KHC Stock: Kraft Heinz Is Shrinking to Fit Its Dividend
BRK.A) and Brazil’s 3G Capital Management in 2013. The idea was to cut costs in popular packaged-food brands through “zero-based budgeting,” where all spending must be justified every year, then pull out cash in the form of dividends. This is an approach that has worked great at Restaurant Brands International (NYSE: QSR), another 3G-Buffett collaboration. QSR is up 89% since that deal was announced and delivers steady dividends. Since it was put together, however, Kraft Heinz stock is down almost 50%. The zero-based approach has starved it of capital. Now, to protect the dividend, it...
Source: investorplace.com
