The Kraft Heinz Company(KHC)- NASDAQ
  • Mon, Aug. 8, 1:26 PM
    • Susquehanna gives a brief update to investors on its four top food sector picks (all rated at Positive). Analyst Pablo Zuanic prefers companies with a North American focus.
    • Kraft Heinz (KHC -0.7%): 3G is expected to have more tricks up its sleeve to improve the bottom line. "We see more accretive deal making," writes Zuanic.
    • TreeHouse Foods (THS -1.5%): TreeHouse is seen benefiting from the integration of the ConAgra private label businesses and improving K-cup trends.
    • Molson Coors (TAP -0.2%): EBIT margin has room to move higher after the inefficiencies of the JV structure with MillerCoors are behind it.
    • Mondelez International (MDLZ +0.3%): Zuanic expects M&A action at MDLZ.
    | Mon, Aug. 8, 1:26 PM | 3 Comments
  • Thu, Aug. 4, 4:12 PM
    • Kraft Heinz (NASDAQ:KHC) is higher after beating EPS estimates with its Q2 report.
    • Organic sales were 0.5% lower during the quarter as F/X held back growth. Pricing contributed 1.6 percentage points to growth, while volume/mix cut into sales by 2.1 percentage points.
    • The company says its integration program of the Heinz business is off to a good start.
    • Previously: Kraft Heinz reports Q2 results (Aug. 4)
    • KHC +3.29% AH to $88.35.
    | Thu, Aug. 4, 4:12 PM | 3 Comments
  • Thu, Aug. 4, 4:08 PM
    • Kraft Heinz (NASDAQ:KHC) declares $0.60/share quarterly dividend, 4.3% increase from prior dividend of $0.575.
    • Forward yield 2.8%
    • Payable Oct. 7; for shareholders of record Aug. 26; ex-div Aug. 24.
    | Thu, Aug. 4, 4:08 PM | 15 Comments
  • Thu, Aug. 4, 4:08 PM
    • Kraft Heinz (NASDAQ:KHC): Q2 EPS of $0.85
    • Revenue of $6.79B (-4.8% Y/Y)
    • Shares +2.88%.
    • Press Release
    | Thu, Aug. 4, 4:08 PM | 12 Comments
  • Wed, Aug. 3, 5:35 PM
  • Wed, Aug. 3, 8:46 AM
    • Susquehanna analyst Pablo Zuanic issues an earnings preview on four food stocks ahead of their reports.
    • Kraft Heinz (NASDAQ:KHC): "We are taking our estimates ahead of the 2Q print as in hindsight our assumption for “only” $159M yoy EBITDA growth seems too conservative (consensus assumes +$328M yoy growth), and now expect $350M in EBITDA yoy growth. So our 2Q EPS is now 80c vs. 69c before (consensus is at 73c)."
    • TreeHouse Foods (NYSE:THS): "We are 2c below consensus for 2Q16 (52c vs. 54c and guidance of 50-55c), and our full year EPS of $3.05 is below consensus of $3.07 and guidance of $3.05-$3.10. But we think the risks are more to the upside than downside, especially keeping in mind that 2Q guidance gave management a significant buffer (guidance implies 2H16 EPs being 2x 1H16)."
    • Monster Beverage (NASDAQ:MNST): "Our 97c 2Q estimate is 6c below consensus, with 4c of the projected miss being top line related. According to the scanner data, Monster brands sales in the US continue to decelerate (+7% in 2Q16, 10% in 1Q16 and 4Q15, and low-teens 1Q-3Q15), and this should hurt sentiment."
    • Kellogg (NYSE:K): "Although we project sales to decline at a worse pace in 2Q than 1Q, the stock may trade up as we see a 4c beat (1c on sales, 1c on EBIT margins), with sales slightly ahead of consensus, and good quality margin trends (accelerated gross margin gains, with greater reinvestment on turnaround efforts). We model 95c vs. consensus 91c."
    • Zuanic has KHC and THS rated at Positive, while K and MNST are set at Neutral.
    | Wed, Aug. 3, 8:46 AM
  • Tue, Aug. 2, 10:03 AM
    • July monthly performance was: +1.63%
    • AUM of $16.1B
    • 52-week performance vs. the S&P 500 is: +5%
    • No dividends were paid in July
    • Top 10 Holdings as of 3/31/2016: General Mills Inc (GIS): 3.41805%, AT&T Inc (T): 3.01284%, Coca-Cola Co (KO): 2.95236%, Campbell Soup Co (CPB): 2.78964%, Exelon Corp (EXC): 2.28957%, The Hartford Financial Services Group Inc (HIG): 2.24568%, Heineken NV (OTCQX:HINKF): 2.15959%, The Kraft Heinz Co (KHC): 1.97668%, Suncor Energy Inc (SU): 1.86666%, PPL Corp (PPL): 1.86557%
    | Tue, Aug. 2, 10:03 AM
  • Sun, Jul. 31, 4:15 AM
    • Barron's interviews Jim Grant, founder of Grant's Interest Rate Observer.
    • Grant is bullish on metals, including Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM), Goldcorp (NYSE:GG), New Gold (NYSEMKT:NGD), and Pan American Silver (NASDAQ:PAAS): "Gold stocks have come a long way. But many were priced for bankruptcy, notably Barrick Gold, an encumbered mining company priced at $6 at the bottom, as if its debt would not be paid. Now the stock is $20. I personally own Newmont Mining, Goldcorp, and New Gold.
    • "I'm very bullish on the metal, bullish on miners. Bears on credit finally get paid in gold. At the end of the road to confetti, gold will reclaim some position as an active monetary asset, not a crank's asset. It is now a relatively high-yielding asset, yielding, as it does, nothing.
    • "We are also bullish on silver. It is the crazy uncle in the attic of monetary assets. It is as volatile as Donald Trump. It has industrial uses as well as monetary ones, which will come to the fore as the gold bull market progresses. In June, we recommended Pan American Silver (PAAS) and long-dated, out-of-the-money call options on the silver exchange-traded fund iShares Silver Trust (NYSEARCA:SLV).
    • Grant is bearish on Kraft Heinz (NASDAQ:KHC), Campbell Soup (NYSE:CPB), and United Rentals (NYSE:URI): "One idea that hasn't worked yet is being bearish Big Food. Both are indicative of one form of excess, reaching for yield in equities. Campbell is trading for 23 times trailing net income, and Kraft is 46 times. Both are battling new trends in eating."
    | Sun, Jul. 31, 4:15 AM | 82 Comments
  • Wed, Jul. 20, 10:11 AM
    • Kellogg (K -3%) slides after CNBC reports that the company is not in talks with Kraft Heinz (KHC -0.8%).
    • General Mills (GIS -0.7%), Lifeway Foods (LWAY -2.1%), and Campbell Soup (CPB -0.5%) are also underperforming. A decent slice of the food sector trades with a M&A premium baked in.
    | Wed, Jul. 20, 10:11 AM | 2 Comments
  • Wed, Jul. 13, 11:35 AM
    • It's steady as she goes again for the group of well-known consumer staples stocks that investors continue to find appealing amid global volatility and low interest rates.
    • Procter & Gamble (PG +0.2%), Colgate-Palmolive (CL +0.4%), Clorox (CLX +0.6%), Kimbery-Clark (KMB +0.3%), Coca-Cola (KO +0.2%), PepsiCo (PEP +0.7%), Altria Group (MO +0.5%), Philip Morris International (PM +0.1%), Church & Dwight (CHD +0.3%), and Unilever (UN, UL) have all outperformed the S&P 500 Index this year with returns ranging from 7% to 18%. Kraft Heinz (KHC +1%), Energizer (ENR -0.6%), Hershey (HSY +0.4%), Campbell Soup (CPB +0.3%), and J.M. Smucker (SJM +0.4%) are all up at least 20% YTD.
    • Goldman Sachs has an explanation on why a generous valuation is warranted for the staples favorites.
    • "We raise our average Staples target multiples to 20-22X P/E, up from the 19-20X range prior, to reflect the recent decline in 10-year yield as well as some likelihood of a slower rise in yield over the next 12 months and broader market volatility," wrote the MNST)+(NYSE:STZ)+(NYSE:PF)/11822884.html" target="_blank">analyst team covering the sector in a note to investors.
    • Top consumer staples picks from GS include Monster Beverage (MNST +0.4%), Constellation Brands (STZ +0.2%), Pinnacle Foods (PF +1.2%), and Post Holdings (POST +0.5%).
    • Consumer staples ETFs: XLP, VDC, FXG, RHS, FSTA, PSL, PSCC.
    | Wed, Jul. 13, 11:35 AM | 18 Comments
  • Mon, Jul. 11, 2:12 PM
    • A bill requiring food companies to label GMO ingredients was approved by the U.S. Senate by a 63 to 30 vote and now heads to the House of Representatives.
    • The negotiated bill requires food companies to label genetically modified food by a phrase, symbol on the package, or a bar code that can be scanned by smartphones.
    • The Department of agriculture still has two years to write the precise labeling rules if the House approves the bill.
    • The passage of the bill is seen as a positive for the food sector as the alternative of having to adhere to state-by-state rules could create operational chaos for national sellers.
    | Mon, Jul. 11, 2:12 PM | 37 Comments
  • Fri, Jul. 1, 7:30 AM
    • June monthly performance was: +1.86%
    • AUM of $15.4B
    • 52-week performance vs. the S&P 500 is: +4%
    • $0.07 in dividends were paid in June
    • Top 10 Holdings as of 3/31/2016: General Mills Inc (GIS): 3.41805%, AT&T Inc (T): 3.01284%, Coca-Cola Co (KO): 2.95236%, Campbell Soup Co (CPB): 2.78964%, Exelon Corp (EXC): 2.28957%, The Hartford Financial Services Group Inc (HIG): 2.24568%, Heineken NV (OTCQX:HINKF): 2.15959%, The Kraft Heinz Co (KHC): 1.97668%, Suncor Energy Inc (SU): 1.86666%, PPL Corp (PPL): 1.86557%
    | Fri, Jul. 1, 7:30 AM
  • Mon, Jun. 27, 6:23 PM
    • A lawsuit filed by options and future traders charging Kraft Heinz (KHC -0.1%) and Mondelez (MDLZ -2.1%) with price rigging will be allowed to proceed following a federal judge's ruling.
    • The traders say the food giants illegally manipulated the price of wheat at their expense. At issue is a large late 2011 purchase of wheat futures that the plaintiffs say violates Sherman antitrust law and the Commodity Exchange Act.
    • That charge moves forward, though a related claim that the two companies ran "wash trades" for a decade to hide manipulation was dismissed (and can be brought again).
    • The case is similar to allegations raised by the Commodity Futures Trading Commission, which had previously noted Kraft Foods bought $90M in wheat futures in December 2011 to take a dominant position in the market without ever intending to take possession of the wheat.
    | Mon, Jun. 27, 6:23 PM | 3 Comments
  • Fri, Jun. 24, 11:05 AM
    • Among consumer stocks covered by Susquehanna, the analysts say Mondelez (MDLZ -4.3%) and Coca-Cola European Partners (CCE -5.4%), along with Sodastream (SODA -2.7%), have the greatest earnings downside from a euro and pound that have gotten, well, pounded.
    • The euro is currently down 2.3% against the dollar, while the pound is down 8.5%.
    • "For those seeking to buy the dip, we would prefer MDLZ over CCE," the firm says, noting that 100% of CCE's revenues are exposed to those two currencies, it faces structural risks, and Coca-Cola's 48% ownership of CCE makes it an unlikely acquisition target.
    • Acquisitive companies with U.S. dollar assets could go hunting in Europe, the analysts say, pointing to likely suitor Kraft Heinz (KHC -1.8%) -- a top pick for the firm, along with TreeHouse Foods (THS -0.6%) and Molson Coors (TAP -3.3%).
    • Meanwhile, the possible ascendance of UKIP leader Nigel Farage in the UK or "anything that makes a Donald Trump presidency more likely" is bad for Mexico-heavy Constellation Brands (STZ -1.2%).
    | Fri, Jun. 24, 11:05 AM | 6 Comments
  • Fri, Jun. 17, 3:07 PM
    • Susquehanna issued a detailed report on IRI scanner data trends in the food and beverage industry.
    • The investment firm noted that soda drink volume fell 2.8% Y/Y for the 12-week period ending on June 5. PepsiCo (NYSE:PEP) volume was down 5%, compared to 1.3% decline for Coca-Cola KO and 1.9% fall-off for Dr. Pepper Snapple (NYSE:DPS).
    • K-cup revenue was up 8% for the 12 weeks as J.M. Smucker (NYSE:SJM). Starbucks (NASDAQ:SBUX), and Dunkin' Brands (NASDAQ:DNKN) all showed strong volume amid ongoing pricing pressure. K-cup sales decelerated for Kraft Heinz (NASDAQ:KHC) and could turn negative if pricing pressure sustains.
    • In the yogurt category, scanner data over four weeks confirmed that General Mills (NYSE:GIS) is losing market share to Chobani and Danone (OTCQX:DANOY). Susquehanna tips that Chobani may be prepping for a sale.
    • General Mills beat out Kellogg (NYSE:K) in the cereal category as its 12-week sales growth of +2.3% easily topped Kellogg's 2.2% decline.
    • Pricing with beer is helping to make up for continued volume pressure. Across the sector, pricing was recorded as 2.5% higher for the 12 weeks of data.
    • Beer volume: Anheuser-Busch InBev (NYSE:BUD) -1.8%, MillerCoors (OTCPK:SBMRY, TAP) -2.7%, Boston Beer (NYSE:SAM) -2.1%.
    • Susquehann'a Pablo Zuniac put together the deep dive into the scanned data.
    • Within the F&B sector, he has BUD, THS, WWAV, TAP, and KHC rated at Positive.
    | Fri, Jun. 17, 3:07 PM | 10 Comments
  • Wed, Jun. 15, 10:05 AM
    • Panera Bread (PNRA +0.1%) is beginning to flex its muscles in the grocery store channel in what could be an increasing challenge to major food companies such as General Mills (GIS +0.2%), Campbell Soup (CPB -0.5%), Hormel Foods (HRL +0.2%), and Kraft Heinz (KHC +0.1%).
    • Some analysts think that Panera's strong brand recognition with consumers as a healthy alternative gives it a chance to dent the dominance of canned soup and canned meat sellers.
    • Campbell Soup CEO Denise Morrison was put on the defensive on the company's last earnings call about the threat from Panera and others in the chilled soup category.
    • Morrison talked about the smaller base that Panera is growing from, but also conceded that the company would have to stay active in the fresh and organic categories - instead of just relying on its iconic brands.
    • Campbell Soup earnings call transcript
    • Previously: Panera Bread's clean commitment extends to grocery stores (June 15)
    | Wed, Jun. 15, 10:05 AM | 9 Comments
Company Description
The Kraft Heinz Co. engages in the production of processed food and beverages. It operated through the following geographical segments: United States, Canada, Europe, and Rest of the World. The Rest of the World segment comprises of Asia Pacific, Latin America, Russia, India, the Middle East,... More
Industry: Food - Major Diversified
Country: United States