Kraft Heinz (NASDAQ:KHC) Issues Earnings Results

Kraft Heinz (NASDAQ:KHC) released its quarterly earnings results on Wednesday. The company reported $0.53 EPS for the quarter, topping the consensus estimate of $0.42 by $0.11, Zacks reports. The business had revenue of $6.12 billion during the quarter, compared to analyst estimates of $6.09 billion. Kraft Heinz had a negative net margin of 13.64% and a positive return on equity of 7.10%. The company’s quarterly revenue was down 2.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.61 earnings per share.

Here are the key takeaways from Kraft Heinz’s conference call:

• Kraft Heinz agreed to divest its North American coffee business to One Rock while retaining a 30% non-controlling stake, which management said will simplify the portfolio and focus resources on higher-growth opportunities.
• North American away-from-home sales grew at a low-single-digit rate, supported by share gains, new distribution, and partnerships including the NFL and Disney.
• U.S. retail trends modestly improved, with the share of revenue gaining share rising to 28% from roughly 25% in the first half, but category consumption remains soft and broader distribution gains are expected mainly after spring 2027 resets.
• Management now expects 2027 inflation to be slightly above 5%, driven by packaging, commodities, soybean oil, and less favorable dairy comparisons; additional pricing will likely be required, creating temporary margin pressure as it flows through.
• The company expects to complete its planned $700 million of 2026 investments and maintain a similar level next year, while improving returns through better marketing allocation, revenue-growth management, productivity, automation, and a stronger innovation pipeline.

Kraft Heinz Stock Down 0.3%

Kraft Heinz stock traded down $0.09 during trading hours on Thursday, hitting $25.36. The company had a trading volume of 18,921,282 shares, compared to its average volume of 15,750,108. Kraft Heinz has a fifty-two week low of $21.03 and a fifty-two week high of $28.09. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.06 and a quick ratio of 0.68. The firm has a market capitalization of $30.07 billion, a P/E ratio of -8.87, a price-to-earnings-growth ratio of 2.99 and a beta of 0.12. The firm’s fifty day moving average is $24.00 and its 200-day moving average is $23.90.

Kraft Heinz Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, December 23rd. Stockholders of record on Friday, December 4th will be issued a $0.40 dividend. The ex-dividend date is Friday, December 4th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 6.3%. Kraft Heinz’s dividend payout ratio is currently -55.94%.

Kraft Heinz News Roundup

Here are the key news stories impacting Kraft Heinz this week:

• Positive Sentiment: Q3 adjusted EPS of $0.53 beat estimates of about $0.42, and revenue of $6.12 billion modestly exceeded expectations. Kraft Heinz also raised its 2026 earnings outlook, giving investors evidence of progress despite a challenging operating environment. KHC Q3 Earnings Top Estimates, Emerging Markets Sales Rise
• Positive Sentiment: The company agreed to sell its North American coffee business to One Rock at a $650 million enterprise value, while keeping a 30% stake. The move is intended to sharpen focus on core brands and support debt reduction and the turnaround. Kraft Heinz to Divest North America Coffee Business to One Rock Capital Partners
• Neutral Sentiment: Kraft Heinz declared its regular $0.40 quarterly dividend, payable December 23. The payout may appeal to income-focused investors, though the announcement does not address the company’s growth or operating challenges. The Kraft Heinz Company Declares Regular Quarterly Dividend
• Negative Sentiment: Revenue fell 2% year over year and adjusted EPS was below the year-ago level. Management cited inflation above 5%, sluggish U.S. retail recovery and limited market-share gains; likely 2027 price increases could also risk pressuring demand. KHC Q3 Earnings Call Highlights Turnaround and Inflation Pressures

Wall Street Analyst Weigh In

A number of research firms have commented on KHC. TD Cowen restated a “hold” rating and set a $22.00 price target on shares of Kraft Heinz in a research report on Tuesday, September 22nd. Weiss Ratings cut shares of Kraft Heinz from a “sell (d)” rating to a “sell (d-)” rating in a report on Thursday, August 6th. Piper Sandler raised their price objective on shares of Kraft Heinz from $24.00 to $25.00 and gave the company a “neutral” rating in a research note on Thursday, August 6th. Royal Bank Of Canada reissued an “outperform” rating and set a $32.00 target price on shares of Kraft Heinz in a report on Thursday, September 24th. Finally, JPMorgan Chase & Co. cut their price objective on Kraft Heinz from $24.00 to $23.00 and set an “underweight” rating for the company in a report on Tuesday, October 20th. One analyst has rated the stock with a Buy rating, ten have given a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Reduce” and an average target price of $23.87.

About Kraft Heinz

The Kraft Heinz Company (NASDAQ: KHC) is a global food and beverage company that develops, manufactures and markets branded products for consumers, retailers and foodservice customers. Its portfolio includes condiments and sauces, cheese and dairy products, meals, meats, snacks, beverages and desserts.

The company’s brands include Kraft, Heinz, Oscar Mayer, Philadelphia, Velveeta, Jell-O, Maxwell House, Lunchables, Capri Sun, Planters and Classico, among others. Products are sold through grocery stores, mass merchants, club stores, convenience retailers, e-commerce channels and foodservice distributors.

Kraft Heinz was created in 2015 through the merger of Kraft Foods Group and H.J.