector continued Friday. Walmart stock fell 1.7% to $156.41. The retailer didn’t immediately respond to a request for comment. Nearly one in three American adults are overweight, and more than 40% have obesity, according to 2017–2018 data from the National Health and Nutrition Examination Survey. On average, Americans consume about 3,800 calories a day, according to the U.N. Food and Agriculture Organization. That’s much above the recommended daily intake of 2,000 calories for women and 2,500 for men.
Although investors are concerned about the potential impact on sales for restaurants, snacks, and soda, those fears might be unfounded, some analysts say. TD Cowen sees only about 1% of U.S. adult population on weight-loss drugs by 2030, the firm told CNBC Thursday. In a note last week, RBC Capital Markets analyst Nik Modi wrote that appetite-suppressing drugs are out of reach for many Americans because they are too expensive: “Consumption of indulgent salty snacks that would be considered ‘junk food’ generally over-indexes toward lower-income individuals, who are unlikely to be these drugs’ primary users.