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Kraft Heinz
(NASDAQ:KHC)
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Rating:62Neutral
Price Target:
$28.00
▲(9.08% Upside)
Action:Reiterated
Date:08/05/26
The score is held back primarily by weak financial performance driven by deep reported losses and negative ROE, despite solid cash flow and manageable leverage. Technicals are supportive with an uptrend above major moving averages and positive MACD. Valuation is mixed: a strong dividend yield helps, but the negative P/E reflects the need for earnings stabilization. The latest earnings call was moderately constructive, citing improving trends and balance-sheet progress, but with clear execution risks in key categories and a soft industry backdrop.
Positive Factors
Cash Generation
Robust trailing‑12‑month operating cash flow and free cash flow provide a durable liquidity buffer that funds marketing and innovation spend, supports the dividend and debt reduction, and cushions the business while accounting losses persist. Strong cash conversion underpins strategic flexibility over 2–6 months.
Negative Factors
Profitability Deterioration
Deep reported losses and a roughly -23% net margin markedly weaken earning power and equity returns. Persistent below‑line losses can erode retained equity, constrain reinvestment capacity, and pressure the dividend or strategic options if profitability does not normalize within the planning horizon.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Robust trailing‑12‑month operating cash flow and free cash flow provide a durable liquidity buffer that funds marketing and innovation spend, supports the dividend and debt reduction, and cushions the business while accounting losses persist. Strong cash conversion underpins strategic flexibility over 2–6 months.
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
$30.65B
Dividend Yield6.19%
Average Volume (3M)12.59M
Price to Earnings (P/E)―
Beta (1Y)0.18
Revenue Growth-1.75%
EPS Growth-319.68%
CountryUS
Employees35,000
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)-2.86
Shares Outstanding1,185,777,600
10 Day Avg. Volume12,204,006
30 Day Avg. Volume12,589,036
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$24.33Price Target Upside-5.21% Downside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)2.06
Revenue Forecast (FY)$24.54B
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 manufacturing and selling packaged foods and beverages under its branded portfolio, generating revenue when products are sold to retail and foodservice customers. Its key revenue streams include (1) Retail sale...
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 | 8.17B | 8.31B | 8.97B | 8.93B | 8.12B | 8.68B |
| EBITDA | -1.83B | -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
25.67
Price Trends
24.61
Positive
23.43
Positive
23.41
Positive
Market Momentum
0.32
Positive
48.53
Neutral
15.25
Positive
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 25.67 is below the 20-day moving average (MA) of 25.95, above the 50-day MA of 24.61, and above the 200-day MA of 23.41, indicating a neutral trend. The MACD of 0.32 indicates Positive momentum. The RSI at 48.53 is Neutral, neither overbought nor oversold. The STOCH value of 15.25 is Positive, 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $13.76B | 29.42 | 5.86% | 4.61% | 2.47% | -37.67% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $30.65B | -5.34 | -8.44% | 6.23% | -1.75% | -319.68% | |
62 Neutral | $6.55B | 10.72 | 15.30% | 7.14% | -2.90% | 33.92% | |
62 Neutral | $12.75B | -91.74 | -2.44% | 3.72% | 3.72% | 88.76% | |
61 Neutral | $19.08B | -210.29 | -0.99% | 6.77% | -5.45% | -104.44% | |
58 Neutral | $6.94B | -3.63 | -24.31% | 9.48% | -2.85% | -265.99% |
* Consumer Defensive Sector Average
KHC
Kraft Heinz
25.32
-0.38
-1.50%
CPB
Campbell Soup
23.05
-7.14
-23.66%
CAG
Conagra Brands
15.11
-2.75
-15.38%
GIS
General Mills
36.89
-9.57
-20.60%
HRL
Hormel Foods
25.02
-2.14
-7.87%
SJM
JM Smucker
120.16
13.68
12.85%
Kraft Heinz Corporate Events
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 ...
Business Operations and StrategyExecutive/Board Changes
Kraft Heinz Announces Leadership Transition in Omnichannel Sales
Neutral
Jun 18, 2026
On June 18, 2026, Kraft Heinz announced that Cory Onell, Executive Vice President and Chief Omnichannel Sales and Asia Emerging Markets Officer, will step down from his role effective June 30, 2026 to pursue other opportunities. He will remain wit...
Business Operations and StrategyPrivate Placements and Financing
Kraft Heinz Announces Partial Redemption of 2027 Senior Notes
Positive
Jun 8, 2026
On June 8, 2026, Kraft Heinz Foods Company instructed Deutsche Bank Trust Company Americas, as trustee, to notify holders of its 3.875% Senior Notes due 2027 of a partial redemption of $1 billion of the $1.35 billion outstanding. The notes selecte...
Business Operations and StrategyPrivate Placements and Financing
Kraft Heinz Launches New Euro Notes, Refinances Debt
Positive
May 21, 2026
On May 21, 2026, Kraft Heinz Foods Company, a subsidiary of The Kraft Heinz Company, issued €500 million of 3.500% senior notes due 2031 and €500 million of 3.950% senior notes due 2034, both guaranteed on a senior basis by the parent....
Executive/Board ChangesShareholder Meetings
Kraft Heinz Shareholders Back 2026 Governance and Compensation
Positive
May 19, 2026
On May 14, 2026, The Kraft Heinz Company held its 2026 Annual Meeting of Stockholders, where investors elected 10 directors to one-year terms expiring at the 2027 annual meeting and gave strong support to the board’s slate, with each nominee...
Private Placements and Financing
Kraft Heinz Launches €1 Billion Euro Debt Offering
Positive
May 13, 2026
On May 7, 2026, Kraft Heinz Foods Company entered into an underwriting agreement for a €1 billion euro-denominated debt offering, split between €500 million of 3.500% senior notes due 2031 and €500 million of 3.950% senior notes ...
Business Operations and StrategyPrivate Placements and Financing
Kraft Heinz Launches $1.1 Billion Debt Tender Offer
Positive
May 7, 2026
On May 7, 2026, Kraft Heinz Foods Company, a wholly owned subsidiary of The Kraft Heinz Company, launched a cash tender offer to buy up to $1.1 billion of its outstanding 4.375% senior notes due 2046 and 4.875% senior notes due 2049. The offer, wh...
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.