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

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