Wednesday, October 08, 2008
Could Campbell and Canned Foods Surge in Stock Market?
Americans are spending more time in the kitchen than their favorite local steakhouse, just ask almost any restaurant owner.
Slumping stocks, rising gas prices and the current crisis put mounting pressure to pinch every penny in the family food fund. As a result,more pantries may include items and ingredients typically found in a college dorm, such as Campbell soup, ramen noodles and macaroni and cheese.
Consider the past three months for Darden Restaurant Corporation, which owns popular chains- Red Lobster,Longhorn Steakhouse, Bahama Breeze, Capital Grille and Olive Garden. Darden peaked during the middle of the summer (heart of vacation season) and has sunk during the past three months.
Conversely, Campbells enjoyed a slow but steady increase during that same span.
I'm not implying that we'll all be in the soup and bread lines like the great depression, but Americans are already taking cost-cutting measures, from coupon-clipping to shopping at bargain supermarkets such as Family Dollar.
By Matt O'Hern at 03:13 PM | Comments (0)