Friday, March 4, 2011

Investopedia: Heinz Sticking To A Smart Plan

Just like Kellogg (NYSE:K), ConAgra (NYSE:CAG) or Pepsico (NYSE:PEP), H.J. Heinz (NYSE:HRZ) has a dilemma on its hands. Should the company try an impression of a certain central banker, sink its head into the sand and pretend inflation is not happening? The alternative, hike prices and pass them on to a twitchy consumer, is not terribly appealing either, as the company runs the risk of seeing one or more competitors swallow lower margins and capture share. 

On a more positive note, these commodity squeezes come and go, and Heinz has been through them before. Even better for investors, the company appears to have a solid long-run plan that could establish Heinz as a significant global brand for a long time to come.

A Mediocre Third Quarter
The best thing that can likely be said about Heinz's third quarter is that it was consistent with a pre-announcement and the company will not be disappointing anyone with these results. Revenue rose 1.5% as reported, with 2% organic growth in the North American Consumer business. Overall volume growth across the business came in at 0.5% - a fairly tepid result but a sequential improvement.



To read the full article, please go here:
http://stocks.investopedia.com/stock-analysis/2011/Heinz-Sticking-To-A-Smart-Plan-HNZ-K-CAG-PEP-UL-NSRGY0304.aspx

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