Campbell's Co Q1 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Thomas Palmer - JPMorgan Chase & Co - Analyst : Todd, welcome. I wanted to follow up on the La Romano announcement. Perhaps we could get some added detail on the reason for the acquisition and the timing and also perhaps some added details on the option on the remaining 51% such as how the purchase price would be determined.

Question: Andrew Lazar - Barclays Services Corp - Analyst : Great. Welcome, Todd. I think last quarter, Campbell's spoke about its intention to stabilize the Snack segment in the second half of the fiscal year, and it looks like you're still expecting that to be the case. I guess based on the data we can all see, it doesn't seem that trends improved maybe as much sequentially in the fiscal first quarter as you might have expected. I was hoping you could go through what gives you the conviction in a back half stabilization? And how do you think this is impacted, if at all, from a key snacks player, more about affordability going forward?

Question: David Palmer - Evercore ISI - Analyst : Just a follow-up on salty snacks. I know you won't be surprised to hear that people are really thinking about mega trends with regard to salty snacks right now. And obviously, GLP-1 usage, people are concerned that, that's going to be ramping into 2026. And of course, there's that issue that some cited about COVID era overpricing, just a hangover particularly within certain income cohorts. I'm wondering if you feel like these factors are relevant more to some subcategories. I know that salty snacks right now overall is up 1% in the latest dollar sales that we see ending November 30. So it doesn't look like it's that bad of a category. So it's a little bit confusing just it sounds worse than it is, so to speak. But I'm wondering how you're thinking about those mega trends and how they might interact with certain subsegments and how you're perhaps thinking about that going into '26.

Question: Robert Moskow - TD Cowen - Analyst : I guess I really have two. I wanted to know, Mick, you said two things about the soup business. You said that it's important for you to raise price to cover costs, but also you recognize the importance of providing value and that there's been some share losses in eating soup. So these two things kind of clash with each other. Do you think you'll need to improve affordability of eating soups? And how have competitors responded to the price increases?

Question: Michael Lavery - Piper Sandler - Analyst : Just wondering if you could come back to La Regina for a minute. You mentioned the margin benefit. But I suppose at 49%, would that still come through in operations? Or would that only occur after, if and when you have full consolidation? And then in either case, maybe could you just touch a little bit on what if any implications the deal has for top line momentum. It's always been a strong brand, but it's certainly, as it gets bigger and bigger, grows a little bit more slowly. How do we think about just what you can do to keep the momentum going on the strength of the top line as well?

Question: Michael Lavery - Piper Sandler - Analyst : And can I add a quick follow-up? If that's the case then, and you've got greater margin opportunity and flexibility, does that do anything to impact how you might think about funding AMC?

Question: Peter Grom - UBS AG - Analyst : So Todd, I kind of had a broader question for Todd, and I guess I know it's only been a few weeks. But maybe just some initial perspectives as you step into this role, kind of where you see the biggest opportunities for improvement, where you see them today and whether that be growth, profitability, cash flow. What kind of stands out to you?

Question: Chris Carey - Wells Fargo Securities LLC - Analyst : I wanted to ask about margins. Guys, I think this is historically low gross margin in the quarter going back some time. And so I wanted to get a sense of how the quarter from a gross margin perspective has come in relative to your own expectations and whether you think that the rest of the year gross margin relative to current levels, whether on an absolute basis or a year-over-year basis, see some steady improvement. And I ask that in the context of, I think, this is going to be the peak inflation quarter, relative for your guidance anyways. And there potentially is some relief through the rest of the year. So it's kind of how it came in relative to expectations and phasing from here? And then as you look at the business and you've handled this inflation cycle, just any thoughts on the prospects for margins over time?