Buffet over time has ruined hundred thousand plus good paying job and will be written in American history as an American Robber Baron.
Kraft Heinz, which also owns Oscar Mayer, Velveeta and Planters nuts, is scrambling to raise cash to pay down its nearly $31 billion of long-term debt.
The Kraft Heinz food empire has a debt problem.
Heinz took on debt when the ketchup giant was taken private in 2013 by 3G Capital for $28 billion. Financing was also a key ingredient that made the marriage of Kraft and Heinz possible in 2015.
The Warren Buffett-backed food giant’s serious missteps have brought its bloated balance sheet into sharp focus.
Last week, Kraft Heinz posted a massive loss of $12.6 billion and warned that 2019 profits will tumble. Its stock price plummeted 27 percent on Friday.
Kraft Heinz, the owner of Oscar Mayer, Velveeta and Planters nuts, is now scrambling to raise cash that can be used to pay down its nearly $31 billion of long-term debt.
The food giant slashed its dividend by 36 percent and announced plans to sell off brands, reportedly including the Maxwell House coffee business.
“Its balance sheet has ballooned,” JPMorgan Chase analyst Ken Goldman wrote in a report late last week.
Goldman noted that Kraft Heinz’s profits are “flat,” revenue has “shrunk” and the balance sheet is “levered.”
“This is not an ideal progression of financial metrics,” Goldman wrote.
And that’s not to mention the SEC investigation into Kraft Heinz’s books that the company disclosed.
Record debt levels in Corporate America
The Kraft Heinz debt trouble serves as another reminder of the large amounts of debt that Corporate America has taken on during a decade of extremely low interest rates.
