problem isn't the div, it is how they are managing the business. FFO covers capex plus the div, that isn't the problem.
The problem is that the 3G slash and burn approach has run out of steam. It works great for a few years while brand momentum is still strong, but in time the lack of investment in the brand catches up with it and things start to go south. What the market (probably correctly) sees isn't just the struggles today, but that this mgmt model will make things get worse.
I was connected to $CPB
about 20 years ago when they decided to save money by taking a little bit of chicken (a fraction of a gram) out of every can of soup every year to save money. At the end of Year 1, it was brilliant! Same in Year 2. Then in about Year 5 the bottom fell out of Chicken Noodle sales. It was inevitable. Cost them 5-10x more to get those customers back than they saved while the savings program was "working".
That is the fate of $KHC
unless they turn their approach around.