Campbell Soup stock ticks up on earnings beat, sales focused to budget-minded consumers

The Yahoo Finance Live team discusses Campbell Soup's stock jump and earnings release.

Video transcript

[AUDIO LOGO]

- My play, meanwhile, CPB, Campbell's Soup, turning in a hearty earnings report topping expectations on revenue and earnings per share, the stock up just about 1 and 1/2 percent on the day. Said their CEO Mark Clouse, quote, "Consumers continue to seek out our brands, as they look for ways to stretch their food budgets and turn to value driven meals that are easy to prepare."

US soup sales rose 7% in the second quarter. Campbell's, though, is facing growing competition from cheaper private label counterparts. Quote, "Any time we're losing share in the category, I'm not happy about that," Clouse said, but added the company was taking steps to regain share. Those steps include innovation.

They are appealing to a younger generation with a product that I have right here, I have not tried. It is called Ghost Pepper Chicken Noodle Soup, which debuted as part of a contest in January. It was so insanely popular, Campbell's added it permanently coming this summer, said their chief-- it said, it's going to be one of those things that really is a new chapter for us, said their executive chef. So we're going to try it. Initially, you had to sign a waiver.

- A waiver.

- A waiver.

- I read that.

- I don't know how I feel about the waiver.

- Because it was so hot. So I'm nervous about it. I don't--

- Did you heat up the soup? That's what I want to know. I'm cold.

- We're not eating cold soup. We're not eating cold soup. Dear God.

- It's that hot.

- It is deli--

- Oh God.

- He's going to need some water.

- It is delicious, but my God, it's hot.

- My God, it is hot.

- Spicy?

- Wow.

- Oh my God.

- You have to-- do you want--

- Are we sharing spoons? I'll try it. I'll try it.

- Sometimes here we only have two spoons.

- Oh God.

- Here you go.

- That is--

- I'm trying the broth.

- It's really good.

- Really?

- But I'm not a spicy guy.

- That's spicy. That's spicy.

- It's way too spicy to eat. Imagine trying to eat more than just that little.

- Imagine having the can.

- I'm sweating.

- Also who is this appealing to? Who out there in Gen Z or the younger generation-- now, you're drooling.

- Oh God.

- Just to give everyone a real good look or good sense at how hot this was, the camera panned for one second. He was drooling. And now he's--

- I am sweating.

- --profusely sweating.

- You are. You're sweating.

- Wow, they did a good job. Young kids love--

- This hot, though?

- --extraordinarily hot things.

- Do you? I'm asking a Gen Z-er.

- I kind of like the spice. I don't know if I could eat the whole can.

- No.

- Fun innovation.

- There are a lot of fans out there of this. All right, guys.