Jim Cramer Says “Only Consolidation” Can Save Food Stocks Like Campbell’s

The Campbell’s Company (NASDAQ:CPB) was among the stocks Jim Cramer discussed on Mad Money, along with the recent sell-off in the market. Cramer highlighted the stock’s performance during the episode and commented:

The food stocks have been unbearable. I mean, they’re just disastrous. Campbell’s reports on Monday, and here’s a stock that’s down 22% for the year. 7.2% yield. The sky-high dividend yield, though, is really a sign that people believe Campbell’s can’t cover its payout. I don’t know if that’s true, but I do know this: If someone doesn’t consolidate this whole packaged food industry, we’re going to have a whole bunch of low-dollar amount stocks that aren’t worth owning because they won’t be able to pay their dividends. No growth, often unhealthy, in the cross hairs of GLP-1s, no pricing power, that’s almost every food stock out there. Only consolidation can save them.

The Campbell’s Company (NASDAQ:CPB) produces and sells soups, broths, sauces, juices, frozen meals, and beverages. In addition, it offers a wide range of snacks. On June 8, the company reported non-GAAP EPS of $0.50, outperforming estimates by $0.02, and revenue of $2.4 billion, beating estimates by $20 million but was down 3.2% year-over-year.

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