|Bid||26.77 x 4000|
|Ask||26.80 x 800|
|Day's Range||26.46 - 27.92|
|52 Week Range||24.86 - 48.66|
|Beta (5Y Monthly)||1.04|
|PE Ratio (TTM)||17.01|
|Earnings Date||May 05, 2020 - May 10, 2020|
|Forward Dividend & Yield||1.60 (5.33%)|
|Ex-Dividend Date||Nov 13, 2019|
|1y Target Est||30.25|
Kraft Heinz saw its bonds lose their investment-grade status and fall into “junk” territory after two credit ratings firms downgraded their debt.
The decision on Friday came after the companies asked the judge to hold the CFTC and two of its commissioners in contempt of court and impose sanctions for breaking a gag order in a $16m settlement announced in August. The CFTC charged Kraft Heinz and Mondelez in 2015 with rigging US grain prices by purchasing massive quantities of Chicago-listed wheat futures.
Warren Buffett's Berkshire Hathaway Inc. started new stakes in Biogen Inc. and Kroger Co. while increasing its stake in Kraft Heinz Co. , the company disclosed late Friday in a Securities and Exchange Commission filing. Berkshire reported a stake of about 648,000 shares of Biogen and 549,000 shares of Kroger that were not listed in last quarter's filing. Kroger shares rose 6% after hours, while Biogen shares advanced 2%. Also, Berkshire increased its stake in Kraft to about 10.5 million shares from 9.1 million in the previous quarter. Berkshire cut its stake in Travelers Cos. to about 312,000 shares from a previous stake of nearly 6 million shares.
(Bloomberg) -- Kraft Heinz Co., the iconic food giant created in a merger five years ago, was downgraded to junk by two credit raters, raising fresh worries among investors that a slowing economy could threaten the broader corporate bond market.The packaged-food company was cut one level to BB+ by S&P Global Ratings, following Fitch Ratings earlier Friday. It will now become a so-called fallen angel, taking it out of investment-grade indexes.Though Kraft Heinz, with just under $30 billion of debt, is a relatively small investment-grade issuer, it will become one of the top three in high yield. It’s just one of many companies that have wound up with a massive debt load as the result of deals, jeopardizing credit ratings in the process.The food giant, created in a deal orchestrated by Warren Buffett and the private equity firm 3G Capital, is in the midst of a turnaround as its brands fall out of favor with consumers. It reported a drop in fourth-quarter sales Thursday that sent its bonds and stock tumbling, the latest sign that the company’s turnaround plan still has a long way to go.“Kraft is to investment grade as Velveeta is to cheese,” said Christian Hoffmann, a portfolio manager at Thornburg Investment Management. “The ingredients dictate what something is and Kraft Heinz is junk.”Profit MarginsThat assessment is a far cry from the days of the merger when 3G went on a high-profile cost-cutting spree that was expected to eventually produce fatter profit margins. Instead, Kraft Heinz was left with a stable of tired brands and few new products that could appeal to consumers’ preference for more natural and less processed foods. Last year, it wrote down the value of its brand portfolio by more than $15 billion.The turmoil has been a headache for Buffett’s Berkshire Hathaway Inc., whose stake over the past year has fallen to about $8.9 billion, down from $14 billion at the end of 2018. The stock was one of the worst performers last year.S&P and Fitch cut the company one level to their highest junk rating. Kraft Heinz debt is already on the way to trading like junk. Its bonds due 2029 now yield about 3.5%, compared to the 2.88% for the average BBB company with similar duration. It’s the worst-performing issuer in both the U.S. and European markets Friday, and the cost to protect its debt against default has spiked to levels last seen in October.Fitch said Kraft Heinz may need to divest a sizable portion of its business in order to reduce debt. Kraft Heinz also needs to cut its dividend, Fitch said in August, but the company said Thursday it would maintain the annual $2 billion payout to shareholders. Fitch maintains a stable outlook, while S&P’s is negative. Moody’s rates the company one step above junk with a negative outlook as of Friday.“We believe it’s important to Kraft Heinz shareholders to maintain our dividend during this time of transformation,” Michael Mullen, a spokesman for the company, said in an emailed statement earlier Friday. Kraft Heinz remains committed to reducing leverage “over time,” he said. The company plans to release a more detailed turnaround plan around the time of its next earnings report in early May.Read more: Kraft Heinz on Junk Rating Chopping Block After Weak EarningsKraft Heinz was one of many companies with BBB ratings, the lowest level of investment grade, which now comprises half of the broader $5.9 trillion market. It’s grown steadily since the financial crisis, as a decade of low interest rates prompted companies to load up on debt for mergers and acquisitions, often at the expense of credit ratings.UBS Group AG strategists led by Matthew Mish predict there could be as much as $90 billion of investment-grade debt to fall to high yield this year. That compares to just under $22 billion in 2019, close to a 20-year low, according to Bank of America Corp. strategists.But a wave of fallen angels, which some investors fear, has yet to follow. Many strategists contend that BBB companies have the ability to defend their investment-grade ratings, whether by selling assets or cutting dividends. Companies like General Electric Co. and AT&T Inc. have done just that to stave off downgrades.(Updates with S&P downgrade throughout)\--With assistance from Claire Boston, Tasos Vossos and Katherine Chiglinsky.To contact the reporters on this story: Molly Smith in New York at firstname.lastname@example.org;Jonathan Roeder in Chicago at email@example.comTo contact the editors responsible for this story: Nikolaj Gammeltoft at firstname.lastname@example.org, ;Sally Bakewell at email@example.com, Larry ReibsteinFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
For the first time ever, PLANTERS is launching all new flavors of everyone’s favorite 90s treat, Cheez Balls!
STOCKSTOWATCHTODAY BLOG Shaky Sales. The three major U.S. stock market indexes were mixed after U.S. retail-sales data showed a sluggish start to the shopping year. The Dow Jones Industrial Average lost 40 points, or 0.
Shares of Kraft Heinz, in which billionaire Warren Buffett's Berkshire Hathaway Inc and Brazilian private equity firm 3G own major stakes, fell about 4%. Chicago-based Kraft Heinz, which last year took a $15.4 billion writedown of key brands including Oscar Mayer hot dogs, has been struggling to grow sales as consumers shift to healthier options and private-label brands. "Following Kraft's commentary around 2020 operating headwinds and its commitment to maintain its dividend, Fitch estimates the company may need to divest up to 20% of its projected 2020 EBITDA to support debt reduction," the agency said.
Kraft Heinz , owner of such well-known food brands as Oscar Mayer, Planters, and Maxwell House, tumbled after Fitch Ratings downgraded the company's debt to junk status. Shares of the Pittsburgh foods giant at last check were down 3.
Approximately $29 billion of rated debt instruments affected. New York, February 14, 2020 -- Moody's Investors Service ("Moody's") affirmed the ratings of The Kraft Heinz Company's ("KHC") subsidiaries, including the Baa3 senior unsecured and Prime-3 commercial paper ratings. The negative outlook reflects ongoing declining operating performance and high financial leverage that Moody's expects will continue through 2020 and likely will rise further in the first half of the year.
Fitch Ratings Inc. cut the credit rating of Kraft Heinz Co. to below investment grade on Friday. Only one more rating agency needs to downgrade its bonds into junk before Kraft's bonds qualify as a "fallen angel," when an issuer loses its investment-grade credit rating. The worry among investors is that insurers, pension funds and other mutual funds that have strict restrictions barring them from owning risky high-yield debt will be forced to sell the bonds, spurring additional losses. Though, the food and beverage company reported fourth-quarter profit that beat expectations on Thursday, Bank of America analysts suggested the company's decision not to cut its dividend may weigh on its creditworthiness. Shares of Kraft are down 7.2% this week.
Kraft Heinz faced the consequences on Friday of its decision to maintain dividend payouts to Warren Buffett and other shareholders despite its $28bn debt burden, as two credit rating agencies cut their rating on the food company to junk status. The downgrades extended a sharp sell-off in Kraft Heinz bonds, threatening to elevate the company’s borrowing costs by removing the securities from investment-grade indices. The junk ratings underline the group’s fall from grace since the combination of Kraft and Heinz, a deal engineered by Mr Buffett and Brazilian-US investment group 3G Capital that promised to transform the global food industry.
Kraft Heinz Co. on Thursday reported fourth quarter 2019 financials its new CEO called "disappointing," including a 5.1% drop in net sales. The food giant took a $666 million hit in the quarter, largely due to lower goodwill in its businesses in Australia, New Zealand and Latin America, but also because it wrote down the value of one of its best known brands, Maxwell House coffee, by $213 million.
PepsiCo CFO Hugh Johnston discusses with Yahoo Finance how the coronavirus has impacted results in China for the beverage and snacks giant.
Bottom-line earnings beat Wall Street expectations, although sales were lower than anticipated. The company maintained its dividend.
Kraft Heinz Co on Thursday missed quarterly sales estimates, forecast lower full-year core earnings, and wrote down the value of some businesses - including coffee brand Maxwell House - by $666 million. The Chicago-based company also highlighted "very, very volatile" pork prices due to problems in China including the deadly coronavirus, African swine fever and trade uncertainties. Four of the company's eight factories in China are closed, Kraft Heinz said in an interview with Reuters.
(Bloomberg) -- Kraft Heinz Co. fell on Thursday after reporting a decline in fourth-quarter sales, the latest sign that the maker of Maxwell House coffee and Grey Poupon mustard has a long road ahead.The company reported sales of $6.54 billion in the period -- below the average estimate from analysts. Organic revenue, which strips out items like currency volatility, fell 2.2%, more than anticipated.Chief Executive Officer Miguel Patricio, who has now been at the helm for 7 1/2 months, is under pressure to show improvement at a company that’s struggled to fend off upstart brands. He said progress is being made: “Our turnaround will take time, but we expect to make significant progress in 2020.”Nonetheless, Kraft Heinz still expects to see a decline in Ebitda, a measure of earnings that excludes items like taxes and interest, over the course of 2020. The company will hold an investor meeting and release a more detailed strategic plan in early May.Patricio has pledged more support for brands that have performed well, like Heinz ketchup and Philadelphia cream cheese. In the fourth quarter, peanut butter and pasta sauce consumption rose, while cheese and coffee -- two important Kraft Heinz products -- saw declines in shipments.The company has said it will deploy its investment more efficiently, cutting the number of new projects by half in 2020, while spending more on marketing. Kraft Heinz said lower procurement and logistics prices for commodities “more than offset” higher costs elsewhere.Kraft Heinz shares fell as much as 8.2%, the most since August. The stock’s 25% decline in 2019 was among the worst on the S&P 500 Index.To contact the reporter on this story: Deena Shanker in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Sally Bakewell at email@example.com, Jonathan RoederFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- It’s never good when a CEO has to kick off his company’s year-end earnings report, as Kraft Heinz Co.’s did Thursday morning, by saying: “While our 2019 results were disappointing ...” Disappointing is putting it mildly, though. Try miserable.To recap: It was one year ago this month that the packaged-food manufacturer suffered a $15.4 billion writedown because of damage — largely self-inflicted — to the value of two of its biggest brand names, Kraft and Oscar Mayer. A slash to shareholders’ dividends and the oh-by-the-way mention of a Securities and Exchange Commission inquiry into some accounting practices added to Kraft Heinz’s troubles. The stock, adored by Warren Buffett, its top shareholder, has been down 38% ever since. Right up until then, this was the company that most analysts promoted to their clients and every food giant wanted to emulate — a lean, profit-margin machine operated by a bunch of private equity guys that just so happens to sell food.Kraft Heinz’s sales continued to slide in the final three months of 2019 to $6.54 billion, a 2.2% drop when excluding the effect of business divestitures. On most metrics, Thursday’s results beat the average of analysts’ estimates, and CEO Miguel Patricio said he expects to make “significant progress” this year in the company’s ongoing turnaround. But there’s been little evidence of improvement yet, and he’s nearly eight months into the job, after taking over from Bernardo Hees, one of the aforementioned private equity partners from 3G Capital. (That’s the shop that merged Kraft Foods and H.J. Heinz condiments in 2015 with the financial backing of Buffett’s Berkshire Hathaway Inc.) In a recent interview with my Bloomberg News colleagues, Patricio talked about spending more on the company’s biggest moneymakers, such as Philadelphia cream cheese and Heinz ketchup, but not by increasing the budget — this is still a 3G company, after all. Instead, he’ll be shifting around resources to prioritize the most promising products and brands, as cheese, coffee and cold cuts continue to be the problem areas. In the latest quarter, Kraft wrote down the carrying value of its Maxwell House trademark by $213 million, part of an overall $666 million impairment charge that was primarily driven by its international businesses.Of course, Kraft Heinz isn’t the only consumer-products company that’s been thrown for a loop by shoppers’ changing appetites. The move toward less-processed, healthier-sounding foods and the villainization of sugar and carbohydrates has weighed on every household name in the industry. Some have been dealing with it by acquiring the fast-growing upstart brands that have been encroaching on their supermarket shelf space. PepsiCo Inc. has done a version of what Kraft Heinz is attempting by making a big push for chips like Doritos that are holding up even as more seemingly wholesome snacks gain popularity. The soda giant reported sales and earnings that beat expectations on Thursday, with operating profit rising 3% in its Frito-Lay North America chips division; beverage sales managed to climb, too.A new CEO walking into Kraft Heinz’s mess deserves time to get a handle on things. But now it’s time to lay out a concrete strategy that shows Kraft Heinz understands the root cause of its problems, that the entire 3G ethos had the company under-investing in its products at exactly the time it needed to be doing the exact opposite. Patricio says to stay tuned for May, when he’ll unveil such a plan. Investors can’t possibly feel optimistic until they see it. To contact the author of this story: Tara Lachapelle at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Kraft Heinz (NASDAQ: KHC ) reported adjusted fourth-quarter earnings of 72 cents per share on Thursday, which beat the analyst consensus estimate of 68 cents by 5.88%. This is a 14.29% decrease over earnings ...
Shares of Kraft Heinz Co. slipped 0.1% in premarket trading Thursday, after the food and beverage company reported a fourth-quarter profit that beat expectations, although sales fell short. The company swung to net income of $182 million, or 15 cents a share, from a loss of $12.57 billion, or $10.30 a share, in the year-ago period. Excluding non-recurring items, such as impairment charges, adjusted earnings per share slipped to 72 cents from 84 cents but was above the FactSet consensus of 68 cents. Sales fell 5.1% to $6.54 billion, below the FactSet consensus of $6.61 billion. In the U.S., sales declined 2.7% to $4.68 billion to miss expectations of $4.74 billion, as volume/mix decreased by 5.8 percentage points as lower shipments of cheese, coffee, cold cuts and bacon offset growth in condiments and sauces. Pricing increased 3.1%. The stock has dropped 9.8% over the past three months, while the SPDR Consumer Staples Select Sector ETF has gained 4.8% and the S&P 500 has climbed 9.2%.
Kraft Heinz said it will pay a 40 cent dividend after topping Q4 earnings forecasts amid what it called "significant progress" in its ongoing turnaround plans.
The Board of Directors of The Kraft Heinz Company (Nasdaq: KHC) today unanimously declared a regular quarterly dividend of $0.40 per share of common stock payable on March 27, 2020, to stockholders of record as of March 13, 2020.