KHC

The Kraft Heinz Company

Consumer


Presented:11/24/2015
Price:$74.47
Cap:$85.04B
Current Price:$35.72
Cap:$43.19B

Presented

Date11/24/2015
Price$74.47
Market Cap$85.04B
Ent Value$113.13B
P/E RatioN/A
Book Value$48.48
Div Yield3.09%
Shares O/S1,142.00M
Ave Daily Vol3,314,556
Short Int1.12%

Current

Price$35.72
Market Cap$43.19B
The Kraft Heinz Co. produces processed food and beverage products. It is a newly formed company resulting from the merger of Kraft Foods Group, Inc. and H.J. Heinz Co. Kraft Foods Group 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. H.J. Heinz Co. produces processed food products. It markets and produces of healthy, convenient and affordable foods. The company''s products include ketchup, condiments and sauces, frozen food, soups, beans and pasta meals, infant nutrition and other food products. Its products are manufactured and packaged to provide safe, wholesome foods for consumers, as well as foodservice and institutional customers. The company is headquartered in Pittsburgh, PA.

Publicly traded companies mentioned herein: Kraft Heinz Co/The (KHC)

Highlights

The presenter is long shares of Kraft Heinz (KHC), and thinks the EBITDA potential of the combined Kraft-Heinz entity is being underrated by institutional investors. He believes the exit of event-driven traders and current investor uncertainty represents a good buying opportunity, and expects KHC share price to appreciate as 3G Capital steps in to improve operations, which may make KHC “the consensus name to own in large cap food.” By his calculations, KHC shares are worth $85 on a present value basis, discounted from ~$105 in three years.

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Idea Discussion

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