Kraft Heinz (KHC) AI Stock Analysis

• Market Cap: $30.20B
• Dividend Yield: 6.31%
• Average Volume (3M): 16.67M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.06
• Revenue Growth: -3.70%
• EPS Growth: -431.05%
• Country: US
• Employees: 36,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.61
• Shares Outstanding: 1,183,655,600
• 10 Day Avg. Volume: 11,724,622
• 30 Day Avg. Volume: 16,669,194
• PEG Ratio: -5.25
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 1.44
• P/FCF Ratio: 11.75
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 1.95
• Enterprise Value/Gross Profit: 5.79
• Enterprise Value/Ebitda: -10.50
• 1Y Price Target: $25.71
• Price Target Upside: 1.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $26.00 ▲(2.48% Upside)

Kraft Heinz's overall stock score reflects significant financial challenges and a concerning valuation. The company's declining revenues and profitability, coupled with a negative P/E ratio, weigh heavily on the score. Technical analysis provides some balance with neutral to slightly bearish indicators. The high dividend yield is a positive aspect but is overshadowed by the broader financial struggles.

Positive Factors

Emerging Markets Growth

Strong growth in emerging markets indicates successful expansion and brand penetration, which can drive long-term revenue growth and market share.

Back-to-School Campaign Success

Successful marketing campaigns enhance brand visibility and consumer engagement, supporting sustained sales growth and brand loyalty.

Cash Flow Generation

Strong cash flow generation provides financial flexibility for reinvestment, debt reduction, and shareholder returns, supporting long-term stability.

Negative Factors

Declining Revenue

A declining revenue trend can signal weakening market position and demand, potentially impacting future profitability and growth prospects.

Negative Profit Margins

Sustained negative profit margins indicate operational inefficiencies and could hinder the company's ability to invest in growth and innovation.

Weaker Consumer Sentiment

Weak consumer sentiment can lead to reduced demand and sales, affecting revenue and profitability, especially in key markets.

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 Group and H.J. Heinz Company in 2015. The company operates in the consumer packaged goods sector, offering a diverse portfolio of iconic brands across various categories, including condiments, sauces, cheese, dairy, meats, snacks, and meals. Its core products include well-known labels such as Heinz ketchup, Kraft macaroni and cheese, Oscar Mayer meats, and Philadelphia cream cheese, among others. With a strong presence in North America and international markets, Kraft Heinz focuses on innovation and brand strength to meet consumer demands and preferences.

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

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 a slight decline in equity ratios. However, strong cash flow metrics indicate good liquidity, 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	25.16B	25.85B	26.64B	26.48B	26.04B	26.18B
Gross Profit	8.47B	8.97B	8.93B	8.12B	8.68B	9.18B
EBITDA	-4.67B	2.72B	5.51B	4.82B	4.67B	3.39B
Net Income	-4.37B	2.74B	2.85B	2.36B	1.01B	356.00M
Balance Sheet
Total Assets	81.69B	88.29B	90.34B	90.51B	93.39B	99.83B
Cash, Cash Equivalents and Short-Term Investments	3.13B	1.33B	1.40B	1.04B	3.44B	3.42B
Total Debt	21.19B	19.87B	20.03B	20.07B	21.82B	28.31B
Total Liabilities	40.12B	38.96B	40.62B	41.64B	43.94B	49.59B
Stockholders Equity	41.45B	49.19B	49.53B	48.68B	49.30B	50.10B
Cash Flow
Free Cash Flow	3.63B	3.16B	2.96B	1.55B	4.46B	4.33B
Operating Cash Flow	4.47B	4.18B	3.98B	2.47B	5.36B	4.93B
Investing Cash Flow	-1.78B	-1.02B	-916.00M	-1.09B	4.04B	-522.00M
Financing Cash Flow	-1.73B	-3.01B	-2.68B	-3.71B	-9.34B	-3.33B

Kraft Heinz Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.37
• 50DMA: Positive
• 100DMA: Negative
• 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 25.37 is above the 20-day moving average (MA) of 24.45, above the 50-day MA of 24.87, and below the 200-day MA of 26.54, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 60.44 is Neutral, neither overbought nor oversold. The STOCH value of 70.97 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	67 Neutral	$25.26B	8.96	30.98%	5.07%	-3.26%	25.58%
CPB	67 Neutral	$9.07B	15.19	15.64%	5.06%	6.40%	6.17%
CAG	64 Neutral	$8.54B	10.07	9.65%	7.92%	-4.11%	72.17%
HRL	63 Neutral	$12.77B	16.92	9.46%	4.99%	0.65%	-3.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KHC	53 Neutral	$30.20B	―	-9.73%	6.31%	-3.70%	-431.05%
SJM	46 Neutral	$11.12B	―	-17.44%	4.23%	-0.66%	-326.55%

Kraft Heinz Corporate Events

Kraft Heinz Co. Faces Financial Risk Over Potential Tax Liabilities in Planned Transactions

Kraft Heinz Co. faces a significant financial risk if the planned Separation and related transactions do not qualify as tax-free under U.S. federal income tax laws. Despite their intention to structure these transactions to be tax-exempt, there is no guarantee of achieving this status. Should these transactions be deemed taxable, both the company and its stockholders could incur substantial tax liabilities. This uncertainty poses a potential financial burden that could impact Kraft Heinz Co.’s financial health and investor confidence.

Kraft Heinz Appoints New Board Members for Strategic Growth

On October 22, 2025, Kraft Heinz announced the appointment of L. Kevin Cox, Mary Lou Kelley, and Tony Palmer to its Board of Directors. These new members bring significant expertise in consumer-focused industries and organizational transformation, which is crucial as the company prepares to separate into two industry-leading companies. The appointments are expected to enhance the company’s strategic initiatives and drive performance within its existing business.

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.

Kraft Heinz Announces Spin-Off into Two Companies

On September 2, 2025, Kraft Heinz announced its plan to separate into two independent, publicly traded companies through a tax-free spin-off, aiming to enhance strategic focus and operational efficiency. The separation will create ‘Global Taste Elevation Co.’ and ‘North American Grocery Co.’, each with distinct brand portfolios and leadership, designed to unlock shareholder value and drive industry-leading growth, with the transaction expected to close in the second half of 2026.

The most recent analyst rating on (KHC) stock is a Hold with a $29.00 price target. To see the full list of analyst forecasts on Kraft Heinz stock, see the KHC Stock Forecast page.