Kraft Heinz (KHC) AI Stock Analysis

• Market Cap: $29.01B
• Dividend Yield: 6.53%
• Average Volume (3M): 13.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.05
• 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: 13,977,677
• 30 Day Avg. Volume: 13,592,703
• 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: 1.69
• Enterprise Value/Revenue: 1.95
• Enterprise Value/Gross Profit: 5.79
• Enterprise Value/Ebitda: -10.50
• 1Y Price Target: $25.86
• Price Target Upside: 7.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $24.50 ▲(1.45% Upside)

Kraft Heinz's overall stock score reflects significant financial and operational challenges. The company's declining revenues and profitability, coupled with a negative P/E ratio, weigh heavily on the score. Technical analysis indicates bearish momentum, and while the earnings call suggests some strategic initiatives, the outlook remains cautious due to global consumer sentiment and inflationary pressures. The high dividend yield provides some support but is overshadowed by the broader financial struggles.

Positive Factors

Emerging Markets Growth

Strong growth in emerging markets, particularly for the Heinz brand, indicates successful market penetration and potential for future expansion.

Back-to-School Campaign Success

Successful marketing campaigns like the back-to-school initiative enhance brand visibility and consumer engagement, supporting long-term sales growth.

North American Grocery Improvement

Improvement in North American grocery trends suggests better alignment with consumer preferences, aiding in stabilizing cash flows and profitability.

Negative Factors

Declining Revenues

Declining revenues reflect challenges in maintaining market share and consumer demand, which could pressure future profitability and growth.

Negative Profit Margins

Negative profit margins indicate operational inefficiencies and cost pressures, impacting the company's ability to generate sustainable profits.

Regulatory Challenges

Regulatory actions against ultraprocessed foods could lead to increased scrutiny and potential costs, affecting long-term operational and financial performance.

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

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: Negative
• Last Price: 24.15
• 50DMA: Negative
• 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 24.15 is below the 20-day moving average (MA) of 24.71, below the 50-day MA of 24.60, and below the 200-day MA of 26.20, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 40.82 is Neutral, neither overbought nor oversold. The STOCH value of 42.92 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
HRL	68 Neutral	$13.02B	27.25	6.02%	4.81%	1.55%	-40.81%
GIS	66 Neutral	$25.54B	10.34	27.29%	5.11%	-5.65%	0.41%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
CPB	60 Neutral	$8.52B	14.78	14.82%	5.46%	2.71%	4.90%
CAG	52 Neutral	$8.30B	-83.87	-1.16%	7.87%	-5.82%	-119.70%
SJM	49 Neutral	$10.53B	-8.83	-17.44%	4.42%	-0.66%	-326.55%
KHC	48 Neutral	$29.01B	-6.49	-9.73%	6.53%	-3.70%	-431.05%

Kraft Heinz Corporate Events

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.

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.