{"id":21510,"date":"2021-05-10T12:31:40","date_gmt":"2021-05-10T16:31:40","guid":{"rendered":"https:\/\/www.pgmcapital.com\/?p=21510"},"modified":"2021-05-10T12:44:38","modified_gmt":"2021-05-10T16:44:38","slug":"why-investing-in-kraft-heinz-can-be-lucrative-for-value-investors","status":"publish","type":"post","link":"https:\/\/www.pgmcapital.com\/nl\/why-investing-in-kraft-heinz-can-be-lucrative-for-value-investors\/","title":{"rendered":"Why Investing in Kraft Heinz can be lucrative for Value Investors"},"content":{"rendered":"\n<p>Dear PGM Capital Blog readers,<\/p>\n\n\n\n<p>In this belated weekend\u2019s blog edition, we wish to elaborate, why investing in Kraft Heinz can be lucrative for value investors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">INTRODUCTION:<\/h3>\n\n\n\n<p>The Kraft Heinz Company, commonly known as&nbsp;Kraft Heinz, is an American food company formed by the merger of&nbsp;Kraft Foods&nbsp;and&nbsp;Heinz.<\/p>\n\n\n\n<p>It is the third-largest&nbsp;food and beverage&nbsp;company in North America and the fifth-largest in the world with over US$26billion in annual sales as of 2020, with eight US$1 billion+ brands.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/150325_em_heinzkraftbrands-scaled.jpeg\"><img decoding=\"async\" src=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/150325_em_heinzkraftbrands-1024x533.jpeg\" alt=\"\" class=\"wp-image-21519\" width=\"900\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/150325_em_heinzkraftbrands-1024x533.jpeg 1024w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/150325_em_heinzkraftbrands-300x156.jpeg 300w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/150325_em_heinzkraftbrands-768x400.jpeg 768w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/150325_em_heinzkraftbrands-1536x800.jpeg 1536w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/150325_em_heinzkraftbrands-2048x1067.jpeg 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/div>\n\n\n\n<p>Over the last century, Kraft Heinz Co. has grown into a foods company behemoth with more than 200 household brands under its umbrella after decades of acquisitions.<\/p>\n\n\n\n<p>About 40 Kraft Heinz brands are more than a100 years old, including Heinz\u2019s ketchup and Kraft\u2019s processed cheese products.<\/p>\n\n\n\n<p>The Company is Co-headquartered in&nbsp;Chicago, Illinois and&nbsp;Pittsburgh,&nbsp;Pennsylvania. <\/p>\n\n\n\n<p>The Kraft Heinz Company shares are trading on the NASDAQ exchange under the symbol KHC, for which its biggest shareholders are&nbsp; <a rel=\"noreferrer noopener\" href=\"https:\/\/en.wikipedia.org\/wiki\/Berkshire_Hathaway\" target=\"_blank\">Berkshire Hathaway<\/a>&nbsp;(26.6%) and <a rel=\"noreferrer noopener\" href=\"https:\/\/en.wikipedia.org\/wiki\/3G_Capital\" target=\"_blank\">3G Capital<\/a>&nbsp;(17.7%).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">TOP 4 KRAFT HEINZ BRANDS:<\/h2>\n\n\n\n<p>Below we will highlight the four most popular brands of the company, for which each of them alone, annually has over a billion US-Dollars in revenue.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">1. Maxwell House:<\/h5>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/993780710c944889323793bfa7c2dd16.png\"><img decoding=\"async\" src=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/993780710c944889323793bfa7c2dd16.png\" alt=\"\" class=\"wp-image-21526\" width=\"500\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/993780710c944889323793bfa7c2dd16.png 525w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/993780710c944889323793bfa7c2dd16-300x233.png 300w\" sizes=\"(max-width: 525px) 100vw, 525px\" \/><\/a><\/figure><\/div>\n\n\n\n<p>Maxwell House was the number-one selling coffee in the U.S.A. until the 1980s. Since then, it has been vying with Folgers, Keurig, Starbucks, Dunkin\u2019 Donuts and other popular coffee brands for market share.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">2. Oscar Mayer:<\/h5>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/oscar-mayer-brand.jpeg\"><img decoding=\"async\" src=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/oscar-mayer-brand.jpeg\" alt=\"\" class=\"wp-image-21530\" width=\"500\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/oscar-mayer-brand.jpeg 750w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/oscar-mayer-brand-300x160.jpeg 300w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/a><\/figure><\/div>\n\n\n\n<p>Oscar Mayer meat and cold cut products include hot dogs, bacon and lunch meats.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">3. Kraft:<\/h5>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/Kraft.jpg\"><img decoding=\"async\" src=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/Kraft.jpg\" alt=\"\" class=\"wp-image-21532\" width=\"500\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/Kraft.jpg 700w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/Kraft-300x171.jpg 300w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/a><\/figure><\/div>\n\n\n\n<p>Kraft provides a pasteurized processed cheese that uses salts to extend the shelf life of cheese and cheese-based products like Kraft Macaroni and Cheese Dinner, Kraft Mayo and Kraft Singles.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">4. Heinz:<\/h5>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/heinz-target-450x317-1.png\"><img decoding=\"async\" src=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/heinz-target-450x317-1.png\" alt=\"\" class=\"wp-image-21536\" width=\"500\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/heinz-target-450x317-1.png 450w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/heinz-target-450x317-1-300x211.png 300w\" sizes=\"(max-width: 450px) 100vw, 450px\" \/><\/a><\/figure><\/div>\n\n\n\n<p>Heinz\u2019s brands include Heinz Tomato Ketchup, mustard, Dip &amp; Squeeze and small ketchup packages designed to be used in fast food restaurants. Heinz Ketchup holds 80% of the market share in Europe and 60% in the United States.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">PGM CAPITAL COMMENTS &amp; ANALYSIS:<\/h3>\n\n\n\n<h5 class=\"wp-block-heading\">Q1-2021 Financial Results:<\/h5>\n\n\n\n<p>On Thursday, April 29, the company reported its Q1-2021 earnings report with the following highlights:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Net income totaled US$563 million, or 46 cents per share, up from $378 million, or 31 cents per share.<\/li><li>Adjusted EPS of 72 cents beat the analysts\u2019 consensus for 60 cents.<\/li><li>Sales of US$6.39 billion, up from US$6.16 billion and ahead of analysts\u2019 consensus of US$6.25 billion.<\/li><li>The board declares a dividend of US$ 0.40 per share, payable on June 25, 2021, for shareholders on record on May 28, 2021.<\/li><\/ul>\n\n\n\n<p>For the second quarter of this year, the company expects a mid-single-digit percent organic sales increase.<\/p>\n\n\n\n<p>Shares of the company are up 15.8% for the year to date, outpacing the S&amp;P 500 index&nbsp;SPX,&nbsp;+0.74%,&nbsp;which is up 11.4% for the period. As can be seen from below 1-year chart, during the past 52 weeks, the share of the company has appreciated with 48.2%.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/Screen-Shot-2021-05-09-at-3.38.15-PM.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"483\" src=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/Screen-Shot-2021-05-09-at-3.38.15-PM-1024x483.png\" alt=\"\" class=\"wp-image-21545\" srcset=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/Screen-Shot-2021-05-09-at-3.38.15-PM-1024x483.png 1024w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/Screen-Shot-2021-05-09-at-3.38.15-PM-300x142.png 300w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/Screen-Shot-2021-05-09-at-3.38.15-PM-768x362.png 768w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/Screen-Shot-2021-05-09-at-3.38.15-PM-1536x725.png 1536w, https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/Screen-Shot-2021-05-09-at-3.38.15-PM-2048x967.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/div>\n\n\n\n<p>Based on the fundamentals of Kraft-Heinz, we have a BUY rating on the shares of the company.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Disclosure:<\/h4>\n\n\n\n<p>We do not own shares of Kraft-Heinz in our personal portfolio.<\/p>\n\n\n\n<p>In this rapidly changing world with its subsequent turbulence and coming hyperinflation cycle, PGM Capital is at your service as your Professional, Trustworthy, Dedicated, Financial Advisor and Asset Management.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/02\/When-you-succeed-we-succeed-transparant-1.png\" alt=\"\"\/><\/figure><\/div>\n\n\n\n<p>Last but not least, before taking any investment decision, always take your investment horizon and risk tolerance into consideration. Keep in mind that share prices do not move in a straight line. Past performance is no&nbsp;guarantee for&nbsp;future results.<\/p>\n\n\n\n<p>Yours sincerely,<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img decoding=\"async\" src=\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2015\/06\/eric.jpg\" alt=\"\" width=\"103\"\/><\/figure>\n\n\n\n<p>Eric Panneflek<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dear PGM Capital Blog readers, In this belated weekend\u2019s blog edition, we wish to elaborate, why investing in Kraft Heinz can be lucrative for value investors. INTRODUCTION: The Kraft Heinz Company, commonly known as&nbsp;Kraft Heinz, is an American food company formed by the merger of&nbsp;Kraft Foods&nbsp;and&nbsp;Heinz. It is the third-largest&nbsp;food and beverage&nbsp;company in North America<a href=\"https:\/\/www.pgmcapital.com\/nl\/why-investing-in-kraft-heinz-can-be-lucrative-for-value-investors\/\">[&#8230;]<\/a><\/p>\n","protected":false},"author":2,"featured_media":21559,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51],"tags":[],"class_list":["post-21510","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pgm-capital-blog"],"_links":{"self":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/21510","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/comments?post=21510"}],"version-history":[{"count":42,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/21510\/revisions"}],"predecessor-version":[{"id":21560,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/21510\/revisions\/21560"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media\/21559"}],"wp:attachment":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media?parent=21510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/categories?post=21510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/tags?post=21510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}