Kraft Heinz (KHC) AI Stock Analysis

• Market Cap: $31.55B
• Dividend Yield: 6%
• Average Volume (3M): 13.87M
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.08
• Revenue Growth: -4.25%
• EPS Growth: -4.04%
• Country: US
• Employees: 36,000
• Sector: Consumer Defensive
• Sector Strength: 57
• Industry: Packaged Foods
• EPS (TTM): 0.62
• Shares Outstanding: 1,183,542,100
• 10 Day Avg. Volume: 18,902,967
• 30 Day Avg. Volume: 13,866,072
• PEG Ratio: -0.17
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.87
• Enterprise Value/Market Cap: 2.08
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 7.46
• Enterprise Value/Ebitda: 4.67
• 1Y Price Target: $29.00
• Price Target Upside: 8.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 74 Outperform
• Price Target: $30.00 ▲(12.53%Upside)

Kraft Heinz's overall stock score is primarily driven by its solid financial performance and attractive valuation, despite technical indicators showing bearish trends. Strategic investments and a high dividend yield provide long-term potential, but near-term pressures from market challenges and operational efficiency concerns weigh on the score.

Positive Factors

Brand Investment

The commitment to high quality brand-building with increased media spending and raising R&D to match peers is seen as constructive for the business.

Strategic Transactions

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

Negative Factors

Board Changes

The departure of two board members from its largest shareholder, Berkshire Hathaway, could lead to an adverse market reaction.

Profitability Challenges

Gross margins were also below expectations, impacting overall profitability.

Sales and Market Share

There is continued weakness in scanner data with sales declines and market share losses across key categories.

Kraft Heinz Business Overview & Revenue Model

Company Description

The Kraft Heinz Company (KHC) is a globally recognized food and beverage conglomerate, formed in 2015 through the merger of Kraft Foods Group and H.J. Heinz Company. Headquartered in Chicago, Illinois, and Pittsburgh, Pennsylvania, Kraft Heinz operates in the consumer packaged goods industry, offering a wide range of products across various categories including condiments, sauces, cheese and dairy, meals, meats, refreshment beverages, coffee, and other grocery products. The company markets its products under iconic brands such as Heinz, Kraft, Oscar Mayer, Philadelphia, and Velveeta, serving millions of consumers worldwide.

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 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 Financial Statement Overview

Summary

Kraft Heinz demonstrates a stable financial position with average operational efficiency and moderate profitability. The balance sheet is strong with low leverage and solid equity, while cash flows are well-managed despite recent declines in free cash flow growth. The company might need to focus on reigniting revenue growth to enhance future profitability and shareholder value.

Income Statement

Kraft Heinz shows moderate stability in its income statement. The TTM gross profit margin is approximately 34.5%, indicating efficient cost management. However, the net profit margin of 10.4% is somewhat lower, reflecting potential challenges in converting revenue to profit. Revenue has shown a slight decline in recent years, indicating stagnation in growth. The EBIT margin is at 6.2%, and EBITDA margin stands at 9.5%, both suggesting average operational efficiency.

Balance Sheet

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.42, indicating conservative leverage. Return on equity (ROE) is at 5.4%, hinting at moderate profitability for shareholders. The equity ratio is 54.8%, which demonstrates a strong equity position relative to total assets, providing stability and resilience against liabilities.

Cash Flow

Cash flow analysis reveals adequate liquidity management. The free cash flow to net income ratio is 1.14, indicating good cash generation relative to net income. The operating cash flow to net income ratio is 1.56, suggesting robust cash conversion efficiency. However, the free cash flow growth rate shows a negative trend, down by 4.3%, which may limit future investment capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.43B	25.85B	26.64B	26.48B	26.04B	26.18B
Gross Profit	8.79B	8.97B	8.93B	8.12B	8.68B	9.18B
EBITDA	2.71B	2.72B	5.51B	4.82B	4.67B	3.39B
Net Income	2.65B	2.74B	2.85B	2.36B	1.01B	356.00M
Balance Sheet
Total Assets	103.56B	88.29B	90.34B	90.51B	93.39B	99.83B
Cash, Cash Equivalents and Short-Term Investments	1.10B	1.33B	1.40B	1.04B	3.44B	3.42B
Total Debt	31.11B	19.87B	20.03B	20.07B	21.82B	28.31B
Total Liabilities	51.73B	38.96B	40.62B	41.64B	43.94B	49.59B
Stockholders Equity	51.70B	49.19B	49.53B	48.68B	49.30B	50.10B
Cash Flow
Free Cash Flow	3.02B	3.16B	2.96B	1.55B	4.46B	4.33B
Operating Cash Flow	4.13B	4.18B	3.98B	2.47B	5.36B	4.93B
Investing Cash Flow	-1.61B	-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: 26.66
• 50DMA: Negative
• 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 Negative. The current price of 26.66 is above the 20-day moving average (MA) of 26.15, below the 50-day MA of 26.90, and below the 200-day MA of 29.60, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 45.75 is Neutral, neither overbought nor oversold. The STOCH value of 68.40 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
KHC	74 Outperform	$31.55B	12.09	5.36%	6.00%	-4.25%	-4.04%
Sector *	68 Neutral	S$3.41B	16.78	-11.82%	6.53%	5.14%	-8.01%
CAG	67 Neutral	$10.02B	30.71	3.67%	6.67%	-3.15%	-65.38%
HRL	64 Neutral	$16.76B	22.41	9.39%	3.81%	-1.01%	-2.93%
HRL	64 Neutral	$16.76B	22.41	9.39%	3.81%	-1.01%	-2.93%
GIS	63 Neutral	$28.83B	12.97	24.57%	4.51%	-1.87%	-5.16%
GIS	63 Neutral	$28.83B	12.97	24.57%	4.51%	-1.87%	-5.16%
CPB	53 Neutral	$9.32B	20.65	11.67%	4.99%	8.65%	-38.57%
CPB	53 Neutral	$9.32B	20.65	11.67%	4.99%	8.65%	-38.57%
SJM	47 Neutral	$11.04B	22.22	-17.87%	4.15%	6.69%	-261.87%
SJM	47 Neutral	$11.04B	22.22	-17.87%	4.15%	6.69%	-261.87%

Kraft Heinz Corporate Events

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.

Kraft Heinz Elects Directors at Annual Meeting

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.