The Kraft Heinz Company (NASDAQ:KHC) can be best recalled through its core brands such as Oscar Mayer cold cuts, Heinz ketchup, and Kraft macaroni and cheese. The company has grown well through mergers and acquisitions and has been paying good dividends in the past but the management is facing problems with respect to organic growth. They are focusing on their core competence of acquisitions. After their failed attempt to acquire Unilever (NYSE:UL) last year, it seems that they might be eyeing PepsiCo (NYSE:PEP) or Mondelez International (NASDAQ:MDLZ). There has also been some recent insider buying at the low levels.
Our assessment of the company’s situation and the management strategy indicates that there might be a major acquisition coming up which will be a turning point for KHC and could provide an interesting upside to investors with a medium to long-term horizon.
