Kraft Heinz (KHC) stock is down about 1% Thursday, after the company reported earnings Wednesday night.
Earnings of 83 cents per share beat analysts' estimates by a penny, but revenue came up short, growing just 0.7%. Organic sales were even worse, rising just 0.3%. In a market like this, sub-1% growth just doesn't work, TheStreet's Jim Cramer said on CNBC's "Stop Trading" segment.
"That's unacceptable," he continued, pointing out that other areas of the market are growing much faster, with many stocks sporting double-digit or high single-digit growth rates.
Kraft Heinz has relied on cost-cutting to drive its performance. But management can't cost-cut forever. It owns too much product in the center aisles of the grocery store. Whereas a company like Tyson Foods (TSN) is in a better location throughout the stores, he said. Incidentally, Tyson had near-5% revenue growth last quarter.
- Newell Stock Plunges but Don't Buy It Yet, Jim Cramer Warns
- Starbucks Might Be About to Shock the Hell Out of Wall Street
- Kraft Heinz Reports Mixed Earnings as Food Companies Scramble for Growth
Perhaps Kraft Heinz should consider an acquisition. A massive $143 billion bid for Unilever (UL) failed to make much traction earlier this year. Cramer suggested Pinnacle Foods (PF) , although its $6.5 billion market cap may be too small to move the needle. Mondelez (MDLZ) , which just reported organic revenue growth of 2.8% this quarter, could also be on the radar. Although admittedly this move seems unlikely as Warren Buffett recently shot down the idea.
Despite the early session selloff, Kraft Heinz stock actually closed higher Thursday, up 0.42% to $78.03 near session highs.
More of What's Trending on TheStreet: