The Kraft Heinz Company (KHC) is not finishing off the week on a strong note.
While the S&P 500 is up more than 4% over the last five trading sessions, Kraft Heinz stock was down 3.5% in early trading and made new 52-week lows on Friday. The stock recovered some of those losses by the close, but not enough, still falling 2.63% and closing at $70.80.
The move comes after the company missed on both earnings and revenue estimates for the fourth quarter. Kraft Heinz is suffering a "generational problem," TheStreet's Jim Cramer said on CNBC's "Mad Dash" segment.
What does that mean exactly? That Millennial shoppers are simply not interested in buying these non-organic pantry items. The company is largely located in the "deadly aisles" of the supermarket, or those areas that are not seeing growth, Cramer explained.
"I don't think they know what to do," he added. Kraft Heinz also reduced its cost by as much as it could. But at the end of the day, it doesn't have organic growth and that's going to hurt the stock.
Management said it expects first-quarter organic EBITDA to decline, but says it should get progressively better throughout the year. Cramer wondered, are they going to do this with an acquisition? That's something he suggested earlier this week ahead of Kraft Heinz's report.
"They don't have the product line," said Cramer, who also manages the Action Alerts PLUS charitable trust portfolio.
"They put together two different companies that both uniquely do not have the product lines that younger people want," he concluded.