KHC - Kraft Heinz to repurchase $3B of shares
2023-11-27 09:04:57 ET
Kraft Heinz Company's ( NASDAQ: KHC ) shares rose by over 2% following the approval of a share repurchase program by its Board of Directors, allowing the company to repurchase up to $3B of outstanding common stock through December 26, 2026.
The company plans to repurchase shares with excess cash after disciplined capital spending, including organic growth investments, attractive dividend payments, maintaining a targeted Net Leverage of 3.0x, and evaluating strategic opportunities like acquisitions, divestitures, and partnerships.
“In the third quarter, we hit a milestone in our transformation—reaching our targeted Net Leverage of approximately 3.0x. A stronger balance sheet, along with advancements we have made across the business, gives us further conviction behind our strategy and the belief that company shares are an attractive investment opportunity,” said Kraft Heinz CEO and Chair of the Board Miguel Patricio. “As such, we are in a position of strength to round out our capital allocation policy. Our Board authorized a $3 billion share repurchase program over the next three years, allowing us to provide further value to our stockholders while underscoring our commitment to delivering profitable growth and driving strong returns.”
The company's capital allocation for share repurchases is determined by factors like business performance, cash and liquidity position, global economic conditions, and the market price of its common stock.
The buyback program will be added to existing share repurchases to counterbalance equity-based compensation's dilutive effect.
More on Kraft Heinz
- 5%-Yielding Kraft Heinz Is A Top-Tier Recovery Stock
- Kraft Heinz: Q3 Earnings Trigger Strong Price Movements At Technical Pivot
- Kraft Heinz: Volume Declines Continue
- Cal-Maine to appeal decision in egg price fixing lawsuit
- Consumers plan to buy same amount for Thanksgiving, but pay more
For further details see:
Kraft Heinz to repurchase $3B of shares