Foodmakers in good shape post lockdowns

Article Excerpt

Kraft Heinz and Campbell Soup benefited as COVID-19 lockdowns forced consumers to eat more meals at home. Now that the economy is re-opening, they aim to keep expanding their sales with new products. Better efficiency will also let them maintain your dividends. KRAFT HEINZ CO. $36 is a buy. The company (Nasdaq symbol KHC; Income Portfolio, Consumer sector; Shares outstanding: 1.2 billion; Market cap: $43.2 billion; Price-to-sales ratio: 1.8; Dividend yield: 4.4%; TSINetwork Rating: Above Average; www.kraftheinzcompany.com) is a leading producer of processed foods. Its top brands include Velveeta and Philadelphia cream cheeses, Oscar Meyer hot dogs, and Maxwell House coffee. In 2021, the company sold its Nuts business, which includes the Planters brand, for $3.4 billion. It also sold its Natural, Grated, Cultured, and Specialty cheese businesses in the U.S. for $3.3 billion. That cash is helping Kraft Heinz add higher-quality brands, particularly outside its core North American market. For example, in January 2022, the company paid $243 million for an 85% stake in German-based…

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