Campbell's Cuts Dividend 36% Amid Declining Sales

Shares of The Campbell Co. fell as much as 13% in premarket trading Thursday after the company reported its fourth consecutive quarter of declining sales and announced a 36% reduction in its quarterly dividend to 25 cents per share. The move ends a 56-year streak of consistent dividend payments.

Fiscal fourth-quarter sales dropped 8% to $2.13 billion, while gross profit fell 17% to $583 million. Executives attributed the slump to rising tariffs, supply chain costs, and increased competition. The company also noted a shift in consumer behavior, with lower-income buyers switching to store brands and a broader trend toward high-protein options driven by the rise of GLP-1 weight loss drugs.

To preserve margins and reduce debt, the company is implementing a $500 million cost-savings program over the next three to four fiscal years. This plan follows the closure of several snack plants and a 13% reduction in the salaried workforce. Fiscal 2027 guidance fell below analyst expectations, with projected earnings per share between $1.65 and $1.80.

In response to the weak outlook, TD Cowen reiterated a Hold rating and a $22.00 price target for the stock.