Kraft Heinz Co. is projected to show a meaningful drop in sales when it reports fourth-quarter earnings on Wednesday afternoon. But more important is what's happening to the bottom line. That's how the packaged-food company is priming itself for its next growth spurt -- coming in the form of a megadeal, of course.
Ever since the 2015 merger of Kraft Foods and H.J. Heinz, the combined entity has been rapidly slashing costs -- right down to printing double-sided so as to not waste paper. It's the handiwork of penny-pinching private equity owner 3G Capital, whose own people are also at the helm of Kraft Heinz. Their strategy has been to expand margins as much as possible at a time when opportunities for innovation are scant and organic growth is lackluster.
