For reasons that don't make a lot of sense to me, investors continue to
reward a host of under-performing food companies with pretty robust
multiples. I understand the value of a good brand, and I don't fault
investors for hanging on to Coca-Cola (KO) or PepsiCo (PEP)
even though neither are cheap, but I wonder why so many investors are
happy to pay premiums to hold companies experiencing uncontrollable cost
inflation and increasing elasticity from consumers.
Please read the full piece here:
Kraft Looks Like The Tastiest Morsel In Packaged Food
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