Kraft Foods: A Price Dip Can Be A Good Investment Opportunity
- There was a decrease of 3% in US shoppers’ trips in 2013 compared to 2012. Since 2011, Kraft's top line has dropped by nearly 2%.
- The cost cutting strategy has resulted in an improvement in the gross margin from 33.8% in 2010 to 37.5% and improved the operating margin from 16% in 2010 to 25.2%.
- Despite stagnating revenue, net income increased by 65% to $2715 million in 2013. KRFT has paid dividends of $2.05 per share in 2013 and the dividend yield is about 3.7%.