Kellanova Stock Is No More. Should Consumer Packaged Goods Fans Buy Shares of This Blue-Chip Stock Instead?

Core Insights - Kellanova has been acquired by Mars, leading to the expected delisting of K stock, prompting former K stock owners to consider investing in Kraft Heinz (KHC) as an alternative [1] Company Overview - Kraft Heinz owns and markets several well-known brands, including Kraft and Heinz, with a market capitalization of $28.7 billion [2] Financial Performance - In Q3, KHC's sales decreased to $6.237 billion from $6.383 billion year-over-year, while operating cash flow increased to $3.09 billion from $2.8 billion [3] - The company plans to split into two focused entities, with projected EBITDA of approximately $4 billion and $2.3 billion for each entity in 2024 [4] Strategic Moves - The split aims to enhance focus and efficiency for the two new companies, which will feature different brand portfolios [5] - Berkshire Hathaway holds a 27.5% stake in KHC, but there are concerns about potential share sales that could negatively impact KHC stock [5][6] Dividend Information - KHC offers a high dividend yield of about 6.5%, although the company has not fully committed to maintaining this yield post-split [7]