Kraft Heinz (NASDAQ:KHC) Releases Earnings Results, Beats Expectations By $0.08 EPS

Kraft Heinz (NASDAQ:KHC) issued its quarterly earnings results on Wednesday. The company reported $0.58 earnings per share for the quarter, beating analysts’ consensus estimates of $0.50 by $0.08, FiscalAI reports. The business had revenue of $6.05 billion during the quarter, compared to analyst estimates of $5.89 billion. Kraft Heinz had a negative net margin of 23.05% and a positive return on equity of 7.26%. Kraft Heinz’s revenue for the quarter was up .8% compared to the same quarter last year. During the same quarter last year, the business posted $0.62 earnings per share. Kraft Heinz updated its FY 2026 guidance to 1.980-2.100 EPS.

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

• Q1 showed meaningful share recovery: total portfolio holding/gaining share rose from 21% last year to 35% YTD and reached 58% in March, while Taste Elevation brands improved to 81% in Q1 (87% in March).
• The company reclassified portfolio priorities — frozen moved from Win Big to Hold, hydration upgraded to Win Big (Capri Sun focus), and cheese moved from Hold to Win — signaling active portfolio optimization.
• Guidance was kept largely unchanged but near-term headwinds persist: Q2 revenue is expected down ~3%–5% (Easter timing), SNAP benefit cuts are a ~100 bp annual headwind starting in Q2, and energy/resin inflation spikes (resin hedged only through mid?Q3) could pressure margins later in the year.
• Cash flow and capital allocation remain constructive: strong Q1 free cash flow, plans to pay down upcoming maturities, and continued deployment of $600 million in growth investments (marketing at least 5.5% of revenue; Q1 marketing +37%), with productivity (~4% of COGS) prioritized as the first line of defense versus inflation.

Kraft Heinz Trading Up 1.0%

Shares of NASDAQ KHC traded up $0.25 during midday trading on Friday, reaching $23.89. 3,182,677 shares of the stock were exchanged, compared to its average volume of 15,901,827. The business has a 50-day simple moving average of $22.78 and a two-hundred day simple moving average of $23.82. The company has a market capitalization of $28.32 billion, a price-to-earnings ratio of -4.91 and a beta of 0.06. Kraft Heinz has a 12 month low of $21.03 and a 12 month high of $29.19. The company has a debt-to-equity ratio of 0.46, a current ratio of 1.20 and a quick ratio of 0.79.

Kraft Heinz Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Friday, June 5th will be given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 6.7%. The ex-dividend date of this dividend is Friday, June 5th. Kraft Heinz’s dividend payout ratio (DPR) is currently -32.92%.

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. Mizuho lowered their price target on shares of Kraft Heinz from $27.00 to $25.00 and set a “neutral” rating for the company in a report on Monday, February 23rd. Barclays raised their price target on shares of Kraft Heinz from $24.00 to $25.00 and gave the company an “equal weight” rating in a report on Thursday, February 12th. Jefferies Financial Group lowered their price target on shares of Kraft Heinz from $23.00 to $20.00 and set a “hold” rating for the company in a report on Monday, March 30th. BNP Paribas Exane lowered their price target on shares of Kraft Heinz from $18.00 to $17.00 in a report on Thursday. Finally, Morgan Stanley set a $22.00 price target on shares of Kraft Heinz in a report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus target price of $23.47.

Key Stories Impacting Kraft Heinz

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

• Positive Sentiment: Q1 results beat expectations — adjusted EPS and revenue topped consensus, with management pointing to early signs of a turnaround under CEO Steve Cahillane. Earnings Beat
• Positive Sentiment: Company declared a $0.40 quarterly dividend (6.8% yield), supporting income?oriented holders and reducing downside from an income perspective.
• Positive Sentiment: Kraft Heinz launched a $1.1B cash tender offer to repurchase certain long?dated notes, which can improve the balance sheet and reduce interest exposure. Tender Offer
• Positive Sentiment: Management is increasing brand investment (marketing spend up ~37%) and rolling out innovations (e.g., protein Kraft Mac & Cheese, NFL sponsorship) to drive share gains long term. Marketing Spend
• Neutral Sentiment: Analysts are updating models after the quarter; Deutsche Bank raised its price target to $22 (maintained Hold), reflecting mixed views on recovery pace. Deutsche Bank
• Neutral Sentiment: The upcoming USMCA review was flagged as a macro/regulatory risk for border?sensitive supply chains; it’s a watch item but not an immediate company?specific event. USMCA Review
• Negative Sentiment: Underlying organic sales and volumes slipped in Q1 and management is cutting prices/reshaping price architecture to support affordability — measures that could compress near?term margins. Price Cuts
• Negative Sentiment: BNP Paribas Exane cut its price target to $17, signaling downside risk if the turnaround stalls or margin pressure persists. BNP Paribas

Insider Buying and Selling at Kraft Heinz

In other news, insider Cory Onell sold 9,045 shares of Kraft Heinz stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $24.61, for a total transaction of $222,597.45. Following the transaction, the insider directly owned 202,454 shares of the company’s stock, valued at $4,982,392.94. This trade represents a 4.28% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.24% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Kraft Heinz

A number of hedge funds and other institutional investors have recently made changes to their positions in KHC. Ashton Thomas Private Wealth LLC bought a new position in shares of Kraft Heinz during the first quarter worth $207,000. Woodline Partners LP boosted its position in shares of Kraft Heinz by 39.0% during the first quarter. Woodline Partners LP now owns 73,700 shares of the company’s stock worth $2,243,000 after purchasing an additional 20,690 shares in the last quarter. NewEdge Advisors LLC boosted its position in shares of Kraft Heinz by 16.6% during the second quarter. NewEdge Advisors LLC now owns 51,222 shares of the company’s stock worth $1,323,000 after purchasing an additional 7,307 shares in the last quarter. The Manufacturers Life Insurance Company boosted its position in shares of Kraft Heinz by 0.8% during the second quarter. The Manufacturers Life Insurance Company now owns 522,147 shares of the company’s stock worth $13,482,000 after purchasing an additional 4,003 shares in the last quarter. Finally, HUB Investment Partners LLC bought a new position in shares of Kraft Heinz during the second quarter worth $207,000. 78.17% of the stock is owned by institutional investors.

About Kraft Heinz

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.