Bears vs. Bulls: Who’s Right About Kraft Heinz Stock?

Kraft Heinz's (NASDAQ: KHC) stock plummeted more than 60% over the past two years as it struggled with decelerating revenue growth, contracting margins, big writedowns for its top brands, a dividend cut, and an SEC probe regarding its accounting issues, as well as delayed earnings reports and SEC filings.

Last July, Kraft hired former AB InBev executive Miguel Patricio as its new CEO to lead a turnaround effort. Yet progress has been glacial, and even 3G Capital -- Kraft's second largest shareholder -- subsequently sold 25 million shares and reduced its overall stake to about 20% by late September.

It's tempting to buy Kraft after that precipitous plunge, since the stock trades at just 11 times forward earnings and pays a forward yield of 5.3%. However, the company's recent fourth-quarter report indicates that it's still struggling to fix its business.

Source Fool.com