Kraft Heinz (KHC) AI Stock Analysis

• Market Cap: $29.27B
• Dividend Yield: 6.56%
• Average Volume (3M): 15.35M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: -3.70%
• EPS Growth: -431.05%
• Country: US
• Employees: 36,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.61
• Shares Outstanding: 1,183,655,600
• 10 Day Avg. Volume: 18,643,827
• 30 Day Avg. Volume: 15,346,007
• PEG Ratio: -5.25
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 1.44
• P/FCF Ratio: 11.75
• Enterprise Value/Market Cap: 1.67
• Enterprise Value/Revenue: 2.64
• Enterprise Value/Gross Profit: 7.87
• Enterprise Value/Ebitda: -10.02
• 1Y Price Target: $26.00
• Price Target Upside: 5.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

• Rating: 53 Neutral
• Price Target: $26.00 ▲(5.14% Upside)

Kraft Heinz's overall stock score is driven by significant profitability challenges and a negative P/E ratio, indicating valuation concerns. Strong cash flow and a high dividend yield provide some support. The earnings call reflects a cautious outlook due to consumer sentiment and inflation, but emerging market growth offers potential upside.

Positive Factors

Emerging Markets Growth

Strong growth in emerging markets indicates expanding global reach and potential for revenue diversification, supporting long-term growth.

Cash Flow Strength

Efficient cash generation and healthy cash retention enhance liquidity, providing resilience and funding for strategic investments.

Strategic Investments

Investments in product quality and affordability can enhance competitive positioning and drive long-term consumer loyalty.

Negative Factors

Profitability Challenges

Persistent profitability issues may hinder reinvestment capabilities and impact long-term financial health and shareholder returns.

Consumer Sentiment Decline

Declining consumer sentiment can reduce demand, impacting sales and profitability, posing a challenge to revenue growth.

Inflation and Pricing Challenges

Inflation and pricing pressures can erode margins, requiring strategic adjustments to maintain profitability and market competitiveness.

Kraft Heinz Business Overview & Revenue Model

Company Description

The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in the United States, Canada, the United Kingdom, and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products. The company also offers dressings, healthy snacks, and other categories; and spices and other seasonings. It sells its products through its own sales organizations, as well as through independent brokers, agents, and distributors to chain, wholesale, cooperative and independent grocery accounts, convenience stores, drug stores, value stores, bakeries, pharmacies, mass merchants, club stores, and foodservice distributors and institutions, including hotels, restaurants, hospitals, health care facilities, and government agencies; and online through various e-commerce platforms and retailers. The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is headquartered in Pittsburgh, Pennsylvania.

How the Company Makes Money

Kraft Heinz generates revenue primarily through the sale of its diverse portfolio of food and beverage products. The company's key revenue streams include retail sales through grocery stores, convenience stores, and online platforms, as well as foodservice sales to restaurants, hotels, and institutions. Kraft Heinz benefits from strong brand recognition, allowing it to command premium pricing on many of its products. Additionally, the company engages in strategic partnerships and collaborations to enhance product offerings and expand its market reach. Significant factors contributing to its earnings include innovative product development, effective marketing strategies, and operational efficiencies that reduce costs.

Kraft Heinz Financial Statement Overview

Summary

Kraft Heinz faces significant profitability challenges with negative EBIT and EBITDA margins and a net profit margin of -20.83% TTM. Revenue growth is inconsistent, and the balance sheet shows a slight decline in equity ratios. However, strong cash flow metrics indicate good liquidity, providing some resilience.

Income Statement

The company shows a negative trend in profitability with a significant decline in the TTM (Trailing-Twelve-Months) EBIT and EBITDA margins due to negative EBIT and EBITDA. The gross profit margin for TTM stands at 34.29%, slightly below the previous year. Revenue growth has been inconsistent, with a recent decline of 2.07% from the previous year. Net profit margin has turned negative at -20.83% TTM, a stark contrast to previous positive margins, indicating profitability challenges.

Balance Sheet

The balance sheet demonstrates a moderate level of financial stability. The debt-to-equity ratio is 0.47, suggesting a balanced leverage position. However, the equity ratio slightly declined to 50.70% TTM from 55.71% in the previous year. Return on equity has turned negative in the TTM period due to negative net income, which is a concern. Overall, the company maintains a substantial equity base, providing some financial resilience.

Cash Flow

Cash flow analysis reveals a strong operating cash flow to net income ratio TTM, indicating efficient cash generation despite negative net income. Free cash flow growth from the previous year is 10.57%, showing healthy cash retention. The free cash flow to net income ratio is positive, highlighting that the company is generating cash beyond its accounting profits, which is a positive indicator of liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2019	Dec 2018
Income Statement
Total Revenue	18.59B	25.85B	26.64B	26.48B	24.98B	26.26B
Gross Profit	6.22B	8.97B	8.93B	8.12B	8.15B	8.95B
EBITDA	-4.89B	2.72B	5.51B	4.82B	5.02B	-9.06B
Net Income	-6.50B	2.74B	2.85B	2.36B	1.94B	-10.29B
Balance Sheet
Total Assets	81.69B	88.29B	90.34B	90.51B	101.45B	103.63B
Cash, Cash Equivalents and Short-Term Investments	3.13B	1.33B	1.40B	1.04B	2.28B	1.13B
Total Debt	21.19B	19.87B	20.03B	20.07B	29.24B	31.29B
Total Liabilities	40.12B	38.96B	40.62B	41.64B	49.70B	51.72B
Stockholders Equity	41.45B	49.19B	49.53B	48.68B	51.62B	51.78B
Cash Flow
Free Cash Flow	2.49B	3.16B	2.96B	1.55B	2.78B	1.75B
Operating Cash Flow	3.09B	4.18B	3.98B	2.47B	3.55B	2.57B
Investing Cash Flow	-1.61B	-1.02B	-916.00M	-1.09B	1.51B	288.00M
Financing Cash Flow	-763.00M	-3.01B	-2.68B	-3.71B	-3.91B	-3.36B

Kraft Heinz Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KHC, the sentiment is Negative. The current price of 24.73 is below the 20-day moving average (MA) of 25.24, below the 50-day MA of 26.02, and below the 200-day MA of 27.28, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 39.96 is Neutral, neither overbought nor oversold. The STOCH value of 24.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KHC.

Kraft Heinz Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GIS	―	$24.86B	8.82	30.98%	5.19%	-3.26%	25.58%
CPB	―	$8.97B	15.01	15.64%	5.18%	6.40%	6.17%
CAG	―	$8.22B	9.69	9.65%	8.14%	-4.11%	72.17%
HRL	―	$11.87B	15.74	9.46%	5.37%	0.65%	-3.76%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KHC	―	$29.27B	―	-9.73%	6.56%	-3.70%	-431.05%
SJM	―	$11.05B	―	-21.32%	4.25%	2.54%	-293.39%

Kraft Heinz Corporate Events

Kraft Heinz Appoints New Board Members for Strategic Growth

On October 22, 2025, Kraft Heinz announced the appointment of L. Kevin Cox, Mary Lou Kelley, and Tony Palmer to its Board of Directors. These new members bring significant expertise in consumer-focused industries and organizational transformation, which is crucial as the company prepares to separate into two industry-leading companies. The appointments are expected to enhance the company’s strategic initiatives and drive performance within its existing business.

The most recent analyst rating on (KHC) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Kraft Heinz stock, see the KHC Stock Forecast page.

Kraft Heinz Announces Spin-Off into Two Companies

On September 2, 2025, Kraft Heinz announced its plan to separate into two independent, publicly traded companies through a tax-free spin-off, aiming to enhance strategic focus and operational efficiency. The separation will create ‘Global Taste Elevation Co.’ and ‘North American Grocery Co.’, each with distinct brand portfolios and leadership, designed to unlock shareholder value and drive industry-leading growth, with the transaction expected to close in the second half of 2026.

The most recent analyst rating on (KHC) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Kraft Heinz stock, see the KHC Stock Forecast page.

Kraft Heinz Reports Q2 2025 Results Amid Challenges

The Kraft Heinz Company, a global leader in the food and beverage industry, is known for its iconic brands and commitment to delivering high-quality products to consumers worldwide. The company operates across various markets, focusing on innovation and sustainability.

Kraft Heinz Co Earnings Call: Balancing Growth and Challenges

Kraft Heinz Co’s recent earnings call painted a balanced picture of the company’s current standing. While there were encouraging developments such as improvements in top-line growth and strategic investments in marketing and emerging markets, the call also highlighted significant challenges. These included a substantial impairment charge, ongoing struggles in the North America retail sector, and persistent inflationary pressures.