"Buffett Bruised As Kraft Crashes To Record Low After "Barrage Of Bad News"
"Kraft Heinz has crashed 25% ahead of today's open after writing down the value of some of its best-known brands in an acknowledgment that changing consumer tastes have destroyed the value of some of the company’s most iconic products.
This is not your typical “reset the base and everything will be fine” story; the earnings report was “disastrous”
The company also admitted it had received a subpoena in October "associated with an investigation into" its accounting policies, procedures and internal controls related to its "procurement function."
This includes "agreements, side agreements, and changes or modifications to its agreements with its vendors," said Kraft.
"Following this initial SEC document request, the Company together with external counsel launched an investigation into the procurement area," said Kraft. As a result of the probe's finding, the company had $25 million more in costs of products sold during the fourth quarter, said the company, "as an out of period correction."
Wow!
Pickle Factories are in trouble -- and not just the C_A.