Research on HJ Heinz and Kraft Foods: Food Industry Posts Good Growth

    Research on HJ Heinz and Kraft Foods: Food Industry Posts Good Growth

PR Newswire

LONDON, February 13, 2013

LONDON, February 13, 2013 /PRNewswire/ --

Like every other industry, even the staple food industry bore the brunt of a
dire economic environment. However, with the improvement in overall economy,
these stocks are making a major comeback. Major packaged food company HJ Heinz
Company (NYSE: HNZ) is on a bull's run and created new 52-week highs. The
sector is also seeing reorganization due to mergers and spin offs. Kraft Foods
spun itself off into Kraft Foods Group Inc. (NASDAQ: KRFT) last year. The new
company is mainly invested in North American markets. The move will allow
Kraft Foods Group to focus its efforts to its core brands. StockCall has
posted free technical research reports on HJ Heinz and Kraft Foods Group, and
these can be accessed by signing up at http://www.stockcall.com/analysis

HJ Heinz on 52-Week High

HJ Heinz Company is in bullish mode and the stock has been hitting new 52-week
highs. The company holds a leadership position in the U.S. condiment market
and now is expanding into emerging markets. It currently derives 20 percent of
its revenue from emerging markets. This food giant made major advancement in
the Chinese market as it recently announced an early earn-out payment for its
Foodstar business in China. HJ Heinz Company technical report can be accessed
for free by signing up at http://www.StockCall.com/HNZ021313.pdf 

Among the various challenges faced by the company is its ability to control
input costs. With the rise in agriculture product prices, the company faces
the challenge of protecting its margin. Its current operating margin stands at
18 percent. It is also expected to feel the pressure of last year's drought,
which led to shortage and consequent high prices of produce. However, despite
this concern, HJ Heinz is set to grow organically as well as through
acquisitions. The company is looking to make strategic acquisitions to fuel
its growth in the domestic and overseas market.

HJ Heinz stock gives a 3.38 percent dividend yield, which is slightly better
than most of its peers. However, it carries low debt with Debt-Equity ratio of
0.21. With its cost-cutting measures, the company may get past the food
inflation and deliver good results. Weakness in developed economies will also
be neutralized by the company's foray into growing markets.

Kraft Foods Group to Report Financial Updates

Kraft Foods Group is set to provide its financial updates this Friday. The
company would not be reporting its full earnings. The company is expected to
grow aggressively as it emphasized its reliance on advertising and promotion
of its core brands. Kraft Foods Group also plans to launch new product ranges
to retain its market standing. It is also expected to focus more on growing
its margins instead of compromising on them to grow its market. Download the
free report on Kraft Foods Group Inc. upon registration at
http://www.StockCall.com/KRFT021313.pdf 

Kraft Foods Group faces its biggest competitive threats from private label
companies and major brand companies as they impact company's growth prospects.
However, the company has been adopting multipronged approach to counteract the
threats. Kraft Foods Group is not only aggressively developing its product
portfolio but it is also aligning its management accordingly. Lately, the
company has made new appointments for its key posts. Kraft Foods Group offers
excellent dividend yield of over 4 percent. The stock also has a good scope of
providing capital appreciation. Kraft Foods Group is an ideal candidate for
an income portfolio.

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