A look at Kraft Foods
Posted
Aug 11 2008, 01:35 PM
by
Kim Peterson
Rating:
Higher commodity prices are pushing down the valuations of every food company, analysts say. Kiplinger takes a look at how Kraft Foods is dealing with those prices while it reorganizes itself.
Kraft has only returned 1.5% in the past year. Eh. But it's been getting higher operating profits after raising the prices on 90% of its cheese products. In its most recent quarter, earnings rose 16% and revenue rose 21%. The stock is trading at 17 times earnings.
Kraft shares are at $32.81 today, clawing their way back after hitting a 52-week low at the beginning of July.
