No One Wants to Buy Kraft Heinz's Dying Brands
Kraft Heinz (NASDAQ: KHC) burned a lot of investors as its stock lost nearly half its value over the past 12 months. The packaged foods giant was already struggling with waning sales and contracting margins, but it dealt investors three devastating blows this February: It took a $15 billion writedown on its Kraft and Oscar Meyer brands, slashed its dividend, and disclosed an SEC probe into its accounting practices.
Yet bottom-fishing investors might still see some glimmers of hope on the horizon. After all, Kraft Heinz trades at just 11 times forward earnings with a forward yield of 5%, and it finally addressed its accounting issues with a long-delayed 10-K filing last month. Its new CEO, Miguel Patricio, could also take drastic measures to get the company back on track.
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