Shares of The Kraft Heinz Co. (KHC, Financial) jumped 1% after being down all morning on the heels of Friday’s announcement that Warren Buffett (Trades, Portfolio) was leaving its board of directors.
Kraft Heinz was up by 1.04% to $69.74 a share in late afternoon trading.
On Friday, the company issued a press release explaining Buffett’s departure as part of his efforts to decrease his travel commitments. The 87-year-old spent five years on the board.
His replacement is expected to be Alexandre Van Damme, who will stand for election at the 2018 annual meeting. Van Damme is also a board member of Anheuser-Busch (BUD, Financial) and Restaurant Brands International (QSR, Financial), and DKMS, a global bone marrow center.
Alex Behring, board chair for Kraft Heinz, noted that the company’s relationship with Buffett was not ending. Berkshire Hathaway (BRK.A, Financial)(BRK.B, Financial) is the company’s largest shareholder.
GuruFocus records show Kraft Heinz stock had dropped in value year-to-date by about 10%.
Earlier this month, the price of Kraft Heinz shares closed at a 52-week low of $71.92, which is 28.1% off the 52-week high of $97.77. The company has a market cap of $87.63 billion.
Its shares traded with a price-earnings (P/E) ratio of 22.47 and a P/S ratio of 3.38 as of Feb. 14. The trailing 12-month dividend yield is 3.40%. The forward dividend yield is 3.49%.
Net income for the three months ended Sept. 30, 2017 was $943 million compared to net income of $843 million for the three months ended Oct. 2, 2016.
The Chicago-based company manufactures food and beverage products including condiments and sauces, cheese and dairy products, meals, meat, beverages and other grocery products.
Scaling back
Buffett's resignation is generally viewed as yet another signal of his desire to scale back on commitments.
Last month, Berkshire Hathaway Inc. (NYSE:BRK.A)(NYSE:BRK.B) named two new members of its board of directors, igniting speculation that one of the appointments will succeed Buffett when he calls it quits.
The 14-member board now includes Gregory E. Abel and Ajit Jain. Abel became Brkshire Hathway's vice chairman of non-insurance business operations. Jain became its vice-chairman of insurance of operations.
Abel joined Berkshire Hathaway Energy Company in 1992 and served as chairman and CEO. Jain joined the Berkshire Hathaway Insurance Group in 1986 and served as executive vice president of National Indemnity Company with overall responsibilty for leading Berkshire's reinsurance operations.
Buffett, Berkshire Hathaway's chairman and CEO, announced the new appointments Jan. 10. He and Charlie Munger (Trades, Portfolio), vice chairman of the organization, contine in their current roles.
