Kraft Heinz (NASDAQ:KHC) Posts Quarterly Earnings Results, Beats Estimates By $0.11 EPS

Kraft Heinz (NASDAQ:KHC) posted its quarterly earnings data on Wednesday. The company reported $0.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.42 by $0.11, Zacks reports. Kraft Heinz had a negative net margin of 13.64% and a positive return on equity of 7.10%. The company had revenue of $6.12 billion for the quarter, compared to the consensus estimate of $6.09 billion. During the same quarter in the previous year, the firm posted $0.61 EPS. The business’s revenue was down 2.0% compared to the same quarter last year.

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

• Kraft Heinz agreed to divest its North American coffee business to One Rock while retaining a 30% non-controlling stake, which management said will simplify the portfolio and focus resources on higher-growth opportunities.
• North American away-from-home sales grew at a low-single-digit rate, supported by share gains, new distribution, and partnerships including the NFL and Disney.
• U.S. retail trends modestly improved, with the share of revenue gaining share rising to 28% from roughly 25% in the first half, but category consumption remains soft and broader distribution gains are expected mainly after spring 2027 resets.
• Management now expects 2027 inflation to be slightly above 5%, driven by packaging, commodities, soybean oil, and less favorable dairy comparisons; additional pricing will likely be required, creating temporary margin pressure as it flows through.
• The company expects to complete its planned $700 million of 2026 investments and maintain a similar level next year, while improving returns through better marketing allocation, revenue-growth management, productivity, automation, and a stronger innovation pipeline.

Kraft Heinz Price Performance

KHC traded down $0.68 during midday trading on Friday, reaching $24.64. 16,028,978 shares of the company’s stock were exchanged, compared to its average volume of 15,780,019. The firm has a market capitalization of $29.22 billion, a price-to-earnings ratio of -8.62, a price-to-earnings-growth ratio of 2.99 and a beta of 0.12. The company has a quick ratio of 0.68, a current ratio of 1.06 and a debt-to-equity ratio of 0.49. Kraft Heinz has a one year low of $21.03 and a one year high of $28.09. The business has a 50-day simple moving average of $24.02 and a two-hundred day simple moving average of $23.91.

Kraft Heinz Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, December 23rd. Investors of record on Friday, December 4th will be given a $0.40 dividend. This represents a $1.60 annualized dividend and a yield of 6.5%. The ex-dividend date of this dividend is Friday, December 4th. Kraft Heinz’s dividend payout ratio is -55.94%.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the company. Wall Street Zen lowered Kraft Heinz from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Evercore set a $24.00 price objective on Kraft Heinz in a research report on Thursday, August 6th. JPMorgan Chase & Co. decreased their price objective on Kraft Heinz from $24.00 to $23.00 and set an “underweight” rating on the stock in a report on Tuesday, October 20th. Royal Bank Of Canada reissued an “outperform” rating and set a $32.00 price objective on shares of Kraft Heinz in a report on Thursday, September 24th. Finally, Wells Fargo & Company boosted their price objective on Kraft Heinz from $23.00 to $24.00 and gave the company an “equal weight” rating in a research report on Thursday. One analyst has rated the stock with a Buy rating, ten have given a Hold rating and five have given a Sell rating to the company. According to MarketBeat.com, Kraft Heinz presently has a consensus rating of “Reduce” and an average target price of $23.80.

Kraft Heinz News Roundup

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

• Positive Sentiment: Kraft Heinz’s $650 million sale of its North American coffee business to One Rock could sharpen its focus on core brands, with proceeds intended in part to reduce debt. Kraft Heinz to Sell Coffee Unit to Refocus on Other Brands
• Positive Sentiment: Q3 adjusted earnings topped expectations, and management raised its 2026 earnings outlook. Emerging-market growth and reports of improving sales and volume trends also provide potential support. KHC Q3 2026 deep dive
• Neutral Sentiment: Analyst views remain mixed. DBS reiterated a Hold, while Wells Fargo issued a positive forecast; UBS raised its price target to $26 but kept a Neutral rating. DBS Reaffirms Hold Rating
• Negative Sentiment: U.S. retail performance remains sluggish and sales have declined year over year. Inflation and likely 2027 price increases could pressure consumers and make a sustained recovery harder to achieve. Q3 Earnings Call Highlights
• Negative Sentiment: Dividend sustainability is another investor concern. The company declared a $0.40 quarterly dividend, but coverage and debt pressures may temper enthusiasm for its high yield. Kraft Heinz battles headwinds to save its dividend

Kraft Heinz Company Profile

The Kraft Heinz Company (NASDAQ: KHC) is a global food and beverage company that develops, manufactures and markets branded products for consumers, retailers and foodservice customers. Its portfolio includes condiments and sauces, cheese and dairy products, meals, meats, snacks, beverages and desserts.

The company’s brands include Kraft, Heinz, Oscar Mayer, Philadelphia, Velveeta, Jell-O, Maxwell House, Lunchables, Capri Sun, Planters and Classico, among others. Products are sold through grocery stores, mass merchants, club stores, convenience retailers, e-commerce channels and foodservice distributors.

Kraft Heinz was created in 2015 through the merger of Kraft Foods Group and H.J.