The Kraft Heinz Company KHC has been centered on boosting shareholder worth by way of dividends and share buybacks. Management authorised a share buyback program, permitting the corporate to repurchase shares price as much as $3 billion by Dec 26, 2026. This transfer is a part of the corporate’s broader capital allocation technique.
The share repurchase program is meant to be funded with extra money after accounting for disciplined capital spending, dividends, sustaining a focused Net Leverage of three.0X and exploring alternatives, reminiscent of acquisitions, divestitures and partnerships.
Notably, KHC reached its Net Leverage aim of three.0X within the third quarter of 2023, reaching a milestone on its transformation path. The firm’s share repurchase program acts as a possibility to offer worth to stockholders, whereas reflecting its wholesome monetary standing and confidence in prospects.
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What’s More?
Kraft Heinz ended the third quarter with money and money equivalents of $1,052 million. Net money offered by working actions was $2,620 million for the primary 9 months of 2023. The firm generated a free money stream of $1,841 million within the first 9 months of 2023.
KHC has been making common dividend funds and introduced a quarterly money dividend of 40 cents per share just lately, payable Dec 29, 2023, to shareholders of file as of Dec 1. The firm presently has a dividend yield of 1.6% and a free money stream yield of 5.8%.
Wrapping Up
Kraft Heinz has been benefiting from power in its three key pillars — Foodservice, Emerging Markets and U.S. Retail Grow platforms. Further, the corporate has been centered on enhancing productiveness all through its worth chain and channeling operational efficiencies again into essential areas. Robust pricing methods have been defending the corporate’s margins amid inflation.
Apart from this, power within the working mannequin is an upside. Kraft Heinz laid out an working mannequin (in September 2020) incorporating 5 key parts — People with Purpose, Consumer Platforms, Ops Center, Partner Program and Fuel Our Growth.
These upsides are prone to preserve the corporate going and keep dedicated to enhancing shareholder worth. Shares of this Zacks Rank #2 (Buy) firm have gained 3.3% prior to now three months in opposition to the business’s decline of 6.1%.
3 Other Hot Stocks to Consider
We have highlighted three different top-ranked shares, specifically Lamb Weston Holdings, Inc. LW, Celsius Holdings, Inc. CELH and Freshpet Inc. FRPT.
Lamb Weston is a number one international producer, marketer and distributor of value-added frozen potato merchandise, notably French fries. It additionally offers a variety of appetizers. The firm presently sports activities a Zacks Rank #1 (Strong Buy). You can see the entire listing of at the moment’s Zacks #1 Rank shares right here.
The Zacks Consensus Estimate for Lamb Weston Holdings’ present fiscal-year gross sales and EPS suggests progress of 28.3% and 24.8%, respectively, from the year-ago reported figures. LW has a trailing four-quarter earnings shock of 46.2%, on common.
Celsius Holdings makes a speciality of commercializing more healthy, dietary and purposeful meals, drinks and dietary dietary supplements. The firm presently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Celsius Holdings’ present financial-year gross sales and EPS suggests progress of 98.5% and 184.1%, respectively, from the year-ago reported figures.
Freshpet is a pet meals firm. The firm manufactures and markets pure recent meals, refrigerated meals, and treats for dogs and cats. The firm presently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Freshpet’s present financial-year gross sales and EPS suggests progress of 26.8% and 27.1%, respectively, from the year-ago reported figures. FRPT has a trailing four-quarter earnings shock of seven%, on common.
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Freshpet, Inc. (FRPT) : Free Stock Analysis Report
Kraft Heinz Company (KHC) : Free Stock Analysis Report
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Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
