Kraft Heinz (KHC) AI Stock Analysis

• Market Cap: $33.44B
• Dividend Yield: 5.66%
• Average Volume (3M): 17.61M
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.08
• Revenue Growth: -4.25%
• EPS Growth: -4.04%
• Country: US
• Employees: 36,000
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Packaged Foods
• EPS (TTM): 0.62
• Shares Outstanding: 1,183,542,100
• 10 Day Avg. Volume: 17,847,910
• 30 Day Avg. Volume: 17,606,433
• PEG Ratio: -4.96
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.37
• Enterprise Value/Market Cap: 1.60
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 10.76
• Enterprise Value/Ebitda: 3.22
• 1Y Price Target: $28.79
• Price Target Upside: 1.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

• Rating: 74 Outperform
• Price Target: $30.00 ▲(6.19%Upside)

Kraft Heinz's overall score is primarily supported by its solid financial performance and attractive valuation, particularly the strong dividend yield. However, technical indicators show mixed signals, and the recent earnings call points to ongoing challenges with market pressures and cost increases.

Positive Factors

Company Break-up

KHC plans to split into two to “unlock value” by spinning off its grocery business and retaining its sauces & spreads business.

Growth Potential

The company has been very clear about its strategy to prioritize investments towards brands where it sees stronger growth potential.

Strategic Alternatives

The company's review of strategic alternatives could result in upside risk.

Negative Factors

International Margins

The margins in the international markets are significantly lower than in North America.

Market Share Concerns

Analyst is bearish on the company's ability to drive significant improvements in its market share performance without significant investments pressuring profitability.

Stock Performance

The company's stock has underperformed, down 9% YTD compared to the S&P's 1% gain, contributing to its current depressed valuation.

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 revenue streams are largely driven by its strategic brand management, with a focus on maintaining strong market positions across key categories such as condiments and sauces, cheese and dairy, and ready-to-eat meals. Kraft Heinz distributes its products through a combination of direct sales to retailers, including supermarkets, clubs, and convenience stores, and through foodservice channels supplying restaurants and institutions. Additionally, Kraft Heinz engages in strategic partnerships and alliances to expand its market reach and enhance product offerings, contributing to its earnings. The company also benefits from economies of scale in production and distribution, enabling cost efficiencies that support profitability.

Kraft Heinz Financial Statement Overview

Summary

Kraft Heinz demonstrates solid profitability and a strong equity position, with efficient cash flow generation. However, the company faces challenges in revenue growth and maintaining cash flow levels. Overall, it is well-positioned financially but needs to address growth and efficiency challenges.

Income Statement

Kraft Heinz's income statement shows a stable gross profit margin of approximately 34.5% in TTM, with a slight decline in net profit margin to 10.4% from 10.6% in the previous year. Revenue growth has been challenging, with a decrease of 1.6% in TTM compared to the previous year. EBIT and EBITDA margins are also showing slight declines, indicating pressure on operational efficiency. Overall, the company maintains solid profitability but faces growth challenges.

Balance Sheet

The balance sheet of Kraft Heinz reflects a strong equity position with an equity ratio of 54.8% in TTM. The debt-to-equity ratio is manageable at 0.44, indicating a balanced leverage position. Return on equity is healthy at 5.4%, although slightly lower than the previous year. The company maintains a stable financial structure with a strong equity base, but there is room for improving returns.

Cash Flow

Kraft Heinz's cash flow statement shows a robust operating cash flow to net income ratio of 1.56 in TTM, indicating strong cash generation relative to earnings. Free cash flow growth has been negative at -4.3% in TTM, reflecting challenges in maintaining cash flow levels. The free cash flow to net income ratio is healthy at 1.14, demonstrating efficient cash conversion. Overall, cash flow generation is strong, but growth remains a concern.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.85B	26.64B	26.48B	26.04B	26.18B
Gross Profit	8.97B	8.93B	8.12B	8.68B	9.18B
EBITDA	2.72B	5.51B	4.82B	4.67B	3.39B
Net Income	2.74B	2.85B	2.36B	1.01B	356.00M
Balance Sheet
Total Assets	88.29B	90.34B	90.51B	93.39B	99.83B
Cash, Cash Equivalents and Short-Term Investments	1.33B	1.40B	1.04B	3.44B	3.42B
Total Debt	19.87B	20.03B	20.07B	21.82B	28.31B
Total Liabilities	38.96B	40.62B	41.64B	43.94B	49.59B
Stockholders Equity	49.19B	49.53B	48.68B	49.30B	50.10B
Cash Flow
Free Cash Flow	3.16B	2.96B	1.55B	4.46B	4.33B
Operating Cash Flow	4.18B	3.98B	2.47B	5.36B	4.93B
Investing Cash Flow	-1.02B	-916.00M	-1.09B	4.04B	-522.00M
Financing Cash Flow	-3.01B	-2.68B	-3.71B	-9.34B	-3.33B

Kraft Heinz Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 28.25 is above the 20-day moving average (MA) of 27.40, above the 50-day MA of 26.78, and below the 200-day MA of 29.18, indicating a neutral trend. The MACD of 0.56 indicates Negative momentum. The RSI at 58.38 is Neutral, neither overbought nor oversold. The STOCH value of 71.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KHC.

Kraft Heinz Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KHC	74 Outperform	$33.44B	12.81	5.36%	5.66%	-4.25%	-4.04%
CAG	70 Outperform	$9.17B	7.99	13.27%	7.29%	-3.64%	231.77%
CPB	66 Neutral	$9.74B	21.58	11.67%	4.78%	8.65%	-38.57%
HRL	65 Neutral	$16.08B	21.51	9.39%	3.94%	-1.01%	-2.93%
Sector *	65 Neutral	$26.91B	15.40	-4.43%	2.85%	1.05%	4.97%
GIS	63 Neutral	$27.70B	12.46	24.57%	4.83%	-1.87%	-5.16%
SJM	56 Neutral	$11.63B	22.22	-17.87%	3.97%	6.69%	-261.87%

Kraft Heinz Corporate Events

Kraft Heinz Announces Leadership Change in Procurement

On July 9, 2025, Kraft Heinz announced that Marcos Eloi Lima, the Executive Vice President and Chief Procurement and Sustainability Officer, will step down from his role on August 1, 2025, but will remain as an advisor until March 6, 2026. Janelle Aydin, currently the Chief Procurement Officer for North America, will succeed him, indicating a strategic shift in leadership that may impact the company’s procurement and sustainability strategies.

The most recent analyst rating on (KHC) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on Kraft Heinz stock, see the KHC Stock Forecast page.

Kraft Heinz Amends Credit Agreement, Extends Maturity

On July 8, 2025, Kraft Heinz Company and its subsidiary amended their Credit Agreement, extending the maturity date of a $4.0 billion revolving credit facility from 2029 to 2030. This amendment also revised certain financial covenants, potentially impacting the company’s financial flexibility and stakeholder relations.

The most recent analyst rating on (KHC) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on Kraft Heinz stock, see the KHC Stock Forecast page.

Kraft Heinz Announces Leadership Transition in Finance

On June 12, 2025, Kraft Heinz announced that Vince Garlati, Vice President, Global Controller and Principal Accounting Officer, will step down from his role effective June 22, 2025, transitioning to Vice President of Corporate Strategic Projects. Chris Asher, currently the Deputy Global Controller, will succeed him, bringing extensive experience from various roles within the company since 2018. The Human Capital and Compensation Committee has approved Asher’s new compensation package, including a base salary of $400,000 and a performance bonus target of 120% of his salary, alongside future equity awards starting in 2026.

The most recent analyst rating on (KHC) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on Kraft Heinz stock, see the KHC Stock Forecast page.

Kraft Heinz Board Members Step Down

On May 19, 2025, Kraft Heinz announced that Board members Timothy Kenesey and Alicia Knapp decided to step down, effective May 20, 2025, without any disagreements with the company’s management or policies. As a result, the Board’s size has been reduced to ten members, which may impact the company’s governance structure.

The most recent analyst rating on (KHC) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on Kraft Heinz stock, see the KHC Stock Forecast page.

Kraft Heinz Elects Directors at Annual Meeting

On May 8, 2025, Kraft Heinz held its Annual Meeting of Stockholders where all 12 director nominees were elected for a one-year term. Additionally, stockholders approved the executive compensation and the selection of PricewaterhouseCoopers LLP as independent auditors for 2025. However, proposals regarding recyclability claims, plastic packaging, and adopting a policy for an independent Board Chair were not approved.

The most recent analyst rating on (KHC) stock is a Hold with a $34.00 price target. To see the full list of analyst forecasts on Kraft Heinz stock, see the KHC Stock Forecast page.