Lower-income consumers are under pressure as costs rise, says One Point’s Peter Boockvar

Consumer Sentiment & Economic Outlook - Lower-income consumers are facing challenges due to rising costs, leading to value-seeking behavior [2][3] - Kagra's management expressed a downbeat view on consumer sentiment and households' ability to handle rising costs [2] - The economy is described as a "barbell economy," with a divide between upper-income spenders and lower-income consumers [3][4] - Consumer confidence is divided based on stock ownership, with stockholders feeling fine and non-stockholders feeling stressed [8][9] Company Performance & Strategy (Kagra) - Kagra caters to lower-income consumers through its frozen food and snacks businesses [4] - Kagra faces challenges due to rising commodity prices (turkey, beef, pork) and tariffs on packaging, steel, and aluminum, resulting in a 7+% increase in costs [4] - Kagra's frozen food business is growing, while its snack business shows mixed results, with beef jerky (Slim Jim) sales rising 4% [5][6] - Kagra is focusing on providing value to customers, especially lower-income consumers, by offering affordable meal options (around $6) and snacks (Slim Jim for $150) [9][10] - Kagra would offer more premium products if the lower-income consumer was healthier, but is currently focusing on value-seeking customers [10] Investment Perspective - Consumer product and food stocks are considered cheap with generous dividend yields due to commodity and volume pressure, making them attractive in a highly valued market [7] - Staples are seen as poised for a turnaround [7]