Kraft Heinz (NASDAQ:KHC) Announces Earnings Results, Beats Expectations By $0.03 EPS

Kraft Heinz (NASDAQ:KHC) posted its quarterly earnings data on Wednesday. The company reported $0.56 EPS for the quarter, topping the consensus estimate of $0.53 by $0.03, FiscalAI reports. Kraft Heinz had a negative net margin of 13.64% and a positive return on equity of 7.10%. The company had revenue of $6.26 billion during the quarter, compared to analyst estimates of $6.18 billion. During the same period in the previous year, the firm earned $0.69 earnings per share. Kraft Heinz’s quarterly revenue was down 1.4% compared to the same quarter last year. Kraft Heinz updated its FY 2026 guidance to 2.030-2.090 EPS.

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

• Kraft Heinz increased its 2026 investment plan by $100 million, bringing the incremental spend to $600 million, primarily for marketing. Management said the decision reflects early traction from investments and greater confidence in the 2027 growth setup.
• Underlying consumption is expected to improve sequentially in the second half, with July trends near a 1% decline versus approximately 2.5% in the second quarter. Recent share losses have narrowed to about 20 basis points, supported by Capri Sun, Mac & Cheese, Ore-Ida, Heinz condiments and new product launches.
• Management identified continued work in meats and meals, particularly Oscar Mayer Deli Fresh and Lunchables, although new packaging and product updates are showing encouraging early results. The company expects further improvement from lapping prior declines and additional innovation.
• Emerging markets grew strongly, including 12% growth for Heinz in the quarter, while the global away-from-home business returned to growth. Kraft Heinz also maintained its free-cash-flow outlook, paid down $1.9 billion of debt during the quarter and said its balance sheet remains strong.
• The company continues to face a soft and volatile industry backdrop, expected 4%–5% inflation in 2027 and ongoing pressure from government benefit changes such as SNAP. Management also acknowledged that U.S. consumption and parts of the portfolio remain below desired levels.

Kraft Heinz Stock Down 3.0%

NASDAQ:KHC opened at $24.96 on Friday. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.06 and a quick ratio of 0.82. Kraft Heinz has a 1-year low of $21.03 and a 1-year high of $28.10. The company has a 50-day moving average of $24.62 and a 200 day moving average of $23.75. The firm has a market cap of $29.60 billion, a PE ratio of -8.73 and a beta of 0.08.

Kraft Heinz Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be issued a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 6.4%. The ex-dividend date is Friday, September 4th. Kraft Heinz’s payout ratio is presently -32.92%.

Insider Activity at Kraft Heinz

In related news, insider Diana Frost sold 18,502 shares of the business’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $23.05, for a total value of $426,471.10. Following the completion of the transaction, the insider owned 102,667 shares of the company’s stock, valued at $2,366,474.35. The trade was a 15.27% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Corporate insiders own 0.24% of the company’s stock.

Hedge Funds Weigh In On Kraft Heinz

Large investors have recently added to or reduced their stakes in the company. Jessup Wealth Management Inc bought a new stake in shares of Kraft Heinz in the 4th quarter valued at about $27,000. DV Equities LLC acquired a new stake in Kraft Heinz in the fourth quarter valued at approximately $29,000. Rakuten Securities Inc. boosted its stake in Kraft Heinz by 172.4% in the second quarter. Rakuten Securities Inc. now owns 1,245 shares of the company’s stock valued at $32,000 after acquiring an additional 788 shares in the last quarter. O Domhnaill Enterprises Inc. purchased a new stake in shares of Kraft Heinz during the 4th quarter valued at $35,000. Finally, Rossby Financial LCC lifted its holdings in shares of Kraft Heinz by 83.7% during the 4th quarter. Rossby Financial LCC now owns 1,837 shares of the company’s stock valued at $45,000 after purchasing an additional 837 shares during the last quarter. 78.17% of the stock is currently owned by institutional investors.

Trending Headlines about Kraft Heinz

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

• Positive Sentiment: Kraft Heinz exceeded second-quarter expectations, reporting adjusted EPS of $0.56 versus the $0.53 consensus and revenue of approximately $6.26 billion versus $6.18 billion expected. Kraft Heinz Q2 Earnings Beat Estimates Despite Organic Sales Dip
• Positive Sentiment: Management improved its 2026 organic-sales outlook to a decline of roughly 0.5% to 2.0% and reaffirmed adjusted EPS guidance of $2.03 to $2.09, broadly consistent with analyst expectations. Kraft Heinz Reports Second Quarter 2026 Results
• Positive Sentiment: Early improvements in consumption, market share, and brand performance prompted Kraft Heinz to add $100 million of second-half marketing spending, with management targeting volume-led growth and a stronger 2027. KHC Q2 Earnings Call Raises Brand Spending
• Positive Sentiment: JPMorgan upgraded Kraft Heinz’s credit view to Overweight, citing better quarterly results, deleveraging, disciplined balance-sheet management, and confidence that the company can fund brand investments while controlling leverage. JPMorgan Upgrades Kraft Heinz Credit
• Neutral Sentiment: The board declared a regular quarterly dividend of $0.40 per share, equivalent to $1.60 annually and an indicated yield of about 6.4%. The payout supports income appeal, but investors are increasingly evaluating whether the yield is sustainable during the turnaround.
• Negative Sentiment: A roughly $7.4 billion noncash goodwill and intangible-asset impairment drove a reported quarterly net loss of approximately $5.46 billion, overshadowing the adjusted earnings beat. Kraft Heinz Is Down After Impairment-Fueled Loss
• Negative Sentiment: Underlying results remain weak: revenue declined 1.4% year over year, adjusted EPS fell from $0.69, and adjusted operating income dropped about 18%. Management also expects full-year adjusted operating income to decline 16% to 18% as investment and inflation weigh on margins.
• Negative Sentiment: The combination of lower volume, heavier brand investment, and the impairment has revived concerns that Kraft Heinz’s high dividend yield could represent a “yield trap” if the turnaround fails to restore sustainable growth. 3 Big Dividends and One Case Study in How a Yield Trap Ends

Analysts Set New Price Targets

KHC has been the subject of several research analyst reports. Weiss Ratings reiterated a “sell (d)” rating on shares of Kraft Heinz in a research report on Friday, July 17th. BTIG Research initiated coverage on shares of Kraft Heinz in a report on Monday, April 13th. They issued a “neutral” rating on the stock. Piper Sandler raised their price target on shares of Kraft Heinz from $24.00 to $25.00 and gave the stock a “neutral” rating in a research note on Thursday. Sanford C. Bernstein lowered shares of Kraft Heinz from a “market perform” rating to an “underperform” rating and decreased their price objective for the company from $25.00 to $21.00 in a report on Wednesday, June 3rd. Finally, Wells Fargo & Company boosted their price objective on shares of Kraft Heinz from $23.00 to $25.00 and gave the company an “equal weight” rating in a research report on Wednesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat, Kraft Heinz presently has an average rating of “Reduce” and an average target price of $23.56.

Kraft Heinz Company Profile

The Kraft Heinz Company (NASDAQ: KHC) is a global food and beverage company formed in 2015 through the merger of Kraft Foods Group and H.J. Heinz Company. The combination created one of the largest packaged-food companies in the world, built around well-known consumer brands. The merger was supported by major investors and established a multi-national platform for branded food products.

Kraft Heinz develops, manufactures, markets and distributes a broad portfolio of branded packaged foods and condiments.