KO - Kraft Heinz: An Attractive Yield Play Undergoing Transformation

2024-05-25 09:36:08 ET

Summary

• Private label products are gaining market share, impacting sales of consumer staples brands.
• Kraft Heinz is following the playbook of Coca-Cola by investing in core product innovation and marketing to stay relevant in a changing market.
• Ongoing cost-cutting will support investment as well as attractive shareholder distributions.
• Kraft Heinz is an attractive yield play.

Kraft Heinz ( KHC ) needs no introduction, they are owners of a collection of iconic packaged food brands such as Heinz Ketchup, Philadelphia Cream Cheese and Kraft Mac & Cheese. Many of us have grown up with these brands and continue stocking up on them during our weekly grocery runs, no matter what. After all, we still have to eat.

Traditionally this business has been practically risk-free and investors loved it. Nobody made fortunes out of it, but if you were looking for a reliable way to protect your retirement savings from inflation while earning some profit on top, consumer stapes was the go-to sector....

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