Early September, I looked at the prospects for Kraft Heinz (KHC) in an article named "should you invest alongside world-class investors?"
In that article I described the developments since the namesake company has been merged about two years before, following approval from Mr. Buffett himself. Shares have traded in a $70-$100 range ever since, only to trade at levels in the high seventies at this moment in time.
Kraft Heinz already is very profitable but investors were counting on the ruthless management of 3G to boost margins even further, after a takeover attempt of Unilever (UL) backfired in the public eye, while packaged food companies see emerging threats including local brands and rapid taste shifts along millennials. As the German discounters are invading the North American grocery market to a greater extent, and of course Amazon.com acquired Whole Foods, investors have worries about the prospects for both sales and margins going forward.
