Summary
- KHC is down nearly 30 percent.
- Kraft Heinz announced an SEC investigation, missed both top- and bottom-line estimates, slashed its dividend, and recorded a major impairment charge. Can you spell kitchen-sink?
- Should investors double down or run for the hills?
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As of noon Eastern, The Kraft Heinz Company (KHC) was down 28 percent after announcing Q4 2018 financial results.
What Happened?
The company made four key announcements, in order of importance:
- disclosed it received a subpoena from the Securities and Exchange Commission on its accounting policies and internal controls in October
- missed on both top- and bottom-line analyst estimates for Q4 2018
- cut its dividend to 40 cents per share, a 36 percent decrease from its previous quarterly dividend of 62.5 cents per share
- recorded non-cash impairment charges of $15.4 billion
Let's dig in beyond the headlines.
