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Kraft Heinz sets quarterly dividend at $0.40 per share

EditorNatashya Angelica
Published 07/31/2024, 11:41 AM
© Reuters.
KHC
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PITTSBURGH & CHICAGO - The Kraft Heinz Company (NASDAQ:KHC) has declared a regular quarterly dividend of $0.40 per share of common stock, which is scheduled to be paid on September 27, 2024, to shareholders on record as of August 30, 2024.

This announcement follows Kraft Heinz's reported net sales of approximately $27 billion for the year 2023, as the company continues to focus on expanding its portfolio of food and beverage brands globally. The company emphasizes its commitment to growth and transformation, aligning with its stated purpose of making life delicious for consumers.

Kraft Heinz, known for its range of iconic and emerging brands, aims to leverage its scale and agility to maximize the potential of its product platforms. In addition to its business goals, the company also highlights its dedication to making a sustainable and ethical impact on the global stage, with initiatives aimed at feeding the world in healthy and responsible ways.

The dividend declaration is a part of the company's ongoing financial activities and is a key piece of information for investors and stakeholders in assessing the company's performance and outlook.

The information provided in this report is based on a press release statement from The Kraft Heinz Company.

In other recent news, Kraft Heinz Company has been the subject of several key developments. Citi has revised its price target for the company's shares to $38, anticipating potential shortfalls in sales and earnings per share (EPS) for the second quarter of the fiscal year 2024.

Despite this, Citi maintains a positive stance on Kraft Heinz's long-term prospects. Similarly, Jefferies has reduced its price target for the company's shares to $34, citing a decline in retail sales across several brands.

Conversely, Piper Sandler has upgraded Kraft Heinz from Neutral to Overweight and established a new price target of $42.00, citing an improved outlook in the company's Foodservice segment. The firm expects this segment to experience accelerated growth in 2025.

Kraft Heinz is also reportedly considering selling its Oscar Mayer brand, a move that could value the meat business between $3 billion and $5 billion. This decision comes as consumer preferences shift towards healthier food options. Bank of America and Centerview Partners have been enlisted to find potential buyers for the brand.

These recent developments underscore the dynamic nature of Kraft Heinz's operations and strategic direction.

InvestingPro Insights

As The Kraft Heinz Company (NASDAQ:KHC) announces its latest dividend payout, a closer look at the company's financials through InvestingPro provides deeper insights into its performance and potential value to investors. With a current market capitalization of $42.89 billion, Kraft Heinz trades at a price-to-earnings (P/E) ratio of 15.38, suggesting a valuation that may catch the eye of value investors.

One of the notable InvestingPro Tips for Kraft Heinz is that it's trading at a low P/E ratio relative to near-term earnings growth, with an adjusted P/E ratio for the last twelve months as of Q1 2024 standing at 12.18. This could indicate that the stock is undervalued compared to its earnings potential. Additionally, the company is also trading at a low earnings multiple, which often appeals to investors looking for financially stable companies at reasonable prices.

Despite a slight revenue decline of 1.36% for the last twelve months as of Q1 2024, Kraft Heinz maintains a strong gross profit margin of 34.29%, reflecting the company's ability to manage its cost of goods sold effectively. This is further supported by an operating income margin of 20.63%, underscoring the company's operational efficiency.

Investors interested in dividend income may find Kraft Heinz's dividend yield of 4.73% as of mid-2024 particularly attractive, especially in the context of the company's profitability over the last twelve months and analysts' predictions of continued profitability this year.

For those seeking additional insights, there are more InvestingPro Tips available, which can be accessed through the dedicated InvestingPro page for Kraft Heinz at https://www.investing.com/pro/KHC. These tips can offer further guidance on the company's financial health and investment potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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