Outsize profits combined with languishing sales fail to evidence an edge at no-moat Kraft Heinz.
Following the merger of Kraft Heinz, we had surmised the combined business stood to tout a competitive advantage stemming from both intangible assets and a cost edge. However, we no longer believe that to be the case and now assign it no moat. In support of our thinking, Kraft Heinz has chalked up paltry returns (amounting to just a mid-single-digit level on average the past three years--including goodwill--lagging our 7% weighted average cost of capital estimate), which we think reflect managem...Kraft Heinz is a food and beverage company. The company manufactures and markets food and beverage products, including condiments and sauces, cheese and dairy, meals, meats, refreshment beverages, coffee, and other grocery products throughout the world. The company has three reportable segments defined by geographic region: United States, Canada, and Europe, Middle East, and Africa. The company's remaining businesses are combined and disclosed as Rest of World. Rest of World comprises two operating segments: Latin America and Asia Pacific.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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