Changing tastes add to Kraft’s risk

Article Excerpt

KRAFT HEINZ CO. $61 (Nasdaq symbol KHC; Income Portfolio, Consumer sector; Shares outstanding: 1.2 billion; Market cap: $73.2 billion; Price-to-sales ratio: 2.8; Dividend yield: 4.0%; TSINetwork Rating: Above Average; www.kraftheinzcompany.com) makes condiments and sauces (such as Heinz Ketchup). Its packaged foods include Velveeta and Philadelphia Cream Cheese; meats, such as Oscar Meyer hot dogs, and beverages such as Maxwell House coffee. The company will probably earn $3.85 a share in 2018, up 8.5% from $3.55 in 2017. The stock trades at 15.8 times the 2018 forecast. However, demand for the company’s products continues to fall as consumers switch to more healthful alternatives. Kraft Heinz is still a hold. hold…