Soup Seller Campbell's Says Consumers Are Turning To Home-Cooked Meals: Retail Upbeat After Strong Q3 Print

Campbell's Co. (CPB) beat estimates for its third-quarter results on Monday and said consumers are preparing home meals at a rate last seen during the pandemic, the latest sign of belt-tightening.

The trend is beneficial for the Campbell's, which is known for its namesake soups, Prego and Rao's sauces, and a variety of snacks.

"Consumers are cooking at home at the highest levels since early 2020," Campbell's CEO Mick Beekhuizen said, adding that consumption has increased among all income brackets in the meals and beverages category.

President Donald Trump's aggressive and uncertain tariff policy, coupled with elevated inflation, has fueled economic uncertainty, prompting consumers to cut back on certain items and spend more judiciously.

Recent quarterly reports from businesses and retailers indicate that the consumer response is uneven, varying by category of goods, and challenging to predict.

Campbell's maintained its full-year adjusted earnings outlook of $2.95 to $3.05 a share and net sales growth between 6% and 8%.

In the bygone Q3, earnings per share fell to $0.73 from $0.75, while revenue increased 4% to $2.48 billion. Both figures exceeded Wall Street's expectations of $0.65 EPS and $2.43 billion in revenue.

The company attributed the rise in sales to its recent acquisition of Sovos Brands and changes to its product mix and pricing.

Management indicated it was taking steps to offset tariff pressures through adjustments to inventory, sourcing, and vendor contracts, as well as targeted price increases.

On Stocktwits, the retail sentiment shifted to 'extremely bullish' from 'neutral' a week back.

A user said, "The ER (earnings report) does not contain anything that will deteriorate further to the downside. Actually, it may warrant a relief rally."

Campbell's shares are down 18.2% this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.