The Kraft Heinz Company (KHC), with a market cap of $33.8 billion, is one of the largest food and beverage companies in the world, formed through the 2015 merger of Kraft Foods Group and H.J. Heinz Company. Headquartered in Pittsburgh and Chicago, KHC operates a diverse portfolio of iconic brands, including Kraft, Heinz, Oscar Mayer, Velveeta, Philadelphia, Capri Sun, and Classico.
Shares of KHC have significantly underperformed the broader market over the past 52 weeks. KHC has dropped 18.9% over this time frame, while the broader S&P 500 Index ($SPX) has gained 16.6%. Moreover, shares of KHC are down 10.6% on a YTD basis, compared to SPX’s 7.8% return.
Looking closer, Kraft Heinz has also trailed the Consumer Staples Select Sector SPDR Fund’s (XLP) 2.3% rise over the past 52 weeks and 1.5% surge on a YTD basis.
On Jul. 30, Kraft Heinz announced its Q2 2025 earnings and its shares dropped 3.6% in the next trading session. Its revenue of $6.35 billion declined 1.9% year-over-year, but came slightly above expectations. Similarly, its adjusted EPS of $0.69 beat estimates, despite a 11.5% decline from the prior year.
For the current fiscal year, ending in December 2025, analysts expect KHC’s adjusted EPS to decline 16% year-over-year to $2.57. However, the company's earnings surprise history is strong. It beat the consensus estimates in the last four quarters.
Among the 21 analysts covering the stock, the consensus rating is a “Hold.” That’s based on one “Strong Buy” rating, 17 “Holds,” one “Moderate Sell,” and two “Strong Sells.”
This configuration is less bullish than it was three months ago, with two “Strong Buy” ratings on the stock.
On July 31, UBS Group AG (UBS) analyst Cody Ross maintained a "Neutral" rating on Kraft Heinz while raising the price target from $29 to $30, reflecting a modest 3.45% increase. This upward revision suggests a slightly improved outlook on the stock’s performance, though the maintained Neutral stance indicates that KHC is still expected to perform in line with the broader market.
KHC’s mean price target of $28.75 indicates a premium of 4.7% from the prevailing market prices. The Street-high price target of $31 implies a potential upside of 12.9% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
