Does Kraft's Guidance Make the Company a Buy?

Kraft investors have been excited about the company's spinoff into two companies for some time now, but they've been patiently waiting for a little guidance about the structure and expectations of each before deciding whether they want to commit any capital. 

Well, Kraft recently revealed its expectations for the internationally focused segment, Mondelez, to post 5%-7% organic growth rates over the long run. That's pretty decent, but the reality is that the low end of the range should really be the expectation, and when constrasted with the performance of rivals such as PepsiCo (NYSE: PEP  ) , Austin says he'd rather buy the latter. See more in the following video.

PepsiCo has a proven and award-winning supply chain, dominant portoflio, and great dividend. That's one reason it was named as one of the stocks you can buy today to "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access the special free report that highlights the other eight winners today at no cost! Just click here to discover the winners we've picked.

Austin Smith owns shares of PepsiCo and Philip Morris International. The Motley Fool owns shares of PepsiCo. Motley Fool newsletter services recommend PepsiCo and Philip Morris International. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2010519, ~/Articles/ArticleHandler.aspx, 10/21/2016 6:41:41 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
KRFT.DL $0.00 Down +0.00 +0.00%
Kraft Foods CAPS Rating: *****
MO $63.70 Up +1.85 +2.99%
Altria Group CAPS Rating: ****
PEP $105.62 Down -0.25 -0.24%
PepsiCo CAPS Rating: ****
PM $96.31 Up +0.74 +0.77%
Philip Morris Inte… CAPS Rating: ****