Investopedia: Has Kraft Saved The Best For Last?

One of the sell-side analysts whom I follow, has made the comment before that Kraft (NYSE:KFT) has long struggled to walk and chew bubblegum at the same time. Now in the wake of the company's announcement that it will split up, it feels a little ironic that the pieces seem to be working together a little better. Although Kraft shares don't represent a huge value today, investors could see trading opportunities around the split, as institutional shareholders choose sides between the higher-growth snack business and the higher-income grocery business.


A Solid Third Quarter 
Maybe it seems strange to get excited that Kraft beat its revenue estimate by 3%, but with a company of this size, where sales data is available on a monthly, or weekly basis, there usually isn't all that much wiggle room. All the same, Kraft reported that revenue rose almost 12% with organic growth of over 8%. Overseas markets are driving good growth as well, as North American revenue was up just a bit more than 4%. One interesting note is that Kraft posted over 1% growth in volume and 7% growth in prices, suggesting that customers are finally accepting higher prices and sticking with brands they like, despite the hikes.


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