Campbell’s Company shares fell on Wednesday after the packaged-foods maker reported quarterly results that missed Wall Street expectations.

The earnings update highlighted pressure in snacks and ongoing cost challenges as the company works to stabilize operations.

Earnings Miss Estimates

Campbell’s posted second-quarter adjusted earnings of 51 cents per share, falling short of analyst expectations.

Revenue also trailed forecasts as weaker volumes and competitive pressures weighed on performance.

Operational Pressures

During the earnings call, leadership described a difficult operating environment across several parts of the business.

Executives acknowledged execution challenges in the Fresh Bakery operation and rising pricing pressure in the salty snacks category.

Mick Bechuizen, the company’s chief executive officer, pointed specifically to intense competition in chips.

Management also noted that private-label competition remains an important factor in certain categories. Bechuizen added that the company continues monitoring price gaps to maintain competitiveness against store brands.

Tariffs And Cost Environment

Executives also discussed external headwinds affecting profitability. According to Todd Kumpfer, Campbell’s chief financial officer, tariffs have pressured year-over-year comparisons but should ease later in the fiscal year.

The company also continues to navigate inflation and commodity volatility. Kumpfer noted that Campbell’s hedged most key commodities, including freight-related diesel costs.

Strategic Focus

Leadership framed the quarter as part of a stabilisation effort. The company plans tighter operational execution and targeted promotions to improve performance by the fourth quarter.

Management also signaled a shift in capital priorities. Executives now plan to emphasize debt reduction and cost control instead of aggressive share repurchases.

Business Segment Trends

While snacks struggled, the Meals & Beverages division showed stronger momentum.

Management highlighted continued growth from the Rao’s brand and stronger demand for cooking-oriented soup products.

Executives said Rao’s remains one of the company’s fastest-growing brands and continues to gain traction with consumers.

CPB Price Action: Campbell’s shares were down 5.83% at $23.24 at the time of publication on Wednesday. The stock is trading at a new 52-week low, according to Benzinga Pro data.