Kraft Heinz (KHC) AI Stock Analysis

• Market Cap: $31.28B
• Dividend Yield: 6.05%
• Average Volume (3M): 13.93M
• Price to Earnings (P/E): 12.0
• Beta (1Y): 0.08
• Revenue Growth: -4.25%
• EPS Growth: -4.04%
• Country: US
• Employees: 36,000
• Sector: Consumer Defensive
• Sector Strength: 53
• Industry: Packaged Foods
• EPS (TTM): 0.62
• Shares Outstanding: 1,183,542,100
• 10 Day Avg. Volume: 15,821,882
• 30 Day Avg. Volume: 13,932,914
• 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: 2.10
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 7.46
• Enterprise Value/Ebitda: 4.67
• 1Y Price Target: $28.77
• Price Target Upside: 8.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 69 Neutral
• Price Target: $29.00 ▲(9.56%Upside)

Kraft Heinz's overall stock score reflects a strong valuation and stable financial performance, tempered by mixed technical indicators and challenges highlighted in the earnings call. The company's attractive dividend yield and low P/E ratio are key strengths, while pressures from inflation and market conditions pose risks.

Positive Factors

Strategic Alternatives

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

Strategic Transactions

KHC announced that the Board of Directors and Executive Leadership Team are evaluating potential strategic transactions to unlock shareholder value.

Negative Factors

Board Changes

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

Profit Guidance

Kraft Heinz management lowered profit guidance by about 5% to reflect higher inflation, consumer elasticity, and additional investments as necessary in a volatile backdrop.

Sales and Market Share

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

Sales Volume

Continued challenges in sales volume growth. Sales volume remains a key indicator of sustainable growth, but recent trends have been discouraging.

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 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: Neutral
• Last Price: 26.47
• 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 Neutral. The current price of 26.47 is above the 20-day moving average (MA) of 26.13, below the 50-day MA of 26.75, and below the 200-day MA of 29.50, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 50.93 is Neutral, neither overbought nor oversold. The STOCH value of 59.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KHC.

Kraft Heinz Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KHC	69 Neutral	$31.28B	11.98	5.36%	6.05%	-4.25%	-4.04%
HRL	68 Neutral	$17.20B	23.20	9.39%	3.71%	-1.01%	-2.93%
CAG	67 Neutral	$9.73B	8.11	13.27%	6.87%	-3.15%	-65.38%
Sector *	65 Neutral	$26.88B	15.20	-4.27%	3.19%	1.02%	1.89%
GIS	63 Neutral	$27.77B	12.53	24.57%	4.76%	-1.87%	-5.16%
CPB	61 Neutral	$9.16B	20.15	11.67%	5.07%	8.65%	-38.57%
SJM	47 Neutral	$11.11B	22.22	-17.87%	4.15%	6.69%	-261.87%

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.

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.