Campbell Soup Co. (NYSE:CPB) is much more than just a soup company. It also manufactures and markets branded convenience food products. The company is larger than you might imagine, and it operates through several segments. It has a U.S. Simple Meals segment, a Global Baking and Snacking segment, an International Simple Meals and Beverages segment, a U.S. Beverages segment and a Bolthouse/Foodservice segment.
Beyond soups, Campbell’s also sells broth and stocks, pasta sauces, Mexican sauces, snacks, cookies, crackers, bakery and frozen products, biscuits, juices and beverages, refrigerated beverages and refrigerated salad dressings, specialty entrées, and other prepared foods, as well as canned gravies, poultry, pasta, and beans. Its operations are in the United States, Canada, Australia, and the Asia Pacific region. It offers its products under the Campbell’s, Pepperidge Farm, Goldfish, V8, Pace, Prego, Swanson, Arnott’s, Bolthouse Farms, Plum, Kjeldsens, and Royal Dansk brand names.
The company sells its products directly and at its retail stores, as well as through third-party broker and distributor partners, retail food chains, mass discounters, mass merchandisers, club stores, convenience stores, drug stores, dollar stores, and other retail, commercial, and non-commercial establishments. Just about every store you walk into carries at least one of Campbell’s products. The motivation for this article is to discuss whether this stable stock is a buy now that it has pulled back almost 10 percent off its highs. To help decide if the company, which pays a nice 2.8 percent yield, is a good investment, a review of the company’s performance and guidance looking ahead is justified.