MW Campbell's is getting a new CEO. Analysts say he could face these 'uncertainties' as Trump takes office.

By Bill Peters

Campbell's likely to be challenged by Trump's policies, inflation and changes in consumer preferences, TD Cowen says

Campbell's Co. on Tuesday said its current chief executive would depart to take on a leadership role for the Washington Commanders NFL team, and the soup and snack maker reported mixed first-quarter results and held to its full-year outlook as it steers through a "dynamic" consumer landscape.

Shares $(CPB)$ fell 1.7% after hours on Tuesday.

The company - known for its namesake soup brand, as well as Goldfish crackers, Snyder's pretzels and Prego pasta sauce - said that its board had elected Mick Beekhuizen as its new chief executive. Beekhuizen, who is currently the president of Campbell's meals and beverages segment, will start as CEO on Feb. 1.

He will succeed Mark Clouse, who leaves on Jan. 31 to become president of the Commanders. Clouse has been chief executive since January 2019.

Campbell's announced the leadership changeover as some shoppers, juggling higher costs of living, switch to more affordable brands made by its competitors. However, the company's stock is still up 5.3% so far this year, as of the close of trading on Tuesday.

Clouse oversaw something of a turnaround during his time at the helm, TD Cowen analysts said in a note Tuesday, helping to boost Campbell's snacks business as well as its meals segment with this year's acquisition of Sovos Brands. Sovos, Campbell's said, would add fast-growing brands like Rao's tomato sauce to its lines of business.

"The Washington Commanders role is a once-in-a-lifetime position that blends my passion for business and love of sports," Clouse said in a statement. "A leadership role in professional sports is the only thing that would've pulled me away from Campbell's."

In its announcement on Tuesday, Campbell's said that as CEO, Clouse "made soup a key element of the company's growth strategy." However, Campbell's dropped "Soup" from its name earlier this year.

"Mick Beekuizen shares Clouse's passion for the company, and he is well qualified to take the helm," the TD Cowen analysts said.

"Over the next several years, he will face a different set of challenges such as uncertainties regarding President Trump's Make America Healthy Again initiative, consumer sensitivity to inflation, and rapid changes in consumer preferences," the analysts said.

Campbell's on Tuesday also stuck with its full fiscal 2025 outlook, as it "continues to navigate the dynamic consumer environment and uneven category recovery."

During its fiscal first quarter, Campbell's reported sales of $2.77 billion, up 10% year over year. That was a bit below FactSet estimates for $2.79 billion. The company reported adjusted earnings per share of 89 cents, above estimates for 87 cents.

"While navigating this dynamic consumer environment and uneven pace of category recovery, we remain agile, focusing on balancing investments and earnings to meet our commitments for this year and the long term," Clouse said in Campbell's earnings release.

"Our first quarter reflected our successful efforts to achieve that goal, as do our plans for the second quarter, which include the critical holiday season where we expect both top-line and market-share sequential improvement," he continued.

The company had initially said it would report quarterly results on Wednesday.

-Bill Peters

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December 03, 2024 20:26 ET (01:26 GMT)

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