Kraft Heinz (KHC): Taurus Case Theory

We encountered a Saudi thesis On Kraft Heinz on D Invests. In this article, we will summarize the bull thesis on KHC. Kraft Heinz’s share has been traded at $ 26.90 as of September 8. KHC was the equal company and Imam P/E 22.43 and 9.94, respectively, according to Yahoo financing.

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The recent announcement of the division of Kraft Heinz is planned to Global Taste Elevation Co (GTE) and North American Grocery (NAG). The main brands for the necessary investment, reached a peak of $ 15.4 billion in 2019 and lower profits. These operational errors have multiplied by structural opposite winds, including transformations towards healthy meals, GLP-1 drug growth, and consumers sensitive to prices who prefer special name alternatives, leading to stagnant revenues despite stable margins.

The division aims to simplify the processes and allow each company to focus on a fewer groups with distinctive growth paths, the complexity treatment that impedes performance. GTE Heinz, Philadelphia, Mac and Cheese and other global brands and stable kindness, as it achieved $ 15.4 billion and $ 4 billion in EBITDA in 2024, achieved 26 % of margins, with possible growth in the medium point fueled by epithelial markets and external channels. NAG will operate Oscar Mayer, Lunchables, Jell-O, Capri Sun and other brands for North America, as it achieved revenues of $ 10.4 billion and $ 2.3 billion in Ebitda with more than 20 % of margins, providing a stable free cash flow and distributing strong profits with growth with inflation.

Both companies will maintain an investment degree, and the division will be without taxes for shareholders, as GTE has not yet been appointed as an executive president while Carlos Abrams will lead Rivera NAG. It provides a clearer path for the customization of the capital, the investment of the brand, and the operational concentration, which may open the hidden value of the shareholders while providing fixed cash returns, even with the 27 % Berkchire Hathawi share under the supervision of Warren Buffett.

Previously, we covered a Saudi thesis On Kraft Heinz (KHC) by Kostadin Ristovski, ACCA in April 2025, which shed light on conflicts from aggressive cost reduction, high debts, and the process of investing in the main brands, with reference to the stable free cash flow. The stock has decreased about 8.7 % since our coverage. The thesis still stands because the generation of money is still strong. D you invest D from a similar perspective, but it emphasizes the next division to Global Taste Elevation Co and Colican Grocery Co, highlighting the opening of potential value and operational concentration.