Campbell Soup co (NYSE:CPB) is simmering up some earnings results. Ponder this Bear Case Scenario:
Recent acquisitions operate at lower margins than legacy businesses. Bolthouse Farms has been referred to publicly as having lower margins. So Boys why do you keep making stupid deals. You need to be accretive and be quick about it.
There is a prolonged weakness in the soup business. Campbell Soup needs to fix it or reduce reliance on something in a death spiral. The Brand identity is soup Mm Mm good.
Campbell has lost a major restaurant customer. Also shelf stable juices are not exciting. Too reliant on commodity type products.
George Gutowski writes from a caveat emptor perspective.