A strong U.S. dollar has contributed to a weakened 2009 outlook for two Chicago-based food makers.
Northfield, Ill.-based Kraft Foods Inc. posted much lower than expected fourth quarter profits on February 4, underperforming against Wall Street's expectations.
The stronger dollar and a weakened U.S. economy have contributed to Kraft's woes as consumers look to less expensive foods to sustain themselves. Investors also reacted to Kraft's disappointing 2009 outlook pushing shares down $2.38, or 8.3%, to $26 on Wednesday afternoon.
Downers Grove, Ill.-based Sara Lee also posted losses for its Dec. 27-ending quarter contributing to a more svelte outlook for 2009. Market share losses were also contributing factors to Sara Lee's weakened outlook.
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