Campbell's stock plunges as food maker slashes dividend after sales, profit declines
Campbell's stock declined after a disappointing quarter that was impacted by inflation.
What happened: The Campbell's Company ( CPB ) stock plunged 6% on Thursday morning.
What's behind the move: The manufacturer of Goldfish and other foods reduced its dividend after reporting declines in net sales, earnings, and gross profit margin for its latest quarter.
"Fourth quarter and fiscal 2026 results reflect top-line softness and inflation-driven margin headwinds," Mick Beekhuizen, Campbell's president and CEO, said in the company's earnings release.
Beekhuizen said the company is resetting its dividend as part of a broader plan to accelerate debt reduction and strengthen the company's balance sheet.
The company board approved a reduction in the quarterly dividend by 36% to $0.25 per share.
In its fiscal fourth quarter, Campbell's net sales decreased 8% to $2.1 billion, while gross profit margin decreased 310 basis points to 27.3%. Adjusted earnings per share also fell 37% to $0.39.
What else you need to know: Food manufacturers' bottom lines and margins have been squeezed by increasing input costs.
In August, agricultural commodities such as corn, wheat, and sugar increased by double-digit percentages.
Additionally, Campbell's is undergoing broad cost-cutting measures. Beginning in fiscal 2027, the company is launching a new program targeting total cost savings of $500 million by fiscal 2030
Year to date, Campbell's stock is down roughly 15%.
Ines Ferre is a senior business reporter for Yahoo Finance.
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