Shares of Campbell Soup (CPB - Get Report) are hovering dangerously close to new 52-week lows on Tuesday.

The company missed on earnings per share and revenue estimates and Campbell Soup stock is down 8.1% to $45.88 as a result. Ultimately, year-over-year sales fell 1.8%, while earnings fell 3%.

Higher carrot costs were one reason behind the miss, according to management. "I have a hard time really wrapping my head around the idea that it was just carrots," TheStreet's Jim Cramer said on CNBC's "Mad Dash" segment.

Campbell actually has a bigger issue than rising input costs, and "I think it may be the product line," Cramer reasoned. He pointed out that organic sales fell 2% and U.S. soup sales slumped 9%. The center aisles of the grocery store are "still awful," Cramer said and it's clear that consumers aren't clamoring for canned soup.

But because Kraft Heinz (KHC - Get Report) has been in the market for a large M&A deal, many of these stocks seem to have a bid underneath them in hopes they will be acquired. That's why Campbell Soup stock had been levitating higher prior to this earnings report, explained Cramer, who also manages the Action Alerts PLUS charitable trust portfolio

"This is a terrible report," he added, concluding that "Campbell Soup is 'mmm,' 'mmm' bad."

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At the time of publication, Cramer's Action Alerts PLUS had no position in any security mentioned.