Kraft Heinz authorizes $3B in share repurchase after ‘milestone’ quarter

Shares of the parent of Velveeta and Oscar Mayer brands are down 14% YTD

Stocks advancing, but long-term investors shouldn’t ‘change their plan’: Kenny Polcari

SlateStone Wealth chief market strategist Kenny Polcari predicts retailers will still do well on Black Friday despite consumer conditions on ‘Varney & Co.’

The Kraft Heinz board of directors has approved up to $3 billion in a share repurchase program, the ketchup-maker announced on Monday.

The company, also known for its Mac and Cheese, Kraft Singles and Philadelphia Cream Cheese, said it will buy back outstanding shares of common stock through Dec. 26, 2026, while crediting a big third quarter and better balance sheet for allocating the repurchase strategy.

HEINZ ROLLING OUT PICKLED-FLAVORED KETCHUP

“In the third quarter, we hit a milestone in our transformation,” Kraft Heinz CEO Miguel Patricio said. “A stronger balance sheet, along with advancements we have made across the business, gives us further conviction behind our strategy and the belief that company shares are an attractive investment opportunity.”

Bottles of Heinz Tomato Ketchup lined up on a store shelf.  (Education Images/Universal Images Group via / Getty Images)

Kraft Heinz released its third quarter earnings in early November, reporting net and organic sales increases of 1% and 1.7%, respectively, and now predicts a pop in organic net sales of 4 to 6% for fiscal 2023.

When compared to the same time last year, the company reported a whopping 108.2% spike in free cash flow during the period to reach $1.8 billion.

KRAFT RECALLS AMERICAN CHEESE SLICES OVER POTENTIAL CHOKING HAZARD

Kraft Heinz, which also counts Velveeta and Oscar Mayer as top brands, also reported increases in gross margins.

Meanwhile, the company’s capital allocation policy and stock buyback will provide value to stockholders while underscoring Heinz’s commitment to delivering profitable growth and strong returns, Patricio said in Monday’s announcement.

Kraft Heinz, which also counts Velveeta and Oscar Mayer as top brands, also reported increases in gross margins. (Tim Boyle/Bloomberg via / Getty Images)

The multi-national food company plans to repurchase shares with excess cash after allocations for disciplined capital spending, growth investments, payment of an attractive dividend, and the evaluation of strategic opportunities in acquisitions, divestitures and partnerships, according to the Monday announcement.

The company said it will buy back outstanding shares of common stock through Dec. 26, 2026, while crediting a big third quarter and better balance sheet for the repurchase strategy. (AFP Photo/Nicholas Kamm / Getty Images)

WALMART SHOPPER FINDS VELVEETA MAC AND CHEESE FOR 50 CENTS A BOX, SPARKING VIRAL BRAND DEBATE

Shares of Kraft Heinz are down 14% this year, trailing the S&P 500's 19% rise.

Kraft Heinz