“Waste of Your Capital”: Jim Cramer Urges Investors to Ditch Kraft Heinz (KHC)

Insider Monkey
17 Apr

We recently published a list of Jim Cramer Discussed These 12 Stocks Recently. In this article, we are going to take a look at where The Kraft Heinz Company (NASDAQ:KHC) stands against other stocks that Jim Cramer discussed recently.

On Friday, Mad Money host Jim Cramer addressed growing concerns in the market as tensions between the United States and China push closer to what he described as a full-scale trade war. He noted that the overall sentiment is clouded by uncertainty. Cramer emphasized:

“At the end of the day, China is the low-cost producer. We need other countries to stand up and make the goods for us, or we need to build automated factories at home to do the same thing because wages in America are simply just too expensive to compete.”

READ ALSO Jim Cramer is Bullish on These 10 Stocks and Jim Cramer’s Game Plan: 15 Stocks to Watch

According to Cramer, both alternatives will take time to implement. In the meantime, he warned that Americans should prepare to either pay significantly more for goods or deal with widespread shortages, or likely both. He also warned that companies exposed to economic cycles could be especially vulnerable.

As inflationary pressures mount, Cramer argued that the broader economy is in jeopardy. He emphasized that unless another country with a labor force comparable in size and cost to China’s emerges unexpectedly, the Federal Reserve will have little ability to intervene meaningfully.

Cramer also pointed to an important reason China controls such a large portion of the American retail market. He explained that Chinese goods are not only cheaper but often just good enough in quality that few American companies are willing to challenge them. He went on to say that Chinese manufacturers have long known how to price their products in a way that discourages American entrepreneurs.

Our Methodology

For this article, we compiled a list of 12 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 11. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

The Kraft Heinz Company (NASDAQ:KHC)

Number of Hedge Fund Holders: 43

A caller asked if they should get rid of The Kraft Heinz Company (NASDAQ:KHC), and here’s what Cramer had to say in response:

“Waste of your capital. Waste of your capital. There’s so many great stocks that have come down. I mean, unbelievable stocks that have come down so much that I can’t believe it. And I think you just gotta change, I mean, look, we’re looking at, for instance, Texas Roadhouse, okay. This one’s come down gigantically. It is now incredibly inexpensive, and it’s got what I regard as being a fantastic value proposition. I’d much rather see you in that than I would see in Kraft Heinz.”

Kraft Heinz (NASDAQ:KHC) manufactures and distributes a wide range of food and drink products. Its portfolio features well-known brands such as Heinz, Kraft, Philadelphia, and Oscar Mayer. During April 4’s episode of Squawk on the Street, Cramer remarked:

“One of the reasons I say this is because let’s say you try to go to safety, so you pick a Kraft Heinz, got a really nice yield. Well this morning, Citi comes out and says, sell it. It’s a share loser. It is in trouble on many different, on margin issues. And it can’t find a way and then I would throw in GLP-1s because it’s not exactly like they’ve got this incredible lineup of things that are good for you. So this is the dilemma of the market. Can you pull out of a terrific company like an Arm Holdings and AMD, and go into this recognizing you’re going and sacrificing all your growth.”

Overall, KHC ranks 10th on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of KHC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than KHC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

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