Kraft Heinz misses earnings, slashes dividend and discloses SEC investigation, down almost 20% AH

Sharing is Caring!

by timeinthemarket

CNBC: Kraft Heinz slashes dividend, discloses SEC subpoena — stock tanks

Kraft Heinz disclosed it has received a subpoena from the SEC as part of an investigation into the company’s procurement accounting policies.
The company is also trimming its dividend as it seeks to strengthen its balance sheet.
It also reported fourth-quarter earnings and revenue below Wall Street expectations.

Terrible earnings and the dividend cut really speaks to the struggles that brand name companies are having.

I think it’s interesting that these long term safe haven names don’t seem so safe anymore. You used to be able to count on these guys to be safe dividend payers in good times and bad but it’s been a struggle lately. Of course, KHC is more leveraged than a lot of the others but it’s still an interesting strategy.

See also  S&P 500 Real Earnings Yield Goes Negative (As Technicals SCREAM Bubble) Mystery of The Flying Fed!

The other part that is worrisome is this from the earnings report “the Company recorded non-cash impairment charges of $15.4 billion to lower the carrying amount of goodwill in certain reporting units, primarily U.S. Refrigerated and Canada Retail, and certain intangible assets, primarily the Kraft and Oscar Mayer trademarks.”

See also  August US Inflation At 5.3% YoY, Real Avg Hourly Earnings At -0.9% (Gasoline Up 42.7% YoY, Used Cars And Trucks Up 31.9% YoY, Home Prices Up 18.6% YoY)

That’s a big impairment charge to some big brand names.

I wonder how Buffet feels about this unless he’s just taking it private eventually.


Just gonna repost this from February last year. Maybe it can be an annual tradition!

Maybe, just maybe, ~$100 Billion companies shouldn’t hire 29-year-olds with less than 7 years working experience to be the CFO of their giant complex corporations.



Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.