Start here if you're new
what it is
It sells the branded food and drinks already sitting in your pantry, fridge, and ketchup caddy.
how it gets paid
Last year Kraft Heinz made $24.9B in revenue.
why growth slowed
Revenue fell 3.5% last year. Gross margin at 33.6% matters most because margin → money left after making the product → so what: a slow-growth food company lives or dies.
what just happened
Kraft Heinz beat by a few cents, with $0.67 EPS versus the $0.63 consensus, but the bigger story is still flat-to-down fundamentals.
At a glance
B+ balance sheet — decent shape, but not bulletproof
95/100 earnings predictability — you can trust these numbers
9.5x trailing p/e — the market's not buying it — or you found a deal
6.6% dividend yield — cash in your pocket every quarter
5.5% return on capital — nothing to write home about
xvary composite: 55/100 — below average
What they do
It sells the branded food and drinks already sitting in your pantry, fridge, and ketchup caddy.
You do not casually swap Heinz, Kraft, Jell-O, or Lunchables when they are already in your cart. Kraft Heinz has several $1 billion-plus brands and gets 76% of sales from North America, where those habits are old and sticky. Scale → giant buying power → so what: it can fight for shelf space and price with retailers that smaller food companies cannot.
How they make money
$24.9B
annual revenue · revenue declined -3.5% last year
total revenue
$24.9B
3.5%
The products that matter
manufactures and sells branded groceries
Packaged Foods & Condiments
$24.9B revenue · entire business
it's the whole company today, and that revenue fell 3.5% last year. if you want the separation story to matter, the base business still has to stop slipping first.
100% of revenue
Key numbers
$19.3B
long-term debt
Debt → money already spoken for → so what: a lot of your upside depends on management earning more from a loaded balance sheet.
6.6%
dividend yield
Yield → cash paid to shareholders → so what: most of your return here comes from income, not growth.
5.5%
return on capital
Return on capital → profit earned on the money in the business → so what: Kraft Heinz is producing pretty ordinary output for the capital tied up.
21%
Walmart exposure
Customer concentration → one buyer has leverage → so what: Walmart has unusual power over a big slice of Kraft Heinz sales.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 2 — safer than 80% of stocks
- price stability 95 / 100
- long-term debt $19.3B (40% of capital)
- net profit margin 14.1% — keeps 14 cents of every dollar in revenue
- return on equity 8% — $0.08 profit for every $1 investors have put in
B+ — risk rank looks solid but long-term debt needs watching.
Total return vs. market
You invested $10,000 in KHC 3 years ago → it's now worth $6,910.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Kraft Heinz beat by a few cents, with $0.67 EPS versus the $0.63 consensus, but the bigger story is still flat-to-down fundamentals.
VL shows quarterly EPS fell from $0.84 in Q4 2024 to $0.63 in Q4 2025. EDGAR shows annual revenue of $24.9B, down 3.5%, while the latest-quarter revenue figure of $18.6B conflicts with that annual base, so you should treat the quarter's top-line read carefully.
$18.6B
revenue
$0.67
eps
33.6%
gross margin
the number that mattered
Gross margin at 33.6% matters most because margin → money left after making the product → so what: a slow-growth food company lives or dies on keeping that spread intact.
-
a new ceo took the helm at kraft heinz.
-
carlos abrams-rivera stepped down on january 1st.
-
former kellogg ceo, steve cahillane will take over, as the company prepares to break up.
-
otherwise, not much has changed since our october report.
-
to recap, the company is still on track to separate into two distinct companies by the end of 2026.the plan is intended to let the highergrowth global products businesses operate on their own, and thereby maybe receive a higher valuation. meanwhile, current operating results are below historical standards, and a $0.23 a share tax hit weighed on the 2025 bottom line. many former category-leading products, such as lunchables and oscar mayer, are not resonating with customers to the same degree as in years past.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the main risk is specific: Kraft Heinz is trying to execute a two-company separation while the core $24.9B food business is still getting smaller.
high
the revenue slide keeps going
the company already posted a 3.5% decline on a $24.9B base. if the sales line stays below that level again, the cheap multiple stops looking patient and starts looking accurate.
this touches the full business, because there is no faster-growing segment here hiding underneath the portfolio.
med
the separation story gets harder under a new ceo
management says the split is on track for the end of 2026, but leadership changed on January 1st. breakups sound neat in presentations. they get messy fast when execution, staffing, and asset quality all need to line up at once.
if timing slips, you are left owning the old business while waiting longer for the promised rerating.
med
debt stays manageable until it suddenly matters
$19.3B of long-term debt equals 40% of capital. that's workable for a stable staples business. it gets less comfortable if shrinking sales and separation costs show up together.
the balance sheet is fine today. it offers less forgiveness if the turnaround takes longer than the market expects.
med
the yield becomes the whole thesis
a 6.6% dividend yield attracts attention for obvious reasons. the danger is when income becomes your only reason to stay, because that usually means the business itself is not earning new confidence.
if the market starts doubting the stability behind that payout, the stock loses the easiest part of its support.
slow staples companies survive bad stretches all the time. doing that while changing CEOs, preparing a split, and trying to stop a 3.5% revenue decline is a tighter script.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
whether revenue gets back above zero
last year came in at $24.9B, down 3.5%. for this stock, stabilization is not a side note. it's the whole setup.
calendar
the end-2026 separation deadline
management says the company is on track to split into two businesses by the end of 2026. if that date starts moving, the market will read it as a credibility problem.
trend
whether earnings stay steady for the right reason
quarterly EPS ran $0.62, $0.69, $0.61, and $0.63. steady profits are good. steady profits while revenue drifts lower are less comforting.
risk
whether debt stays boring
$19.3B of long-term debt is fine when the business behaves like a staples utility. it becomes a louder issue if shrinking sales and restructuring costs show up together.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts think this is more likely to lag than lead from here.
risk profile
above average
stability score 2 — safer than roughly 80% of stocks. this is a slow stock, not a chaotic one.
chart momentum
average
technical score 3 — no dramatic signal. the chart is waiting for the business to give it a reason.
earnings predictability
95 / 100
results tend to land close to expectations. reliable numbers help you sleep. they do not, by themselves, create a better business.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 515 buyers vs. 479 sellers in 3q2025. total institutional holdings: 1.0B shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$21
$35
$24
current price
$28
target midpoint · +15% from current · 3-5yr high: $50 (+105% · 24% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive