Kraft feels pressure as the brand lags behind food consumption trends and faces other growing struggles, Wolfe Research analyst Scott Mushkin told CNBC on Friday.
"So [there are]" A lot of challenges, not to mention private labels, so the company faces huge challenges, "said Mushkin. "They've reinvested in their brands, but it just does not work and maybe it's even worse because it does not work as if it's just cutting costs and not reinvesting."
Jeff Robards, the global head of consumer food at Alantra, who also appeared in the Closing Bell segment, said major food companies could address these trends with the right growth strategy. The problem for Kraft Heinz, however, is that throwing marketing dollars would not feel the pulse of consumers as an innovation.
Instead, entrepreneurs and smaller businesses could grow, he said.
The big food companies [growing] because they just are not close enough to the consumer to figure out these things, "said Robards." And you see in all these companies efforts to try this, but I think the problem is that they can not effectively overcome their historical nature of doing business in order to unlock all these trends and all that growth. "
Mushkin said it was time for Kraft to acquire a smaller company Heinz. His company still has an outperformance rating for the stock and a target price of $ 62, which is more than 77 percent above Friday's closing price "Could we please get some M & A in this area," he said, "And man, we need a consolidation, but the family structures actually prevent it, but we hope we get something because we do in this room. "
Kraft fueled more than 27 percent on Friday, the worst daily performance ever.The stock had two negative consecutive sessions after it had cut its dividend, knocked down some of its major brands, and revealed that it is being investigated by the SEC.
Fourth Quarter Revenues and Revenue were also below Wall Street expectations]