Campbell's Shares Drop After Dividend Cut and Weak Guidance
The stock of The Campbell’s Company (NYSE:CPB) fell 9% on Thursday after it announced a significant dividend cut and issued weaker-than-expected fiscal guidance. General Mills (GIS) dropped 4%, while Kraft Heinz (KHC) declined by 3%. Despite the selloff in these names, broader market indicators like SPY rose slightly, suggesting that concerns are specific to center-store packaged food companies rather than a broad sector or market downturn. Campbell’s reduced its quarterly dividend from $0.39 per share to $0.25, representing a 36% cut and an annualized payout of $1.00 compared to the previous $1.56. The company cited underperformance as a reason for the move and outlined plans to accelerate debt reduction through cost-cutting initiatives. For fiscal year guidance, Campbell’s expects net sales to decline by 2-4% with adjusted earnings per share between $1.65-$1.80—well below analyst expectations of $1.86 EPS.
