Campbell's Sets Weak 2027 Outlook Amid Turnaround Push

Campbell's outlined a cautious fiscal 2027 outlook and a strategic reset at the Barclays Global Consumer Conference, relying on a new $500 million cost-savings program, targeted price increases, and plant optimizations to navigate a slowing snack market and value-seeking shoppers. The packaged food manufacturer projects organic sales declines alongside sharper drops in operating earnings as management works to stabilize margins.

"There is no silver bullet. We need to make sure that we are focused on everyday great execution, and we need to support our brands with marketing as well as innovation in the area where the consumer really wants to be," said Mick Beekhuizen, President and CEO, Campbell's, at the conference.

Fiscal 2027 Financial Guidance and Projections

According to transcript data from the Barclays Global Consumer Conference, Campbell's expects a challenging period ahead. For fiscal 2027, the company forecasts organic sales to fall between 2% and 4%.

Earnings are projected to decline even faster. EBIT is expected to drop 7% to 12%, while adjusted earnings per share (EPS) are anticipated to fall 17% to 24% as the company absorbs cost pressures and restructuring expenses.

Cost Cuts and Pricing Actions

To counter macroeconomic headwinds, management announced a comprehensive $500 million cost-savings program. This initiative pairs structural cost reductions with targeted manufacturing footprint optimizations.

In addition to internal savings, Campbell's plans to implement average price increases of 2.5% to 3% across approximately 60% of its product portfolio. These pricing actions are scheduled to roll out beginning in the second quarter of fiscal 2027.

"The biggest factor for me is our ability to stabilize and grow gross margin. If we can end the year with gross margin expansion, that sets us up really well for FY ’28, where we can invest in our businesses and start to grow the top line," said Todd Cunfer, CFO, Campbell's.

Consumer Trends and Semi-Scratch Cooking

Executive leadership also addressed shifting consumer behaviors, noting that budget-conscious shoppers are altering their purchasing patterns across both meals and snacks. To capture shifting home-cooking demand, the company is leaning into what executives term "semi-scratch cooking."

"Semi-scratch cooking, by the way, means I am making a meal under 30 minutes with five ingredients or less. So it’s a, call it, simple way of making food at home," said Mick Beekhuizen, President and CEO, Campbell's.

What Is at Stake for Packaged Food Makers

The turnaround plan highlights the broader pressures facing legacy food brands as pandemic-era pricing power wanes and consumers pull back on discretionary grocery spending. For Campbell's, successfully executing the $500 million cost reduction program while implementing brand-by-brand pricing without triggering volume erosion will determine whether the company can rebuild its margin foundation ahead of fiscal 2028.