Latest news with #PepperidgeFarm
Time of India
3 days ago
- Business
- Time of India
Canned soup maker Campbell's beats estimates as eat-at-home trend boosts demand
HighlightsCampbell Soup Company exceeded third-quarter sales and profit estimates, driven by strong demand for canned food and soups as consumers opt to eat at home amid economic uncertainty. The company maintained its fiscal 2025 net sales growth forecast at 6 per cent to 8 per cent, but projected annual adjusted profit per share at the lower end of its previous forecast due to declining demand in the snacks segment. Campbell Soup Company reported a 4 per cent increase in net sales to $2.48 billion for the quarter, surpassing analysts' expectations, and introduced new snack products to stimulate demand in its snacks business. Prego pasta sauce maker Campbell's Co beat third-quarter sales and profit estimates on Monday, helped by strong demand for its popular canned food and soups as consumers increasingly prefer to eat at home in the face of an uncertain economy. Fears of a potential recession and price hikes triggered by the imposition of hefty tariffs dented consumer sentiment in the U.S. and prompted people to be more judicious in their spending patterns, including trading down to cheaper brands and ditching costly dine-outs. "Consumers are cooking at home at the highest levels since early 2020 and turning to our brands for value, quality and convenience," said Campbell's CEO Mick Beekhuizen. The company maintained its fiscal 2025 forecast for net sales growth in the range of 6 per cent and 8 per cent. It, however, projected annual adjusted profit per share to be at the lower end of its prior forecast range of $2.95 and $3.05, owing to weak demand for snacks. Campbell's, which excluded tariffs from its forecast, expects a hit of between 3 cents and 5 cents per share, accounting for levies currently in place. Volumes for the company's meals and beverages unit rose 7 per cent during the quarter ended April 27, while its snacks business reported a 5 per cent fall. Campbell's has introduced new products such as the Milano white chocolate cookie through its Pepperidge Farm brand and Pop'ums, a snack hybrid combining pretzels and popcorn, to revive demand in its snacks business. Its net sales rose 4 per cent to $2.48 billion during the quarter, compared with analysts' average estimate of $2.43 billion, according to data compiled by LSEG. Adjusted per-share profit of 73 cents also surpassed the estimate of 66 cents. Shares of the company, which have fallen about 18 per cent so far this year, were flat in premarket trading.
Daily Mail
3 days ago
- Business
- Daily Mail
Campbell's posts bumper sales amid economic uncertainty
Shoppers are buying more soup. That might be a bad sign for the economy. Campbell's — the company behind its namesake soups, as well as brands like Pepperidge Farm and V8 juices — just posted a profit of $66 million. The food maker's CEO, Mick Beekhuizen, said customers have been snapping up low-cost meal soups from grocery stores. The company reported 15 percent sales growth in its meals and beverages division. 'Consumers are cooking at home at the highest levels since early 2020,' he said while reporting the company's earnings. Still, Campbell's noted that customers have been pulling back on snack purchases as shoppers cut discretionary spending. It saw an 8 percent sales decline for its snack brands. Executives reiterated their full-year forecast, saying they expect sales to grow by around 6 percent by the end of 2025. That's down from the company's previous projection of 9 to 11 percent growth. The company's meal growth and snack decline reflect how many Americans are responding to slumping consumer sentiment reports and higher costs in grocery stores. American shoppers are worried about inflation . Monthly inflation rates have cooled to just above the Federal Reserve's target of 2 percent, after peaking at over 9 percent in 2022. But elevated food prices haven't come down: many of those increases are now baked into the cost of everyday goods. Now, shoppers are contending with President Donald Trump's tariffs, which threaten to push food prices even higher. Dozens of food providers — including mid-tier restaurant chains, grocery stores, and budget brands — say their customers are spending less and opting for cheaper options. Casual dining restaurants have been hit particularly hard. These establishments, which rely on discretionary spending from middle-income Americans, are reporting slower traffic and reduced spending. At the same time, they're facing rising costs for the ingredients they use. Bloomin' Brands, the owner of Outback Steakhouse, posted an 8.3 percent sales decline in April. McDonald's also posted a 3.6 percent sales decline . The toxic mix of slowing sales and higher costs has spelled doom for hundreds of restaurant locations and some of America's most recognizable brands. In the past year and change, several iconic brands have filed for bankruptcy, including TGI Fridays, Red Lobster, Hooters, Bertucci's, and On The Border. The wave of closures highlights a broader reality: more Americans are trading nights out for meals at home — and not by choice. That belt-tightening is being echoed by low-cost retailers like Dollar General, which cater to budget-conscious consumers. Executives there are also seeing signs that financial stress is reshaping how people shop.
Yahoo
3 days ago
- Business
- Yahoo
Cooking at Home Hasn't Been This Common Since 2020, Campbell's Says
Americans haven't been cooking at home so much since early 2020, when the pandemic hit, Campbell's executives said, a trend that's hurting its snack sales. Goldfish and Snyder's of Hanover pretzels performed particularly poorly, while Pepperidge Farm cookies did fairly well, Campbell's executives said Monday. Other food producers, including Mondelēz International and Conagra Brands, have said in recent months that their snack sales are meals are in, according to Campbell's, and snacks are out. Executives at Campbell's Co. (CPB), which sells its namesake soups, Prego and Rao's sauces, and a variety of snacks, told analysts Monday that it hasn't seen this much at-home meal prep since the pandemic hit. Softer consumer sentiment has 'consumers making more deliberate choices with their spending on food" this year, CEO Mick Beekhuizen said on Campbell's third-quarter earnings conference call. 'The key outcome is a growing preference for home-cooked meals, leading to the highest levels of meals prepared at home since early 2020,' he said on the call, according to a transcript made available by AlphaSense. Americans' interest in saving is helping the company's meal and beverage business but hurting snack sales, executives said. The snack segment's sluggishness prompted CFO Carrie Anderson to say adjusted earnings for the year are expected to come in at the 'low end' of guidance, which stands at $2.95 to $3.05 per share. This outlook, which excludes the impact of tariffs, assumes organic sales will be down 2% to flat. Campbell's organic sales—results adjusted for the recent sale of Pop Secret and Noosa Yoghurt, and the purchase of Sovos Brands—grew 1% year-over-year for the third quarter, the company said, reflecting a 6% increase in meal and beverage sales and a 5% decline in snacks. Goldfish and Snyder's of Hanover pretzels, in particular, struggled, executives said, while Pepperidge Farm cookies fared better. Other companies, including Hain Celestial Group (HAIN), General Mills (GIS) and Mondelēz International (MDLZ), have said recently that consumers are cutting back on snacks. 'We see consumers switching to more essentials in grocery, and snacking categories are suffering,' Mondelēz CEO Dirk Van de Put said on an earnings conference call in late April. 'You can see the consumer, not only in food, but across the board really being very, very frugal and very careful,' he said. Still, some companies say sales of protein and health-focused snacks have taken off. 'Between meat snacks and popcorn, you've got two very on-trend businesses, not to mention our seeds business, which is sometimes overlooked but is a phenomenal, very profitable business,' Conagra (CAG) CEO Sean Connolly said in early April when the company reported third-quarter earnings. Read the original article on Investopedia
Daily Mail
3 days ago
- Business
- Daily Mail
Campbell's posts bumper sales... but it's bad news for America's chain restaurants
Shoppers are buying more soup. That might be a bad sign for the economy. Campbell's — the company behind its namesake soups, as well as brands like Pepperidge Farm and V8 juices — just posted a profit of $66 million. The food maker's CEO, Mick Beekhuizen, said customers have been snapping up low-cost meal soups from grocery stores. The company reported 15 percent sales growth in its meals and beverages division. 'Consumers are cooking at home at the highest levels since early 2020,' he said while reporting the company's earnings. Still, Campbell's noted that customers have been pulling back on snack purchases as shoppers cut discretionary spending. It saw an 8 percent sales decline for its snack brands. Executives reiterated their full-year forecast, saying they expect sales to grow by around 6 percent by the end of 2025. That's down from the company's previous projection of 9 to 11 percent growth. The company's meal growth and snack decline reflect how many Americans are responding to slumping consumer sentiment reports and higher costs in grocery stores. American shoppers are worried about inflation. Monthly inflation rates have cooled to just above the Federal Reserve's target of 2 percent, after peaking at over 9 percent in 2022. But elevated food prices haven't come down: many of those increases are now baked into the cost of everyday goods. Now, shoppers are contending with President Donald Trump's tariffs, which threaten to push food prices even higher. Dozens of food providers — including mid-tier restaurant chains, grocery stores, and budget brands — say their customers are spending less and opting for cheaper options. Casual dining restaurants have been hit particularly hard. These establishments, which rely on discretionary spending from middle-income Americans, are reporting slower traffic and reduced spending. At the same time, they're facing rising costs for the ingredients they use. Bloomin' Brands, the owner of Outback Steakhouse, posted an 8.3 percent sales decline in April. McDonald's also posted a 3.6 percent sales decline. Restaurants have been reporting massive financial struggles this year as shoppers pull back on discretionary spending More shoppers are reaching for cost-cutting soups at the grocery store - that might not be a good sign for the economy The toxic mix of slowing sales and higher costs has spelled doom for hundreds of restaurant locations and some of America's most recognizable brands. In the past year and change, several iconic brands have filed for bankruptcy, including TGI Fridays, Red Lobster, Hooters, Bertucci's, and On The Border. The wave of closures highlights a broader reality: more Americans are trading nights out for meals at home — and not by choice. That belt-tightening is being echoed by low-cost retailers like Dollar General, which cater to budget-conscious consumers. Executives there are also seeing signs that financial stress is reshaping how people shop. 'Our customers continue to report that their financial situation has worsened over the last year, as they have been negatively impacted by ongoing inflation,' CEO Todd Vasos said during Dollar General's fourth-quarter earnings call.
Yahoo
4 days ago
- Business
- Yahoo
The number of folks cooking at home has hit the highest level since the pandemic, Campbell's says
The number of people cooking at home has hit the highest level since the Covid-19 pandemic, Campbell's says. The soup company, which also makes Pepperidge Farm and V-8 products, has released new consumer behavior data amid heightened economic concerns. Almost half the respondents to an April poll conducted by The Economist and YouGov described the current state of the economy as 'poor.' Most Americans, 53 percent, believe the economy is getting worse, according to the poll. 'Consumers are cooking at home at the highest levels since early 2020,' Campbell's CEO Mick Beekhuizen said on Monday, according to CNBC. Five years ago, consumers were bracing for the impacts of the global pandemic. Due to massive lockdowns and millions of Americans staying home, unemployment rates skyrocketed, and consumer spending decreased. In the fourth quarter of 2020, the number of unemployed Americans reached 10.8 million, a 4.9 million increase from a year earlier, according to the U.S. Bureau of Labor Statistics. During the pandemic, average annual consumer expenditures dipped 2.7 percent, according to the bureau. Consumer spending for food purchased away from home and public transportation 'decreased sharply,' the bureau said. The Campbell's CEO said there is a similar pattern emerging now with consumption in the company's meals and beverages categories increasing among people of all incomes. President Donald Trump's sweeping tariffs is one of the factors fueling American economic uncertainty. On April 2, Trump announced a baseline 10 percent tariff on imported goods from all nations on what he called 'Liberation Day.' But several countries were hit with even higher tariffs, including some U.S. allies. Shortly after, Trump paused most of the tariffs for 90 days after Wall Street saw stocks plummet. The Economist/YouGov poll showed just 41 percent of Americans approved of the way Trump was handling jobs and the economy, and 51 percent disapproved. Regarding Trump's tariffs, 56 percent of Americans said the administration had gone too far, according to the poll.
