Americans Are Cooking At Home More Than Ever Since COVID—And They Want Ingredients That Stretch Their Budget

Americans are firing up their stovetops at the "highest levels since early 2020," Campbell's Co. (NASDAQ:CPB) chief executive Mick Beekhuizen told analysts on Monday.

What Happened: Beekhuizen declared in a post-earnings conference call that consumers are "turning to our brands for value, quality, and convenience" and "favoring ingredients that help stretch tighter food budgets."

Sales of condensed soup and broth — pantry staples that anchor low-cost meals — jumped 15% in Campbell's latest quarter, helping overall revenue beat Wall Street estimates even as the snacks division fell 5% on an organic basis.

The wallet shift comes as eating out grows pricier. Government data show the food-away-from-home index rose 3.9% in April from a year earlier, while prices for food at home slipped 0.4% on the month, widening the savings gap for households that choose their kitchens over restaurants.

Why It Matters: Fast-food giants are already feeling the heat. McDonald's (NYSE:MCD) CEO Christopher Kempczinski said visits from low-income diners were down "nearly double digits" in the first quarter and middle-income consumers fell nearly as much. According to Reuters, Burger King’s parent, Restaurant Brands (NYSE:QSR), missed sales expectations after noting that customers were steering inflation-hit dollars toward groceries. Chipotle (NYSE:CMG) cut its sales outlook too, blaming persistent inflation and economic uncertainty that keep guests at home.

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Broader metrics also flash caution. The University of Michigan's consumer-sentiment gauge sank to a three-year low in May as households braced for higher prices.

Campbell Soup Company reported third-quarter sales of $2.475 billion, up 4% year-over-year and ahead of analyst expectations. Meals & Beverages sales jumped 15%, offsetting an 8% decline in Snacks, while adjusted EPS of $0.73 beat the $0.66 consensus. The company also expanded operating cash flow to $872 million over nine months, delivered $110 million in cost savings, and continues to return capital through dividends and share buybacks.

Price Action: Campbell’s Co. shares closed 0.62% up at $34.25 on Monday.

Benzinga Edge Stock Rankings show CPB has a Growth score of 25%. Here is how it ranks on other metrics.

Photo Courtesy: Rimma Bondarenko on Shutterstock.com

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