Does Kraft's Guidance Make the Company a Buy?

Kraft investors have been excited about the company's spinoff into two companies for some time now, but they've been patiently waiting for a little guidance about the structure and expectations of each before deciding whether they want to commit any capital.

Well, Kraft recently revealed its expectations for the internationally focused segment, Mondelez, to post 5%-7% organic growth rates over the long run. That's pretty decent, but the reality is that the low end of the range should really be the expectation, and when constrasted with the performance of rivals such as PepsiCo (NYS: PEP) , Austin says he'd rather buy the latter. See more in the following video.

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The article Does Kraft's Guidance Make the Company a Buy? originally appeared on Fool.com.

Austin Smith owns shares of PepsiCo and Philip Morris International. The Motley Fool owns shares of PepsiCo. Motley Fool newsletter services recommend PepsiCo and Philip Morris International. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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