KHC

Economy & Finance
1

Aside from the 7.15% dividend yield, thanks to the 27% sell-off, the stock is now priced at less than book value and below 10x forward earnings. Is Kraft Heinz going out of business?

Kraft Heinz: The Biggest Risk

The company’s stock price has now been slashed by one-third in three days, and the primary culprit is the prospect of the company losing its investment-grade credit rating, which is critical for the success of its long-term strategy.

I expect management to focus on improving the company’s financial health de-levering the balance sheet throughout 2019, either through disciplined cost control and/or selling off assets, before continuing with its long-term strategy of industry consolidation in late 2020 and beyond.

The juicy dividend is likely to be gone too.

2

KHC reduced dividend from $2.50 to $1.60 per year. The 7.15% was old, but reduced to 5.x% now

3

Added 20 more, total 40, KHC should survive but might dive 1 more time, recent dive look like capitulation :grinning:

1 Like
4

Who buys the processed crap that KHC makes?

5

I like Kraft cheese and Heinz ketchup.

6

Kraft Cher’s is inedible and overpriced. Ketchup is ketchup. In a blind test nobody can tell the difference.

7