KRFT

Dividend Increases for the Week Ending October 10

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Below we provide a list of firms that raised their dividends during the week ending October 10. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header. Firms Raising Their Dividends This Week Ameren (AEE): now $0.41 per share quarterly dividend, was $0.40. Kraft Foods Group (KRFT): now $0.55 per share quarterly dividend, was $0.525. Pall (PLL): now $0.305 per share quarterly dividend, was $0.275. PolyOne (POL): now $0.10 per share quarterly dividend, was $0.08. RPM International (RPM): now $0.26 per share quarterly dividend, was $0.24. >>Last week’s dividend increases.

Valuentum Economic Castleâ„¢ Rating Update

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Read: Keeping the Horse Before the Cart: Valuentum’s Economic Castle™ Rating The Economic Castle Focuses on the Magnitude of Economic Value Creation The Valuentum Economic Castle™ rating is an enhancement of the competitive advantage framework (commonly known as economic moat analysis) that has become widespread and ubiquitous within the investing world. Whereas an economic moat framework evaluates a firm on the basis of the sustainability and durability of its competitive advantages, Valuentum’s Economic Castle™ rating evaluates a firm on the basis of the firm’s future economic profit spread (return on invested capital less its weighted average cost of capital). The companies with the strongest Valuentum Economic Castle™ ratings are poised to generate the most economic value for shareholders in the … Read more

Portion Packs Still in Strong Demand at Green Mountain; Free Cash Flow Surges in Fiscal 2013

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On Thursday, Green Mountain (GMCR) reported excellent fiscal fourth-quarter results. Fourth-quarter revenue advanced 22% from the same period a year ago (52-to-52 weeks) thanks to robust brewer sales and portion pack revenue growth (up 11% and 21%, respectively, as adjusted). The 21% increase in portion packs revenue was driven by a 26% increase in unit volume offset by pricing and mix. Portion packs revenue accounted for 74.2% of total net sales in the fiscal fourth quarter. The company’s gross margin expanded 240 basis points during the quarter, to 36%, thanks primarily to favorable green coffee costs and lower labor and overhead manufacturing costs. Non-GAAP operating income advanced to 18.2% of sales in the period from 16.4% in last year’s quarter. … Read more

Kraft and Kellogg Struggle for Sales Expansion

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Kraft (KRFT), best-known for its Macaroni & Cheese, Cool Whip, Planters peanuts, and Oscar Mayer brand, has struggled to grow the top line since spinning off Mondelez (MDLZ). Its third-quarter results, released Wednesday, showed further revenue weakness. Though management went to great lengths to explain how most of the organic net revenue decline was a result of the spin-off, the fact remains that organic net revenue growth was still poor (practically nil) after excluding the Mondelez impact. Earnings-per-share was lower than that of the prior-year period, after excluding a $0.18 per share benefit from market-based impacts to post-employment benefit plans; free cash flow is $745 million year-to-date (5.5% of sales), including the negative impact of more than $600 million in … Read more

Clorox Faces Cash Flow Headwinds in Fiscal 1Q

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Our general takeaway after surveying calendar third-quarter results from peers Hershey (HSY), Colgate-Palmolive (CL), and Unilever (UN) was that performance in the consumer staples space was mostly positive during the third quarter and that emerging-market performance remains robust (even though Unilever toned down expectations a bit). Clorox’s (CLX) better-than-expected fiscal first-quarter results, released Thursday, did not deviate from the mostly positive newsflow. Sales expanded 2% (3.5% excluding the negative impact from currency), and the company recorded pretax profit growth of 7%. Volume for the fiscal first quarter advanced 1% thanks to gains from Professional Products, Charcoal, Laundry and Burt’s Bees offset by declines in Home Care. Gross margins were flat as cost savings and price increases mitigated higher manufacturing and logistics … Read more

Kraft’s Pricing Power Is Unmatched By Peers in Fourth Quarter; Waiting Patiently for the Break Up

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Kraft (KFT) posted solid fourth-quarter results Tuesday that continued to show the firm’s pricing power. Though we liked the quarter, we remain on the sidelines with respect to Kraft’s shares until after the company separates the firm into two entities later this year: a global-snacks company and a North American grocery products firm. At that time, we’ll be better able to evaluate the investment merits of each separate entity to optimally allocate our capital to the one with the most promise, if such an opportunity presents itself. Kraft’s fourth-quarter revenue jumped 6.6% thanks to a 6.1% jump in organic net revenues, as strong pricing offset declines in volume. However, cost of sales still outpaced revenue expansion, as gross profit growth was … Read more

Kraft Shows Off Pricing Power in Third Quarter; Raises 2011 Outlook

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Kraft (KFT) reported excellent third-quarter results Wednesday that showed significant pricing expansion. The firm raised its outlook for 2011, and we are maintaining our above-market fair value estimate. The firm’s top-line advanced 11.5% led almost exclusively by organic expansion, which was 8.4% in the quarter. We loved that 7 percentage points of the growth was pricing, which signals to us the strength of Kraft’s competitive advantages and pricing power. Volume and mix contributed the balance of the growth. The company noted that momentum is accelerating in North America, that operating results in Europe remain strong, and that it is seeing double-digit growth in developing markets—all positive news. Kraft’s adjusted operating income jumped over 12% thanks to pricing growth, productivity enhancements, … Read more

Kraft Posts Solid Second-Quarter Results, Raises Outlook, and Breaks Up Company

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Kraft Foods (KFT) reported solid second-quarter results Thursday and indicated that it would split its high-growth global snacks business and its mature, high-margin North American grocery business. The firm also bumped up its 2011 organic net revenue growth and operating earnings per share outlook, to at least 5% (was 4%) and $2.25 (was $2.20), respectively. We were impressed with the firm’s second-quarter performance and think its move to create two independent public companies will create value for shareholders over the long haul. Kraft’s second-quarter net revenues advanced over 13% (7.1% organic) thanks to strong pricing expansion, which accounted for 5.5 percentage points of growth, while operating income jumped 6% as pricing effectively offset higher raw material costs, though its underlying … Read more

Tyson, ConAgra, Hershey, and Cal-Maine Lead the Pack

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Stocks Featured: ADM, BG, CALM, CAG, FDP, GIS, HSY, K, KRFT, MKC, MJN, MDLZ, TSN, UN. As we survey recent performance across the Food Products industry (large, small), a number of firms continue to struggle to squeeze out modest growth, while others are putting up rather impressive organic top-line and adjusted earnings expansion. Perhaps the strongest fundamental performer in the group has been meat-processor Tyson Foods (TSN), which recorded impressive bottom-line growth in its fiscal third quarter, released August 5, as operating income in its ‘Chicken’ segment jumped 38% thanks to increased domestic/international production and strong pricing. The company’s fiscal 2014 outlook also speaks to robust chicken production and lower input costs, and we expect the strong top- and bottom-line performance to continue. Tyson Foods has been a 9 on our Valuentum Buying Index for some time and … Read more