Kraft Heinz (KHC) AI Stock Analysis

• Market Cap: $32.30B
• Dividend Yield: 5.86%
• Average Volume (3M): 13.49M
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.10
• Revenue Growth: -3.83%
• EPS Growth: -384.08%
• Country: US
• Employees: 36,000
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Packaged Foods
• EPS (TTM): 0.69
• Shares Outstanding: 1,183,599,200
• 10 Day Avg. Volume: 17,259,657
• 30 Day Avg. Volume: 13,486,268
• 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: 1.52
• Enterprise Value/Revenue: 1.94
• Enterprise Value/Gross Profit: 5.67
• Enterprise Value/Ebitda: -8.52
• 1Y Price Target: $28.20
• Price Target Upside: 3.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

• Rating: 56 Neutral
• Price Target: $28.00 ▲(2.60% Upside)

Kraft Heinz's overall stock score reflects significant profitability challenges and valuation issues, with negative earnings impacting the P/E ratio. However, strong cash flow and strategic growth initiatives in emerging markets provide some positive outlook. The planned spin-off could enhance future strategic focus, but current market and operational challenges weigh heavily on the score.

Positive Factors

Corporate Strategy

The company believes the split will significantly reduce operational complexity, allowing for more efficient deployment of resources and faster decision-making.

Valuation

Valuation looks reasonable.

Negative Factors

Financial Performance

KHC’s guidance implies a $300-400 million EBITDA decline in 2025, which is expected to be evenly split between the two businesses.

Market Trends

About half of NA Grocery Co's sales will come from commoditized categories like cheese, meat, and coffee where Kraft brands continue to get squeezed in the middle by organic/natural at the premium end and private label at the value end.

Shareholder Sentiment

Public remarks around Berkshire Hathaway's disappointment with the transaction contributed to the move lower.

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: Positive
• Last Price: 27.29
• 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 27.29 is above the 20-day moving average (MA) of 27.19, above the 50-day MA of 27.04, and below the 200-day MA of 28.02, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 51.24 is Neutral, neither overbought nor oversold. The STOCH value of 54.17 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	73 Outperform	$27.04B	12.34	24.57%	4.76%	-1.87%	-5.16%
CAG	72 Outperform	$9.21B	8.03	13.27%	7.26%	-3.64%	231.77%
CPB	69 Neutral	$10.15B	16.93	15.64%	4.53%	6.40%	6.17%
HRL	63 Neutral	$14.11B	18.71	9.46%	4.49%	0.65%	-3.76%
Sector *	63 Neutral	$20.52B	14.79	-2.72%	3.09%	1.95%	-4.74%
KHC	56 Neutral	$32.30B	12.81	-11.68%	5.86%	-3.83%	-384.08%
SJM	55 Neutral	$12.00B	22.22	-21.32%	3.86%	2.54%	-293.39%

Kraft Heinz Corporate Events

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.

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.

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.

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.