Analyst Note
| Erin Lash, CFA |No-moat Kraft Heinz closed the books on a volatile 2020 in epic fashion, posting 6% organic sales growth in the fourth quarter and 240 basis points of adjusted operating margin expansion to 22.4%. While we concede that pandemic-induced stock-ups of essential fare (like that in Kraft Heinz’s mix) have provided a timely boost, we also attribute a portion of this improvement to the new course laid out by CEO Miguel Patricio centered on pursuing sustainable efficiencies and leveraging its scale while also elevating its brand spending and enhancing its capabilities.