Kraft - Final Thoughts

Ticker Symbol: KFT

Final Thoughts on Kraft

During May, Kraft said that consumption trends have recovered slightly from the beginning of the year. The pace of inventory deleveraging has slowed at most food distributors, yet wholesale volume sales might face tough year-over-year contrasts.

Sales, which dropped 6.5% year-over-year, would have risen 2.3% ex-currency fluctuations and divestitures. Headwinds remain as consumers continue to trim discretionary spending, evidenced in the latest retail sales report for April. Cost-cutting measures and pricing alignment will be key directives for Kraft heading into the second half of 2009.

Kraft offers a stable dividend (29 cents), yielding a solid 4.5% to its May 12th closing price of $25.41. Kraft is still trading nearer to its 52-week low ($20.81) than its 52-week high ($25.69). For investors looking to balance out their portfolio with a consistent consumer staple offering a steady dividend, Kraft is strong option. Food producers will benefit from year-over-year commodity comparisons. Sequential comparative volume sales will likely be beneficial as well.

Article Index

• Kraft Home
• Kraft Historicals
• Kraft News
• Kraft Charts
• Kraft Final Thoughts