Kraft Heinz Co (KHC)
NASDAQ:KHC
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Kraft Heinz
(NASDAQ:KHC)
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Rating:53Neutral
Price Target:
$23.00
▲(2.36% Upside)
Action:Reiterated
Date:06/09/26
The score is held back primarily by the sharp TTM swing to losses and negative operating profitability, partially offset by resilient operating/free cash flow and manageable leverage. Technicals are broadly neutral, valuation is supported by a high dividend yield but undermined by loss-driven negative P/E, and the latest call/corporate actions point to improving execution and active debt optimization amid near-term revenue and inflation headwinds.
Positive Factors
Free cash flow generation
Sustained positive operating and free cash flow provide durable internal funding for marketing, product investment, dividends and debt paydown. Strong FCF despite a reported net loss shows cash resiliency in the business model that supports strategic actions over the next 2–6 months.
Negative Factors
Sharp profitability deterioration
A steep swing to negative margins and a large TTM net loss signal underlying profit instability that undermines return generation. Negative margins weaken ROE and reduce retained-earnings growth, constraining long-term reinvestment capacity and raising execution risk if not reversed.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Sustained positive operating and free cash flow provide durable internal funding for marketing, product investment, dividends and debt paydown. Strong FCF despite a reported net loss shows cash resiliency in the business model that supports strategic actions over the next 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
$28.72B
Dividend Yield6.75%
Average Volume (3M)14.58M
Price to Earnings (P/E)―
Beta (1Y)0.16
Revenue Growth-1.75%
EPS Growth-319.68%
CountryUS
Employees36,000
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)-4.84
Shares Outstanding1,185,777,600
10 Day Avg. Volume15,143,763
30 Day Avg. Volume14,577,542
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 Cap1.61
Enterprise Value/Revenue1.85
Enterprise Value/Gross Profit5.54
Enterprise Value/Ebitda-13.16
Forecast
1Y Price Target
$22.13Price Target Upside-1.50% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering17
EPS Forecast (FY)2.06
Revenue Forecast (FY)$24.47B
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:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Neutral
The call conveyed cautious optimism: the company reported clear early signs of operational and share improvement (notably strong March share metrics, product launches, and disciplined productivity) and is leaning into targeted marketing and a $600M investment plan. However, meaningful near-term headwinds remain—SNAP benefit reductions (~100 bps), Q2 revenue guidance of -3% to -5%, commodity and resin inflation risk (resins hedged only through mid-Q3), Indonesia and away-from-home pressures, and an expected H2 cash flow impact from stepped-up investment. Given the balance of encouraging execution progress and persistent macro/structural challenges, the net tone is balanced.Positive Updates
Market Share and Category Momentum
Notable share improvement: percent of categories where the company held or gained share rose from 21% last year to 35% year-to-date and 58% in March. Taste Elevation pockets improved from 24% holding/gaining share last year to 81% year-to-date and 87% in March. Market share loss narrowed materially (from a -90 bps start to -30 bps year-to-date), reflecting ~60 bps of improvement versus the beginning of the prior year.
Negative Updates
SNAP Benefit Reduction Headwind
Management expects SNAP changes to be a ~100 bps headwind starting in Q2; SNAP transactions were already down in February and March, contributing to consumer pressure in lower-income cohorts.
Read all updates
Q1-2026 Updates
Positive
Negative
Market Share and Category Momentum
Notable share improvement: percent of categories where the company held or gained share rose from 21% last year to 35% year-to-date and 58% in March. Taste Elevation pockets improved from 24% holding/gaining share last year to 81% year-to-date and 87% in March. Market share loss narrowed materially (from a -90 bps start to -30 bps year-to-date), reflecting ~60 bps of improvement versus the beginning of the prior year.
Read all positive updates
Company Guidance
The company maintained full-year guidance while calling out specific near-term metrics: Q2 organic revenue is now expected to be down 3% to 5% (partly due to an Easter timing shift) and SNAP is forecast to be a ~100 basis‑point headwind starting in Q2; management had initially assumed roughly 4% inflation for the year (they had contemplated pricing to capture ~20% of that inflation), energy is hedged for the year and resins hedged through mid‑Q3 with resin-driven cost pressure likely to show up in Q3, and the firm is running productivity north of 4% of COGS in Q1 as a key offset; marketing was up 37% in Q1 and is budgeted at least 5.5% of revenue for the year (at least a ~20% YoY increase overall), the $600 million of incremental investment remains largely “dry powder,” and management is keeping a conservative gross‑margin outlook (acknowledging ~40–50 bps of nonrecurring Q1 upside but still expecting a 25–75 bps headwind for the year); market‑share trends improved (categories holding/gaining share rose from 21% last year to 35% in Q1 and 58% in March, Taste Elevation hold/gain rose from 24% to 81%/87%), Indonesia was a ~70 bps Q1 headwind, YTD mix‑adjusted market‑share loss improved to ~30 bps (from -90 bps early last year, exiting last year at -50 to -60 bps), free cash flow remains strong though cash conversion may moderate in H2 as investments ramp and management plans debt paydowns (including maturities in Q2 and roughly $1.9 billion maturing next year).Kraft Heinz Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
56
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.99B | 24.94B | 25.85B | 26.64B | 26.48B | 26.04B |
| Gross Profit | 8.33B | 8.31B | 8.97B | 8.93B | 8.12B | 8.68B |
| EBITDA | -3.50B | -3.53B | 2.72B | 5.51B | 4.82B | 4.67B |
| Net Income | -5.76B | -5.85B | 2.74B | 2.85B | 2.36B | 1.01B |
Balance Sheet | ||||||
| Total Assets | 82.05B | 81.79B | 88.29B | 90.34B | 90.51B | 93.39B |
| Cash, Cash Equivalents and Short-Term Investments | 4.26B | 3.67B | 1.33B | 1.40B | 1.04B | 3.44B |
| Total Debt | 21.13B | 21.22B | 19.87B | 20.03B | 20.07B | 21.82B |
| Total Liabilities | 40.00B | 40.00B | 38.96B | 40.62B | 41.64B | 43.94B |
| Stockholders Equity | 41.92B | 41.66B | 49.19B | 49.53B | 48.68B | 49.30B |
Cash Flow | ||||||
| Free Cash Flow | 3.94B | 3.66B | 3.16B | 2.96B | 1.55B | 4.46B |
| Operating Cash Flow | 4.75B | 4.46B | 4.18B | 3.98B | 2.47B | 5.36B |
| Investing Cash Flow | -770.00M | -1.83B | -1.02B | -916.00M | -1.09B | 4.04B |
| Financing Cash Flow | -2.66B | -1.25B | -3.01B | -2.68B | -3.71B | -9.34B |
Kraft Heinz Technical Analysis
Positive
22.47
Price Trends
22.64
Positive
22.73
Positive
23.39
Positive
Market Momentum
0.26
Negative
63.43
Neutral
75.28
Neutral
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 22.47 is below the 20-day moving average (MA) of 23.20, below the 50-day MA of 22.64, and below the 200-day MA of 23.39, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 63.43 is Neutral, neither overbought nor oversold. The STOCH value of 75.28 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $6.78B | 11.14 | 13.98% | 5.64% | -2.90% | 33.92% | |
62 Neutral | $18.05B | 8.27 | 23.70% | 5.19% | -6.48% | -10.99% | |
62 Neutral | $13.45B | 28.82 | 5.86% | 4.82% | 2.47% | -37.67% | |
62 Neutral | $12.46B | -89.88 | -21.55% | 4.45% | 3.72% | 88.76% | |
56 Neutral | $6.43B | -148.76 | -0.51% | 7.87% | -4.73% | -112.96% | |
53 Neutral | $28.72B | -5.00 | -13.85% | 6.75% | -1.75% | -319.68% |
* Consumer Defensive Sector Average
KHC
Kraft Heinz
24.39
-0.05
-0.20%
CPB
Campbell Soup
22.81
-8.16
-26.35%
CAG
Conagra Brands
13.74
-6.11
-30.78%
GIS
General Mills
34.51
-16.17
-31.91%
HRL
Hormel Foods
24.75
-4.38
-15.02%
SJM
JM Smucker
116.49
24.61
26.78%
Kraft Heinz Corporate Events
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.