Food delivery is consuming the soup business. Campbell’s Soup appears to be losing out when consumers want a fast easy lunhc or dinner. The analysts on the CNBC segment make the point that GrubHub’s current valuation is momentum-driven and that Campbell’s is underpriced.
What about Campbell’s delivery? When does the food brand move to engage through home delivery? Or does the Soup Nazi break into homes?
The rationale for buying Campbell is that canned soup remains attractive. At today’s prices for Campbell’s stock, it looks like a deal, but does delivery mean that fewer cans of soup will line kitchen pantries in the future?