Flying to Quality- Part 2

A look at the value of 3 major food companies’ goodwill and intangibles

Market jitters have driven increasing interest in the stocks of consumer staples companies. However, many of these companies feature huge goodwill and intangible balances after decades of acquiring brands. These deals are accompanied by promises of new growth, but too often, after years of restructuring, the assets must be written down due to failure to live up to expectations.

Earlier this week, we provided a 7-question framework investors can work through to evaluate the quality of a company’s goodwill and intangibles balances in our free piece We recommend readers who have not seen that check it out before proceeding.

Earlier this week, we introduced a 7-question framework to help investors assess the quality of a company’s goodwill and intangible assets in our free report, Are You Flying to Quality Quality? If you haven’t read it yet, we recommend doing so before continuing.

Today, we will use our framework to evaluate three major food companies whose large goodwill and intangibles balances may be signaling problems with their acquisition strategies.

Let’s get behind their numbers…

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