Campbell’s Reports Surge in Home Cooking as Consumers Cut Dining Costs Amid Economic Strain

Campbell’s has reported a notable surge in home-cooked meals, indicating that consumers are increasingly preparing food themselves rather than dining out. This marks the highest level of home meal preparation in nearly five years. CEO Mick Beekhuizen highlighted that this trend spans all income levels and suggests a growing frugality among consumers amid current economic challenges.

Pandemic-Era Spending Habits Resurface Amid Economic Uncertainty and Slowing Consumer Confidence Trends

Beekhuizen drew comparisons between current consumer behavior and the early months of the COVID-19 pandemic, when uncertainty around public health and the economy drove people to cut back on spending. Just as in 2020, the current shift in spending habits reflects anxiety about financial stability and potential downturns, leading to more cautious and home-centered consumption.

The increase in meals cooked at home could indicate a broader pullback in consumer spending, particularly in dining and hospitality. Since consumer spending makes up roughly two-thirds of the U.S. gross domestic product (GDP), a decline in such discretionary expenditures could point toward an economic slowdown or even a potential recession. Reduced restaurant visits serve as a warning signal for a cooling economy.

Consumer Confidence Wanes as Economic Anxiety Rises Despite Campbell’s Strong Quarterly Performance

The cautious behavior also mirrors a broader decline in public confidence in the economy. The University of Michigan’s consumer sentiment index recently dropped to one of its lowest levels, underscoring widespread concerns about inflation, job security, and financial health. These fears likely contribute to the uptick in cost-saving behaviors, such as preparing food at home.

Despite economic headwinds, Campbell’s managed to outperform Wall Street’s expectations for its fiscal third quarter. The company posted earnings of 73 cents per share on $2.48 billion in revenue, surpassing analysts’ forecasts. However, the positive earnings report did little to reverse a broader downward trend, with the company’s stock still down over 18% for the year.