Challenges Persist with Incremental Cost Concerns

Research evidence excerpt

Challenges Persist with Incremental Cost Concerns

June 8, 2026 Campbell's Company

(CPB, Neutral)

Robert Dickerson

Challenges Persist with Incremental Cost Concerns rdickerson@btig.comCONSUMER Hannah Lascher WHAT YOU SHOULD KNOW: hlascher@btig.com

■ Top line still facing challenges. While Q3 net sales dollars missed consensus by Company Data

only ~60 bps, volume pressure remains clear and somewhat widespread. As we

said ahead of results, Rao's and broth remain the positive highlights, driven by Closing Price $21.55

Price Target -STAPLES premiumization at a rational price and healthier cooking at home trends. That said,

RTS and condensed soups, beverages, and Snacks (namely salty) continue to face Market Cap (M) $6,443.45

demand headwinds. Management reiterated its guided 1%-2% y/y organic sales Enterprise Value (M) $13,087.35

decline, but spoke to the low-end of the range a more likely event. New innovation Shares Out (M) 299.00EQUITY is expected in Q4 and when combined with an easier y/y comparable (given the Avg Daily Vol-3 Months (M) 8.92

full ERP lap from last year), Q4 reported organic sales should show stabilization y/

y, as retail consumption trends should still decline, in our view. As we've stated Dividend / Yield $1.56 / 7.2%

previously, there's still risk from planogram resets over time; Campbell's simply Revisions

needs to reduce its traditional "eating soups" with other faster turning items before Previous Current

the category becomes a smaller part of the isle. Rating Neutral NeutralRESEARCH ■ Snacks drove the margin beat, but volumes suffered. It was a nice change to see Price Target - -

the Snacks segment reporting an operating margin ~150 bps ahead of consensus, FY26E REV 9,744.39 9,758.48

and potentially kick-starting a profit momentum phase.