US EditionWarren Buffett Comes Out on Top From Kraft Heinz Flop
UNITED STATES, JUL 14 – Kraft Heinz plans to spin off its grocery business, potentially unlocking $20 billion in value, while focusing on sauces and condiments amid shifting consumer preferences and stagnant sales.
- On Friday, The Wall Street Journal reported that Kraft Heinz is considering splitting into two businesses, with the grocery unit valued at up to $20 billion, aligning with recent board changes.
- Under mounting shareholder pressure, Kraft Heinz faces stagnating sales and declining profits, as the company considers a major restructuring to unlock value.
- The zero-based budgeting approach implemented by 3G Capital had failed spectacularly in this context, while Kraft Heinz's stock has plunged over 60%, and the company could be valued at up to $20 billion.
- Some observers questioned whether a split would address the company’s underlying challenges, while Kraft Heinz shares rose 2.5% after the news.
- Industry sources say the split could be finalized in the coming weeks, and the company would focus on sauces and spreads like Heinz ketchup and Grey Poupon Dijon mustard.
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As Kraft Heinz reportedly weighs split, analysts say more food companies need to break up
TD Cowen analysts say food-industry megamergers haven’t worked. Article Attribution | Read More at Article Source The post As Kraft Heinz reportedly weighs split, analysts say more food companies need to break up appeared first on RocketNews.
What The Reported Kraft Heinz Breakup Could Mean For You - Kraft Heinz (NASDAQ:KHC)
Kraft Heinz Co. is reportedly exploring a significant corporate restructuring, potentially splitting into two entities: a grocery division and a Taste Elevation segment. Latest Ratings for KHC DateFirmActionFromTo Feb 2022Credit SuisseMaintainsUnderperform Feb 2022Deutsche BankMaintainsBuy Feb 2022Credit SuisseMaintainsUnderperform View More Analyst Ratings for KHC View the Latest Analyst Ratings
Kraft Heinz reportedly preparing to split
Kraft Heinz is reportedly preparing to spin off its Kraft-branded products in a move that could value the new entity at up to $20 billion, leaving the core business focused on sauces and condiments like Heinz ketchup. The split follows similar restructuring trends by Unilever and Kellogg. No official statement has been made, but the company says it's exploring strategic options to boost shareholder value.
Splitting up the sauce maker might help a bit after the stock's decline, and if nothing else, at least smaller pieces might attract buyers willing to pay a premium.
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Bias Distribution
- 60% of the sources lean Left
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