An Insight into Kraft Foods Inc. (NYSE:KFT)

Company Background:

Kraft Foods Inc. (NYSE:KFT) was incorporated in 2000 and is engaged in manufacturing and marketing of snacks, confectionery and quick meal products globally. Based in Northfield Illinois, the company offers cookies, crackers, salted snacks, chocolate confectionaries, beverages, coffee, juice drinks, powdered beverages, cheese, cream cheese, desserts, pourable dressings and condiments. The company sells its products under well known brand names of Kraft, Oscar Mayer, Philadelphia, Maxwell House, Jacobs, Nabisco, Oreo, Milka and LU.

The company also operates through its subsidiary, Cadbury Plc which offers chocolate and gum products under the brand names of Dairy Milk, Flake, Crème Egg, Green & Black’s, Trident, Dentyne, Hollywood, Bubbaloo, Eclairs and Bassett’s.

Industry Analysis:

Kraft Foods Inc. (NYSE:KFT) maintains the 3rd highest dividend yield in its industry which stands at 3.40 percent. The company is ranked 12th among 158 diversified food companies by market capitalization. The company maintains the long term growth rate of 9.9 percent which ranks it 21st among its industry peers.

Financial Analysis:

Kraft Foods Inc. (NYSE:KFT) generated the total revenue of $12.57 billion for the quarter ended March 31st, 2011 as compared to revenue of 11.31 million for the same period last year. Despite increase in revenue the company reported decrease in net profit to $799 million or earnings of $0.45 per share for the respective quarter as compared to net income of $1.88 billion last year.

The company’s total assets accumulate up to $98.26 billion out of which fixed assets have the highest proportion. Its total liabilities stand at $60.88 billion as compared to its total equity of $37.38 billion.

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Rehan Khan

About Rehan Khan

Rehan Khan has been involved in the financial sector for last 6 years. During that time he has been associated with many financial institutions, banks and brokerages. Rehan is also a graduate in finance and has been writing for last 2 years for various web publications, specializing in US stock markets, penny stocks, forex and commodities.

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