NEW YORK (TheStreet) -- Kraft Foods (KRFT) shares are up 4.9% to $62.46 on heavy volume in trading on Thursday after the packaged food manufacturer announced the appointment of company chairman John Cahill as the new chief executive.
Cahill will succeed Tony Vernon as the company's CEO, a position Vernon has held since the company was spun off from Mondelez International (MDLZ) in October 2012. Cahill joined Kraft in 2012 as executive chairman after previously spending time as chairman and CEO of Pepsi Bottling (PEP) .
The company said that Vernon will remain in his position until December 27 and will stay on as an adviser until March 31.
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TheStreet Ratings team rates KRAFT FOODS GROUP INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate KRAFT FOODS GROUP INC (KRFT) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."