Kraft Heinz (KHC) AI Stock Analysis

• Market Cap: $32.75B
• Dividend Yield: 5.78%
• Average Volume (3M): 15.97M
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.09
• Revenue Growth: -3.83%
• EPS Growth: -384.08%
• Country: US
• Employees: 36,000
• Sector: Consumer Defensive
• Sector Strength: 57
• Industry: Packaged Foods
• EPS (TTM): 0.69
• Shares Outstanding: 1,183,599,200
• 10 Day Avg. Volume: 11,624,193
• 30 Day Avg. Volume: 15,973,857
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 1.94
• Enterprise Value/Gross Profit: 5.67
• Enterprise Value/Ebitda: -8.52
• 1Y Price Target: $28.77
• Price Target Upside: 3.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

• Rating: 54 Neutral
• Price Target: $29.00 ▲(4.81% Upside)

Kraft Heinz's overall stock score reflects significant profitability challenges and valuation concerns, with a negative P/E ratio and declining revenue. However, strong cash flow and liquidity provide resilience. Technical indicators suggest moderate bullish momentum, and strategic investments in emerging markets offer growth potential. The earnings call highlighted both opportunities and risks, balancing the overall outlook.

Positive Factors

Company Strategy

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

Earnings

Kraft Heinz's 2Q sales beat increased the credibility of management's guidance for sequential improvement as they further utilize their Brand Growth System to address U.S. declines.

Strategic Transactions

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

Negative Factors

Market Share

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

Operating Profit

Management guided to a mid-to-high teens decline in operating profit versus prior consensus of -7%.

US Retail Sales

US retail sales are still down 3.0% with 65% of retail brands still declining, most notably cold cuts and Lunchables.

Kraft Heinz Business Overview & Revenue Model

Company Description

Kraft Heinz Company (KHC) is one of the largest food and beverage companies in the world, formed through the merger of Kraft Foods and Heinz. The company operates in various sectors including condiments and sauces, cheese and dairy, meals and entrees, and snacks, offering a wide range of well-known brands such as Heinz, Kraft, Oscar Mayer, and Philadelphia. Kraft Heinz focuses on delivering high-quality food products to consumers globally, leveraging its extensive distribution network to reach retail and foodservice channels.

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 key revenue streams include retail sales through grocery stores, convenience stores, and online platforms, as well as foodservice sales to restaurants, hotels, and institutions. Kraft Heinz benefits from strong brand recognition, allowing it to command premium pricing on many of its products. Additionally, the company engages in strategic partnerships and collaborations to enhance product offerings and expand its market reach. Significant factors contributing to its earnings include innovative product development, effective marketing strategies, and operational efficiencies that reduce costs.

Kraft Heinz Financial Statement Overview

Summary

Kraft Heinz faces significant profitability challenges, with negative EBIT and EBITDA margins and a net profit margin of -20.83% TTM. Revenue growth is inconsistent, and the balance sheet shows declining equity ratios. However, strong cash flow metrics indicate liquidity strength, providing some resilience.

Income Statement

The company shows a negative trend in profitability with a significant decline in the TTM (Trailing-Twelve-Months) EBIT and EBITDA margins due to negative EBIT and EBITDA. The gross profit margin for TTM stands at 34.29%, slightly below the previous year. Revenue growth has been inconsistent, with a recent decline of 2.07% from the previous year. Net profit margin has turned negative at -20.83% TTM, a stark contrast to previous positive margins, indicating profitability challenges.

Balance Sheet

The balance sheet demonstrates a moderate level of financial stability. The debt-to-equity ratio is 0.47, suggesting a balanced leverage position. However, the equity ratio slightly declined to 50.70% TTM from 55.71% in the previous year. Return on equity has turned negative in the TTM period due to negative net income, which is a concern. Overall, the company maintains a substantial equity base, providing some financial resilience.

Cash Flow

Cash flow analysis reveals a strong operating cash flow to net income ratio TTM, indicating efficient cash generation despite negative net income. Free cash flow growth from the previous year is 10.57%, showing healthy cash retention. The free cash flow to net income ratio is positive, highlighting that the company is generating cash beyond its accounting profits, which is a positive indicator of liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.31B	25.85B	26.64B	26.48B	26.04B	26.18B
Gross Profit	8.66B	8.97B	8.93B	8.12B	8.68B	9.18B
EBITDA	-5.76B	2.72B	5.51B	4.82B	4.67B	3.39B
Net Income	-5.27B	2.74B	2.85B	2.36B	1.01B	356.00M
Balance Sheet
Total Assets	81.58B	88.29B	90.34B	90.51B	93.39B	99.83B
Cash, Cash Equivalents and Short-Term Investments	2.56B	1.33B	1.40B	1.04B	3.44B	3.42B
Total Debt	21.21B	19.87B	20.03B	20.07B	21.82B	28.31B
Total Liabilities	40.09B	38.96B	40.62B	41.64B	43.94B	49.59B
Stockholders Equity	41.36B	49.19B	49.53B	48.68B	49.30B	50.10B
Cash Flow
Free Cash Flow	3.49B	3.16B	2.96B	1.55B	4.46B	4.33B
Operating Cash Flow	4.40B	4.18B	3.98B	2.47B	5.36B	4.93B
Investing Cash Flow	-1.74B	-1.02B	-916.00M	-1.09B	4.04B	-522.00M
Financing Cash Flow	-1.87B	-3.01B	-2.68B	-3.71B	-9.34B	-3.33B

Kraft Heinz Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.67
• 50DMA: Positive
• 100DMA: Negative
• 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 Negative. The current price of 27.67 is below the 20-day moving average (MA) of 27.86, above the 50-day MA of 27.06, and below the 200-day MA of 28.70, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 47.12 is Neutral, neither overbought nor oversold. The STOCH value of 59.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KHC.

Kraft Heinz Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAG	72 Outperform	$9.15B	7.98	13.27%	7.38%	-3.64%	231.77%
CPB	66 Neutral	$9.69B	21.48	11.67%	4.74%	8.65%	-38.57%
GIS	66 Neutral	$26.93B	12.12	24.57%	4.85%	-1.87%	-5.16%
HRL	65 Neutral	$15.66B	20.95	9.39%	4.05%	-1.01%	-2.93%
SJM	60 Neutral	$11.82B	22.22	-17.87%	3.92%	6.69%	-261.87%
KHC	54 Neutral	$32.75B	12.81	-11.68%	5.78%	-3.83%	-384.08%
Sector *	50 Neutral	AU$2.12B	-1.49	-9.83%	4.33%	4.08%	-50.27%

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.