With bond yields climbing and oil back above $80, investors are again being reminded how quickly macro shocks can hit portfolios. Consumer staples stocks, which sell everyday essentials across markets like the US, UK, Canada, Australia, and New Zealand, can sometimes offer a different risk profile to more cyclical areas when volatility picks up, although that is not guaranteed. This article focuses on our Defensive Consumer Staples screener, built around the latest US Iran tensions and inflation worries, and highlights three stocks that appear more directly exposed to this news backdrop, all in a positive context.

Mondelez International (MDLZ)

Overview: Mondelez International is a global snacks and beverages company behind brands like Oreo, Ritz, Cadbury and Toblerone, selling biscuits, chocolate, gum, candy and other packaged foods across supermarkets, convenience stores and online channels worldwide.

Operations: Mondelez International generates most of its revenue from Europe at US$15.3b, followed by North America at US$10.7b, Asia, Middle East & Africa at US$8.2b and Latin America at US$5.0b.

Market Cap: US$77.3b

For investors looking at defensive ideas while bond yields and oil prices are climbing, Mondelez International stands out as a global snacks leader with resilient demand drivers. The company is working through high cocoa costs and softer volumes in some markets by using pricing and brand investment. It is also pushing into emerging markets and e-commerce, and returning capital through dividends and buybacks. At the same time, profit margins have recently come under pressure and debt coverage and dividend sustainability need monitoring. With current market volatility and a strong portfolio of everyday brands, the key consideration is how these factors could affect Mondelez International over the next few years and whether the current pricing properly reflects that story.

Mondelez International’s global brands and pricing power may be masking a more complex trade off between cocoa costs, margins and shareholder payouts. The 2 key rewards and 3 important warning signs (2 are major!) could show where that balance really starts to tilt.

Flowers Foods (FLO)

Overview: Flowers Foods is a US packaged bakery company that makes and sells everyday staples such as fresh bread, buns, rolls, tortillas and snack cakes under brands like Nature’s Own, Wonder, Tastykake, DKB and Canyon Bakehouse to supermarkets, restaurants, foodservice distributors and convenience stores across the country.

Operations: Flowers Foods generates its revenue of about US$5.3b entirely from food processing in the United States.

Market Cap: US$1.8b

Flowers Foods sits squarely in the defensive camp, supplying bread and baked snacks that households buy regardless of headlines about bond yields or oil spikes. However, the investment story is more complex than a simple “staples are safe” label. The Simple Mills acquisition pushes the company into health focused, clean label products and supports branded growth, while also adding US$795m of debt and raising questions about dividend coverage given a double digit yield and a recent large one off loss of US$191.0m. Management is leaning on pricing, product refreshes such as the Nature’s Own relaunch, and productivity initiatives to offset inflation in ingredients, packaging and distribution. That leaves a key question for investors: how well this mix of higher leverage, brand investment and inflation hedging really stacks up under stress.

Flowers Foods’ double digit yield and the Simple Mills debt load could be masking a very different risk reward setup for income investors, and the 2 key rewards and 4 important warning signs might reveal the twist that changes how you see the stock

Campbell's (CPB)

Overview: Campbell's is a long established US food and beverage company that sells pantry staples like soups, broths, sauces, juices and frozen meals, alongside a broad snacks portfolio that includes brands such as Goldfish, Kettle Brand, Snyder’s of Hanover and Pepperidge Farm.

Operations: Campbell's generates US$5.8b in revenue from Meals & Beverages and US$4.1b from Snacks.

Market Cap: US$6.8b

Campbell's sits squarely in the pantry staples camp, which can draw fresh interest when bond yields and oil prices rise, yet the real story runs deeper than “defensive soup stock.” The company is leaning on cash discipline, a cost savings program and a long history in shelf stable meals to handle higher input costs that executives link directly to the current conflict driven inflation in oil, packaging, logistics and even aluminum. At the same time, management is trying to refresh growth with brands like Rao’s and Goldfish, while paying a relatively high 7.09% dividend and carrying liabilities that are not fully backed by operating cash flow. That mix of steady demand, valuations below sector averages and inflation pressure is where the opportunity and the risk sit for investors.

Campbell's mix of steady pantry demand, snacks growth efforts and a 7.09% dividend yield could be masking a bigger story about balance sheet pressure and payout resilience, and the Campbell's financial health report might be where that story quietly changes direction

The three stocks in this article are only a starting point, and the full Defensive Consumer Staples screener surfaces 93 more companies with equally compelling consumer staples narratives tied to essential products and steadier financial profiles. Use Simply Wall St to identify and analyze the specific catalysts and risk narratives that matter to you, so you can focus on the highest conviction defensive ideas across markets such as the US, UK, Canada, Australia and New Zealand.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.