Kraft Heinz Company

KHC-Q

NASDAQ:KHC

30.41
0.27 (0.88%)
Kraft Foods Inc. was an American multinational confectionery, food and beverage conglomerate. It marketed many brands in more than 170 countries.
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Analysis and Opinions about KHC-Q

Signal
Opinion
Expert
DON'T BUY
DON'T BUY
November 12, 2019
Molson Coors vs. Kraft Heinz She owns neither. Kraft Heinz has pulled back a lot; 3G Capital bought them and they're famous for cutting and not reinvesting, which limits product innovation. There's little growth in North American staples; the space is very mature and highly competitive. Molson Coors: She doesn't own any beer companies, because they're all richly priced. Also, beer drinking is declining over time. She gives a slight edge to Molson Coors, but unethusiastically, because KHC is limited by the mature N.A. market.
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Kraft Heinz Company (KHC-Q)
November 12, 2019
Molson Coors vs. Kraft Heinz She owns neither. Kraft Heinz has pulled back a lot; 3G Capital bought them and they're famous for cutting and not reinvesting, which limits product innovation. There's little growth in North American staples; the space is very mature and highly competitive. Molson Coors: She doesn't own any beer companies, because they're all richly priced. Also, beer drinking is declining over time. She gives a slight edge to Molson Coors, but unethusiastically, because KHC is limited by the mature N.A. market.
WAIT
WAIT
October 25, 2019
Debt issues? Growth by acquisition with a lot of debt has got them into problem. He sold out around $80 and is now starting to look again at them. He is concerned about the debt overhang. Over a 5-10 year time horizon you should be okay. Is it the best to own in consumer staples? He would add something else along with it. He can't recommend it until he does more analysis.
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Debt issues? Growth by acquisition with a lot of debt has got them into problem. He sold out around $80 and is now starting to look again at them. He is concerned about the debt overhang. Over a 5-10 year time horizon you should be okay. Is it the best to own in consumer staples? He would add something else along with it. He can't recommend it until he does more analysis.
WATCH
WATCH
October 25, 2019
In terms of relative valuation, it is looking good. The stock is on sale. Probably too early to look at it right now though it is a cheap staple. It has products that most homes have. It is definitely worth looking at, but must look at some of the trends.
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In terms of relative valuation, it is looking good. The stock is on sale. Probably too early to look at it right now though it is a cheap staple. It has products that most homes have. It is definitely worth looking at, but must look at some of the trends.
DON'T BUY
DON'T BUY
July 29, 2019

They encountered accounting issues that the FCC is investigating. In 2017 they tried to merge with Unilever which began their demise. A lot of products have fallen out of favour, like Maxwell House and Oscar Meyer. To catch up to current health food trends requires a huge investment in R&D, and will it payoff and how long? Unlike QSR-T, KHC has fallen behind.

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They encountered accounting issues that the FCC is investigating. In 2017 they tried to merge with Unilever which began their demise. A lot of products have fallen out of favour, like Maxwell House and Oscar Meyer. To catch up to current health food trends requires a huge investment in R&D, and will it payoff and how long? Unlike QSR-T, KHC has fallen behind.

DON'T BUY
DON'T BUY
July 15, 2019
A value play or trap? More of a trap, because growth has slowed down. There isn't much downside left, but maybe no upside from here on.
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A value play or trap? More of a trap, because growth has slowed down. There isn't much downside left, but maybe no upside from here on.
DON'T BUY
DON'T BUY
July 4, 2019
Lots of clouds still. Long-term growth rate is unknown. Missed on earnings. Expects dividend to be at risk. Management has cut costs, but paid no attention to brand awareness. Value trap.
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Lots of clouds still. Long-term growth rate is unknown. Missed on earnings. Expects dividend to be at risk. Management has cut costs, but paid no attention to brand awareness. Value trap.
WAIT
WAIT
June 4, 2019
He would not be a buyer. It has had troubles, with Warren Buffet having to step in. Consumer tastes have changed and they have been slow to adapt. The company has taken on a large amount of debt for the acquisition. There have not been enough catalysts to get him back on board so he will continue to wait.
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He would not be a buyer. It has had troubles, with Warren Buffet having to step in. Consumer tastes have changed and they have been slow to adapt. The company has taken on a large amount of debt for the acquisition. There have not been enough catalysts to get him back on board so he will continue to wait.
DON'T BUY
DON'T BUY
April 22, 2019
Its balance sheet is too big for its current level of earnings. Until there are big write-offs, this stock will continue to suffer. The new CEO is a good step.
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Its balance sheet is too big for its current level of earnings. Until there are big write-offs, this stock will continue to suffer. The new CEO is a good step.
DON'T BUY
DON'T BUY
April 22, 2019
Will it recover? He doesn't know. Today, they replaced their CEO. This often happens after a corporate "accident" then the market positively reacts, seeing hope. If KHC cuts costs too much, then it could cut into bone and hurt sales growth. There are better Consumer Packaged Goods (CPG) companies out there to buy. Also, CPGs are tough, not strong organic growers.
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Will it recover? He doesn't know. Today, they replaced their CEO. This often happens after a corporate "accident" then the market positively reacts, seeing hope. If KHC cuts costs too much, then it could cut into bone and hurt sales growth. There are better Consumer Packaged Goods (CPG) companies out there to buy. Also, CPGs are tough, not strong organic growers.
DON'T BUY
DON'T BUY
March 11, 2019
Their brands are not as popular as they used to be. They have been taken over by 3G, the cost cutters, from Brazil. The medium term outlook is that local and regional brands are on trend and it is more difficult for national ones. Brands are losing their value globally.
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Their brands are not as popular as they used to be. They have been taken over by 3G, the cost cutters, from Brazil. The medium term outlook is that local and regional brands are on trend and it is more difficult for national ones. Brands are losing their value globally.
DON'T BUY
DON'T BUY
February 26, 2019
It comes down to consumer tastes changing and competition from private brands. The consumer staples sector is overvalued as a whole.
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Kraft Heinz Company (KHC-Q)
February 26, 2019
It comes down to consumer tastes changing and competition from private brands. The consumer staples sector is overvalued as a whole.
COMMENT
COMMENT
August 23, 2018

A company that he is starting to look at more closely. Valuation has come down. People are still eating Kraft dinner and so. 4.2% yield. (Analysts’ price target is $68.00)

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A company that he is starting to look at more closely. Valuation has come down. People are still eating Kraft dinner and so. 4.2% yield. (Analysts’ price target is $68.00)

COMMENT
COMMENT
August 21, 2018

People often invest in dividend-paying consumer staples stocks for the dividend because the bond market currently pays so little. However, the money flow into these companies, in search of yield, has driven their prices up. However, as yields have started rising, people have been leaving these companies. Kraft Heinz has dropped 29% over the past year. Many other companies in this sector have dropped substantially. There are many other sources of value to a company than dividends, such as capital growth.

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People often invest in dividend-paying consumer staples stocks for the dividend because the bond market currently pays so little. However, the money flow into these companies, in search of yield, has driven their prices up. However, as yields have started rising, people have been leaving these companies. Kraft Heinz has dropped 29% over the past year. Many other companies in this sector have dropped substantially. There are many other sources of value to a company than dividends, such as capital growth.

DON'T BUY
DON'T BUY
March 13, 2018

It's trading below falling moving averages. Growth rate is 7x. Their 3.8% dividend is secure and likely will grow. But their sales are sluggish and profit growth is slowing. There's lots of competition in this space, while inflation is another
headwind.

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It's trading below falling moving averages. Growth rate is 7x. Their 3.8% dividend is secure and likely will grow. But their sales are sluggish and profit growth is slowing. There's lots of competition in this space, while inflation is another
headwind.

COMMENT
COMMENT
January 12, 2018

The big story with this was on cutting costs. They have taken out almost $2 billion worth of costs in the last 3 years. That has largely run its course, so now they need to go out and buy something else. Management has shown the ability to extract the fat out of these big lethargic companies, and fall to the bottom line. Gives a good dividend yield.

Show full opinionHide full opinion

The big story with this was on cutting costs. They have taken out almost $2 billion worth of costs in the last 3 years. That has largely run its course, so now they need to go out and buy something else. Management has shown the ability to extract the fat out of these big lethargic companies, and fall to the bottom line. Gives a good dividend yield.

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