Kraft Heinz Earnings: Long-Term Focus Should Enable It to Navigate Bumpy Waters; Shares Attractive

The weakening consumer narrative percolated throughout narrow-moat Kraft Heinz’s second-quarter results. Organic sales slipped 2.4% on a more than 3% retraction in volumes. And management responded it intends to astutely promote to tighten price gaps in certain categories (estimated at 30%-40% of its US mix) to counter the tough consumer spending backdrop.