The Campbell’s Company (NASDAQ:CPB) is one of the best undervalued defensive stocks for 2026. On March 13, UBS cut the price target on The Campbell’s Company (NASDAQ:CPB) to $20 from $24 while maintaining a Sell rating on the shares. The rating update came after The Campbell’s Company (NASDAQ:CPB) reported its fiscal Q2 2026 financial results on March 11, reporting that net sales decreased 5% to $2.6 billion and decreased 3% on an organic basis. In addition, Earnings Before Interest and Taxes (EBIT) droppe ...

Shares of Campbell's (NASDAQ: CPB) fell to a 23-year low on March 11 in response to abysmal quarterly earnings results and a guidance cut. With so much going wrong, it can seem counterintuitive to step in and buy the stock. But Campbell's is shaping up to be a compelling high-yield dividend stock for ultra-long-term value investors. Here's why. Image source: Getty Images. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensabl ...

Core Viewpoint - Campbell's has rebranded itself from Campbell Soup Company to The Campbell's Company to reflect its diverse portfolio beyond soups, which includes brands like Goldfish and Rao's pasta sauce [1] Company Overview - Campbell's market capitalization is currently less than $7 billion, making it one of the smallest components in the S&P 500, raising concerns about its continued inclusion in the index [2] - The company's stock has faced pressure due to weak performance in its snack segment, which has seen a 6% decline in sales, contributing to a reduced full-year guidance [4] Financial Performance - In the second quarter of fiscal 2026, Campbell's snacks segment generated only $67 million in operating earnings from $914 million in revenue, resulting in a 7.3% operating margin, while meals and beverages produced $252 million in operating earnings from $1.65 billion in revenue, with a higher margin of 15.3% [4] - The company's fiscal 2026 earnings per share guidance is projected to be between $2.15 and $2.25, which exceeds its annual dividend payment of $1.56, indicating a potential for value [9] Brand Performance - The acquisition of Snyder's-Lance in 2018 has negatively impacted the snack segment, which is currently the worst-performing area of the business [5] - However, management remains optimistic about brands like Cape Cod and Kettle, which are expected to perform well in the long term due to their differentiation [5] - Over half of Campbell's condensed soup portfolio is experiencing growth, particularly cooking soups that are used as ingredients rather than standalone meals [6] Investment Perspective - Despite current challenges, Campbell's is viewed as a compelling value stock for investors seeking passive income, especially given its high dividend yield of 7.19% and low valuation [8][11] - The company is encouraged to focus on its high-margin meal brands to appeal to health-conscious consumers, which could reduce marketing costs and enhance profitability [11]

Core Insights - The company is focusing on a balanced strategy between trade investments and marketing expenditures, particularly safeguarding high-equity brands like Rao's and Goldfish while adjusting pricing in other areas [1] - The Meals & Beverages segment is performing well, driven by Rao's success and a shift towards cooking ingredient products to align with changing consumer preferences [1] Segment Performance - Goldfish is recognized as a strong brand with ongoing momentum, although it is currently experiencing fixed-cost deleverage due to prior capacity expansions that exceeded current demand [2] - The Salty Snacks category, especially chips, is facing increased competitive pressure, prompting management to implement targeted promotional strategies to address pricing disparities with larger competitors [2] Challenges and Recovery - The Fresh Bakery segment has encountered manufacturing and distribution issues worsened by winter storms in January, leading to the establishment of a recovery team to restore service levels [3] - A notable 390 basis point margin decline in Snacks is attributed to Fresh Bakery execution problems and a 6% drop in net sales, resulting in plant network deleverage [3] - The company expects significant margin recovery in Q4 as it overcomes the impact of the Sovos ERP conversion and benefits from reduced advertising expenses year-over-year [3] Financial Strategy - Snacks net sales are projected to decline by approximately 4% in the latter half of the year, with stabilization of the Bakery business not anticipated until Q4 [3] - The company is reallocating capital towards debt reduction and cash preservation, halting all share buybacks while maintaining the current dividend to achieve a leverage target of 3x [3] - Management is implementing a $100 million cost reduction initiative over the next few years to enhance cash flow and mitigate earnings pressure [3] - Positive net price realization is expected in the second half, albeit at a slower rate due to increased investments in broth and competitive pricing in the chip market [3]

Financial Data and Key Metrics Changes - The company reported a 6% decline in net sales, leading to a significant margin drop of 390 basis points in the quarter, with a snack segment margin of only 7% [14][15][16] - The company anticipates a slight improvement in margins in Q3, but expects a more substantial recovery in Q4 due to stabilization in bakery performance and lower marketing expenses [15][39] Business Line Data and Key Metrics Changes - The snacks segment is focusing on three key areas: Goldfish, Fresh Bakery, and Salty snacks, with Goldfish showing momentum but facing challenges in Fresh Bakery execution [10][11] - The company expects snacks to decline about 4% in the second half of the fiscal year, with a slight improvement anticipated in Q4 [40][41] Market Data and Key Metrics Changes - The competitive landscape in the salty snacks category has intensified, prompting the company to adjust its pricing strategy and promotional activities [12][30] - The company is experiencing mixed results in distribution, with gains in Goldfish but neutral performance in chips due to competitive pressures [76][77] Company Strategy and Development Direction - The company is focusing on improving competitiveness through pricing adjustments, promotional activities, and innovation in its product portfolio [12][32] - There is a strong emphasis on capital allocation towards debt reduction and maintaining cash flow, with no plans for share buybacks in the near term [22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges in the operating environment, particularly in the snacks segment, but remains optimistic about the potential for growth in key brands like Goldfish and Rao's [61][90] - The company is committed to stabilizing its top line and improving margins through operational efficiencies and cost reductions [88] Other Important Information - The company is investing in its Goldfish manufacturing capacity, but has faced challenges in volume growth, impacting margins [67] - The introduction of Campbell's Condensed Sauces is expected to complement existing products and cater to evolving consumer cooking behaviors [91] Q&A Session Summary Question: Insights on snacks performance and competitive strategies - Management highlighted the need for surgical promotional strategies in the salty snacks category to remain competitive against larger rivals [30][32] Question: Fresh bakery execution challenges - Management noted that manufacturing and distribution disruptions, exacerbated by winter storms, have impacted fresh bakery performance, but improvements are being seen [19][20] Question: Capital allocation priorities - The company is prioritizing debt reduction and cash flow preservation, with no immediate plans to increase dividends or engage in share buybacks [22][23] Question: Pricing strategies in meals and beverages - Management confirmed that there will still be positive net price realization in the second half, although it may not be as significant as in previous periods [95] Question: Future growth expectations in snacks - Management expressed confidence in the potential for growth in Goldfish and other key brands, despite current challenges in the snacks segment [61][64]

Financial Data and Key Metrics Changes - The company reported a net sales decline of 6% in the quarter, leading to a significant margin drop of 390 basis points, primarily due to lower sales and ongoing investments in marketing and SG&A [14][22][24] - The snack segment margin was reported at 7%, which was unexpected and attributed to the sales decline and fixed cost deleverage [14][22] Business Line Data and Key Metrics Changes - In the snacks category, Goldfish maintained momentum, while Fresh Bakery faced execution challenges, impacting overall performance [10][11] - The Salty snacks segment is experiencing heightened competitive intensity, necessitating a focus on pricing competitiveness and promotional activities [12][13] Market Data and Key Metrics Changes - The company is seeing mixed results in distribution, with some gains in Goldfish but neutral results in the chips category due to competitive pressures [73] - The overall snacks portfolio is expected to decline by about 4% in the second half of the fiscal year, with slight improvements anticipated in Q4 [39][62] Company Strategy and Development Direction - The company is focusing on stabilizing its bakery operations and improving competitiveness in the snacks segment through pricing and promotional strategies [12][14] - There is a commitment to capital allocation prioritizing debt reduction over share repurchases, with a focus on maintaining dividend levels and managing cash flow tightly [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential for growth in the Goldfish brand and the cookies segment, despite overall market challenges [60][62] - The company anticipates continued pressure on consumption growth in the meals and beverages segment, with expectations of flat to slightly negative growth in the second half of the fiscal year [94] Other Important Information - The company is investing in its business to ensure sustainable improvements in execution and service levels, particularly in the Fresh Bakery segment [20] - The introduction of Campbell's Condensed Sauces is expected to complement existing products and cater to evolving consumer cooking behaviors [88] Q&A Session Summary Question: Insights on the snacks segment and competitive dynamics - Management acknowledged the need for a surgical approach to pricing and promotional strategies in the snacks category, particularly in response to competitive pressures [30][32] Question: Fresh Bakery execution challenges - The company faced manufacturing and distribution disruptions exacerbated by winter storms, but improvements are being seen through cross-functional team efforts [19][20] Question: Capital allocation priorities - The focus will be on debt reduction, with no share buybacks planned and a commitment to maintaining dividends [22][24] Question: Pricing and consumption expectations in meals and beverages - Positive net price realization is expected in the second half, but overall consumption growth may be flat to slightly negative [92][94]

Earnings Presentation Q2 Fiscal 2026 1 Rebecca Gardy Chief Investor Relations Officer Welcome Today's Agenda Mick Beekhuizen Chief Executive Officer Business Update Todd Cunfer Chief Financial Officer Financial Results and Outlook 2 Safe Harbor Regarding Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the federal securities laws. These forward-looking statements reflect our current expectations regarding our future results of operations, economic perf ...

Core Insights - General Mills has unexpectedly cut its full-year fiscal 2026 guidance, expecting organic net sales to decline between 1.5% and 2%, and adjusted diluted EPS to fall by 16% to 20% [1][2] - Both General Mills and Campbell's are experiencing significant stock declines, with both companies down more than 50% from their all-time highs, indicating a sectorwide slowdown in consumer staples, particularly in packaged foods [2][4] Company Performance - General Mills reaffirmed its prior guidance just two months ago, highlighting the unexpected nature of the recent cut [2] - The company is facing challenges due to weak consumer sentiment and significant volatility, which have impacted category growth and consumer purchase patterns [6] - General Mills has a strong dividend track record, having paid dividends without interruption for 127 years, with a current dividend yield of 5.45% [12][13] Market Conditions - The consumer staples sector was the worst-performing sector in 2025, with packaged food companies like General Mills and Campbell's hitting multiyear lows [4] - Changing consumer preferences are affecting packaged foods, with a shift towards healthier meal and snack options, impacting brand value for companies reliant on traditional products [5][8] Financial Strategies - Both General Mills and Campbell's are implementing cost-saving strategies to improve efficiency, with General Mills forecasting $100 million in efficiency savings for fiscal 2026 and Campbell's predicting $70 million [10] - Despite earnings and margin compression, both companies remain highly profitable and are expected to cover their dividends even amid declining earnings [15] Investment Outlook - General Mills and Campbell's are considered high-yield deep value stocks, with low investor expectations due to weak near-term guidance, making them attractive for long-term investors focused on brand durability and dividend reliability [18][19] - Both stocks are trading at substantial discounts to their 10-year median price-to-earnings and price-to-free-cash-flow ratios, indicating potential value for investors [17]

Core Viewpoint - The Campbell's Company has appointed Mohit Anand as Executive Vice President and President of Snacks, effective February 23, 2026, to lead its snack brand portfolio [1] Company Summary - Mohit Anand will oversee a portfolio that includes well-known snack brands such as Goldfish, Pepperidge Farm, Snyder's of Hanover, Lance, Kettle Brand, Cape Cod, Snack Factory, and Late July [1] - Anand will report directly to Campbell's President and CEO Mick Beekhuizen and will become a member of the company [1]

Core Insights - GGBR Inc. has successfully listed its stablecoin "Goldfish" on the global cryptocurrency exchange XT.com, enhancing market access and validating its gold-collateralized tokenization model [1][2][7]. Company Overview - GGBR Inc. is a Wyoming-incorporated C corporation headquartered in Fort Lauderdale, Florida, aiming to redefine gold investment by integrating the value of gold with blockchain technology [5]. - The Goldfish token is designed to provide liquidity, fractional ownership, and verifiable trust on-chain, making it accessible to investors of all sizes [5]. Product Details - Each Goldfish token is collateralized by ION.au's gold-reserve-backed security at a ratio of 1/1000th of an ounce, priced around $4.00 USD based on a $4,000/oz gold price [7]. - The token aims to eliminate traditional barriers to gold ownership, offering liquid and inflation-resistant investment opportunities [7]. Market Impact - The listing on XT.com is expected to enhance liquidity, accessibility, and visibility for the Goldfish token, facilitating trading by global investors, including banks and family offices [7]. - Existing Goldfish token holders can now trade on XT.com, while new investors can open verified accounts to participate in trading [8]. Future Plans - GGBR Inc. plans to conduct investor education webinars, community AMAs, and marketing campaigns to promote the Goldfish token following its listing [8]. - The company aims to create additional exchange listing targets and liquidity pool incentives for Goldfish in Q4 2025 and beyond [8].