Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  The Kraft Heinz Company    KHC

THE KRAFT HEINZ COMPANY

(KHC)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Kraft Heinz's credit rating cut to 'junk' by Fitch

share with twitter share with LinkedIn share with facebook
share via e-mail
02/14/2020 | 11:31am EST
FILE PHOTO: Shareholders shop for discounted products at the Kraft Heinz booth at the annual Berkshire Hathaway shareholder meeting in Omaha

Kraft Heinz Co's debt rating was cut to "junk" by global credit ratings agency Fitch on Friday, a day after the ketchup and sausage maker reported lower-than-expected quarterly sales and wrote down the value of some businesses.

Shares of Kraft Heinz, in which billionaire Warren Buffett's Berkshire Hathaway Inc and Brazilian private equity firm 3G own major stakes, fell about 4%.

Chicago-based Kraft Heinz, which last year took a $15.4 billion writedown of key brands including Oscar Mayer hot dogs, has been struggling to grow sales as consumers shift to healthier options and private-label brands.

"Following Kraft's commentary around 2020 operating headwinds and its commitment to maintain its dividend, Fitch estimates the company may need to divest up to 20% of its projected 2020 EBITDA to support debt reduction," the agency said.

Kraft Heinz said on a post-earnings call on Thursday that currency fluctuations, divestitures, supply chain costs and bonuses related to the turnaround would likely lead to a decline of about $460 million in full-year earnings before interest, taxes, depreciation and amortization (EBITDA).

"We believe it's important to Kraft Heinz shareholders to maintain our dividend during this time of transformation," Kraft Heinz said in response to the cut in credit rating.

Fitch lowered its long-term rating on the company to 'BB+' from 'BBB-', but kept its outlook at stable.

BB level, or "junk", rating for companies is seen as having higher risk to lenders. (https://bit.ly/2OV2Kin)

Separately, Moody's also revised its rating outlook to "negative" from "stable", saying it expects falling operating performance and high debt levels to continue through 2020. (https://bit.ly/2SsK1x1)

As of August, Kraft Heinz is rated "BBB-" by S&P, the lowest investment-grade rating. At least eight Wall Street analysts lowered their price targets on the stock after the company reported disappointing results.

(Reporting by Nivedita Balu in Bengaluru; Editing by Anil D'Silva)

Stocks mentioned in the article
ChangeLast1st jan.
BERKSHIRE HATHAWAY INC. -1.56% 328000 Delayed Quote.-1.88%
MAYER HOLDINGS LIMITED 0.00% 0.24 End-of-day quote.3.45%
THE KRAFT HEINZ COMPANY -2.10% 26.07 Delayed Quote.-17.12%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on THE KRAFT HEINZ COMPANY
02/24Berkshire Stock Underperforms S&P -- WSJ
DJ
02/23Buffett calls for more accountability for corporate directors
RE
02/23WARREN BUFFETT : Rising stocks fuel record profit for Buffett's Berkshire; opera..
RE
02/22WARREN BUFFETT : Warren Buffett's Berkshire Hathaway Stock Underperforms the Mos..
DJ
02/22Berkshire Hathaway Posts $29.2 Billion in Quarterly Earnings--Update
DJ
02/21FITCH RTGS : US Fallen Angel Risk Remains Post Kraft Heinz Downgrade
AQ
02/21WARREN BUFFETT : Buffett Found His 'Elephant' With Apple -- WSJ
DJ
02/20WARREN BUFFETT : Warren Buffett Found His 'Elephant' With Giant Stake in Apple
DJ
02/19Grocers Wrest Control of Shelf Space From Struggling Food Giants
DJ
02/18Six Flags to Serve Kraft Heinz Products in Multi-Year Marketing Partnership
DJ
More news
Financials (USD)
Sales 2020 24 327 M
EBIT 2020 4 478 M
Net income 2020 2 710 M
Debt 2020 26 545 M
Yield 2020 6,02%
P/E ratio 2020 11,8x
P/E ratio 2021 11,0x
EV / Sales2020 2,43x
EV / Sales2021 2,37x
Capitalization 32 526 M
Chart THE KRAFT HEINZ COMPANY
Duration : Period :
The Kraft Heinz Company Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends THE KRAFT HEINZ COMPANY
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 21
Average target price 29,85  $
Last Close Price 26,07  $
Spread / Highest target 91,8%
Spread / Average Target 14,5%
Spread / Lowest Target -11,8%
EPS Revisions
Managers
NameTitle
Miguel Patricio Chief Executive Officer
Alexandre Behring da Costa Chairman
Flavio Torres Head-Global Operations
Paulo Basilio Global Chief Financial Officer
Gregory Edward Abel Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
THE KRAFT HEINZ COMPANY-17.12%32 526
NESTLÉ S.A.4.05%311 953
MONDELEZ INTERNATIONAL, INC4.83%82 738
DANONE-8.61%47 529
THE HERSHEY COMPANY8.14%33 338
GENERAL MILLS, INC.0.30%32 491