Kraft Heinz is reportedly weighing options - which might include a sale - for its Breakstone’s brand.
Citing sources familiar with the matter, CNBC reports that the packaged food company has hired Royal Bank of Canada for advice. Breakstone’s houses cottage cheese, butter and sour cream.
According to the aforementioned report , Breakstone’s valuation could come in around $400 million. The unit generated 400 million in revenue and $50 million in earnings before interest, taxes, depreciation and amortization.
The news follows last year's announcement from Kraft Heinz, of the sale of its Canadian natural cheese business to Italian dairy group Parmalat for $1.23 billion. The deal was followed by a $4.1 billion impairment charge on the Kraft brand in February.
Dairy demand in the U.S. has apparently taken a hit due to a consumer preference tilt towards non-dairy alternatives like oat, soy and almond milk. From being a rage in the 1970s, cottage cheese has reportedly flattened out in popularity in recent years.
CNBC also reported recently that Kraft Heinz was possibly considering a sale of its Maxwell House coffee segment, citing people familiar with the matter.
The 10-day moving average for KHC crossed bullishly above the 50-day moving average on March 28, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 53 cases where KHC's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
KHC moved above its 50-day moving average on March 22, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where KHC advanced for three days, in of 316 cases, the price rose further within the following month. The odds of a continued upward trend are .
KHC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 300 cases where KHC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The 10-day RSI Indicator for KHC moved out of overbought territory on April 10, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 34 similar instances where the indicator moved out of overbought territory. In of the 34 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on April 12, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on KHC as a result. In of 74 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for KHC turned negative on April 12, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KHC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.910) is normal, around the industry mean (8.292). P/E Ratio (16.043) is within average values for comparable stocks, (26.814). Projected Growth (PEG Ratio) (1.048) is also within normal values, averaging (2.471). Dividend Yield (0.043) settles around the average of (0.043) among similar stocks. P/S Ratio (1.718) is also within normal values, averaging (62.729).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. KHC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of packaged food products
Industry FoodSpecialtyCandy