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Forget Kraft Heinz: Buy This Unstoppable Consumer Staple Leader Instead
Yahoo Finance· 2025-12-19 22:22
分组1 - Kraft Heinz has been a significant disappointment in the stock market, with a 65% decline over the last decade since its merger in 2015, which was criticized by Warren Buffett as an overpayment [2][3] - The company is planning to split into two entities: North American Grocery Co and Global Taste Elevation Co, but this move has been dismissed by Buffett as ineffective in addressing the underlying business issues [3][7] - Consumer preferences are shifting away from unhealthy, processed foods, which poses a challenge for Kraft Heinz and similar packaged food companies [8] 分组2 - Costco is highlighted as a better investment option in the consumer staples sector, having increased by 440% over the last decade and benefiting from a recession-proof business model primarily based on grocery sales and membership fees [4][9] - Costco reported a 6.4% growth in comparable sales in its most recent quarter, with e-commerce sales growing by 20.5%, indicating successful adaptation to online sales [10] - The stock price of Costco has recently pulled back by 21% from its peak earlier in the year, trading at a price-to-earnings ratio of 45.6, which reflects its strong performance and history of rewarding investors with special dividends [11]