|Bid||31.04 x 3100|
|Ask||31.20 x 4000|
|Day's Range||30.95 - 31.86|
|52 Week Range||24.86 - 48.66|
|Beta (5Y Monthly)||1.03|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||1.60 (5.06%)|
|Ex-Dividend Date||Nov. 12, 2019|
|1y Target Est||N/A|
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On...
(Bloomberg) -- Kraft Heinz Co., in the midst of building a turnaround plan, hired the leader of Campbell Soup Co.’s fast-growing snacks business to lead its U.S. operations.Carlos Abrams-Rivera, 52, will join Kraft Heinz in February. He previously was president of Campbell’s popular Pepperidge Farm brand, which makes Goldfish crackers and Mint Milano cookies. He also worked at Mondelez International Inc. and started his career at Kraft Foods before its 2015 merger with Heinz that was engineered by Warren Buffett and the private equity firm 3G Capital.Abrams-Rivera’s hiring is a rarity in a company that has stayed mostly within the 3G family when replenishing its executive ranks. Kraft Heinz Chief Executive Officer Miguel Patricio and Chief Procurement Officer Marcos Eloi both came from 3G-backed Anheuser-Busch InBev SA. Chief Financial Officer Paulo Basilio, who returned to the role in September, has been a partner at 3G since 2012.Since Patricio joined Kraft Heinz last year, investors have been eager to see how he will turn around the flailing business. The company had a tumultuous 2019 that included weak profit, a $15.4 billion writedown and an SEC subpoena. Amid this backdrop, it seems Kraft Heinz is moving beyond the typical 3G playbook, which is to slash costs until profit rises and then acquire competitors and repeat the process.“I want talent, and that’s what I’m looking for,” Patricio told Bloomberg in an interview Wednesday. He cited Abrams-Rivera’s track record at Campbell, including oversight of brands that proved to be consistently successful. The growth of Pepperidge Farm and Campbell’s acquisition of Snyder’s-Lance under Abrams-Rivera drew Kraft Heinz’s attention, he said.“The story of his career is building brands and turning brands around,” Patricio said.Abrams-Rivera will face that very challenge at Kraft Heinz. Patricio mentioned Heinz Ketchup and Philadelphia cream cheese as top performers that can keep growing. Oscar Mayer and Lunchables, meanwhile, are examples of brands that are ready to be turned around, he said.(Adds executives affiliated with 3G in third paragraph.)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 Roeder, Lisa WolfsonFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
Kraft Heinz Co on Wednesday named Campbell Soup Co executive Carlos Abrams-Rivera president of its U.S. business, the Heinz ketchup maker's latest executive hire as it aims to revitalize its business after a troubling year. New Kraft Heinz Chief Executive Miguel Patricio had been managing the Chicago-based company's U.S. business since he took over in July. The unit, which makes Oscar Mayer bacon and Velveeta cheese, is Kraft Heinz's biggest contributor to sales.
Kraft Heinz (KHC) is bearing the brunt of higher expenses and adverse currency rates.However, the company's enterprise transformation strategy bodes well.
(Bloomberg Opinion) -- Unilever NV has made a great deal of “instilling purpose” into its products, trying to flag up the social and environmental credentials of things from Dove shower gel to Magnum ice cream to appeal to millennial consumers. It doesn’t seem to be doing much for its sales.The Anglo-Dutch company surprised the stock market on Tuesday, warning that revenue growth this year would be below its 3% to 5% range. And it won’t bounce back quickly. Unilever forecasts sales increases will be in the lower half of its target range in 2020, with most progress coming in the second half.The company said it was suffering from an economic slowdown in south Asia, particularly India, Pakistan and Bangladesh, and difficult trading conditions in west Africa. Meanwhile, its big-selling north American products such as ice cream and hair care are still recovering from a sluggish period, while competition is fierce in parts of Europe.Yet Unilever must take some of the blame for its own predicament. Its rival Nestle SA has managed steady sales growth, while pulling off some canny acquisitions and disposals.After a failed takeover approach from Kraft Heinz Co. back in 2017, Unilever set the goal of lifting its operating margin from 16% to 20% by 2020. Alan Jope, the chief executive officer, could have ditched this target when he took the reins at the start of this year to give himself more firepower to invest. But it seems he’s sticking with it: The company said on Tuesday that the goal wouldn’t be affected by the sales slowdown. While Unilever insists it’s spending enough on research and development and marketing, Jope may have to back his biggest brands with more funds to make sure they’re competitive. That would have to come at the expense of margins. He also needs to decide in which categories Unilever wants to compete, and reshape its sprawling portfolio accordingly. It’s admirable that the company generates close to 60% of its sales in emerging markets, and operates in popular areas such as beauty and personal care. Unfortunately, it is also over-exposed to more sluggish food ranges such as tea and dressings.Jope could do worse than learn from Nestle’s CEO Mark Schneider. The latter has been quick to prune unwanted categories, recently selling its U.S. ice cream business to a joint venture between itself and private equity. Nestle has also been buying in its preferred product areas, such as coffee.Unilever, meanwhile, has been less bold, undertaking a plethora of small acquisitions — from fake meat to fancy laundry products. The group generated only about 0.5 percentage points of growth from its acquisitions and disposals in the first half of the financial year; Jope says he’ll slow the pace of bolt-on deals and step up disposals.If he doesn’t hurry, someone else might attempt to do some portfolio tidying for him. Kraft Heinz isn’t in a position to make another approach. But an activist investor may be tempted. Selling Unilever’s foods and refreshments business for cash is a possibility, although a demerger might be complicated by Unilever’s dual British and Dutch structure.The food unit could have an enterprise value of 55 billion euros ($61 billion), according to UBS analysts. So offloading it would generate proceeds to invest in higher growth products, while allowing the return of cash to investors. On a price-to-earnings basis, Nestle’s premium over Unilever is widening. An aggressive investor may spot a corporate purpose of their own.To contact the author of this story: Andrea Felsted at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Deutsche Bank sees opportunity for food companies in 2020. The firm announced Dec. 11 that it would be resuming coverage across 13 large-cap food companies.
Target is the Yahoo Finance Company of the Year for 2019. We talk with Target's executive team and experts on how the retailer made it happen in 2019 and what's in store for 2020.
With the 2010s officially drawing to a close, Yahoo Finance took a look at some of the biggest S&P 500 winners and losers of the past decade based on price returns.
Investing.com - U.S. futures were flat on Tuesday after reports that the U.S. and China made progress towards their “phase one” trade deal, in a shortened holiday week.
China Edges Into Hong Kong to “Clean Up Streets” The Chinese have invaded Hong Kong. So far it’s just to clean up the streets, but their presence on the island is raising some eyebrows as to what Beijing’s real intentions are in bringing Chinese soldiers in to participate in the situation. The soldiers, part of […]The post Market Morning: Chinese Army in Hong Kong, Boeing Walks Back Comments, Kraft Heinz Cheese Problems appeared first on Market Exclusive.
Investing.com – Wall Street was slightly lower on Thursday as concerns about global economic slowdown and a reported snag in U.S.-China trade discussions sent a wave of worry through the market.
The world’s largest retailer’s third quarter results on Thursday showed that yet again, CEO Doug McMillon continues to pull almost all the right strings operationally.
The Kraft Heinz Company (NASDAQ:KHC) shareholders will doubtless be very grateful to see the share price up 31% in the...
(Bloomberg Opinion) -- In the bond market, it can sometimes feel as if the more things change, the more they stay the same.Consider the following two articles about the massive amount of triple-B rated corporate debt:“A $1 Trillion Powder Keg Threatens the Corporate Bond Market” by Bloomberg News. The takeaway: “A lot of these companies might be rated junk already if not for leniency from credit raters. To avoid tipping over the edge now, they will have to deliver on lofty promises to cut costs and pay down borrowings quickly, before the easy money ends.”“Bond Ratings Firms Go Easy on Some Heavily Indebted Companies” by the Wall Street Journal. The takeaway: “Amid an epic corporate borrowing spree, ratings firms have given leeway to other big borrowers. … The buildup has fueled one of the most divisive debates on Wall Street: Will higher debt loads cause big losses when the economy turns?”The first one is from October 2018 and the second from a couple of weeks ago. That alone isn’t what’s most interesting — financial-market themes tend to repeat themselves, after all. Rather, it’s the fact that market appetite for those bonds on the brink of junk couldn’t be any more different between then and now, even though it’s clear that fears about ratings inflation and a huge wave of downgrades haven’t gone away.Around this time last year, Scott Minerd, global chief investment officer at Guggenheim Partners, made headlines by tweeting that “the slide and collapse in investment grade credit has begun,” starting with General Electric Co. No one seemed to want to own bonds rated just a step or two above junk — the Bloomberg Barclays triple-B corporate-bond index trailed the broad market in 2018 for just the second time since the financial crisis. I was willing to be contrarian after his comments, writing that investors shouldn’t fear a doomsday that everyone seems to think is coming.Still, the rapid change in sentiment through the first 10 months of 2019 has been nothing short of astounding. While there were signs of the tide starting to turn earlier this year, triple-B bonds have now returned 14.4% through Oct. 30, better than any other rating category. If the gains hold through the end of the year, it would be the triple-B market’s strongest performance since 2009, when it bounced back from its worst annual loss on record amid the financial crisis. Investors have either made peace with the risk of mass downgrades when the credit cycle turns, or they’ve just decided to ignore it and reach for yield when the Federal Reserve is cutting interest rates. Neither seems to be sustainable.It’s not as if the Wall Street Journal’s recent article is an outlier — CreditSights said in an Oct. 30 report that about $70 billion of triple-B corporate debt is at risk of falling to junk within the next 12 months, including household names like Kraft Heinz Co., Macy’s Inc. and Ford Motor Co. It’s not a question of whether so-called fallen angels become more prevalent, according to the analysts, it’s “when and how fast.”As for the “debt diet” that was supposed to happen this year, which would make triple-B companies less leveraged? In the aggregate, it’s been exactly the opposite. Fitch Ratings, in an Oct. 31 report, noted that triple-B corporate issuance is on pace to reach a record in 2019 after accounting for almost two-thirds of the $515 billion in bonds sold through the first nine months of the year. Triple-B securities make up half of the $5.8 trillion investment-grade corporate bond market, Bloomberg Barclays data show.But perhaps the most telltale sign of just how little investors seem to mind the “ratings cliff” between investment- and speculative-grade is how they’re gobbling up double-B bonds just as voraciously as triple-Bs. In fact, on Oct. 28, the spread between the two dropped to 43 basis points, a new low, according to Bloomberg Barclays data. At the start of 2019, it was as high as 172 basis points. Even though triple-B corporate bonds are having their best year in a decade, double-B debt isn’t far behind. This trend isn’t going to end overnight. Investors poured $2.3 billion into investment-grade bond funds in the week through Oct. 30, and an additional $940 million into high-yield funds, according to Lipper data. The sub-2% yield on 10-year Treasuries is probably still causing sticker shock to some investors, given that until a few months ago it hadn’t breached that level since President Donald Trump’s November 2016 election. For those in Japan and Europe, buying U.S. corporate bonds rather than Treasuries is sometimes the only way to avoid negative currency-hedged yields. Global and structural forces keep investors slamming the buy button in credit markets.Eventually, though, something has to give, as it always does. For now, corporate-debt buyers are content to just avoid triple-C rated securities. That includes Guggenheim investors led by Minerd, who said in a note this week that “now is not the right time” to add the riskiest junk debt, given the downside potential of more than 20%.The reasoning makes sense — triple-C rated companies are the most prone to default in an economic downturn. But in such a slump, triple-B companies would be vulnerable to downgrades. If investors were so sure last year that rating cuts would be too much for the high-yield market to bear, why wouldn’t they also stay away from triple-B bonds at this point?There’s no obvious answer. It’s just a reminder that total returns aren’t everything. Even though triple-B securities are the belle of the ball in credit markets this year, nothing much has truly changed.To contact the author of this story: Brian Chappatta at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
McDonald's CEO Steve Easterbrook has been ousted after an inappropriate relationship with an employee. Here's what we know about the new guy atop the Golden Arches.
Berkshire Hathaway holds stakes in both Apple (AAPL) and Kraft Heinz (KHC). Berkshire Chair Warren Buffett has admired Apple on several occasions.