$KHC: Kraft Heinz – Sizzling Growth or Cooling Off?(1/9)
Good Morning, snackers! 🌞 NASDAQ:KHC : Kraft Heinz – Sizzling Growth or Cooling Off?
Kraft Heinz dished out $6.58B in Q4 2024 but missed the mark—price hikes are biting back! Can this food giant spice things up again? Let’s dig in! 🔍
(2/9) – PRICE PERFORMANCE 📊
• Q4 2024: Revenue at $6.58B, down 4.1% year-over-year, missed estimates 📉
• Full Year 2024: Free cash flow up 6% to $3.2B, per Yahoo Finance 💰
• Sector Trend: Consumer staples steady but facing thriftier shoppers 🌟
A bit of a sour taste, yet cash keeps flowin’! ⚙️
(3/9) – MARKET POSITION 📈
• Standing: 3rd largest food & bev in North America, per earnings 🏆
• Brands: Heinz, Oscar Mayer, Lunchables—household legends ⏰
• Trend: Pushing “Accelerate” platforms for growth 🎯
Still a pantry king, but gotta woo new eaters! 🚀
(4/9) – KEY DEVELOPMENTS 🔑
• Q4 Results: EPS beat at $0.84, but sales lagged, per Feb 12 Yahoo 🔄
• Strategy: Plans to adjust pricing on key brands, per Reuters 🌍
• Market Reaction: Shares slipped post-earnings, analysts cautious 📋
Cookin’ up fixes, but the stove’s tricky! 💡
(5/9) – RISKS IN FOCUS ⚡
• Demand: High prices deter budget shoppers, per Reuters 🔍
• Volume: Organic sales dropped 3.1%, volume down 4.1% 📉
• Competition: Smaller brands nip at their heels ❄️
Tough bites to chew, but not outta the game! 🛑
(6/9) – SWOT: STRENGTHS 💪
• Cash Flow: $3.2B free cash flow in 2024, up 6% 🥇
• Brand Power: Global reach, iconic products 📊
• Dividends: Steady $0.40/share payout 🔧
Got a solid recipe in the pot! 🏦
(7/9) – SWOT: WEAKNESSES & OPPORTUNITIES ⚖️
• Weaknesses: Sales miss, volume dips, per Q4 earnings 📉
• Opportunities: New products, emerging markets expansion 📈
Can they whip up a tastier comeback? 🤔
(8/9) – 📢Kraft Heinz’s cash flow’s up, but sales took a hit—your take? 🗳️
• Bullish: $40+ soon, staples rebound 🐂
• Neutral: Steady, tweaks needed ⚖️
• Bearish: $25 looms, demand stalls 🐻
Serve your thoughts below! 👇
(9/9) – FINAL TAKEAWAY 🎯
Kraft Heinz’s $3.2B cash flow tastes sweet 📈, but demand dips add a sour note 🌿. Volatility’s our sous-chef—dips are DCA gold 💰. Grab ‘em low, savor the rise! Gem or bust?
Foodstocks
Hormel Foods Co | HRL | Long at $28.98Food stocks are gaining momentum. I anticipate another round of inflation could boost them in the coming 1-2 years. Hormel NYSE:HRL is trading at a price-to-earnings of 20x and pays a dividend of 4.05%. Insiders have been awarded options and are buying shares below $30. Earnings are forecast to grow 9.16% per year and the company has a very low debt-to-equity ratio (0.36x). Thus, at $28.98, NYSE:HRL is in a personal buy zone.
Targets:
$34.00
$36.00
... $50.00 (very long-term, inflationary environment, etc)
Lamb Weston Holdings | LW | Long at $51.32Lamb Weston Holdings NYSE:LW , the potato / French fry king, has gone through a tremendous downturn since 2023. Yet, earnings are forecast to grow 22% per year into 2027. Debt is quite high at 2.5x and this company, like many others, will significantly benefit from lower interest rates in the future. If the US experiences another way of inflation, Lamb Weston Holdings could be on the beneficiary side of things.
From a technical analysis perspective, the price has entered my "crash" simple moving average zone. Typically, this area signals a bottom, but it's not guaranteed. I foresee the daily price gap near $50 being closed in the short-term before a true move up. A dip to $47-$48 is not out of the question. Regardless of trying to predict bottoms, at $51.32, NYSE:LW is in a personal buy zone.
Targets:
$62.00
$68.00
$77.00
SBUX found bottom and may reverse LONGSBUX on a daily chart with two sets of VWAP bands anchored to dates back in one year ago
and two years ago shows SBUX to be at the same price level as the low pivot of 2022.
Price has bounced off the lower most of the VWAP bands and moved up in the past three
trading days with higher than usual volume. I believe that short traders are buying to cover
and take realized profits in their trades. The more price moves up the more likely short
traders will liquidate their positions and contribute to buying volume.
A short squeeze could potentially set up here.
I will take a long trade of shares and call options to profit from the price movement I
anticipate. I will set a stop loss at 71.75 the piot low and a target of 93 under the mean VWAP
black lines. The trade is anticipated to last 2-3 months and so the call options wll be taken with
a four- month expiration.
Can SBUX rise from beating beaten down 15% YTD ?SBUX of late has been in a descending channel and has sloped down heavily in April.
It is now in deep undervalued and overbought territory at the bottom of the channel and
above the 3rd lower VWAP band line. The RSI lines ( both faster and slower) are bearish as
well. My trade plan is to watch Starbucks for a reversal which may be signaled by
bullish divergence on the RSI. SBUX has fallen through a volume void under the high volume
area. Once it reverses it could rise fairly quickly to 90 and then slower to 94. These will be
the targets.
GIS weekly Cup formation progress LONGGIS a consumer staples is set up long and is a good defensive play for recession or black swan
events. The idea is on the chart. I am long since the first of the year. Adding for small dips
on the daily or 180 minute chart. Food is about as basic as it gets. GIS is a market leader.
TSN idea also. What about McDonalds?