KHC
The Kraft Heinz Company
Consumer
06/15/2015
Presented
| Date | 06/12/2015 |
| Price | $84.70 |
| Market Cap | N/A |
| Ent Value | $59.02B |
| P/E Ratio | 53.61x |
| Book Value | $7.65 |
| Div Yield | 2.6% |
| Shares O/S | 592.28M |
| Ave Daily Vol | 6,796,282 |
| Short Int | 2.18% |
Current
| Price | $35.72 |
| Market Cap | $43.19B |
| Kraft Foods Group, Inc. manufactures and markets food and beverage products, including convenient meals, refreshment beverages and coffee, cheese and other grocery products. The company operates its business through six segments: Beverages, Cheese, Refrigerated Meals, Meals & Desserts, Enhancers & Snack Nuts and Canada. The Beverages segment includes Maxwell House, Gevalia, and Yuban coffees; Tassimo hot beverage system; Capri Sun and Kool-Aid packaged juice drinks; Crystal Light, Kool-Aid, and Country Time powdered beverages; and MiO liquid concentrate. The Cheese segment includes Kraft and Cracker Barrel natural cheeses; Philadelphia cream cheese; Kraft and Deli Deluxe processed cheese slices; Velveeta and Cheez Whiz processed cheeses; Kraft grated cheeses; Polly-O and Athenos cheese; and Breakstone's and Knudsen cottage cheese and sour cream. The Refrigerated Meals segment includes Oscar Mayer cold cuts, hot dogs, and bacon; Lunchables lunch combinations; Claussen pickles; and Boca soy-based meat alternatives. The Meals & Desserts segment includes Kraft and Kraft Deluxe macaroni and cheese dinners; Velveeta shells and cheese dinners; JELL-O dry packaged desserts; JELL-O refrigerated gelatin and pudding snacks; Cool Whip whipped topping; Stove Top stuffing mix; Jet-Puffed marshmallows; Velveeta Cheesy Skillets and Taco Bell Home Originals (under license) meal kits; Shake 'N Bake coatings; and Baker's chocolate and baking ingredients. The Enhancers & Snack Nuts segment includes Planters nuts, peanut butter, and trail mixes; Kraft Mayo and Miracle Whip spoonable dressings; Kraft and Good Seasons salad dressings; A.1. steak sauce; Kraft and Bull's-Eye barbecue sauces; and Grey Poupon premium mustards. The Canada segment includes Canadian brand offerings include Kraft peanut butter and Nabob coffee, as well as a range of products bearing brand names similar to those marketed in the U.S. Kraft Foods Group was founded in 1980 and is headquartered in Northfield, IL. |
Publicly traded companies mentioned herein: The Kraft Heinz Company (KHC), Mondelez International (MDLZ), Anheuser Busch Inbev (BUD) and Burger King Worldwide (BKW)
Highlights
Merged with Heinz by 3G Capital earlier this year, Kraft will effectively be the vehicle that takes Heinz public again after having been acquired by 3G in 2013. The move is seen by many as a precursor to further consolidation in the food and beverage space. The stock was at $61 prior to the announcement of the deal; adjusted for the $16.50 per share special dividend to be paid by 3G, it is currently trading at about $68 per share - or up just 10% on an absolute basis. With heralded operator 3G running the show, the presenter believes expected deal synergies in the $1.5 billion range will be highly accretive to shares in 2017 and 2018.
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