This morning, Kraft Heinz (KHC) reported fourth-quarter EPS of $0.78, vs. $0.85 last year, which was $0.01 better than expectations. Earnings fell primarily due to there being one less week in the fiscal year. Sales declined 7.1%, or 0.7% excluding the extra week in 2022, currency, and divestitures and acquisitions. The company continued to sacrifice volumes, which were down 4.4% in the quarter, for price increases, with prices up 3.7%.

Management gave in-line guidance for EPS of $3.01 to $3.07 in fiscal year 2024, up from $2.98 in 2023, on a 0% to 2% gain in organic sales. While investors are concerned with the volume trends, management expects a positive inflection in volumes towards the end of the year as comparisons become easier.

Trading at less than 12X EPS estimates, with a 4.4% dividend yield, the stock remains very cheap, and it should do well in 2024 once the company can show volumes are stabilizing. KHC is a buy below $35. My target is $40.