|Bid||35.02 x 3000|
|Ask||35.09 x 4000|
|Day's Range||34.51 - 36.00|
|52 Week Range||34.51 - 70.01|
|Beta (3Y Monthly)||0.97|
|PE Ratio (TTM)||4.13|
|Earnings Date||Apr 30, 2019 - May 6, 2019|
|Forward Dividend & Yield||2.50 (5.23%)|
|1y Target Est||55.89|
Billionaire investor Warren Buffett wrote in an annual letter to shareholders on Saturday that the prospects of landing a mega-deal for his Berkshire Hathaway Inc conglomerate are "not good," while sinking stocks and deteriorating prospects from an investment in Kraft Heinz Co pummeled Berkshire's bottom line. Jillian Kitchener reports.
Zamansky LLC has commenced an investigation of The Kraft Heinz Company on behalf of its current and former employees for potential violations of the federal Employee Retirement Income Security Act in certain Company sponsored Employee Benefit Plans.
Warren Buffett's Berkshire Hathaway on Saturday wrote down over $3 billion related to its investment in Kraft Heinz. Buffett helped finance Heinz's deal with Kraft in 2015, but so far that investment has been rocky. Warren Buffett's bet on Kraft Heinz KHC is looking like an acquisition stumble with an unclear path forward .
Warren Buffett’s buy-and-hold strategy doesn’t always work out, as his Berkshire Hathaway is taking a bath on its big investment in Kraft Heinz Inc., after the packaged food company reported disappointing results, slashed its dividend and disclosed an SEC investigation.
The Omaha, Nebraska company’s balance sheet at year’s end included a $3-billion non-cash loss largely caused by Berkshire’s stake of more than 325 million shares in Kraft Heinz Co (NYSE: KHC), CEO Warren Buffett said in his annual letter to shareholders Saturday.
Buffett lamented these states of affairs in his widely read annual letter to Berkshire shareholders. Accompanying the letter was more bad news, that sinking stock prices and a big writedown for the company's Kraft Heinz Co investment fuelled a $25.39 billion (£19.4 billion) fourth-quarter net loss, and caused Berkshire to post its lowest annual profit since 2001. Buffett uses his shareholder letters to focus on Berkshire's operating businesses, tout the strength of the U.S. economy, and criticize thinking and business practices that get in the way.
Buffett lamented these states of affairs in his widely read annual letter to Berkshire shareholders. Accompanying the letter was more bad news, that sinking stock prices and a big writedown for the company's Kraft Heinz Co investment fueled a $25.39 billion fourth-quarter net loss, and caused Berkshire to post its lowest annual profit since 2001. Buffett uses his shareholder letters to focus on Berkshire's operating businesses, tout the strength of the U.S. economy, and criticize thinking and business practices that get in the way.
The food trends that have hurt Kraft Heinz (NYSE:KHC) finally showed up in the balance sheet. KHC stock tanked almost 28% on Friday as write-downs and a dividend cut overshadowed poor fourth-quarter earnings and revenue numbers.Source: Mike Mozart via FlickrTo say investors should avoid KHC stock is an understatement. Not only will this put keep the Velveeta maker depressed for some time to come, but it also undermines long-held assumptions of what constitutes a stable, recession-proof stock. Kraft Heinz Stock Missed on Nearly Every LevelFor Q4, Kraft Heinz reported non-GAAP earnings of 84 cents a share, which was 10 cents below estimates. The company earned 90 cents per share in the same quarter last year. Likewise, revenues of $6.89 billion iked out a 0.7% improvement year-over-year but fell short of Wall Street expectations by $50 million.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut what really got investors selling was the company's disclosure that the Securities and Exchange Commission (SEC) is investigating KHC's accounting and procurement practices. The SEC alleges higher ingredient costs and other expenses that the company should have recorded in past quarters.The pain did not end there. The company also reported write-downs of $15.4 billion in goodwill and intangibles related to Kraft brands and Oscar Meyer. Sales declines have affected both brands for several years. Though profits have recently begun to improve, lowered margins still reduced their value. * 9 High-Growth Stocks to Buy Now for Monster Returns Moreover, the company cut its quarterly dividend, paring it to 40 cents per share from the previous 62.5 cents. Management expects the reduced payout will better position the company for industry consolidation. Factoring in these adjustments, the quarterly loss comes to a staggering $10.34 per share. Investors Must Rethink Perceptions of Food StocksIn numerical terms, we are now seeing the shifting preference to fresh food show up in the numbers. For decades, Kraft Foods and H.J. Heinz had thrived in good times and in bad as their products remained staples in American households. While they did not generate the excitement seen in the latest tech stocks, they grew consistently and reliably paid dividends. This is what one should expect from Kraft Heinz stock or peers such as General Mills (NYSE:GIS), Conagra (NYSE:CAG), or Kellogg (NYSE:K).The move away from the packaged foods began to change this dynamic. Kraft and Heinz merged in 2015 amid this new trend. In fairness, they have made some moves to embrace the fresh food market. However, packaged foods remain most of their business. What Friday's news may tell us is that banding together may not have brought the synergies that they had hoped.Most investment experts argue that because people always have to eat, equities such as Kraft Heinz stock will always have a market. We are now discovering that while people must eat, they do not have to eat packaged foods with ingredient labels that only PhD-level biochemists can understand.And while people always have to eat, it's clear the big food makers are no longer driving consumer tastes. Forbes contributor Brittain Ladd recently covered new technology developed by Tel Aviv startup Tastewise that's using a big data platform to identify the impact of social media more clearly on the influence of food trends. Low but Pricey KHC Stock MultipleHence, perceptions of a safe, food-industry investment have made a permanent change. For this reason, I would caution contrarians not to jump into this stock. Rarely do I call a stock with a forward price-to-earnings (PE) ratio of 13x expensive. However, with falling profits in 2018 and dim prospects for growth this year, this does not look cheap. * 7 Healthy Dividend Stocks to Buy for Extra Stability Moreover, with these results, we have a troubled balance sheet that has become more compromised. Thanks to the recent drop in the Kraft Heinz stock price, we have a $43 billion company holding about $30.9 billion in long-term debt. Also, even after the $15.4 billion in write-downs, the company still holds $36.24 billion in goodwill. Intangible assets still stand at almost $49.75 billion. Seeing this, the write-downs may have only just begun. Bottom Line on Kraft Heinz StockThe latest quarterly report for KHC stock not only outlines the pain at Kraft Heinz, but it also shows us we have to rethink perceptions on food industry stocks in general.The floor fell out of these shares following $15.4 billion in write-downs and a dividend cut. Years ago, consumers discovered the fact that the need to eat does not necessarily have to depend on the types of packaged foods produced by Kraft Heinz. While that has hurt KHC stock for years, perhaps no single event outlined the pain more profoundly than the latest quarterly report.Despite this bad news, I do not predict the total collapse of the industry. KHC can still find markets for its products. However, from an investing perspective, I think the pain from this quarterly report will linger for a long time to come. Investors who want an equity that brings both stability and reliable dividends should no longer look to Kraft Heinz stock -- or the packaged food industry as a whole.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 6 Hot Stocks For Goldman Sachs' New Investing Strategy * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now Compare Brokers The post Kraft Heinz Stock Troubles Go Far Beyond Quarterly Estimate Miss appeared first on InvestorPlace.
In his annual letter to shareholders, Berkshire Hathaway Inc's BRK.A / BRK.B Warren Buffett explained why investors should focus on the forest rather than the trees and commented on Berkshire's sizable cash stake. "A few of our trees are diseased and unlikely to be around a decade from now," admits Buffett. (One of those "diseased trees" may very well be beleaguered Kraft Heinz KHC , for which Berkshire took a $3 billion writedown in the fourth quarter.
"earned" $4 billion in 2018 under new accounting rules that skewed results from previous years and showed wild losses in the first and fourth quarters, as warned by chairman Warren Buffett in 2017. The 2018 earnings included $24.8 billion in operating earnings, a $3 billion 'non-cash loss from an impairment of intangible assets' -- mainly from equity interest in Kraft Heinz Co. , which took a beating this week -- and $2.8 billion in realized capital gains from the sale of investment securities.
Warren Buffett’s Berkshire Hathaway swung to a $25.4 billion loss in the fourth quarter due to an unexpected write-down at Kraft Heinz and unrealized investment losses.
The investor’s closely read letter to shareholders has little to say about Kraft Heinz or the conglomerate’s intrinsic value.