Kraft Inc.

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Kraft Inc.

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Table of Contents

Executive Summary3

Company Description3

Company Overview3

Company History4

Equity Valuation6



Kraft Inc.

Executive Summary

The paper is about Kraft Inc. and provides a historic and current overview of the company. However, the jist of the paper is the ex post analysis of the company's common stock from the year 2008 to 2010 using two valuation techniques one being the P/E ratio and the other being PEG ratio. Moreover, in the end the paper sums it up by comparing the two methods used and which generates better results for the investors.

Company Description

Kraft Meals (Kraft or 'the company') is involved in the developing and marketing of packed food and drinks. The organization mainly functions in Northern America, Latina America, and European countries. It is located in Northfield, Illinois and engages about 127,000 people (Kraft Inc., n.d.).

The organization registered earnings of $49,207 thousand during the financial year finished Dec 2010 (FY2010), an improvement of 27% over 2009. The improvement in net earnings was mainly pushed by the Cadbury purchase, which included $9,143 thousand in net earnings during the year. The managing revenue of the organization was $5,666 thousand in FY2010, an improvement of 9.3% over 2009. The net revenue was $4,114 thousand in FY2010, an improvement of 36.2% over 2009 (Kraft Inc., n.d.).

Company Overview

Kraft Foods (Kraft or 'the company') is a leading food and beverage organization. The organization provides treats, drinks, mozzarella dairy product, practical meals and various packed shopping items. It manufactures and marketplaces packed foods and drinks in over 170 countries across the continents (Kraft Inc., n.d.).

Kraft reports its operating results through three geographic units: Kraft Foods Northern America Kraft Foods European countries and Kraft Foods Creating Markets. The organization manages the operations of Kraft Foods Northern America and Kraft Foods European countries by product category, and Kraft Foods Creating Markets by location (Kraft Inc., n.d.).

The organization further segregates Kraft Foods Northern The united states into US drinks, US mozzarella dairy product, US practical meals, US shopping, US treats, and North America and Northern The united states foodservice sections (Kraft Inc., n.d.).

The US drinks section mainly provides coffee, packed juice drinks and powdered drinks. The organization marketplaces these items under Mappemonde Noire, Gevalia, Jacobs, Maxwell Home, Capri Sun, Kool-Aid, Tang and Clight brands among others (Ovide, 2011).

The US mozzarella dairy product section produces mainly natural, prepared and lotion cheese. Kraft's key manufacturers involve Kraft, Philadelphia, Velveeta, Cracker Barrel, Breakstone's and Knudsen cottage type mozzarella dairy product and sour lotion.

The US practical meals section provides mainly prepared meat, packed dinners and lunch combinations. Kraft's key manufacturers in this section involve Oscar Mayer, Lunchables and Deli Creations (Ovide, 2011).

The US shopping section provides treatments, cereals, desserts and condiments. In the shopping sector, Kraft's key manufacturers involve Jell-O, Miracle Beat, Kraft, Cool Beat and A.1.

The US treats section provides treats, crackers and salted treats. In the treats section, Kraft's key manufacturers involve Oreo, Crystal Light, Garden Harvest and Ritz.

Canada and Northern America foodservice section span all Kraft Northern American sections and sectors. Canadian company ...
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