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Kraft Heinz
(NYSE:KHC)
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Rating:53Neutral
Price Target:
$25.00
▼(-1.26% Downside)
Action:Reiterated
Date:10/08/26
The score is held back primarily by the sharp deterioration in reported profitability (deep losses and negative ROE) and a clearly bearish technical setup (below key moving averages with negative MACD). These are partially offset by resilient operating/free cash flow, manageable leverage with recent debt reduction, supportive income characteristics from a high dividend yield, and an earnings call indicating improving trends and maintained cash flow guidance—though execution risks remain.
Positive Factors
Resilient Cash Generation
Strong operating and free cash flow provides an important foundation despite reported losses. Resilient cash conversion can support brand investment, debt service, and shareholder commitments while giving management flexibility to navigate weaker demand over the next several quarters.
Negative Factors
Deep Profitability Deterioration
The sharp shift from solid prior profitability to deeply negative net margins is a major deterioration in earnings quality. Even with positive cash flow, sustained losses can weaken equity, constrain reinvestment choices, and reduce the company’s ability to withstand further operating pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient Cash Generation
Strong operating and free cash flow provides an important foundation despite reported losses. Resilient cash conversion can support brand investment, debt service, and shareholder commitments while giving management flexibility to navigate weaker demand over the next several quarters.
Read all positive factors
Kraft Heinz Key Performance Indicators (KPIs)
Any
Revenue by Type
Shows the breakdown of revenue by different types, such as organic versus acquired, highlighting the company's growth strategy and reliance on various revenue streams.
Shows the breakdown of revenue by different types, such as organic versus acquired, highlighting the company's growth strategy and reliance on various revenue streams.
Data provided by:
The Fly
The FlyKraft Heinz (KHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.41B
Dividend Yield6.45%
Average Volume (3M)14.97M
Price to Earnings (P/E)―
Beta (1Y)0.20
Revenue Growth-1.62%
EPS Growth36.06%
CountryUS
Employees35,000
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)-2.86
Shares Outstanding1,185,823,700
10 Day Avg. Volume12,424,735
30 Day Avg. Volume14,965,521
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.69
Price to Sales (P/S)1.15
P/FCF Ratio7.82
Enterprise Value/Market Cap1.51
Enterprise Value/Revenue1.78
Enterprise Value/Gross Profit5.34
Enterprise Value/Ebitda-22.92
Forecast
1Y Price Target
$24.29Price Target Upside-4.08% Downside
Rating ConsensusHold
Number of Analyst Covering15
EPS Forecast (FY)2.05
Revenue Forecast (FY)$24.67B
Kraft Heinz Business Overview & Revenue Model
Company Description
The Kraft Heinz Company, along with its subsidiaries, operates as a global entity focused on the manufacturing and marketing of a broad spectrum of food and beverage products. Its reach extends across key markets such as the United States, Canada,...
How the Company Makes Money
Kraft Heinz makes money primarily by selling packaged foods and beverages under its branded portfolio to customers such as grocery retailers, mass merchandisers, club stores, convenience stores, distributors, and foodservice operators. Revenue is ...
Kraft Heinz Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call emphasized improving operational momentum driven by targeted investments, early brand-level wins (PowerMac, Capri Sun, Heinz, condiments), emerging markets strength, and disciplined balance-sheet management. Key challenges remain: Q2 consumption is down (~2.5%), Oscar Mayer/Deli Fresh needs remediation, inventory and shipment phasing create near-term noise, and industry softness plus retailer private-label activity present ongoing risks. Management added $100M to its investment plan, expressed confidence in managing 4–5% inflation next year via productivity, and preserved free cash flow while paying down debt. On balance the positives (investment traction, brand and channel recoveries, cash/debt progress) outweigh the negatives, though execution risk remains.Positive Updates
Incremental Brand Investment Increased to $700M
Company increased its planned incremental investment from $600 million to $700 million for 2026, with roughly one-third of the original $600 million spent in the first half and the additional $100 million allocated largely to marketing.
Negative Updates
Q2 Consumption Decline and Industry Softness
Underlying consumption declined ~2.5% in Q2 and management described the broader industry as still soft and volatile when normalized for cost and tariff-related inflation.
Read all updates
Q2-2026 Updates
Positive
Negative
Incremental Brand Investment Increased to $700M
Company increased its planned incremental investment from $600 million to $700 million for 2026, with roughly one-third of the original $600 million spent in the first half and the additional $100 million allocated largely to marketing.
Read all positive updates
Company Guidance
The company reiterated guidance that 2026 will be the base year for stepped-up investment and said it does not expect those incremental spends to “wrap” into 2027, calling only about one‑third of the initial $600M step‑up (≈$200M) spent in H1 and announcing an additional $100M (bringing total incremental 2026 investment to roughly $700M) with the remaining spend split broadly evenly between Q3 and Q4; management expects next‑year inflation of about 4–5% but believes much can be offset by productivity and that margins should be maintained/strengthened over time. On volumes and shares, they noted Q2 consumption down ~2.5% with July about -1% and a gradual sequential improvement expected in Q3 and Q4, H1 market share loss of ~30 bps but recent weeks showing roughly +20 bps, and that normalizing a Q1 snowstorm benefit (~0.7 ppt) and a Q2→Q3 shipment phasing (~0.8%) implies underlying H2 performance improves ~70–80 bps versus H1 at the midpoint. They also said free cash flow guidance remains essentially unchanged, cash conversion expectations increased, and the balance sheet is strengthened by $1.9B of debt paydown in the quarter (plus another ~$1B paid after quarter close) and a successful refinancing.Kraft Heinz Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
58
Neutral
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.90B | 24.94B | 25.85B | 26.64B | 26.48B | 26.04B |
| Gross Profit | 8.31B | 8.31B | 8.97B | 8.93B | 8.12B | 8.68B |
| EBITDA | -1.94B | -3.53B | 2.72B | 5.51B | 4.82B | 4.67B |
| Net Income | -3.40B | -5.85B | 2.74B | 2.85B | 2.36B | 1.01B |
Balance Sheet | ||||||
| Total Assets | 73.06B | 81.79B | 88.29B | 90.34B | 90.51B | 93.39B |
| Cash, Cash Equivalents and Short-Term Investments | 2.68B | 3.67B | 1.33B | 1.40B | 1.04B | 3.44B |
| Total Debt | 19.00B | 21.22B | 19.87B | 20.03B | 20.07B | 21.82B |
| Total Liabilities | 36.94B | 40.00B | 38.96B | 40.62B | 41.64B | 43.94B |
| Stockholders Equity | 36.01B | 41.66B | 49.19B | 49.53B | 48.68B | 49.30B |
Cash Flow | ||||||
| Free Cash Flow | 3.82B | 3.66B | 3.16B | 2.96B | 1.55B | 4.46B |
| Operating Cash Flow | 4.62B | 4.46B | 4.18B | 3.98B | 2.47B | 5.36B |
| Investing Cash Flow | 66.00M | -1.83B | -1.02B | -916.00M | -1.09B | 4.04B |
| Financing Cash Flow | -3.71B | -1.25B | -3.01B | -2.68B | -3.71B | -9.34B |
Kraft Heinz Technical Analysis
Positive
25.32
Price Trends
24.03
Positive
24.18
Positive
23.27
Positive
Market Momentum
0.10
Negative
61.87
Neutral
88.72
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KHC, the sentiment is Positive. The current price of 25.32 is above the 20-day moving average (MA) of 23.00, above the 50-day MA of 24.03, and above the 200-day MA of 23.27, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 61.87 is Neutral, neither overbought nor oversold. The STOCH value of 88.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KHC.
Kraft Heinz Risk Analysis
Kraft Heinz disclosed 38 risk factors in its most recent earnings report. Kraft Heinz reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kraft Heinz Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $13.88B | 60.46 | 4.06% | 3.40% | 5.08% | ― | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $11.59B | 33.43 | 4.33% | 5.56% | 0.73% | -54.64% | |
54 Neutral | $6.18B | 15.47 | 10.18% | 6.85% | -4.96% | -33.88% | |
53 Neutral | $29.41B | -8.67 | -8.44% | 6.45% | -1.62% | 36.06% | |
52 Neutral | $18.39B | -20.84 | -10.69% | 7.10% | -4.49% | -131.46% | |
47 Neutral | $7.09B | -3.73 | -26.28% | 8.24% | -1.80% | -323.82% |
* Consumer Defensive Sector Average
KHC
Kraft Heinz
24.80
0.85
3.55%
CPB
Campbell Soup
20.73
-8.77
-29.74%
CAG
Conagra Brands
14.86
-2.28
-13.32%
GIS
General Mills
34.39
-10.78
-23.87%
HRL
Hormel Foods
21.06
-1.43
-6.37%
SJM
JM Smucker
129.98
29.35
29.17%
Kraft Heinz Corporate Events
Business Operations and StrategyFinancial Disclosures
Kraft Heinz Unveils New Global Segment Reporting Structure
Positive
Oct 7, 2026
In the third quarter of 2026, Kraft Heinz reorganized its internal reporting structure by combining its West and East Emerging Markets and Asia Emerging Markets units into a single Emerging Markets operating segment. At the same time, certain Euro...
Executive/Board Changes
Kraft Heinz Announces Resignation of Senior Legal Executive
Negative
Oct 6, 2026
On October 2, 2026, Kraft Heinz disclosed that Angel S. Willis, its Executive Vice President, Global General Counsel and Corporate Affairs Officer, informed the company of her decision to resign, effective October 20, 2026. Her departure from the ...
Business Operations and StrategyLegal ProceedingsRegulatory Filings and Compliance
Kraft Heinz Updates Corporate Governance and Litigation Framework
Neutral
Jul 27, 2026
On July 22, 2026, Kraft Heinz’s board amended and restated the company’s by-laws to refine governance around shareholder meetings, director nominations, and voting procedures. The changes clarified the board’s authority to alter ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.