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Topic: Blue Chip Stocks

This large cap stock’s revenue and earnings rose in 2010

Kraft Foods Inc., symbol KFT on New York, is the world’s second-largest food company, after Switzerland-based Nestle.

Kraft has 11 brands that generate over $1 billion each in yearly sales. Aside from Kraft (cheeses, pasta and salad dressings), the large cap stock’s brands include Philadelphia (cream cheese), Maxwell House (coffee), Nabisco (biscuits), Oreo (cookies), Trident (gum) and Oscar Meyer (meats).

In April 2010, Kraft paid $18.5 billion in cash and stock for U.K.-based Cadbury plc, a leading maker of confectioneries, including chocolate, candy and gum. Cadbury’s well-known brands include Dentyne and Clorets (gum), Dairy Milk (chocolate bars) and Halls (cough drops).

In 2010, Kraft’s earnings rose 36.2%, to $4.1 billion from $3.0 billion in 2009. Earnings per share climbed 17.6%, to $2.40 from $2.04, on more shares outstanding.

The company is saving more from the Cadbury takeover than it expected. By the end of 2010, Kraft had saved $187.5 million as a result of the merger. That’s up from the company’s goal of $112.5 million.

Revenue rose 27.0%, to $49.2 billion from $38.8 billion in 2009, mainly due to the Cadbury acquisition. Revenue from emerging markets jumped 73.5%, followed by Europe (up 28.6%), and North America (up 12.2%).

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