28.35 -0.06 (-0.21%)
Pre-market: 8:00AM EDT
|Bid||28.35 x 1400|
|Ask||28.42 x 4000|
|Day's range||28.10 - 28.56|
|52-week range||24.86 - 58.08|
|Beta (3Y monthly)||1.22|
|PE ratio (TTM)||N/A|
|Earnings date||30 Oct. 2019 - 4 Nov. 2019|
|Forward dividend & yield||1.60 (5.64%)|
|1y target est||28.39|
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Investing.com – Wall Street ticked lower on Tuesday as stronger-than-expected industrial production and manufacturing output figures put another dent in hopes for a rate cut from the Federal Reserve, whose regular policy meeting kicks off later.
Investing.com - Shares of Kraft Heinz (NASDAQ:KHC) slipped in premarket trade on Tuesday after its second-largest investor reduced its stake in the company.
3G Capital, the Brazilian-US investment group, has reduced its stake in Kraft Heinz as the food company grapples with multibillion-dollar writedowns and falling sales. Securities filings show that 3G, which created the food business in a 2015 merger of Kraft and Heinz that was backed by Warren Buffett, sold $713m worth of stock this week.
KHC and WBA stocks have cost investors dearly. Warren Buffett’s Berkshire Hathaway has suffered for being Kraft Heinz's biggest shareholder.
The Zacks Analyst Blog Highlights: Berkshire Hathaway, Apple, American Express, Kraft Heinz and Teva Pharmaceutical
Investing.com - U.S. futures were mostly flat on Wednesday as China disappointed hopes of major exemptions from tariffs for U.S. agricultural exporters and President Donald Trump renewed his attack on the Federal Reserve.
and triggered a round of soul-searching in the UK about foreign takeovers, national champions, and milk chocolate. If anything, though, the UK government’s attitude to such bids is shrouded in deeper uncertainty than it was in 2009. At the time, Kraft was a US food and beverage conglomerate, with brands ranging from Philadelphia cream cheese to Oreo cookies.
Kraft Heinz stock has fallen more than 35% this year. Despite the lower stock price, Warren Buffett hasn’t added or sold Kraft Heinz shares.
Kraft Heinz stock fell about 20% in August and significantly underperformed the broader markets. The stock isn't attractive despite its low valuation.
(Bloomberg) -- Kraft Heinz Co. is tapping former Chief Financial Officer Paulo Basilio for a reprisal of the role as the packaged-food company seeks to rebuild its sagging business.Chief Executive Officer Miguel Patricio, who took over the top post in July, “made the strategic decision to shift to a seasoned veteran,” the company said in a filing. Basilio, 44, will take over the role on Sept. 1. Current CFO David Knopf will return to 3G Capital, the private equity firm that partnered with Berkshire Hathaway Inc. to engineer the 2015 merger that created Kraft Heinz.Knopf, who previously worked at Goldman Sachs, was 29 when he got the role of CFO at Kraft Heinz in 2017.Patricio has a big hill to climb to turn around the company, whose shares are still reeling from a $15.4 billion writedown on the value of its brands earlier this year. Internal probes have also revealed accounting issues that led the company to restate several years of earnings, and it has received a subpoena. And just Friday, S&P Global Ratings said it could downgrade Kraft Heinz to a junk credit rating by mid-2021 if it fails to reduce its debt levels.On a call with investors earlier this month, Kraft Heinz shares fell sharply after Patricio declined to offer forecasts for the company’s performance. He pledged a broad review of the business and said Kraft Heinz needs a long-term plan.“We do not view the CFO transition as surprising given the erosion of investors’ confidence, multiple impairment charges, and a tedious accounting investigation,” Wells Fargo analyst John Baumgartner wrote in a research note. “Now is a good time for a reset.”Kraft Heinz shares rose less than 1% to $25.55 on Monday in New York trading.The company, which splits its headquarters between Chicago and Pittsburgh, also named Nina Barton as chief growth officer. Barton has been serving as president of Canada and digital growth.(Adds analyst commentary in sixth paragraph and naming of chief growth officer in last paragraph.)\--With assistance from Janet Freund.To contact the reporter on this story: Jonathan Roeder in Chicago at email@example.comTo contact the editors responsible for this story: Anne Riley Moffat at firstname.lastname@example.org, Lisa Wolfson, Craig GiammonaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Kraft Heinz Co. could end up as one of the biggest junk issuers if it doesn’t tame its debt load by mid-2021.S&P Global Ratings said it could cut the packaged-food company to speculative-grade if it doesn’t boost earnings, pay down some of its more than $30 billion of long-term debt, or both. Roughly two-thirds of those borrowings currently sit in the Bloomberg Barclays high-grade company bond index, and, if cut, Kraft Heinz would be the third-largest issuer of dollar-denominated junk debt, according to data compiled by Bloomberg.For now, the company’s debt is trading around investment-grade levels, implying that investors aren’t particularly worried about a downgrade. Kraft Heinz has steps it can take to maintain its ratings, including reducing or eliminating its dividend, S&P said. That could free up as much as $2 billion of cash a year to pay down debt. The rater also said Kraft Heinz could sell assets, but those plans appear to be on hold until management completes a comprehensive strategic review, said Bloomberg Intelligence.Chief Executive Officer Miguel Patricio took the reins at Kraft Heinz this summer with a long road ahead. He inherited a company struggling to spruce up its brands and plagued by accounting issues. In his first earnings report as CEO earlier this month, Patricio suspended financial forecasts, which sent the company’s shares tumbling.Kraft Heinz, backed by Warren Buffett, has said it’s committed to maintaining its investment-grade ratings, and debt investors seem to agree: the company’s 4.625% notes due 2029 trade at a risk premium of around 1.93 percentage points, below the average level of debt at the highest junk tier, which is 2.23 percentage points.Email and voicemail messages seeking comment from Kraft Heinz weren’t returned.Fallen AngelsWith S&P joining Fitch Ratings in assigning a negative outlook, Kraft Heinz has inched closer to becoming a potential fallen angel, according to analysts at Bloomberg Intelligence. Late last year, investors had feared that a slew of high-grade issuers could cross the line into junk territory, as a decade-long binge on cheap debt has caused debt levels to soar.Many companies, looking to boost revenue in a slow growing economy, borrowed heavily at low rates to finance acquisitions, often sacrificing credit ratings in the process. That’s led to rapid growth in the lowest tier of investment-grade debt, rated BBB, where now half of the $5.8 trillion market resides.With economic growth showing signs of slowing, some of the largest investment-grade issuers have been focusing on cutting debt. AT&T Inc. chief executive officer said in January that reducing borrowings is the company’s top priority this year. Anheuser-Busch InBev NV cut its dividend. General Electric Co. has sold assets, while Mylan NV is combining with a Pfizer Inc. business.To contact the reporter on this story: Molly Smith in New York at email@example.comTo contact the editors responsible for this story: Nikolaj Gammeltoft at firstname.lastname@example.org, Dan Wilchins, Nicole BullockFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Kraft Heinz Co. could be hit with a junk credit rating by mid-2021 if it fails to turn itself around, S&P Global Ratings said Friday.S&P said results for the maker of Kraft Macaroni & Cheese and Heinz ketchup have been weaker than it expected, and the company needs to cut debt relative to a measure of earnings. The credit grader said it is worried about the risks Kraft Heinz could face in the second half of 2019, including higher commodity costs and lower stocking at retailers.Kraft Heinz carries the lowest investment-grade rating from all three major graders. With about $30.3 billion of long-term debt outstanding, the company is among the 20 largest issuers of debt in the lowest tier of investment-grade, excluding financial companies.If Kraft Heinz were downgraded by at least two credit graders, it would fall into junk bond indexes, making it one the biggest issuers of high-yield debt. A growing number of corporations have debt rated in the lowest investment-grade tier, between BBB+ and BBB-, stoking fears from some investors that hundreds of billions of debt could fall to junk status if companies struggle.Bond PressureRisk premiums, or the extra yield investors demand for buying a company’s bonds instead of Treasuries, edged higher for some of Kraft Heinz’s most actively traded bonds on Friday. That spread rose by 0.03 percentage point for the company’s bonds maturing in 2029 with a 4.625% coupon, to 1.93 percentage point according to data provider Trace. The company’s high debt levels and doubts about the long-term success of its cost cutting efforts could pressure its bonds to weaken further, Bloomberg Intelligence analysts wrote in a note.Kraft Heinz shares had fallen 1.2% to $25.31 as of noon in New York trading. The stock had already lost 41% of its value this year through Thursday’s close.Speculative-grade ratings can make it more expensive for companies to fund daily business and harder to weather economic cycles. Warren Buffett-backed Kraft Heinz has said it’s committed to maintaining its investment-grade ratings. Email and voicemail messages to Kraft Heinz seeking comment weren’t immediately returned.Fixing ProblemsKraft Heinz is still trying to move past myriad issues that have hammered its shares this year. The company has struggled ever since its bid to buy Unilever collapsed in 2017, and in February, it announced a $15.4 billion writedown on the value of its brands and a subpoena. Its own internal investigations have also revealed accounting issues, and it had to restate results going back to 2015.As the company tries to turn things around, it announced new leadership: Longtime Anheuser-Busch InBev executive Miguel Patricio replaced Bernardo Hees as chief executive officer this summer. But he has an uphill battle ahead: He said earlier this month that Kraft Heinz needs a “comprehensive strategy,” but that he didn’t have enough confidence to issue guidance at this time. The company also withdrew its previous guidance for a key measure of results, earnings before interest, taxes, depreciation and amortization, and investors sent the shares tumbling.S&P said Kraft Heinz could take steps like boosting income, selling assets, or reducing or eliminating its dividend to reduce debt levels relative to earnings.(Updates with comment from Bloomberg Intelligence in fifth paragraph.)\--With assistance from Deena Shanker.To contact the reporters on this story: Jonathan Roeder in Chicago at email@example.com;Claire Boston in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Anne Riley Moffat at email@example.com, Dan Wilchins, Nicole BullockFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.