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Kraft Heinz Co (KHC)
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Kraft Heinz (KHC) AI Stock Analysis

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KHC

Kraft Heinz

(NASDAQ:KHC)

Rating:74Outperform
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 (KHC) vs. SPDR S&P 500 ETF (SPY)

Kraft Heinz Business Overview & Revenue Model

Company DescriptionThe 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 MoneyKraft 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 Key Performance Indicators (KPIs)

Any
Any
Net Revenue by Geography
Net Revenue by Geography
Illustrates revenue distribution across regions, indicating market dominance, exposure to regional risks, and opportunities for expansion.
Chart InsightsKraft Heinz's North American revenue shows stability, but the U.S. segment remains absent from recent data, indicating potential reporting changes. International markets, especially emerging ones, are gaining momentum, as noted in the earnings call. The company is focusing on brand growth and product renovations to combat inflation and tariff impacts. Despite market pressures, strategic investments in marketing and emerging markets are expected to drive future growth, although operating income may face short-term declines due to increased costs and promotional activities.
Data provided by:Main Street Data

Kraft Heinz Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: -0.46%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong cash flow and strategic investments in brand growth and emerging markets, but was balanced by significant challenges including revised guidance due to market pressures, expected declines in operating income, and increased costs from inflation and tariffs.
Q1-2025 Updates
Positive Updates
Strong Cash Flow Performance
Despite growing market pressure, The Kraft Heinz Company delivered strong cash flow performance and maintained a healthy balance sheet in the first quarter of 2025.
Investments in Brand Growth System
The company is scaling up its brand growth system to 40% of its business by the end of the year, a significant increase from the 10% in 2024. This system aims to drive brand superiority and growth.
Emerging Markets Acceleration
The company expects further acceleration in emerging markets beyond the first quarter.
Innovations and Renovations
The company is focused on renovating products and improving product quality, such as in the Philadelphia cream cheese and Capri Sun lines, which are expected to drive growth.
Double-Digit Growth in Mexican Strategy
The Kraft Heinz Company saw double-digit growth in its Mexican strategy last year and continues to see similar growth this year.
Negative Updates
Revised Revenue Guidance and Market Tension
The company has adjusted its guidance due to market tension and a challenging macroeconomic environment, leading to a larger-than-expected cut in guidance.
Decline in Operating Income
Operating income is expected to decline double digits in the second quarter due to increased promotional activity, hedge losses, and commodity cost pressures.
COGS Inflation Impact
The company revised its COGS inflation outlook from 3% to 5%, with additional impacts expected from tariffs leading to potentially 50 to 200 bps increase in COGS.
Pressure on Gross Margins
Increased promotional activity, commodity costs, and hedge losses are expected to pressure gross margins in the second quarter.
Promotional Activity Still Below 2019 Levels
The Kraft Heinz Company's promotional activity volume is still below 2019 levels, contrasting with other large food companies.
Company Guidance
During the Kraft Heinz Company's first quarter 2025 earnings call, the company provided revised guidance reflecting ongoing market challenges and strategic investments. The company highlighted its commitment to playing offense with discipline, prioritizing investments in marketing, R&D, and technology, with a focus on enhancing returns on marketing dollars and optimizing brand and media strategies. The guidance included a step-up in marketing expenses to approximately 4.8% of revenue, nearing the company's long-term target of 5%, and an anticipated inflation rate of 5% in COGS, influenced by rising costs in commodities like coffee and meat. Tariff impacts were estimated to add 50 to 200 basis points to COGS, primarily in the second half of the year. Despite these pressures, the company maintained its pricing outlook, indicating no further price investments beyond the previously planned 100 basis points. Furthermore, the company's operating income was expected to decline double digits in Q2, driven by increased promotional activity, hedge losses, and product renovations. The guidance was adjusted to provide flexibility amidst a dynamic policy landscape, allowing the company to continue investing in key growth initiatives.

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
75
Positive
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
80
Positive
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
78
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue25.85B26.64B26.48B26.04B26.18B
Gross Profit8.97B8.93B8.12B8.68B9.18B
EBITDA2.72B5.51B4.82B4.67B3.39B
Net Income2.74B2.85B2.36B1.01B356.00M
Balance Sheet
Total Assets88.29B90.34B90.51B93.39B99.83B
Cash, Cash Equivalents and Short-Term Investments1.33B1.40B1.04B3.44B3.42B
Total Debt19.87B20.03B20.07B21.82B28.31B
Total Liabilities38.96B40.62B41.64B43.94B49.59B
Stockholders Equity49.19B49.53B48.68B49.30B50.10B
Cash Flow
Free Cash Flow3.16B2.96B1.55B4.46B4.33B
Operating Cash Flow4.18B3.98B2.47B5.36B4.93B
Investing Cash Flow-1.02B-916.00M-1.09B4.04B-522.00M
Financing Cash Flow-3.01B-2.68B-3.71B-9.34B-3.33B

Kraft Heinz Technical Analysis

Technical Analysis Sentiment
Positive
Last Price28.25
Price Trends
50DMA
26.78
Positive
100DMA
27.94
Positive
200DMA
29.18
Negative
Market Momentum
MACD
0.56
Negative
RSI
58.38
Neutral
STOCH
71.91
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 Risk Analysis

Kraft Heinz disclosed 34 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$33.44B12.815.36%5.66%-4.25%-4.04%
70
Outperform
$9.17B7.9913.27%7.29%-3.64%231.77%
66
Neutral
$9.74B21.5811.67%4.78%8.65%-38.57%
65
Neutral
$16.08B21.519.39%3.94%-1.01%-2.93%
65
Neutral
$26.91B15.40-4.43%2.85%1.05%4.97%
63
Neutral
$27.70B12.4624.57%4.83%-1.87%-5.16%
56
Neutral
$11.63B22.22-17.87%3.97%6.69%-261.87%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KHC
Kraft Heinz
28.25
-3.48
-10.97%
CPB
Campbell Soup
32.24
-12.95
-28.66%
CAG
Conagra Brands
19.20
-9.44
-32.96%
GIS
General Mills
49.85
-14.46
-22.48%
HRL
Hormel Foods
28.55
-2.16
-7.03%
SJM
JM Smucker
108.70
-4.84
-4.26%

Kraft Heinz Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
Kraft Heinz Announces Leadership Change in Procurement
Neutral
Jul 9, 2025

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.

Private Placements and Financing
Kraft Heinz Amends Credit Agreement, Extends Maturity
Neutral
Jul 8, 2025

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.

Executive/Board Changes
Kraft Heinz Announces Leadership Transition in Finance
Neutral
Jun 17, 2025

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.

Executive/Board Changes
Kraft Heinz Board Members Step Down
Neutral
May 20, 2025

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.

Executive/Board ChangesShareholder Meetings
Kraft Heinz Elects Directors at Annual Meeting
Neutral
May 13, 2025

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.

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.Date of analysis: Jul 12, 2025