Long Term Returns of Nelson Peltz’s 5 Activist Targets

2. The Kraft Heinz Company (NASDAQ:KHC)

Activist Investment: 2007
Long Term Returns Since Peltz’s Investment: 16%
S&P 500 Gain: -7.1%

The Kraft Heinz Company (NASDAQ:KHC) is a company that manufactures and markets food and beverages worldwide.

Activist Investor Nelson Peltz first acquired a 3% stake in the company in 2007 and started a campaign to jettison unsuccessful brands and find use for the company’s cash. The activist investor wanted the company to sell Post cereal and Maxwell House coffee brands. There were also calls to cut costs, raise dividends, and increase share buybacks.

Peltz fought and won two seats on the board, forcing the company to cut its overall spending and focus on marketing directly to consumers. By 2011, Peltz had halved his stakes in The Kraft Heinz Company (NASDAQ:KHC) to about 1.05 million shares. Peltz would later repurchase 12.2 million shares the same year.