Kraft Heinz Co (KHC)

Price$24.85Cached quoteAs of 2026-09-06 00:43 UTC

AI: Undervalued

Price checkThe shares look cheap if Kraft Heinz can stabilize sales and protect its cash generation.

Kraft Heinz closed at $25.68 on August 19, 2026, the latest completed regular session before this research time. Management expects 2026 adjusted earnings of $2.03-$2.09 per share, so the stock costs about 12.5 times the midpoint. The $1.60 annual dividend yields roughly 6.2%. Fiscal 2025 free cash flow, meaning operating cash after capital spending, was about $3.66 billion, equal to roughly a 12% yield on today’s approximately $30.5 billion market value. That discount supports an undervalued verdict, provided cash remains durable.

Big pictureCash generation remains solid, but shrinking sales and repeated brand write-downs reveal a weakened core business.

Revenue fell from $26.64 billion in 2023 to $24.94 billion in 2025, and second-quarter 2026 sales declined another 1.4% from a year earlier. Yet operating cash flow reached $4.46 billion in 2025, and first-half 2026 free cash flow rose 10.3% to $1.7 billion. Reported earnings look much worse because non-cash impairment charges reduce accounting profit without immediately using cash: second-quarter 2026 included $7.4 billion of write-downs. Those charges still matter because they acknowledge that several brands are worth less than previously expected.

Business strengthStrong cash supports the dividend and debt reduction, while management has largely stopped using buybacks.

At June 27, Kraft Heinz had $2.42 billion of cash and $17.62 billion of debt, leaving about $15.2 billion of net debt. Debt was down roughly $1.7 billion from June 2025, and the company subsequently redeemed another $1.0 billion of 2027 notes in July. First-half operating cash flow was $2.09 billion versus only $429 million of capital spending. The dividend consumed $949 million, while buybacks totaled just $27 million. Shares have remained around 1.18 billion, so dilution is limited and cash is increasingly being directed toward dividends, reinvestment, and deleveraging.

What could change the storyA sales turnaround offers meaningful upside, but continued volume losses could turn today’s apparent bargain into a trap.

The bull case requires surprisingly little growth: management now expects 2026 organic sales to fall only 0.5%-2.0%, better than its previous forecast, while adjusted earnings should reach $2.03-$2.09. If earnings merely stabilize near $2.10 and investors eventually pay 14-15 times earnings, the shares could justify roughly $29-$32 before dividends. The bear case is that North American volume keeps shrinking; second-quarter volume and product mix fell 2.6 percentage points, while adjusted operating income dropped 18.4%. Persistent declines would pressure cash, threaten the dividend’s purchasing power, and justify a permanently low valuation.

AI: News

Turnaround outlook improvesKraft Heinz raised its sales outlook after beating expectations, but investors remained worried about falling volumes and profits.

On August 5, 2026, Kraft Heinz reported $6.26 billion of second-quarter sales and adjusted earnings of $0.56 per share, both ahead of market expectations. It improved its 2026 organic-sales forecast to a decline of 0.5%-2.0% and narrowed adjusted earnings guidance to $2.03-$2.09. However, adjusted operating income fell 18.4% and volumes remained weak. The shares closed 3.42% lower at $25.73 that day; the timing supports investor disappointment, though it does not prove the report caused the entire decline.

Another major brand write-downA huge non-cash charge showed management now expects materially less value from parts of the brand portfolio.

The August 5, 2026 quarterly report included $7.4 billion of non-cash impairment losses, contributing to a $5.46 billion quarterly net loss. An impairment is an accounting reduction in an asset’s recorded value when expected future economics deteriorate. It does not directly consume cash, but repeated write-downs are important evidence that earlier assumptions about brand strength and future profits were too optimistic. That weakens the case for valuing Kraft Heinz like a stable, steadily growing consumer-products company.

Debt repayment acceleratesKraft Heinz used its financial flexibility to retire another billion dollars of debt, reducing future financing pressure.

Kraft Heinz redeemed $1.0 billion of 3.875% senior notes on July 8, 2026, following other debt transactions during the second quarter. The company had $17.62 billion of debt at June 27, down from $19.31 billion one year earlier. Reducing debt matters because annual interest expense is still expected near $890 million. Lower borrowings improve the safety of the $1.60 annual dividend and allow a greater share of future operating cash to support brands or shareholders rather than lenders.

Operating structure reorganizedManagement simplified its regional structure to focus resources on stronger markets and improve accountability during the turnaround.

On June 18, 2026, Kraft Heinz announced a new global operating structure effective July 1, organizing the company into North America, Europe and Pacific Developed Markets, and Emerging Markets. The change matters because performance is sharply uneven: second-quarter North American sales fell 2.7%, while Emerging Markets sales grew 10.4%. The restructuring itself does not guarantee better economics, and a reliable standalone stock-price reaction was not established, but clearer regional accountability could help management direct its increased brand investment toward areas producing better returns.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014
Revenue	$24.94B	$25.85B	$26.64B	$26.48B	$26.04B	$26.18B	$24.98B	$26.27B	$26.08B	$26.30B	$18.34B	$10.92B
Gross profit	$8.31B	$8.97B	$8.93B	$8.12B	$8.68B	$9.18B	$8.15B	$8.92B	$9.03B	$9.15B	$5.76B	$3.28B
Gross margin	33.31%	34.70%	33.51%	30.67%	33.34%	35.05%	32.62%	33.96%	34.64%	34.78%	31.42%	30.00%
Research & development	$167.0M	$150.0M	$147.0M	$127.0M	$140.0M	$119.0M	$112.0M	$109.0M	$93.0M	$120.0M	$105.0M	$58.0M
Operating expenses	$12.98B	$7.29B	$4.35B	$4.49B	$5.22B	$7.05B	$5.08B	$19.13B	$2.98B	$3.54B	$3.12B	$1.71B
Operating income	−$4.67B	$1.68B	$4.57B	$3.63B	$3.46B	$2.13B	$3.07B	−$10.21B	$6.06B	$5.60B	$2.64B	$1.57B
Operating margin	−18.72%	6.51%	17.16%	13.72%	13.29%	8.13%	12.29%	−38.85%	23.23%	21.30%	14.39%	14.36%
EBITDA	−$3.70B	$2.63B	$5.53B	$4.57B	$4.37B	$3.10B	$4.06B	−$9.22B	$7.09B	$6.94B	$3.38B	$2.10B
EBITDA margin	−14.84%	10.18%	20.77%	17.24%	16.78%	11.83%	16.27%	−35.11%	27.18%	26.38%	18.43%	19.21%
Net income	−$5.85B	$2.74B	$2.85B	$2.36B	$1.01B	$356.0M	$1.94B	−$10.19B	$10.94B	$3.60B	$634.0M	$657.0M
Net profit margin	−23.44%	10.62%	10.72%	8.92%	3.89%	1.36%	7.75%	−38.80%	41.96%	13.67%	3.46%	6.02%
Basic EPSper basic share	-$4.93	$2.27	$2.33	$1.93	$0.83	$0.29	$1.59	-$8.36	$8.98	$2.81	-$0.34	-$0.17
Diluted EPSper diluted share	-$4.93	$2.26	$2.31	$1.91	$0.82	$0.29	$1.58	-$8.36	$8.91	$2.78	-$0.34	-$0.17

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈27.46%of listed shares

Berkshire Hathaway Inc325.63M shares · Jun 30, 2026

View holders

Top 20 reported holders of KHC
Holder	% owned
Berkshire Hathaway Inc	≈27.46%325.63M shares
BlackRock, Inc.	≈6.44%76.37M shares
VANGUARD CAPITAL MANAGEMENT LLC	≈4.63%54.94M shares
Invesco Ltd.	≈4.11%48.7M shares
STATE STREET CORP	≈3.91%46.38M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	≈3.44%40.75M shares
GEODE CAPITAL MANAGEMENT, LLC	≈2.61%30.98M shares
UBS Group AG	≈1.60%18.98M shares
MORGAN STANLEY	≈1.47%17.44M shares
NORDEA INVESTMENT MANAGEMENT AB	≈1.40%16.57M shares
GOLDMAN SACHS GROUP INC	≈1.32%15.61M shares
HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC	≈1.28%15.2M shares
FAIRFAX FINANCIAL HOLDINGS LTD/ CAN	≈1.21%14.31M shares
Pacer Advisors, Inc.	≈0.84%10.01M shares
NORTHERN TRUST CORP	≈0.71%8.45M shares
DIMENSIONAL FUND ADVISORS LP	≈0.68%8.07M shares
LSV ASSET MANAGEMENT	≈0.66%7.81M shares
Nykredit A/S	≈0.65%7.68M shares
Capital International Investors	≈0.64%7.65M shares
DEUTSCHE BANK AG\	≈0.64%7.62M shares

Percentages use 1.19B shares of this listed class outstanding on Jun 27, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys1$5.00M disclosed value

Sells (SEC code S)13$10.90M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 18, 2026Form 4	Frost DianaGlbl Chief Growth Officer	SellCommon Stock	18.5K	$23.05	$426.5K	102.7K
May 12, 2026Form 4	CAHILLANE STEVEN AChief Executive Officer	BuyCommon Stock	213.1K	$23.46	$5.00M	635.2K
Mar 3, 2026Form 4 · 10b5-1	Onell CoryChief Omnich Sales & AEM Ofcr	SellCommon Stock	5.0K	$24.34	$121.5K	197.5K
Mar 2, 2026Form 4 · 10b5-1	Onell CoryChief Omnich Sales & AEM Ofcr	SellCommon Stock	9.0K	$24.61	$222.6K	202.5K
Dec 18, 2025Form 4 · 10b5-1	Patricio MiguelExecutive Chair	SellCommon Stock · indirect	125.0K	$24.84	$3.10M	561.8K

Review ownership filings at SEC.gov ↗

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Kraft Heinz Co (KHC)

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