Campbell's (CPB) continues to face a challenging environment for packaged food, with weakening consumer health likely to weigh on volume growth in fiscal 2027, RBC Capital Markets said in a Monday note.

On-the-ground checks from RBC analysts show that Meals & Beverages segment sales are below plan for many retailers, according to the note. Snack lines are also under pressure, although this was largely expected, the analysts said, adding that Rao's is the only business line holding up.

The company is expected to raise prices by about 3% to 5% in October or November across its Meals & Beverages and Snacks lines due to rising costs, the analysts said.

RBC said other packaged-food companies are also taking price increases, though not uniformly across categories or companies. The analysts said the price increases will disrupt Campbell's path back to volume growth.

The analysts said that they are more or less in line with consensus for the company's fiscal fourth-quarter 2026 results, with their revenue estimate below the low end of Campbell's guidance.

The analysts added that they have not yet seen the signs of improvement needed to become optimistic about a near-term recovery.

RBC's rating on the company's stock is Sector Perform, with a price target of $21.

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