Markets
News
Analysis
User
24/7
Economic Calendar
Education
Data
- Names
- Latest
- Prev
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
A:--
F: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
A:--
F: --
P: --
A:--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
No matching data
Latest Views
Latest Views
Trending Topics
To quickly learn market dynamics and follow market focuses in 15 min.
In the world of mankind, there will not be a statement without any position, nor a remark without any purpose.
Inflation, exchange rates, and the economy shape the policy decisions of central banks; the attitudes and words of central bank officials also influence the actions of market traders.
Money makes the world go round and currency is a permanent commodity. The forex market is full of surprises and expectations.
Top Columnists
Enjoy exciting activities, right here at FastBull.
The latest breaking news and the global financial events.
I have 5 years of experience in financial analysis, especially in aspects of macro developments and medium and long-term trend judgment. My focus is maily on the developments of the Middle East, emerging markets, coal, wheat and other agricultural products.
BeingTrader chief Trading Coach & Speaker, 8+ years of experience in the forex market trading mainly XAUUSD, EUR/USD, GBP/USD, USD/JPY, and Crude Oil. A confident trader and analyst who aims to explore various opportunities and guide investors in the market. As an analyst I am looking to enhance the trader’s experience by supporting them with sufficient data and signals.
Latest Update
Risk Warning on Trading HK Stocks
Despite Hong Kong's robust legal and regulatory framework, its stock market still faces unique risks and challenges, such as currency fluctuations due to the Hong Kong dollar's peg to the US dollar and the impact of mainland China's policy changes and economic conditions on Hong Kong stocks.
HK Stock Trading Fees and Taxation
Trading costs in the Hong Kong stock market include transaction fees, stamp duty, settlement charges, and currency conversion fees for foreign investors. Additionally, taxes may apply based on local regulations.
HK Non-Essential Consumer Goods Industry
The Hong Kong stock market encompasses non-essential consumption sectors like automotive, education, tourism, catering, and apparel. Of the 643 listed companies, 35% are mainland Chinese, making up 65% of the total market capitalization. Thus, it's heavily influenced by the Chinese economy.
HK Real Estate Industry
In recent years, the real estate and construction sector's share in the Hong Kong stock index has notably decreased. Nevertheless, as of 2022, it retains around 10% market share, covering real estate development, construction engineering, investment, and property management.
Hongkong, China
Ho Chi Minh, Vietnam
Dubai, UAE
Lagos, Nigeria
Cairo, Egypt
White Label
Data API
Web Plug-ins
Affiliate Program
View All
No data
Not Logged In
Log in to access more features
FastBull Membership
Not yet
Purchase
Log In
Sign Up
Hongkong, China
Ho Chi Minh, Vietnam
Dubai, UAE
Lagos, Nigeria
Cairo, Egypt
White Label
Data API
Web Plug-ins
Affiliate Program
Riyadh, KSA – In an unprecedented move, Heinz is giving up its iconic ketchup label to honor Saudi Arabia’s National Day. Launching on September 19, this special initiative will allow people across Saudi to share their congratulatory messages with the Kingdom as Heinz expresses its irrational act of love to support customers in KSA.
In place of the famous Heinz logo, the ketchup bottles will sport an empty green keystone, offering space for shoppers to personalize their own messages of celebration. Additionally, people will be able to scan a QR code displayed on billboards across Riyadh, Jeddah and Dammam to submit their National Day messages.
These messages, along with the names of the participants, will be displayed on screens across the kingdom for an entire week following the launch, giving Saudis the space to express their pride and love for their country.
“Going brandless as the number one ketchup brand in the region is our irrational act of love to join our Saudi consumers in celebrating the Kingdom with its rich culture, heritage, and unity. Heinz is excited to offer our famous Keystone label for people to express their pride. In this unique campaign, we are letting Saudi voices take center stage. If it’s Saudi National day, it has to be Heinz,” said Passant El Ghannam, Head of Marketing at Kraft Heinz MEA.
Additionally, Heinz will also host special in-store activations at select stores across the Kingdom. Live calligraphers will be on hand to customize bottle labels with messages of pride and love, giving customers an opportunity to create a one-of-a-kind, commemorative Heinz bottle that reflects both their personal and national pride.
By making this ultimate tribute, Heinz is stepping aside to let the Kingdom shine. After all, on this day, ‘It has to be Saudi’.
ABOUT THE KRAFT HEINZ COMPANY
We are driving transformation at The Kraft Heinz Company , inspired by our Purpose, Let’s Make Life Delicious. Consumers are at the center of everything we do. With 2022 net sales of approximately $26 billion, we are committed to growing our iconic and emerging food and beverage brands on a global scale. We leverage our scale and agility to unleash the full power of Kraft Heinz across a portfolio of six consumer-driven product platforms. As global citizens, we’re dedicated to making a sustainable, ethical impact while helping feed the world in healthy, responsible ways. Learn more about our journey by visiting www.kraftheinzcompany.com or following us on LinkedIn and ‘X’.
For media inquiries, please contact: Heinzprteam@currentglobal.com
Send us your press releases to pressrelease.zawya@lseg.comDisclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
In the latest trading session, Kraft Heinz (KHC) closed at $35.14, marking a +0.29% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.29%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.31%.
Coming into today, shares of the processed food company with dual headquarters in Pittsburgh and Chicago had lost 0.71% in the past month. In that same time, the Consumer Staples sector gained 3.54%, while the S&P 500 gained 1.57%.
Market participants will be closely following the financial results of Kraft Heinz in its upcoming release. The company is expected to report EPS of $0.74, up 2.78% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.44 billion, down 1.98% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.02 per share and revenue of $26.16 billion, which would represent changes of +1.34% and -1.79%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Kraft Heinz. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. Kraft Heinz is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Kraft Heinz is currently trading at a Forward P/E ratio of 11.6. For comparison, its industry has an average Forward P/E of 18.42, which means Kraft Heinz is trading at a discount to the group.
It's also important to note that KHC currently trades at a PEG ratio of 3.42. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Food - Miscellaneous industry held an average PEG ratio of 2.77.
The Food - Miscellaneous industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 36% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Zacks Investment Research
The Kraft Heinz Company KHC successfully implemented pricing strategies that have strengthened its performance and helped maintain robust profit margins despite ongoing inflationary pressures. The company continues to excel in its three key segments — Foodservice, Emerging Markets and U.S. Retail Grow platforms — despite challenges in the consumer environment. KHC is actively working on transforming its business to unlock its full potential and boost shareholder value.
Let’s delve deeper.
Positive Performance Boosts Kraft Heinz’s Margins
One of the key reasons for Kraft Heinz's resilience is its focus on effective pricing strategies. The company successfully managed to keep its second-quarter 2024 adjusted gross profit at $2,296 million, up from $2,239 million in the same quarter last year. It improved its quarterly adjusted gross margin by 210 basis points (bps) to 35.5%. This impressive performance reflects the success of pricing adjustments aimed at offsetting rising input costs. KHC’s adjusted operating income moved up 2% to $1,380 million in the second quarter, highlighting the benefits of reduced commodity and logistics expenses.
Transformation Drives KHC’s Future Growth
Kraft Heinz's three key segments also remain strong. The ACCELERATE platforms in North America, for example, are expected to register a robust annual growth rate of 4% over the next decade. Brands like Heinz and Ore-Ida are experiencing positive momentum, thanks to strategic investments and innovation. In Emerging Markets, while there were setbacks in countries like China and Brazil, the company still reported high single-digit growth in the second quarter.
The company is actively pursuing a transformation strategy aimed at unlocking its full potential. Since launching Agile@Scale in February 2022, it concentrated on enhancing its agility through partnerships with technology firms and innovative solutions. This approach resulted in a 190-bps increase in adjusted gross profit margin in the first half of 2024.
The AGILE@SCALE initiative is being expanded globally, introducing North American solutions to international markets. KHC is also ramping up its innovation efforts, significantly increasing its research and development investments. This commitment is evident in its innovation pipeline, which contributed 2.4% to organic net sales year to date. As consumer preferences shift toward wellness and plant-based products, the company is well-positioned to leverage its strong brand portfolio to meet these demands.
Kraft Heinz Facing Consumer Challenges
Despite these positive developments, Kraft Heinz is not without its challenges. The current consumer environment is marked by slower income growth and persistent inflation, which have dampened consumer sentiment. This has led to a decline in second-quarter organic net sales by 2.4% year over year, largely due to lower demand and disappointing sales for products like Lunchables.
In North America, the company saw a 2.9% decline in organic net sales, influenced by increased value-seeking behavior among consumers. Internationally, developed markets experienced a 3.9% drop in sales, exacerbated by lower prices in the U.K. and challenges in customer negotiations. Considering these factors, Kraft Heinz revised its expectations for organic net sales in 2024, suggesting a decline of 2% to flat growth. This marks a shift from earlier forecasts of growth.
Volume Declines and Currency Fluctuations Hurt KHC
Kraft Heinz has also been struggling with weak volume performance over recent quarters. The company reported a 3.4 percentage point decline in volume/mix in the second quarter, particularly in North America and developed markets. This downward trend raises concerns about the company’s ability to sustain overall profitability moving forward.
Its extensive international operations expose it to risks from adverse currency fluctuations. In the second quarter, unfavorable exchange rates negatively impacted net sales by 1 percentage point. Such volatility continues to be a significant concern, potentially affecting Kraft Heinz’s revenues and overall financial health.
Final Thoughts on Kraft Heinz
In conclusion, Kraft Heinz is at a crossroads. On one hand, it demonstrates solid pricing strategies and robust brand performance, which are vital for maintaining margins. It faces significant challenges, including declining consumer demand and operational difficulties. Given the mixed signals from both positive performance indicators and ongoing struggles, investors should monitor how Kraft Heinz navigates its challenges and capitalizes on growth opportunities in the coming quarters. The company currently carries a Zacks Rank #3 (Hold).
KHC’s stock has increased 7.2% in the past three months compared with the industry’s 8.7% growth.
Better-Ranked Staple Stocks
Here, we have highlighted three better-ranked food stocks, namely, The Chef's Warehouse CHEF, Flowers Foods FLO and McCormick & Company, Inc. MKC.
The Chef’s Warehouse, which engages in the distribution of specialty food products, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CHEF has a trailing four-quarter earnings surprise of 33.7%, on average. The Zacks Consensus Estimate for The Chef’s Warehouse’s current fiscal year sales and earnings each indicates growth of 9.7% and 12.6%, respectively, from the year-ago reported numbers.
Flowers Foods, one of the largest producers of packaged bakery foods in the United States, currently carries a Zacks Rank #2 (Buy). FLO has a trailing four-quarter earnings surprise of 1.9%, on average.
The Zacks Consensus Estimate for Flowers Foods’ current financial-year sales and earnings each implies growth of around 1% and 5%, respectively, from the year-ago reported numbers.
McCormick is a leading manufacturer, marketer and distributor of spices, seasonings, specialty foods and flavors. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for McCormick & Company’s current fiscal-year sales and earnings indicates advancements of 0.1% and 5.6%, respectively, from the year-ago reported figures. MKC has a trailing four-quarter earnings surprise of 8.3%, on average.
Zacks Investment Research
Content creators MrBeast, Logan Paul and KSI have teamed up on a new food company called Lunchly that is taking on the well-known ready-to-eat Lunchables brand.
What Happened: Food giant Kraft Heinz Co may have trouble ahead for its Lunchables brand with Lunchly now in direct competition.
Lunchly was launched with the "goal of revolutionizing lunch" and providing a focus on quality ingredients, delicious flavors and healthier options for the grab-and-go lunch sector, the creators said.
There are three Lunchly meal options at launch: Turkey Stack ‘Ems, Pizza and Fiesta Nachos. Each meal comes with a PRIME hydration drink and a Feastables bar. PRIME was launched in 2022 by Paul and KSI; Feastables was also launched that same year by MrBeast.
Paul said Lunchables has dominated the lunch grab-and-go market for years and Lunchly will provide a "better option" for people looking for convenience and healthy options.
Lunchly products will hit stores later this month. A search on the company's website showed Kroger Co locations as stores that will carry the products.
MrBeast said Lunchly will provide healthier and "better-tasting options.
"Lunchly is all about giving kids a fun, grab-and-go meal that's not just delicious, but also good for them. We're here to change what lunchtime looks like for the next generation," MrBeast, aka Jimmy Donaldson, said.
Did You Know?
Why It's Important: With three of the most widely followed names in content creation and people popular with the younger generation today, Lunchly could present a major challenge to Lunchables.
The news also comes at a bad time for Lunchables, which said in August that it was ready to offer Lunchables in school cafeterias with a potential $25 billion opportunity.
MrBeast is the most followed person on YouTube with 315 million followers. PRIME has been one of the fastest growing beverages since it launched, hitting the one billion units sold milestone in November.
Existing distribution deals that Feastables and PRIME have in place could help the company quickly land in retailers globally.
Bad news for Lunchables could also be bad news for billionaire Warren Buffett. Berkshire Hathaway Inc (NYSE:BRK)(NYSE:BRK) owns over 325 million Kraft Heinz shares and more than 25% of the company.
Read Next:
Photos: MrBeast, Logan Paul, KSI via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Kraft Heinz (KHC) closed the latest trading day at $35.20, indicating a +0.11% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.75%. Elsewhere, the Dow saw an upswing of 0.58%, while the tech-heavy Nasdaq appreciated by 1%.
The processed food company with dual headquarters in Pittsburgh and Chicago's stock has climbed by 1.94% in the past month, falling short of the Consumer Staples sector's gain of 3.54% and the S&P 500's gain of 4.03%.
Investors will be eagerly watching for the performance of Kraft Heinz in its upcoming earnings disclosure. In that report, analysts expect Kraft Heinz to post earnings of $0.74 per share. This would mark year-over-year growth of 2.78%. In the meantime, our current consensus estimate forecasts the revenue to be $6.44 billion, indicating a 1.98% decline compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.02 per share and a revenue of $26.16 billion, indicating changes of +1.34% and -1.79%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Kraft Heinz. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% higher. Kraft Heinz is currently a Zacks Rank #3 (Hold).
In the context of valuation, Kraft Heinz is at present trading with a Forward P/E ratio of 11.64. Its industry sports an average Forward P/E of 17.47, so one might conclude that Kraft Heinz is trading at a discount comparatively.
We can also see that KHC currently has a PEG ratio of 3.43. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.81 based on yesterday's closing prices.
The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 91, this industry ranks in the top 36% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Zacks Investment Research
Thursday, September 12, 2024
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Berkshire Hathaway Inc. (BRK.B), Qualcomm Inc. (QCOM) and TotalEnergies SE (TTE), as well as a micro-cap stock, Geospace Technologies Corp. (GEOS) and TSS, Inc. (TSSI). These research reports have been hand-picked from roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Berkshire Hathaway’s shares have outperformed the Zacks Insurance – Property and Casualty industry over the past two years (+62.8% vs. +56.5%). The Zacks analyst believes that the company’s growth in its insurance business fuels an rise in float, drives earnings and generates maximum return on equity. The other businesses have also been doing well in the last few years. The addition of Pilot Travel Centers (PTC) has strengthened its energy business.
Yet, exposure to cat loss induces earnings volatility and also affects underwriting results. The passing of Charles Munger has also not helped.
(You can read the full research report on Berkshire Hathaway here >>>)
Qualcomm’s shares have underperformed the Zacks Wireless Equipment industry over the last six months (-1.5% vs. +7.8%). The Zacks analyst believes that inventory corrections by clients are impeding sales in the company’s IoT business. Increasing competition in the mobile phone chipset market is likely to strain margins. Rising geopolitical instability and high debt obligation remain concerns.
However, the Snapdragon X Series Platform integrated with Qualcomm AI Hub is witnessing significant market traction among leading global PC manufacturers. The company is increasingly focusing on the seamless transition from a wireless communications firm for the mobile industry to a connected processor firm for the intelligent edge.
(You can read the full research report on QUALCOMM here >>>)
Shares of TotalEnergies have outperformed the Zacks Oil and Gas – Refining and Marketing industry over the past year (+0.6% vs. -5.8%). Per the Zacks analyst, the company continues to benefit from startups, acquisitions, well-spread LNG assets and contributions from upstream assets located in the new hydrocarbon-producing regions. Multi-energy assets of the company spread across the globe also support its performance.
Yet, production might be impacted by security reasons in some regions and it remains exposed to acquisition-related risks. A natural decline in production and its withdrawal from Russia might affect profitability.
(You can read the full research report on TotalEnergies here >>>)
Geospace’s shares have outperformed the Zacks Electronics – Measuring Instruments industry over the last two years (+91.2% vs. -5.3%). The Zacks analyst believes that the company has diversified revenue streams across segments, reducing sector-specific risks.
Innovations like the Insight by Optoseis and Mariner seabed node show its commitment to technological advancement. The strong demand for ocean bottom nodes and growth in Adjacent and Emerging Markets also offer promising opportunities.
However, high operating expenses and inventory management challenges need addressing to improve profitability.
(You can read the full research report on Geospace here >>>)
TSS’ shares have outperformed the Zacks Engineering – R and D Services industry over the last six months (+974.1% vs. +14.3%). The Zacks analyst believes that the company benefits from AI and high-performance computing demand.
Long-term contracts provide stable, recurring revenues, whereas its expanding customer base and AI-driven capacity expansions position TSS for sustained growth in the data center infrastructure space.
(You can read the full research report on TSS here >>>)
Other noteworthy reports we are featuring today include Starbucks Corp. (SBUX), Paychex, Inc. (PAYX) and The Kraft Heinz Co. (KHC).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports.
Today's Must Read
Solid Insurance Business Aid Berkshire (BRK.B), Cat Loss Ail
Qualcomm (QCOM) Rides on Solid Portfolio, Automotive Trends
Expanding LNG & Clean Energy Assets Aid TotalEnergies (TTE)
Featured Reports
Repligen's (RGEN) Product Portfolio Aid Sales Amid Stiff Rivalry
Per the Zacks analyst, Repligen's product franchisees are generating significant revenues owing to continued demand. Stiff competition in the bioprocessing products market remains an overhang.
Paychex (PAYX) Gains on Flexible Portfolio Despite Expenses
Per the Zacks analyst, Paychex's ability to meet clients' HR and payroll needs through a comprehensive and flexible service portfolio benefits its top line. Rising expenses are concerning.
Middleby (MIDD) to Gain From Product Launches, High Debt Ails
Per the Zacks analyst, Middleby is poised to benefit from its focus on launching new products and stable demand for ventless cooking products. However, high debt obligation remains a concern.
Kraft Heinz (KHC) Benefits From Strategic Pricing Efforts
Per the Zacks analyst, Kraft Heinz is benefiting from solid pricing action. In second-quarter, pricing rose 1 percentage point year-over-year, driven by gains in North America and Emerging Markets.
Strategic Initiatives Aid Starbucks (SBUX), Soft Comps Hurt
Per the Zacks analyst, Starbucks is benefiting from new store openings, menu innovation, and its focus on digitalization. Yet, softer comps trend and increased costs hurt prospects.
Service Center Unit Aids Applied Industrial (AIT), Costs Ail
Per the Zacks analyst, Applied Industrial's Service Center Based Distribution segment is driven by sales initiatives and focus on national customer accounts. However, high costs remain concerning.
Strong Demand for Memory Aids Teradyne (TER) Prospects
Per the Zacks analyst, Teradyne benefits from the growing demand for memory solutions. Solid demand for Robotic solutions has been a tailwind.
New Upgrades
Growing Fee Revenue, Inorganic Growth aid CNO Financial (CNO)
Per the Zacks analyst, CNO Financial's performance, driven by fee revenues and insurance policy income, has led to significant growth. Inorganic growth and technological investments also bode well.
Haemonetics' (HAE) Hospital Arm Rides on New Product Gains
The Zacks analyst is impressed with Haemonetics' Hospital unit gaining from the new Sensor Guided Technologies and Esophageal Protection devices. Early success of VASCADE MVP XL is another positive.
A Solid Technology Foundation Continues to Aid Catalent (CTLT)
The Zacks analyst is upbeat about Catalent's broad and diverse technology platforms that are supported by extensive know-how. A solid products and services suite an added plus.
New Downgrades
W&T Offshore (WTI) to Hurt From Significant Exposure to Debt
Per the Zacks analyst, W&T Offshore's significant reliance on debt is concerning as it limits financial flexibility and poses greater financial risk.
Higher Costs, Loan Concentration Hurt First Horizon (FHN)
Per the Zacks analyst, an increase in non-interest expenses and a lack of loan portfolio diversification are likely to hurt First Horizon's financials.
Low-Yielding Assets, Subdued Trading Fees Hurt Schwab (SCHW)
Per the Zacks analyst, low-yielding assets on Schwab's balance sheet, subdued trading income because of uncertain capital markets performance and elevated expenses are major near-term concerns.
Zacks Investment Research
By Svea Herbst-Bayliss and Richa Naidu
NEW YORK/LONDON, Sept 10 (Reuters) - When two of the most powerful brands in retail and packaged foods last month ousted their CEOs, it signaled corporate boards are more ready to toss top executives before activist investors tell them to act.
The tenure for U.S. retail and packaged goods company CEOs has this year on average been about 7 months shorter than chiefs who were in office in 2024 in the autos, finance, tech and manufacturing industries, data to August 31 from executive compensation research firm Equilar show.
And now, their time in the top job may be shrinking as consumers buying iced lattes, chocolate bars and detergent become pickier, leaving companies with less time to innovate and demonstrate performance. At the same time, corporate directors are quicker to act, bankers, lawyers and academics say, forcing CEOs to deliver quickly or face an abrupt exit.
"There is a fresh lack of patience at the board level," said Jim Rossman, global head of shareholder advisory at Barclays BARC.L. "With the COVID-19 pandemic behind us and some stronger economic data, there is plenty to judge a CEO's management abilities by and if they aren't performing they are out."
Monday marked the first day on the job for Starbucks SBUX.O chief Brian Niccol who replaces Laxman Narasimhan after the board gave him only 16 months on the job. Nestle's Mark Schneider had only 24 hours to digest his firing in the face of a sagging share price after eight years as CEO.
While activist Elliott Investment Management was pushing for a board seat at Starbucks, the board fired the CEO without the hedge fund's input, sources familiar with the events said. At Nestle, which has faced activist pressure before when Third Point pushed for changes, the board again acted without public pressure from a hedge fund.
Consumer packaged goods and retail chiefs to August 31 have held the top job for 7.7 years on average, according to Equilar, which tracks Russell 3000 companies.
This compares with other big industries like finance CEOs who had their jobs 10 years on average, and tech CEOs who lasted nearly 9 years on average, Equilar data shows.
"There is a huge amount of pressure on consumer goods CEOs," said Richard Sumner, managing partner of the Consumer Markets Practice for Europe and Africa at executive search firm Heidrick & Struggles. He pointed to increased activism from investors and CEOs being forced to drive innovation in the face of challenged margins and sales performance.
'ROCKY ROAD'
In 2023, Alan Jope, the former CEO of Unilever ULVR.L, the London-based maker of Dove soap, was out after less than five years as the company tried to offload its ice cream brands. Activist investment firm Trian Fund Management which has a seat on Unilever's board, endorsed Jope's successor.
Miguel Patricio led Kraft Heinz KHC.O for 4-1/2 years until late 2023 and while he remains a board member, the company said its change in leadership reflected thoughtful succession planning with an eye to growth.
Nicandro Durante exited Reckitt Benckiser RKT.L in 2023 after less than two years as CEO. His replacement, Kris Licht, was credited with engineering a turnaround in the company's health business.
"It's been a rocky road in consumer goods the last few years," Heidrick & Struggles' Sumner added. "The impact of Covid across the consumer products space has meant that sales spikes have gone up and down."
Shorter CEO tenures can also be partly explained by executives being worn out. Keeping up with consumer tastes as inflation surged has made the job much tougher, executive head-hunters, bankers and lawyers said.
But the speed with which some chiefs were terminated may point to a new trend: corporate boards are acting before outsiders publicly force them to.
Board members "worry about what the stock did during their tenure on the board and are ready to act more quickly to make sure that they preserve their desirability as a director," Barclay's Rossman said.
Even so, many boards are sticking with their executives even in the face of pressure from hedge funds, bankers said, but several said that the pace of calls to discuss questions like executive changes suggest greater nervousness.
Nestle and Starbucks share prices dropped this year -- more than 8% for Nestle and nearly 20% for Starbucks as the company struggled with sales in the United States and China. They recovered as CEOs were replaced, with Starbucks surging 25%, marking the biggest single day gain since going public.
As the pace of investor activism at corporations has picked up this year with shareholders pushing for changes at a record number of companies globally in the first half, corporate boards are under pressure.
Fixing a business or selling it often takes time and with impatient investors at the door, the fastest way to signal action is underway is by axing a top executive, bankers, lawyers and academics said.
"Repairing operational problems can't be done overnight," said Georgetown University professor Jason Schloetzer, an expert in corporate governance. "But what you can do more quickly is remove a board member or an executive. Heads rolling is meant to signify that change is coming."
(Reporting by Svea Herbst-Bayliss and Richa Naidu with additional reporting by Abigail Summerville. Editing by Vanessa O'Connell and Anna Driver)
(( svea.herbst@thomsonreuters.com ; +617 233 2138; Reuters Messaging: svea.herbst.thomsonreuters.com@reuters.net ))
Keywords: CONSUMER GOODS-CEOS/ (FOCUS, PIX)
White Label
Data API
Web Plug-ins
Poster Maker
Affiliate Program
The risk of loss in trading financial instruments such as stocks, FX, commodities, futures, bonds, ETFs and crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No decision to invest should be made without thoroughly conducting due diligence by yourself or consulting with your financial advisors. Our web content might not suit you since we don't know your financial conditions and investment needs. Our financial information might have latency or contain inaccuracy, so you should be fully responsible for any of your trading and investment decisions. The company will not be responsible for your capital loss.
Without getting permission from the website, you are not allowed to copy the website's graphics, texts, or trademarks. Intellectual property rights in the content or data incorporated into this website belong to its providers and exchange merchants.