Kraft Heinz KHC (former Kraft Foods)

Re: Kraft Heinz KHC (former Kraft Foods)

Postby winston » Sat Apr 13, 2019 8:28 pm

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Kraft Heinz (KHC)

Earlier this year, the management of Kraft Heinz Co (NASDAQ:KHC) put quite the scare into the 169,000 Unilever plc (ADR) (NYSE:UL) employees with a potential $143 billion offer to buy the company.

Fortunately (for employees), Unilever’s management told the Brazilians — 3G Capital and Berkshire Hathaway control KHC — to take a hike.

Kraft Heinz is going to make another acquisition, most likely this year. And when it does, the first thing the Brazilians are going to do is trim the fat. (Read this article about Tim Hortons to understand their cost-cutting ruthlessness.) That’s going to mean the loss of a lot of jobs.

While that’s terrible for the people on the receiving end of the pink slips, it’s been proven by 3G Capital time and again to significantly increase the bottom line.

Shareholders definitely will win as Kraft Heinz guts PepsiCo, Inc. (NYSE:PEP) or some other vulnerable target.

I’m of two minds when it comes to 3G Capital’s blitzkrieg management style: On the one hand, people suffer greatly from these job cuts. On the other, I wonder whether those jobs should have been created in the first place.

If you can live with this kind of management ruthlessness, KHC is a great business to own, because people will always have to eat.

Source: Investor Place
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Re: Kraft Heinz KHC (former Kraft Foods)

Postby winston » Fri Apr 19, 2019 8:24 pm

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Now Is the Right Time to Buy Kraft Heinz Stock

by Jonathan Berr

Like other packaged food companies, KHC has been hurt by the rising consumer demand for “fresh and healthy” ingredients at the expense of processed food.

New York-based KHC made matters worse by making unrealistic forecasts for the savings of its 2015 merger, which loaded its balance sheet with more than $31 billion in debt.


Source: Investor Place

https://finance.yahoo.com/news/now-time ... 08628.html
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Re: Kraft Heinz KHC (former Kraft Foods)

Postby winston » Tue Apr 23, 2019 2:42 pm

Here's everything that has gone wrong for Kraft Heinz in the last year

by Amelia Lucas

Shares of Kraft Heinz rose 2% in premarket trading Monday following the announcement that former Anheuser-Busch InBev executive Miguel Patricio would replace Hees as CEO .

The iconic food company's stock, which has a market value of about $40.2 billion, has fallen more than 43% in the last year as it struggles to keep up with changing consumer tastes and stiff competition from new brands.

Months earlier, in August, 3G trimmed its stake in the company by 7%, bringing its total ownership to about 22%.


Source: CNBC

https://finance.yahoo.com/news/apos-eve ... 59202.html
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Re: Kraft Heinz KHC (former Kraft Foods)

Postby winston » Wed May 01, 2019 9:54 pm

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Kraft-Heinz: This Failed Income Stock Is A Buy Following The Dividend Cut

Apr. 30, 2019

by Jonathan Weber


Summary

Kraft-Heinz is in the doghouse due to a large write-off and dividend cut.

This change however is in recognition of reality and marks improved capital allocation.

Opportunities in international growth and changing North American consumer tastes towards local and fresh foods are both significant and recognized.

KHC represents a good, solid long term investment in a recession resistant firm with significant upside should former multiples be achieved.

Mordor Intelligence forecasts the worldwide ketchup market to grow 3.8% annually through 2023, while Statista.com forecast worldwide condiment sales to continue to grow at a 3.2% pace.

The company shows that foodservice grew at low single digits in North America only, whereas the international growth rate was in the high single digits.

Kraft-Heinz' management is aiming for a 3 times debt to EBITDA multiple, whereas right now the company is leveraged to ~4.7 times this year's expected EBITDA.

First, Kraft-Heinz' shares offer a dividend yield of 4.9% right here, which is quite high and more than twice as much as one can get from the broad market right now.

Second, Kraft-Heinz' shares trade for only 11.8 times this year's expected net profits, which is the lowest valuation in the company's existence.




Source: Seeking Alpha

https://seekingalpha.com/article/425794 ... cut?page=2
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Re: Kraft Heinz KHC (former Kraft Foods)

Postby winston » Wed May 29, 2019 8:05 pm

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Why Shares of Kraft Heinz Are Falling on Tuesday

by Lou Whiteman

$30 billion debt load stemming from the 2013 takeover of Heinz by 3G Capital and Berkshire Hathaway.

Kraft Heinz spent more than 100% of its free cash flow on dividends.


Source: The Motley Fool

https://finance.yahoo.com/news/52-week- ... 35529.html
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Re: Kraft Heinz KHC (former Kraft Foods)

Postby winston » Sat Jun 01, 2019 8:57 pm

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Kraft Heinz Stock Blows Up on Warren Buffett

By Andrew Bary

The stock is 70% below its high of $97 in 2017.

Berkshire’s 27% interest—some 325.7 million shares—is now worth about $8.8 billion, compared with a cost of $9.8 billion. Berkshire had a paper profit of more than $20 billion at Kraft’s peak.

They trade for less than 10 times projected 2019 earnings of $2.79 a share and yield 5.9%.

The latest downdraft in Kraft stock came after reports of weak trends in recent food sales based on scanner data and a negative report from Credit Suisse ’s Robert Moskow, who cut his price target to $26 from $33 while maintaining an Underperform rating.


Source: Barron's

https://www.barrons.com/articles/kraft- ... 20Magazine
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Re: Kraft Heinz KHC (former Kraft Foods)

Postby winston » Sun Jun 02, 2019 2:57 pm

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Piper Jaffray upgraded Kraft Heinz to 'neutral' from 'underweight'

Piper Jaffray said that many of the risks for the company appear to be "priced in."

"We remain cautious on the outlook for KHC and its ability to build or maintain brand equity in a way that can drive sustainable organic growth, especially given its $15B write-down on its key Kraft and Oscar Mayer brands.

We believe a new CEO is the right move, but also believe he needs incremental brand spending to rejuvenate KHC's dusty brands, which could weigh on EPS by another $0.15-0.20 (not yet in our model).

Divestitures are also likely dilutive, perhaps by $0.20-0.30. However, at 9x our 2020E EPS, risks appear to be reflected in valuation.

We maintain our $31 target but raise our rating from UW to Neutral."

Source: Yahoo Finance
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Re: Kraft Heinz KHC (former Kraft Foods)

Postby winston » Sun Jun 09, 2019 9:25 pm

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Kraft Heinz completes internal probe into its procurement practices

June 7 (Reuters) - Kraft Heinz Co said on Friday the numbers it restated last month were accurate following completion of an internal investigation, but that the matter was under review by the U.S. Attorney's Office.

Last month, the company said it would restate financial reports for a near three-year period to fix errors that resulted from lapses in procurement practices by some of its employees.

Kraft Heinz said it expects to report its delayed first-quarter results on or before July 31.

The company's shares, which have fallen nearly 33% so far this year, rose about 3% in after hours trading.

The packaged foods company, in a long overdue annual regulatory filing on Friday, said a United States Attorney's Office for the Northern District of Illinois is reviewing this matter.

Kraft Heinz had disclosed a SEC subpoena in February. Thereafter, the company initiated an investigation into the procurement practices.

As a result of the internal investigation and material weaknesses spotted, Kraft Heinz said it is taking steps to improve internal policies and would strengthen internal control in financial reporting.

"We are pleased that Kraft Heinz is returning to a path of normalization," Kraft Heinz Chairman Alex Behring said.

Kraft Heinz also said it has elected Joao Castro-Neves, a former Anheuser-Busch InBev executive, to its board.

In April, the company named Miguel Patricio, a former marketing executive at AB InBev, as its chief executive officer.

Source: Reuters

https://finance.yahoo.com/news/1-kraft- ... 30788.html
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Re: Kraft Heinz KHC (former Kraft Foods)

Postby winston » Mon Jun 10, 2019 8:29 pm

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Kraft Heinz Is Still Overvalued. Wait For More Clarity

Jun. 4, 2019

by Mark Hake

Summary

Kraft Heinz's recent $15.4 billion write-down shows that Kraft is the problem. In-store research shows that Kraft is still being out-played by competitors.

The accounting standard for writing down intangibles allows a large amount of latitude. The SEC knows this and is probing the company's actual methodology.

Kraft Heinz has not reported any cash flow statements for 3/4ths of a year. There is no way to judge how easily Kraft-Heinz can afford the dividend.

Nevertheless, its stock price now seems to assume further write-downs and dividend cuts. Wait for a further margin of safety to open up.

KHC is likely still overvalued based on its Kraft products. It is very difficult to see what is going on with the company's cash flows.

Even at this reduced price, the stock is probably only trading at or near its underlying value, which I determined in my last article was between $26 and $27 per share.

Wait for a margin of safety to open up between the stock price and its easily determined true value. Wait for the cash flow statements, and for any value enhancing actions by the new CEO who starts on the job this month.

One real possibility is that Kraft Foods will be separated from the company either completely or on a minority "carve out" basis.


Source: Seeking Alpha

https://seekingalpha.com/article/426822 ... ngcom_feed
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Re: Kraft Heinz KHC (former Kraft Foods)

Postby winston » Wed Jun 19, 2019 11:37 am

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Iconic Brands Boost Kraft Heinz

About 31% of sales are outside of the United States.

With low expectations, even moderately positive news might help lift the shares.

As Kraft Heinz makes more substantial progress toward meeting its combined challenges of producing revenue growth and margin expansion, its stock price will likely produce meaningful gains.

We recommend the purchse of shares of The Kraft Heinz Company with a $45 price target.


Source: MoneyShow

https://finance.yahoo.com/news/iconic-b ... 00368.html
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