Opinions Ian Hardacre
Kraft Heinz CompanyKHCBUYFeb 12, 2002
Will probably grow well. Good brands.
Ian HardacreUnknown
$37.50
Stock price when the opinion was issued
$22.58
As of Jun 05, 2026. Market Open.
food processing
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Premium contentPAST TOP PICK
(A Top Pick Oct 13/22, Up 5.8%)Stockchase Research Editor: Michael O’Reilly
Our PAST TOP PICK with KHC has triggered its stop at $38. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 11%, when combined with our previous recommendation to cover half the position.
food processing
Premium contentPAST TOP PICK
(A Top Pick Oct 13/22, Up 17%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with KHC has achieved its target at $42. To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $33) to $38. If triggered, this would result in a net investment gain of 11% when combined with our previous buy recommendation.
food processing
Premium contentPAST TOP PICK
Premium contentTOP PICK
Stockchase Research Editor: Michael O'Reilly KHC is a defensive stock, that pays a good dividend, trades below book value, and has demonstrated it is a good inflation hedge. The company has been able to pass along rising costs to consumers and still has sales growing 10% over the previous quarter. Its dividend is backed by a payout ratio under 60% of cash flow. We recommend placing a stop-loss at $30, looking to achieve $42 -- upside potential over 17%. Yield 4.7% (Analysts’ price target is $41.93)
food processing
TOP PICK
Past missteps. Cut dividend to a sustainable level, still 4.13%. Used free cashflow to pay down debt from $30B to 20B. Reinvesting in brands. Ready to grow again. Lower-valued consumer stock. (Analysts’ price target is $42.31)
Lorne SteinbergOwned
food processing
DON'T BUY
It is in a relatively mature space. She owns MDLZ-Q, which they spun off because it has more growth.
food processing
DON'T BUY
Molson Coors vs. Kraft Heinz She owns neither. Kraft Heinz has pulled back a lot; 3G Capital bought them and they're famous for cutting and not reinvesting, which limits product innovation. There's little growth in North American staples; the space is very mature and highly competitive. Molson Coors: She doesn't own any beer companies, because they're all richly priced. Also, beer drinking is declining over time. She gives a slight edge to Molson Coors, but unethusiastically, because KHC is limited by the mature N.A. market.
food processing
WAIT
Debt issues? Growth by acquisition with a lot of debt has got them into problem. He sold out around $80 and is now starting to look again at them. He is concerned about the debt overhang. Over a 5-10 year time horizon you should be okay. Is it the best to own in consumer staples? He would add something else along with it. He can't recommend it until he does more analysis.
food processing
