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.