Jim Cramer’s Lightning Round: 7 Stocks Under the Spotlight

2. The Kraft Heinz Company (NASDAQ:KHC)

Number of Hedge Fund Holders: 38

Cramer made his dislike for The Kraft Heinz Company (NASDAQ:KHC) apparent as he commented:

“Well, what’s happening at Kraft Heinz? Exactly what should happen at Kraft Heinz. That’s the worst collection of brands I’ve ever seen. I think those guys should continue to go lower and they are living up [to] their expectations.”

Kraft Heinz (NASDAQ:KHC) manufactures and markets a wide range of food and beverage products under brands like Kraft, Heinz, Oscar Mayer, and Philadelphia. In 2024, the company struggled to regain momentum, with its stock declining by over 23% throughout the year. Despite setting modest goals for organic sales growth of 0% to 2% at the start of the year, it consistently underperformed, falling short of expectations in the first quarter with a 0.5% decline in organic sales. The situation worsened in the following quarters, with organic sales dropping by 2.4% in the second quarter and 2.2% in the third, indicating a troubling downward trend for the company.

The company’s adjusted earnings through the first nine months of 2024 showed only slight improvement compared to the same period in 2023, and the company has made little progress in reducing its long-term debt. Its financial challenges are compounded by broader shifts in consumer preferences, particularly among younger demographics, who are becoming more focused on healthy eating.

Kraft Heinz’s (NASDAQ:KHC) products, often not seen as healthy options, may face increasing pressure in the future as these trends continue to shape consumer behavior. The company recently pulled Lunchables from U.S. schools due to disappointing demand, despite previously aiming to target the $25-billion educational market with the product.