Kraft Heinz (NASDAQ:KHC) Issues Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Kraft Heinz (NASDAQ:KHC) issued its earnings results on Wednesday. The company reported $0.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.53 by $0.03, FiscalAI reports. Kraft Heinz had a negative net margin of 23.05% and a positive return on equity of 7.26%. The company had revenue of $6.26 billion for the quarter, compared to analyst estimates of $6.13 billion. During the same quarter last year, the firm earned $0.69 EPS. The company’s revenue for the quarter was down 1.4% on a year-over-year basis. 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 Price Performance

NASDAQ:KHC traded down $1.04 on Wednesday, hitting $25.59. The company had a trading volume of 14,308,198 shares, compared to its average volume of 15,176,407. Kraft Heinz has a 52 week low of $21.03 and a 52 week high of $28.10. The company has a current ratio of 1.20, a quick ratio of 0.82 and a debt-to-equity ratio of 0.46. The stock has a market capitalization of $30.35 billion, a price-to-earnings ratio of -5.27 and a beta of 0.08. The firm has a 50 day moving average of $24.59 and a two-hundred day moving average of $23.73.

Trending Headlines about Kraft Heinz

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

• Positive Sentiment: Kraft Heinz reported second-quarter adjusted earnings of $0.56 per share, above the $0.53 analyst consensus, while revenue of $6.26 billion also exceeded expectations of $6.13 billion. Kraft Heinz Reports Second Quarter 2026 Results; Updates 2026 Full Year Outlook
• Positive Sentiment: Management improved its 2026 organic-sales outlook to a decline of approximately 0.5% to 2.0%, signaling better-than-expected momentum in areas including U.S. Retail, Away From Home and emerging markets. Kraft Heinz Q2 2026 earnings beat, raises annual forecast
• Positive Sentiment: The company maintained its regular quarterly dividend at $0.40 per share, payable September 25 to shareholders of record September 4. The Kraft Heinz Company Declares Regular Quarterly Dividend
• Neutral Sentiment: Full-year 2026 adjusted EPS guidance is now $2.03 to $2.09, a range that brackets the $2.06 consensus estimate rather than representing a major upside surprise.
• Negative Sentiment: Organic sales declined in the quarter, while revenue fell 1.4% year over year and adjusted operating income dropped 18.4%. Adjusted EPS also decreased from $0.69 a year earlier to $0.56. Kraft Heinz Raises Sales View Amid Efforts to Offset Higher Costs
• Negative Sentiment: A $7.4 billion non-cash impairment charge pushed reported operating results into a quarterly loss, adding to concerns about brand and asset valuations.
• Negative Sentiment: Kraft Heinz plans roughly $700 million of incremental investment this year and still expects adjusted operating income to decline 16% to 18% in 2026. Higher supply costs and the need for price increases may further pressure margins. Kraft Heinz slips as heavier spending and profit pressure overshadow a Q2 beat

Insider Activity

In other news, insider Diana Frost sold 18,502 shares of the stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $23.05, for a total value of $426,471.10. Following the completion of the transaction, the insider directly owned 102,667 shares in the company, valued at approximately $2,366,474.35. This represents a 15.27% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.24% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in KHC. Jessup Wealth Management Inc acquired a new position in shares of Kraft Heinz during the fourth quarter worth $27,000. DV Equities LLC bought a new stake in shares of Kraft Heinz in the 4th quarter valued at about $29,000. Rakuten Securities Inc. increased its stake in shares of 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 buying an additional 788 shares during the period. O Domhnaill Enterprises Inc. bought a new position in shares of Kraft Heinz during the fourth quarter worth about $35,000. Finally, Rossby Financial LCC lifted its stake in shares of Kraft Heinz by 83.7% in the fourth quarter. Rossby Financial LCC now owns 1,837 shares of the company’s stock worth $45,000 after acquiring an additional 837 shares during the period. Institutional investors and hedge funds own 78.17% of the company’s stock.

Analyst Ratings Changes

Several equities analysts have recently weighed in on KHC shares. Wells Fargo & Company lifted their price objective on Kraft Heinz from $23.00 to $25.00 and gave the company an “equal weight” rating in a report on Wednesday, July 8th. Zacks Research raised shares of Kraft Heinz from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 21st. Sanford C. Bernstein cut Kraft Heinz from a “market perform” rating to an “underperform” rating and lowered their price objective for the stock from $25.00 to $21.00 in a research report on Wednesday, June 3rd. Wall Street Zen upgraded shares of Kraft Heinz from a “hold” rating to a “buy” rating in a research note on Saturday, July 4th. Finally, Deutsche Bank Aktiengesellschaft boosted their price target on Kraft Heinz from $20.00 to $22.00 and gave the company a “hold” rating in a research note on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Hold rating and five have assigned a Sell rating to the company. Based on data from MarketBeat, Kraft Heinz presently has a consensus rating of “Reduce” and a consensus target price of $23.19.

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.