Kraft Heinz: Key points for investors
-Formation and Size: Kraft Heinz $KHC-0.6% was formed by the merger of Kraft Foods and Heinz in 2015. It is one of the largest packaged food manufacturers in the world.
- Known Brands: In addition to $KHC-0.6%, it also owns the Oscar Mayer, Velveeta, Jell-O, Philadelphia and Kool-Aid brands.
- Initial problems: Faced challenges after the merger due to customers switching to healthier products and private labels. Excessive focus on cost cutting slowed growth.
- New leadership: Miguel Patrício joined as CEO in 2019 and implemented a strategy focused on marketing, strengthening strong brands, selling weaker brands and optimizing spending.
- 2023 Financials: Organic sales up 3%, adjusted earnings per share up 7%.
- 2024 Outlook: Organic sales expected to grow 0-2% and adjusted earnings per share expected to grow 1-3%.
- Shareholder Value: Shares trade at approximately 12 times this year's earnings with an attractive forward yield of 4.4%.
-StableInvestment: Kraft Heinz $KHC-0.6% is a reliable blue-chip stock trading at a discount to its competitors.
Would you consider investing in this company?
The company is great for me, but it also doesn't attract me and it's not for me.
It's a very defensive action. With a higher dividend, one can make a little money on it, but it's not for me.