KHC - Why Kraft Heinz Stock Popped Today
2023-11-01 18:12:37 ET
Shares of Kraft Heinz (NASDAQ: KHC) rose as much as 5% early Wednesday, then settled to close up 2.4% after the global food company announced strong quarterly results and raised its full-year profit outlook. On the former, Kraft Heinz's third-quarter net sales grew 1% year over year to $6.57 billion, translating to a 14.3% increase in adjusted ( non-GAAP ) earnings per share to $0.72. Analysts, on average, were anticipating earnings of $0.62 per share on lower revenue of $6.34 billion.
Digging deeper into Kraft Heinz's results, the company achieved organic net sales growth of 1.7%, including net sales growth across each of its three core pillars in foodservice, emerging markets, and strategic U.S. retail "grow platforms" -- the last of which includes "Taste Elevation" (sauces and condiments) and "Easy Meals Made Better" categories (products like macaroni and cheese, pizza, and frozen snacks).
Keeping with its latest transformation plan, unveiled earlier this year , Kraft Heinz also achieved a key milestone in reaching its target net leverage ratio of roughly 3 times. "A stronger balance sheet, along with advancements we have made across the business, gives us further conviction behind our strategy," added Kraft Heinz Chair and CEO Miguel Patricio.
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Why Kraft Heinz Stock Popped Today