Latest news with #Goldfish
NBC News
6 hours ago
- Business
- NBC News
Canned soup summer: Bargain hunters are ditching snacks for pantry staples
The humble bowl of soup is having a moment. That's according to The Campbell's Co., whose iconic cans are synonymous with it. The food maker said Monday that customers are increasingly snatching up its condensed soups and mac-and-cheese offerings while shying away from snacks, a spending shift that partly echoes the depths of the pandemic. 'Consumers are cooking at home at the highest levels since early 2020,' Campbell's CEO Mick Beekhuizen said in a statement. The company — whose snack brands include Goldfish, Snyder's of Hanover pretzels and Cape Cod chips — saw snack sales slip 5% in the last three months. Meanwhile, sales of its meals and beverages rose 6%, mainly driven by Rao's pasta sauces and soup sales in the United States. While consumers' outlooks have improved somewhat in recent weeks, many remain deeply pessimistic about the direction of the economy under President Donald Trump's ever-shifting trade war and are looking for bargains. Households continue to 'focus their spending on products that help them stretch their food budgets, and they're increasingly intentional about their discretionary snack purchases,' Beekhuizen told Campbell's investors on its earnings call. 'Snacks are losing ground as consumers, squeezed by inflation, shift spending toward essentials and more purposeful food choices,' analysts at the market research firm NIQ wrote in a recent note. 'The era of indulgent, impulsive snacking is giving way to a demand for value, quality, and health.' In a recent NIQ survey, 42% of consumers reported buying snacks less, and 37% said they're searching harder for deals. Many indicated they've been thinking twice about pricier name-brand snacks, opting instead for more generic alternatives at convenience stores or those sold under supermarkets' own private labels. Snacks are losing ground as consumers, squeezed by inflation, shift spending toward essentials. NIQ market researchers The tightening snack market has seen some friction, with Oreo maker Mondelēz recently suing Aldi, alleging the supermarket operator had 'blatantly' mimicked some of its packaging designs for cheaper riffs on iconic snack brands. While Mondelēz says snack demand remains sturdy, PepsiCo — which makes Lay's and Doritos chips — has said it's finding success catering to customers at lower price points. 'Relative to where we were three months ago, we probably aren't feeling as good about the consumer now as we were a few months ago,' PepsiCo CFO Jamie Caulfield said in April. The snack foods giant also lowered its financial forecast for the year. Food shoppers' hunt for value is also boosting Dollar General, which Tuesday increased its sales outlook for the year and said it picked up market share in food products. The dollar store operator notched those gains even as other retail giants, such as Target, that sell groceries have struggled to lure budget-conscious shoppers. The growing focus on home cooking comes as costs of dining out are rising nearly twice as fast as grocery prices. Meals out were up 3.9% in April from a year earlier, federal data show, while at-home food prices rose just 2% over the same period, slower than inflation overall. That divergence helps explain why many restaurant chains are seeing weaker sales. McDonald's last month reported its biggest same-store sales decline since the pandemic, with that measure falling 3.6% during the first quarter. Darden Restaurants, which owns Olive Garden, also flagged weaker-than-expected sales around the start of the year, and Chipotle reported its same-store sales contracted for the first time since 2020. McDonald's CEO Chris Kempczinski said all but its most affluent diners are increasingly staying away from the burger chain, despite the past year's efforts to counter its earlier menu price hikes with value meals. Traffic from low-income consumers was down 'nearly double digits' compared to a year ago, with middle-income diners' visits slowing 'nearly as much,' he said. Kempczinski said the split illustrated a 'divided' economy in which moderately and less well-off consumers 'are being weighed down by the cumulative impact of inflation and heightened anxiety about the economic outlook.' In the meantime, restaurant operators are doing what they can to try to juice sales. Some are leaning into customers' growing appetite for chicken, refreshing their locations with sleek new looks, or both. These efforts could prove an uphill battle against the grocery aisle, where the costs of some key purchases, like eggs, are finally easing. But there are still signs of strain at supermarket checkouts as shoppers adjust to higher overall costs for many of the fridge and pantry basics they can't easily do without. More shoppers are both financing their grocery purchases with installment loans and falling behind on those bills, a recent LendingTree survey found. One such 'buy now, pay later' service, Klarna, said recently that its borrowers are having a tougher time clearing their debts on the platform. Months earlier, the company became Walmart's exclusive BNPL provider and teamed up with DoorDash to offer installment loans for takeout meals.
Yahoo
12 hours ago
- Business
- Yahoo
CPB Q1 Earnings Call: Meals and Beverages Outperform as Snack Categories Face Headwinds
Packaged food company Campbell's (NASDAQ:CPB) missed Wall Street's revenue expectations in Q1 CY2025 as sales rose 4.5% year on year to $2.48 billion. Its non-GAAP EPS of $0.73 per share was 11.4% above analysts' consensus estimates. Is now the time to buy CPB? Find out in our full research report (it's free). Revenue: $2.48 billion (4.5% year-on-year growth) Adjusted EPS: $0.73 vs analyst estimates of $0.66 (11.4% beat) Adjusted Operating Income: $362 million vs analyst estimates of $341.4 million (14.6% margin, 6% beat) Management reiterated its full-year Adjusted EPS guidance of $3 at the midpoint Operating Margin: 6.5%, down from 10.5% in the same quarter last year Organic Revenue rose 1% year on year (0% in the same quarter last year) Sales Volumes rose 2% year on year (0% in the same quarter last year) Market Capitalization: $10.15 billion Campbell's first quarter results were shaped by diverging performances in its core segments. CEO Mick Beekhuizen attributed the quarter's outperformance to strong demand in the meals and beverages division, which benefited from a continued consumer shift toward at-home cooking and a successful marketing activation around condensed soups and mac and cheese. The CEO specifically highlighted increased household penetration among millennials and consistent share gains in condensed soups and broth. Meanwhile, the snacks business faced ongoing pressure, with Beekhuizen noting that "the pressure on snacking categories increased sequentially" due to both cautious consumer spending and heightened competition. Management also pointed to mixed outcomes across its snack brands, with Pepperidge Farm bakery and cookies showing positive momentum but core brands like Goldfish crackers requiring renewed marketing focus. Looking ahead, management sees continued growth opportunities in meals and beverages, underpinned by consumer preference for affordable, home-cooked meals and a balanced portfolio spanning both mainstream and premium brands. Beekhuizen cited the need for "disciplined short-term execution" while investing in innovation and digital capabilities to support long-term value creation. However, the company expects a slower recovery for its snacks portfolio, planning to lean more into targeted marketing and price-pack architecture to reinvigorate brands like Goldfish. CFO Carrie Anderson flagged ongoing tariff-related uncertainties and a cautious approach to promotional activity, explaining, "we're working to minimize the overall impact, including strategic inventory management and supplier partnerships." Management expects overall earnings to be at the low end of guidance, citing persistent headwinds in snacks and evolving trade conditions. Management identified the surge in at-home meal preparation and a dynamic competitive environment in snacks as primary influences on the quarter's results, while also outlining strategies to mitigate cost pressures and support brand growth. Meals and Beverages Strength: The division benefited from increased at-home cooking, with condensed soups and broth gaining share, particularly among millennials. The mac and cheese campaign drove the highest household penetration gain for condensed soups in four years. Mixed Snack Performance: Snack brands experienced varied results; Pepperidge Farm bakery and Milano cookies gained share through innovation, while Goldfish crackers and some pretzel brands faced declines due to category softness and lapsing prior-year promotions. Impact of Marketing Activations: Targeted marketing, such as limited-time offerings and brand-specific campaigns (e.g., Milano white chocolate launch), boosted engagement and share in select snack categories, suggesting a path for brand turnaround. Tariff and Cost Mitigation: Management highlighted actions to address emerging tariff impacts, including strategic inventory management, supplier partnerships, and product cost optimization. They cautioned that the full impact of tariffs remains uncertain, especially for products with international sourcing like Rao's sauces. Operational Efficiency Initiatives: Integration of recent acquisitions and back-office digital upgrades, including the new Chief Digital and Technology Officer, are expected to drive future cost savings and improve execution across divisions. Campbell's outlook is driven by continued demand for value-focused home meals, targeted investments in brand innovation, and proactive efforts to manage cost pressures and trade-related risks. Home Cooking Demand Tailwind: Management believes that sustained consumer preference for home-cooked meals will benefit the meals and beverages portfolio. The company expects both mainstream and premium brands, such as condensed soups and Rao's sauces, to help maintain volume and share gains. Snacks Recovery Strategy: The company plans to stabilize its snack business through increased marketing, innovation, and refined price-pack strategies. Management expects the snacks recovery to extend into next year, emphasizing the need for disciplined promotional activity and product relevancy to re-engage consumers. Tariff and Inflation Management: Campbell's is closely monitoring trade developments and inflationary pressures, with mitigation plans centered on inventory strategy, supplier negotiations, and selective pricing actions. Management warned that ongoing tariff risks, particularly for imported goods, could continue to pressure margins. Looking ahead, StockStory analysts will be monitoring (1) the pace and sustainability of volume growth in meals and beverages as consumer habits evolve, (2) tangible progress in the recovery and repositioning of the snacks portfolio, and (3) the effectiveness of cost-saving and tariff mitigation strategies. The impact of digital transformation initiatives and new product launches will also be tracked for signs of improved execution and competitive advantage. Campbell's currently trades at a forward P/E ratio of 11.2×. At this valuation, is it a buy or sell post earnings? The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. 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The Hill
a day ago
- Business
- The Hill
Campbell's Co. says sales rise as more Americans cook meals at home
The Campbell's Co. said Monday it saw stronger sales of broth and condensed soup in its latest quarter as more Americans cooked their meals at home. 'Consumers continue to cook at home and focus their spending on products that help them stretch their food budgets, and they're increasingly intentional about their discretionary snack purchases,' Campbell's President and CEO Mick Beekhuizen said during a conference call with investors. Beekhuizen said Campbell's saw the highest level of meals cooked at home since early 2020 in its fiscal third quarter, which ended April 27. Campbell's noted sales of its broths rose 15% during the quarter while sales of its Rao's pasta sauces were up 2%. But Campbell's said sales of its snacks, including Goldfish crackers and Cape Cod potato chips, fell 4% during the quarter. Other big companies, including McDonald's, have also noted that Americans are increasingly eating at home as uncertainty over the economy grows. Grocery prices have also moderated. In 2024, prices for food eaten at home rose 1.2%, while prices for food away from home rose 4.1%, according to the U.S. Department of Agriculture. Snack makers like PepsiCo, which makes Frito Lay chips, and General Mills, which makes Bugles chips and Golden Grahams, have also noted lower demand for snacks in recent quarters. Campbell's net sales rose 4% to $2.5 billion for the fiscal third quarter, which was in line with Wall Street's expectations, according to analysts polled by FactSet.
San Francisco Chronicle
a day ago
- Business
- San Francisco Chronicle
Campbell's Co. says sales rise as more Americans cook meals at home
The Campbell's Co. said Monday it saw stronger sales of broth and condensed soup in its latest quarter as more Americans cooked their meals at home. 'Consumers continue to cook at home and focus their spending on products that help them stretch their food budgets, and they're increasingly intentional about their discretionary snack purchases,' Campbell's President and CEO Mick Beekhuizen said during a conference call with investors. Beekhuizen said Campbell's saw the highest level of meals cooked at home since early 2020 in its fiscal third quarter, which ended April 27. Campbell's noted sales of its broths rose 15% during the quarter while sales of its Rao's pasta sauces were up 2%. But Campbell's said sales of its snacks, including Goldfish crackers and Cape Cod potato chips, fell 4% during the quarter. Other big companies, including McDonald's, have also noted that Americans are increasingly eating at home as uncertainty over the economy grows. Grocery prices have also moderated. In 2024, prices for food eaten at home rose 1.2%, while prices for food away from home rose 4.1%, according to the U.S. Department of Agriculture. Snack makers like PepsiCo, which makes Frito Lay chips, and General Mills, which makes Bugles chips and Golden Grahams, have also noted lower demand for snacks in recent quarters. Campbell's net sales rose 4% to $2.5 billion for the fiscal third quarter, which was in line with Wall Street's expectations, according to analysts polled by FactSet.
Yahoo
a day ago
- Business
- Yahoo
Campbell's Co. says sales rise as more Americans cook meals at home
The Campbell's Co. said Monday it saw stronger sales of broth and condensed soup in its latest quarter as more Americans cooked their meals at home. 'Consumers continue to cook at home and focus their spending on products that help them stretch their food budgets, and they're increasingly intentional about their discretionary snack purchases,' Campbell's President and CEO Mick Beekhuizen said during a conference call with investors. Beekhuizen said Campbell's saw the highest level of meals cooked at home since early 2020 in its fiscal third quarter, which ended April 27. Campbell's noted sales of its broths rose 15% during the quarter while sales of its Rao's pasta sauces were up 2%. But Campbell's said sales of its snacks, including Goldfish crackers and Cape Cod potato chips, fell 4% during the quarter. Other big companies, including McDonald's, have also noted that Americans are increasingly eating at home as uncertainty over the economy grows. Grocery prices have also moderated. In 2024, prices for food eaten at home rose 1.2%, while prices for food away from home rose 4.1%, according to the U.S. Department of Agriculture. Snack makers like PepsiCo, which makes Frito Lay chips, and General Mills, which makes Bugles chips and Golden Grahams, have also noted lower demand for snacks in recent quarters. Campbell's net sales rose 4% to $2.5 billion for the fiscal third quarter, which was in line with Wall Street's expectations, according to analysts polled by FactSet.
