Kraft Heinz shares took a dive after it revealed Securities and Exchange Commission subpoena over its accounting practices

Business Insider | 2/22/2019 | Reuters
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Kraft Heinz reported disappointing quarterly results, including a $15 billion charge related to the value of its marquee Kraft and Oscar Mayer trade marks.

And it said it had received a subpoena from the U.S. Securities and Exchange Commission about its accounting practices.

Company - Shares - Percent - Trading - Thursday

The company's shares fell 11 percent in extended trading on Thursday.

The company also cut its quarterly dividend to 40 cents per share from around 63 cents per share, saying the industry would remain challenged from cost inflation in the near term.

Reuters - Kraft - Heinz - Results - Charge

(Reuters) - Kraft Heinz reported disappointing quarterly results, including a $15 billion charge related to the value of its marquee Kraft and Oscar Mayer trade marks, and said it had received a subpoena from the U.S. Securities and Exchange Commission about its accounting practices.

The company's shares fell 11 percent in extended trading on Thursday.

Company - Velveeta - Cheese - Heinz - Ketchup

The Chicago-based company, which owns the Velveeta cheese and Heinz ketchup brands, also cut its dividend and its chief financial officer said he expected the company to "take a step backwards in 2019," setting a bleak tune for 2019.

Kraft said it expects adjusted earnings before interest, tax, depreciation and amortization between $6.3 billion and $6.5 billion in 2019, lower than analysts' estimates of $7.47 billion, according to IBES data from Refinitiv.

Company - Dividend - Cents - Share - Cents

The company also cut its quarterly dividend to 40 cents per share from around 63 cents per share, saying the industry would remain challenged from cost inflation in the near term .

Kraft's results underscore the challenges of an industry that is already struggling with rising raw material and operational costs.

Profitability - Expectations - Combination - Cost - Inflation

"Profitability fell short of our expectations due to a combination of unanticipated cost inflation...
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