Kraft Heinz Co.'s sales lagged after the company made some serious changes to how it operates. However, the company still managed to beat analyst expectations when it reported its financial results for the most recent quarter.
The company's adjusted profits exceeded the expected results especially since industry experts were expecting that a decline in sales will hit the company's results. During the fourth quarter of 2016, Kraft Heinz reported net income attributable to the company of $944 million, higher than the $645 million it recorded in the fourth quarter of 2015, according to a report by Reuters.
The food and beverage company is widely known around the globe especially since its brands extend to all kinds of products. It is the company behind Heinz ketchup, Oscar Mayer meats and Velveeta cheese. It has lucrative deals with various restaurant chains in the world for the exclusive use of its products.
Kraft Heinz had to make some huge changes to its products as the diet trend turns to the healthier side. More and more consumers are looking for healthy and fresh items, so Kraft Heinz had to adjust its products and package them in a way that will attract consumers.
A stronger dollar and weak demand in the United States negatively affected Kraft Heinz's sales. The company experienced a 3.8% decline in sales figures, but analysts were expecting a bigger decline.
Despite the product changes that it implemented, the company's selling, general and administrative expenses actually dropped year over year to $879 million in the fourth quarter of 2016. Bloomberg News reported that Kraft Heinz's owner, 3G Capital, is actually controlling the company's expenses in order to pursue a huge deal.
In food-related news, Jobs & Hire reported that Restaurant Brands International Inc. wants to acquire Popeyes Louisiana Kitchen Inc.