:max_bytes(150000):strip_icc()/GettyImages-2218309523-65dba5e029eb4fa7b6a452893b5a4147.jpg "More People Are Cooking at Home. That’s Been Good for Campbell’s")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2218309523-65dba5e029eb4fa7b6a452893b5a4147.jpg)
Key Takeaways
- Campbell’s exceeded earnings estimates as consumers do more cooking at home.
- The maker of soups and sauces got a boost from higher prices.
- Campbell’s said its product portfolio is well-positioned to benefit from consumers being cautious about their spending on food.
More people are cooking at home. That’s been good for Campbell’s bottom line.
The Campbell’s Co. (CPB) CEO Mick Beekhuizen said in prepared remarks Wednesday that over the past few quarters, the company has seen that “consumers remain cautious and intentional with their spending,” and that they “continue to seek value in a variety of ways, such as cooking at home—a behavior that fuels growth in our Meals & Beverages business.”
Campbell’s Co. (CPB) shares advanced more than 5% in recent trading as the soup and sauces maker beat profit forecasts as more people bought food to cook at home.
The company posted fiscal 2025 fourth-quarter adjusted earnings per share of $0.62, while analysts surveyed by Visible Alpha were looking for $0.57. Sales rose 1% year-over-year to $2.32 billion, basically in line with forecasts.
Campbell’s benefited from a 2% increase in prices, helping to offset a 4% decline in volume/mix.
Meals & Beverages unit sales were comparable to a year ago, although organic sales were down 3%, mainly because of lower demand for its Rao’s pasta sauces and U.S. soup. Snacks division sales gained 2%, but organic sales also fell, losing 2% on “declines in third-party partner and contract brands and Snyder’s of Hanover pretzels.”
The company explained that consumers “continue to be increasingly deliberate in their food choices with a focus on premiumization, flavor exploration, health and wellness and cooking at home.” It noted that because of that, Campbell’s is “well positioned to capitalize on these trends.”
Despite today’s gains, Campbell’s shares have lost more than 20% of their value this year.
UPDATE—This article has been updated with the latest share price information.
