Kraft Heinz (KHC) AI Stock Analysis

• Market Cap: $28.35B
• Dividend Yield: 6.75%
• Average Volume (3M): 16.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.04
• Revenue Growth: -3.70%
• EPS Growth: -431.05%
• Country: US
• Employees: 36,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.67
• Shares Outstanding: 1,183,744,800
• 10 Day Avg. Volume: 16,534,836
• 30 Day Avg. Volume: 16,085,321
• PEG Ratio: 0.02
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 1.15
• P/FCF Ratio: 7.82
• Enterprise Value/Market Cap: 1.61
• Enterprise Value/Revenue: 1.83
• Enterprise Value/Gross Profit: 5.49
• Enterprise Value/Ebitda: -12.91
• 1Y Price Target: $23.69
• Price Target Upside: -2.91% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $25.00 ▲(2.46% Upside)

The score is held back primarily by severe 2025 financial deterioration (losses and revenue breakdown), partially offset by strong cash generation and a still-reasonable balance-sheet backdrop. Technicals are modestly constructive short-term, valuation benefits from a high dividend yield but is impaired by a negative P/E, and the earnings call adds cautious support due to a defined reinvestment plan tempered by execution and SNAP headwinds.

Positive Factors

Iconic brand portfolio

A long-standing, diversified portfolio of household food brands provides durable consumer recognition, shelf presence and distribution scale. These assets support pricing power, retailer shelf space and cross-category promotions, making revenue recovery and margin stabilization more achievable over time.

Strong free cash flow generation

Consistent free cash flow, including material improvement in 2024–2025, underpins Kraft Heinz’s ability to self-fund reinvestment, shrink net leverage and maintain capital allocation flexibility. Robust cash generation cushions balance-sheet stress and supports long-term execution of turnaround plans.

Targeted $600M reinvestment and market-share gains

A defined $600M spending plan focused on price, product and packaging, plus commercial hires and clear phasing, creates a credible pathway to restore competitiveness. Early share gains in core 'Taste Elevation' SKUs and double-digit emerging-market growth suggest the reinvestment could sustainably reaccelerate organic growth if executed well.

Negative Factors

Severe 2025 profitability shock

A sharp swing to a large net loss and negative EBITDA in 2025 signals deep operational and top-line stress, eroding earnings durability. If structural demand or margin pressures persist, it can impair reinvestment effectiveness, strain credit metrics and slow recovery to sustainable profitability over the medium term.

Strategic and execution uncertainty

Pausing the separation creates open-ended strategic uncertainty and prolongs organizational focus questions. Combined with admitted commercial capability gaps and planned hiring, this increases execution risk and timeline variability for the turnaround, potentially delaying durable improvements in growth and margins.

SNAP exposure drives structural revenue headwind

Above-industry SNAP dependence creates a persistent downside risk as benefit reductions reduce low-income purchasing power. A ~100bp expected headwind is structural for categories serving SNAP households, pressuring volumes and making top-line recovery more challenging without sustained pricing, promotion, or product mix shifts.

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 food and beverage products across retail, food service, and e-commerce channels. The company operates on a revenue model that consists of multiple key streams, including direct sales to grocery stores, supermarkets, club stores, and wholesalers, as well as partnerships with restaurant chains and food distributors. Additionally, Kraft Heinz capitalizes on brand licensing and co-branding agreements to expand its market reach. The company's significant investments in marketing and product innovation, along with its growing focus on health-conscious and sustainable offerings, contribute to its earnings. The company also benefits from economies of scale due to its large size and global distribution network, allowing it to maintain competitive pricing and enhance profitability.

Kraft Heinz Financial Statement Overview

Summary

Results are dominated by a sharp 2025 deterioration: the income statement shows a swing to a large net loss and EBITDA turning negative alongside a major revenue drop. Offsetting factors are a reasonably supported balance sheet (manageable leverage historically) and resilient/free-cash-flow generation, but the earnings collapse elevates near-term risk.

Income Statement

Profitability deteriorated sharply in the latest annual period, swinging from positive earnings in 2024 to a large net loss in 2025, with EBITDA also turning negative. Revenue has been drifting down for several years and then collapsed in 2025, indicating meaningful top-line pressure and/or significant disruption. A positive is that gross margin has been relatively stable around the low-to-mid 30% range historically, but the recent earnings collapse overwhelms that stability and raises near-term execution risk.

Balance Sheet

Leverage looks manageable on an annual basis with debt-to-equity around ~0.40 in 2022–2024, supported by a sizable equity base. Total debt has been relatively stable to slightly down over the period, which is constructive. The key weakness is the 2025 profitability shock, which can pressure equity and future credit metrics if it persists, even if the current balance sheet snapshot still appears reasonably supported by assets and equity.

Cash Flow

Cash generation remains a relative bright spot: operating cash flow and free cash flow are solid and free cash flow improved in 2024 and again materially in 2025. Free cash flow has also been strong relative to net income in profitable years, suggesting earnings have generally been backed by cash. The main concern is the mismatch in 2025—strong cash flow alongside a very large reported loss—implying elevated non-cash charges and/or working-capital volatility, which can make cash flow less predictable if conditions worsen.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	24.94B	25.85B	26.64B	26.48B	26.04B
Gross Profit	8.31B	8.97B	8.93B	8.12B	8.68B
EBITDA	-3.53B	2.72B	5.51B	4.82B	4.67B
Net Income	-5.85B	2.74B	2.85B	2.36B	1.01B
Balance Sheet
Total Assets	81.79B	88.29B	90.34B	90.51B	93.39B
Cash, Cash Equivalents and Short-Term Investments	3.67B	1.33B	1.40B	1.04B	3.44B
Total Debt	19.31B	19.87B	20.03B	20.07B	21.82B
Total Liabilities	40.00B	38.96B	40.62B	41.64B	43.94B
Stockholders Equity	41.66B	49.19B	49.53B	48.68B	49.30B
Cash Flow
Free Cash Flow	3.66B	3.16B	2.96B	1.55B	4.46B
Operating Cash Flow	4.46B	4.18B	3.98B	2.47B	5.36B
Investing Cash Flow	-1.83B	-1.02B	-916.00M	-1.09B	4.04B
Financing Cash Flow	-1.25B	-3.01B	-2.68B	-3.71B	-9.34B

Kraft Heinz Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.40
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 24.4 is above the 20-day moving average (MA) of 24.06, above the 50-day MA of 24.00, and below the 200-day MA of 25.31, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 53.32 is Neutral, neither overbought nor oversold. The STOCH value of 38.26 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
GIS	68 Neutral	$24.20B	9.80	27.29%	5.19%	-5.65%	0.41%
HRL	68 Neutral	$13.47B	28.18	6.02%	4.82%	1.55%	-40.81%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CPB	60 Neutral	$8.21B	14.24	14.82%	5.64%	2.71%	4.90%
CAG	58 Neutral	$8.99B	-90.82	-1.16%	7.87%	-5.82%	-119.70%
SJM	58 Neutral	$11.49B	―	-17.44%	4.45%	-0.66%	-326.55%
KHC	54 Neutral	$28.35B	-4.86	-12.87%	6.75%	-3.70%	-431.05%

Kraft Heinz Corporate Events

Kraft Heinz Registers Potential Berkshire Hathaway Share Resale

On January 20, 2026, Kraft Heinz filed a resale prospectus supplement with the U.S. Securities and Exchange Commission to register the potential resale by major shareholder Berkshire Hathaway Inc. of up to 325,442,152 existing shares of Kraft Heinz common stock under an existing registration rights agreement. The move is an administrative step that does not involve Kraft Heinz issuing new securities or receiving any proceeds, nor does it indicate that Berkshire Hathaway will in fact sell any shares, and the company concurrently provided a legal opinion on the validity of the registered shares, underscoring that any future transactions would be shareholder-driven rather than capital-raising for the company.

The most recent analyst rating on (KHC) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Kraft Heinz stock, see the KHC Stock Forecast page.

Kraft Heinz Appoints Steve Cahillane as New CEO

On December 16, 2025, Kraft Heinz announced the appointment of Steve Cahillane as Chief Executive Officer, effective January 1, 2026, following the planned separation of the company into two independent entities. Cahillane, with a robust background in leading major companies like Kellanova and The Nature’s Bounty Co., will guide Kraft Heinz through this transition, aiming to enhance its competitive edge and operational focus. Concurrently, Carlos Abrams-Rivera will step down as CEO but remain as an advisor until March 6, 2026, while John T. Cahill will succeed Miguel Patricio as Board Chair. The separation is expected to maximize the company’s capabilities and is anticipated to close in the second half of 2026.

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.