10 Best Packaged Food Stocks to Buy Now

6. The Kraft Heinz Company (NASDAQ:KHC)

Number of Hedge Fund Holders: 43

The Kraft Heinz Company (NASDAQ:KHC) manufactures and distributes packaged food and beverages worldwide. Its offerings include cheese and dairy products, meals, tomato products, condiments, meats, sauces, refreshment beverages, and more. Its geographical segments of operation include North America and  International Developed Markets.

The company is maintaining a strong financial position, as reflected in its fiscal 2024 earnings. It generated $3.2 billion in free cash flow, reflecting a 6% growth compared to 2023. Operating cash flow also grew 5.2% year-over-year to $4.2 billion.

The Kraft Heinz Company (NASDAQ:KHC) returned $2.7 billion to shareholders through dividends and share repurchases and currently pays a quarterly dividend of $0.40 per share. The company takes the sixth spot on our list of the best packaged food stocks to buy now. Mairs & Power Growth Fund stated the following regarding The Kraft Heinz Company (NASDAQ:KHC) in its Q3 2024 investor letter:

“We added The Kraft Heinz Company (NASDAQ:KHC) to the Fund in the quarter. Kraft Heinz is a leading global food company that possesses a portfolio of iconic brands, including its eponymous ketchup brand. The company has undergone an operational transformation focused on driving efficiency gains in supply chain, manufacturing and distribution. These efficiency gains have fueled increased investments in technology, automation, innovation and marketing, which should ultimately drive more consistent organic revenue growth and high single digit earnings per share growth. We expect above-average long-term returns, buoyed by consistent free cash flow generation, opportunistic share repurchases and an attractive 4-5% dividend yield. A modest current valuation affords an ample margin of safety.”