Navigating food inflation: Kraft Heinz's dilemma

02/15/2024 00:17
Navigating food inflation: Kraft Heinz's dilemma

Shares of Kraft Heinz (KHC) are down Wednesday morning after the company posted fourth-quarter revenue that missed expectations. It was the third straight quarter revenue fell short of estimates. The company's price increases were outweighed by a decline in sales volume. Erin Lash, Director of Consumer Sector Equity Research at Morningstar, joins Yahoo Finance to discuss Kraft Heinz's performance and the ripple effects of consumers being impacted by inflation. Lash explains some of the challenges Kraft Heinz faces: "There's a basket of commodities that is decreasing, but there are still inflationary headwinds that Kraft Heinz and others throughout the space continue to face. For Kraft Heinz, they specifically called out tomatoes, sweeteners, labor, as well as transportation, and so all of those are putting upward pressure on their cost structure throughout the next several quarters. That's not dissimilar from what we've heard from other consumer product companies." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino

Shares of Kraft Heinz (KHC) are down Wednesday morning after the company posted fourth-quarter revenue that missed expectations. It was the third straight quarter revenue fell short of estimates. The company's price increases were outweighed by a decline in sales volume.

Erin Lash, Director of Consumer Sector Equity Research at Morningstar, joins Yahoo Finance to discuss Kraft Heinz's performance and the ripple effects of consumers being impacted by inflation.

Lash explains some of the challenges Kraft Heinz faces: "There's a basket of commodities that is decreasing, but there are still inflationary headwinds that Kraft Heinz and others throughout the space continue to face. For Kraft Heinz, they specifically called out tomatoes, sweeteners, labor, as well as transportation, and so all of those are putting upward pressure on their cost structure throughout the next several quarters. That's not dissimilar from what we've heard from other consumer product companies."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Nicholas Jacobino

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