Kraft Heinz Analysts Failed Investors by $18 Billion
The packaged-food company’s strategy always had an expiration date, but few called out its managers.
Wall Street took the “Bird Box” challenge — and lost.
Photographer: Netflix
The blueprint for Kraft Heinz Co.’s business model was utterly invalidated last month, but red flags were there all along. Where were Wall Street’s analysts?
The packaged-food company, in reporting earnings on the evening of Feb. 21, delivered an onslaught of negative announcements: a $15.4 billion goodwill writedown, a dividend cut and a U.S. Securities and Exchange Commission subpoena regarding certain accounting policies. Right up until then, at least 14 of 24 analysts tracked by Bloomberg were still recommending that investors buy the stock. Shares of Kraft Heinz plunged 27 percent the next day, and haven’t recovered, for a loss in market value since then of about $18 billion.