7 Best Beef Stocks to Buy Now

4. The Kraft Heinz Company (NASDAQ:KHC)

Number of Hedge Funds Holders: 43

The Kraft Heinz Company (NASDAQ:KHC) manufactures and markets food and beverage products across North America and other international markets. The company’s wide product portfolio includes meat products, dairy products, and other grocery products. The company sells products through both its own sales channels and independent brokers and agents. Some of the meat-related products include veggie burgers made from soy protein, chicken patties made from soy, and vegan burgers made in a way that mimics the taste of beef.

The company debuted two plant-based meat products including Hot Dogs and Sausages in March 2024. According to Markets and Markets, the global plant-based meat market is expected to grow from $7.9 billion in 2022 to $15.7 billion in 2027.

In Q2 2024, net sales for Kraft Heinz Co (NASDAQ:KHC) declined by 3.6%, compared to the same period last year, reaching $6.5 billion. Prices increased by 1% in North America and emerging markets, which was partially offset by lower prices in developed international markets.

The company’s operating income decreased by 62.1% compared to the same period last year, dropping to $0.5 billion. This decline was mainly driven by non-cash impairment losses of $854 million during the current year. In contrast, adjusted operating income rose by 2% compared to the prior year, reaching $1.4 billion. This increase was mainly the result of cost savings, lower commodity costs, and higher pricing.

Kraft Heinz Co (NASDAQ:KHC) reported an adjusted EPS (earnings per share) of $0.78 in the second quarter. The net cash provided by operating activities was $1.7 billion, an 8.1% increase compared to the same period last year. The increase was primarily due to favorable improvements in working capital and higher adjusted operating income. Additionally, the company has paid $969 million in cash dividends so far this year, maintaining shareholder confidence.

Despite the decline in sales, the management is optimistic about gradual top-line improvement in the second half of 2024.

According to CEO Carlos Abrams-Rivera:

“As we enter the second half of 2024, many drivers are giving us optimism for improved top-line trends. We are anticipating a continued ramp-up of both innovation and renovation, particularly in North American retail. We are also increasing our marketing investment to continue to drive brand superiority across our portfolio.”

At the end of Q2 2024, 43 hedge funds in Insider Monkey’s database made a total investment of $11.01 billion in Kraft Heinz Co (NASDAQ:KHC), placing it among the top 7 beef stocks to buy.