Campbell's Cuts Dividend by Over a Third as Snack Demand Weakens
Campbell's reported earnings on September 3, 2026, and slashed its quarterly dividend by more than a third amid weak demand for its higher-priced snacks. Shares fell about 7% in early trading. The company has closed plants and cut jobs as part of a plan to save about $500 million by fiscal 2030, while adjusting prices in some categories to reflect commodity costs.
Campbell's said it is facing sales pressure as consumers show weaker demand for its higher-priced snacks. Following the announcement, the company's shares fell about 7% in early trading. The company also said it has closed some factories and completed some layoffs to support profit margins, as part of a plan to save approximately $500 million by fiscal 2030.
Chief Executive Officer Mick Beekhuizen said the company would "face reality" and adjust prices in some categories to reflect changes in commodity costs.
The company is under pressure from rising raw material costs, driven by geopolitical and trade tensions, as well as higher logistics costs and investments in new soup and sauce launches and holiday promotions. Snack volumes fell 6% while prices rose 1%; meals and beverages saw flat prices and a 3% increase in volumes.
The company said it would adjust prices in some categories based on changes in commodity costs.