The inflation-weary shoppers are stepping down from bigger meals to save money, and good old-fashioned affordable canned soup is having a moment.
Campbell Soup CPB said this week that the U.S. soup sales increased by 11% in the most recent quarter due to brisk demand for ready-to- serve soups, condensed soups, and broth.
Campbell Soup CEO Mark Clouse said on Yahoo Finance Live that the soup business really matches the demand for consumers and the value they are looking for in the moment. I think soup in many ways checks a lot of boxes for consumers right now, because we have watched consumers navigate through tough inflation and the backdrop of a tougher economic environment. Here are some other Yahoo Finance takeaways from Campbell Soup's earnings:
Campbell Soup's stock hit a one-year high in the wake of the results. The S&P 500's shares are up 30% year to date compared to a 16% drop.
The Street was pleased with Campbell's quarter and outlook.
After a difficult fiscal 2022, Campbell has noticedably improved its supply chain which is supporting higher shipment growth and better realized productivity 3 percentage points, according to EvercoreISI analyst David Palmer. The company s earnings outlook should be supported by increased advertising spend 30% year over year in fiscal first quarter. These factors together with improved pricing of around 11% in fiscal year 2023 relative to commodity inflation up low double-digit percentage. BrianSozzi follows Sozzi on Twitter and LinkedIn.