Campbell's Company (CPB)

Over the past six months, The Campbell's Co. (CPB) stock has experienced a significant decline. Q1 Fiscal 2025 earnings showed net sales increased due to the Sovos Brands acquisition, but organic sales dipped and adjusted EPS fell. Q2 Fiscal 2025 earnings also benefited from the Sovos Brands acquisition, but organic sales were down and adjusted EPS fell. Q3 Fiscal 2025 earnings beat sales and profit estimates, driven by strong demand for canned food and soups. Q4 Fiscal 2025 earnings reported EPS exceeding estimates, with revenue slightly below estimates but up year-over-year, and a quarterly dividend was announced. Analyst ratings in September 2025 included a reiterated "hold" rating, an increased price target with an "underperform" rating, and a downgrade from "buy" to "hold" in June 2025.

Demand for Campbell's products, particularly soups, exhibits seasonality, with sales picking up in colder weather. Summer can present a "headwind" for soup categories, although certain varieties see spikes in demand during the summer months. There has been a shift towards more value-driven meals, impacting categories like pasta sauce and condensed cooking soups. Consumers are increasingly cooking at home, driving demand for Campbell's brands.

The Campbell's Co. is an American food processing and packaged food manufacturer in the consumer staples sector with a diverse portfolio including soups, snacks, beverages, and simple meals. It operates within the food processing industry, including canned fruit and vegetable processing, cookie, cracker and pasta production, snack food production, and juice production. Major brands include Campbell's soups, Pepperidge Farm, Pace Mexican sauces, V8 juices, Snyder's of Hanover pretzels, Swanson broths, Pacific Foods, Prego pasta sauces, Rao's, Cape Cod, Chunky, Kettle Brand, Lance, Late July, and Snack Factory. The company's business is segmented into "Meals & Beverages" and "Snacks."

The primary markets for The Campbell's Co. are the United States and Canada. The company also has a presence in international markets, offering simple meals and beverages in regions such as Asia Pacific, Latin America, and China.

The Campbell's Co. has focused on sustainability, aiming to cut its environmental footprint in half over ten years and investing in plants globally. In the 2023 Nature Benchmark, Campbell's performed moderately, with opportunities for improvement. The company has also demonstrated a commitment to reducing plastic use and transitioning to sustainable packaging. The acquisition of Sovos Brands, including Rao's, has been a positive, with Rao's showing strong consumption growth.

Institutional investors hold a significant stake in The Campbell's Co., ranging from 59% to 63.17% of the company. Major institutional shareholders include Vanguard Group Inc., BlackRock, Inc., State Street Corp, Beutel, Goodman & Co Ltd., Dimensional Fund Advisors Lp, Invesco Ltd., Geode Capital Management, Llc, and Brandywine Trust Co. Bennett Dorrance is the largest individual shareholder, holding 15% of shares outstanding. Insiders collectively own about 16-20.19% of the company.