Benzinga - by Surbhi Jain, .
The Kraft Heinz Co (NASDAQ:KHC) is one of the top holdings of legendary billionaire investor Warren Buffett. The stock is the seventh largest holding of his Berkshire Hathaway portfolio commanding 3.45% of it.
Buffett first got bullish on the stock in the third quarter of 2015. At 26.58%, over one-fourth of Kraft Heinz’s outstanding shareholding is now owned by Warren Buffett’s Berkshire Hathaway.
While the stock hasn’t been able to perform well on the charts for the past five years, Buffett has held onto his share in the company. In early 2019, Buffett told CNBC he would be happy to own the stock 10 years from now.
This Warren Buffett Favorite Just Made A Golden Cross
Kraft Heinz exhibited a robust 16.5% total return since October, surpassing the S&P 500.
Fundamentals Indicate The Tide May Be Turning
As a major player in the consumer staples sector with 200 trusted brands globally, the company’s recent reinvestment efforts are paying off, signaling a turnaround from a decade of struggles. The company’s strategic shift towards reinvestment in marketing and product innovation is driving bottom-line growth. Key segments like Emerging Markets, cold cuts, and food service are expected to contribute to future growth.
With a balanced approach of deleveraging, well-covered dividends, and a $3 billion share repurchase program, Kraft Heinz is financially sound.
Value Stock For Long-Term Returns
Despite stagnant performance, international sales growth, strong cash flow generation, and improving profitability indicators position Kraft Heinz for optimistic long-term returns.
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