- Price
- $19.37 → $19.83(+2.4%)
- Discount
- 53.3% → 52.2%(−1.1 pts)
- Balance sheet
- Campbell's uses mostly fixed-rate senior unsecured notes of the parent company. It issued them to buy Snyder's-Lance in 2018 and Sovos Brands in 2024. At August 2, 2026, debt was $7.14 billion: $6.16 billion of long-term debt and $977 million due within one year. The amount due within one year includes $373 million of commercial paper and $500 million of 5.20% notes due March 19, 2027. About $105 million is debt of La Regina, the Rao's sauce maker that Campbell's consolidates, and only La Regina is liable for it. Cash was $394 million. Thus net debt of about $6.7 billion was about 5.3 times fiscal 2026 reported EBITDA of about $1.27 billion. Moody's put adjusted leverage at about 4.9 times. Reported EBIT covered interest expense of $331 million only about 2.6 times. On September 23, 2026, Moody's cut Campbell's to Baa3 from Baa2 with a negative outlook. It also cut the commercial paper rating to Prime-3, which makes commercial paper harder and more costly to use. Fitch rates Campbell's BBB- after a cut on December 10, 2025. Liquidity rests on the undrawn $1.85 billion revolving credit facility, now extended to April 16, 2031. The facility requires EBITDA of at least 3.25 times interest expense. Free cash flow of $678 million in fiscal 2026 covered the $470 million dividend. The 36% dividend cut frees about $170 million a year for debt reduction. But the company is one notch above junk at Moody's. It has little room for buybacks, deals or another drop in profit.
As of 2026-08-02.
- Checkpoints
- Dec 3, 2026 (estimate): Fiscal Q1 2027 earnings: Snacks trend and guidance. Pending. Watch: Results on track for adjusted EPS of $1.65 to $1.80 with Snacks declines slowing pass; a guidance cut or another big Snacks profit drop fails.
Mar 19, 2027: $500 million notes mature at a Baa3 rating. Pending. Watch: Repayment or refinancing at a normal spread, with net debt lower than at August 2, 2026, passes; costly new debt or a draw on the revolver fails.
Mar 2027 (estimate): Fiscal Q2 2027 earnings: cost savings and Rao's growth. Pending. Watch: Visible savings from the $500 million program and Rao's still growing pass; flat Rao's sales or higher leverage fails.
Sep 2027 (estimate): Fiscal 2027 results and fiscal 2028 outlook. Pending. Watch: Moody's-style leverage near 4 times and an outlook for margin recovery in fiscal 2028 pass; leverage still near 5 times or a new rating cut fails.