No, it's not pretty. Even if you tack on $0.30 in restructuring charges to Kraft's expected net income of $1.63 to $1.70 per share, you are left with less than the $2.01 it made last year.
That makes management's remarks that it is progressing well on what it calls its sustainable growth plan a bit unnerving. Call me greedy, but I like a little more sustainability, growing, and planning in my sustainable growth plans. It's like pointing to a marathon registration form while taking night school crawling lessons.
Food companies are supposed to be consistent breadwinners. When Altria Group
True, Kraft is rolling with the healthier herd, introducing CarbWell cereals, fat-free Triscuits, thinner pizza crusts, and a line of low-carb barbecue sauces. But it's hard to classify this as growth when, at best, these products are likely to replace sales of its existing products.
More promise can be found in a decision to ape Kellogg's
Still, like its signature Oreo cookies, at least Kraft has a little cream in the middle. It's going to have to try harder to make its future the work of DoubleStuf.
Do you think Kraft will be able to execute on its sustainable growth plan, or is it time to cut the cheese? Is the Atkins' phenomenon here to stay or just another passing fad? All this and more -- in the Low Carb Way of Life discussion board. Only on Fool.com.
Longtime Fool contributor Rick Munarriz loves his Oreos. Let him count the ways. He does not own shares in any of the companies mentioned in this story.