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

Kraft Heinz (NASDAQ:KHC) issued its quarterly earnings results on Wednesday. The company reported $0.56 earnings per share for the quarter, topping the consensus estimate of $0.53 by $0.03, FiscalAI reports. Kraft Heinz had a positive return on equity of 7.26% and a negative net margin of 23.05%.The company had revenue of $6.26 billion for the quarter, compared to the consensus estimate of $6.18 billion. During the same quarter in the prior year, the business earned $0.69 EPS. Kraft Heinz’s revenue 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 Trading Down 3.4%

Shares of KHC opened at $25.73 on Thursday. The stock has a market cap of $30.51 billion, a PE ratio of -5.29 and a beta of 0.08. The company has a debt-to-equity ratio of 0.46, a current ratio of 1.20 and a quick ratio of 0.82. Kraft Heinz has a 12 month low of $21.03 and a 12 month high of $28.10. The stock’s 50-day moving average is $24.61 and its two-hundred day moving average is $23.74.

Kraft Heinz Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 6.2%. The ex-dividend date of this dividend is Friday, September 4th. Kraft Heinz’s dividend payout ratio is -32.92%.

Insider Transactions at Kraft Heinz

In other Kraft Heinz news, insider Diana Frost sold 18,502 shares of the firm’s stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $23.05, for a total transaction of $426,471.10. Following the completion of the sale, the insider owned 102,667 shares in the company, valued at $2,366,474.35. This trade represents a 15.27% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.24% of the stock is owned by company insiders.

Institutional Trading of Kraft Heinz

A number of hedge funds have recently made changes to their positions in KHC. Jessup Wealth Management Inc acquired a new stake in shares of Kraft Heinz in the 4th quarter valued at about $27,000. DV Equities LLC bought a new position in Kraft Heinz during the 4th quarter worth approximately $29,000. Rakuten Securities Inc. grew its position in shares of Kraft Heinz by 172.4% in the 2nd quarter. Rakuten Securities Inc. now owns 1,245 shares of the company’s stock worth $32,000 after acquiring an additional 788 shares in the last quarter. O Domhnaill Enterprises Inc. acquired a new position in shares of Kraft Heinz in the 4th quarter valued at about $35,000. Finally, Rossby Financial LCC grew its position in shares of Kraft Heinz by 83.7% during the 4th quarter. Rossby Financial LCC now owns 1,837 shares of the company’s stock valued at $45,000 after buying an additional 837 shares during the last quarter. Institutional investors and hedge funds own 78.17% of the company’s stock.

Kraft Heinz News Summary

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

• Positive Sentiment: Kraft Heinz reported second-quarter adjusted EPS of $0.56, ahead of the $0.53 consensus estimate, while revenue of $6.26 billion also exceeded expectations of $6.18 billion. Management improved its 2026 organic-sales outlook, now expecting a decline of approximately 0.5% to 2.0%. Kraft Heinz Reports Second Quarter 2026 Results; Updates 2026 Full Year Outlook
• Positive Sentiment: The company raised or reaffirmed its 2026 adjusted EPS guidance at $2.03 to $2.09, near the $2.06 analyst consensus. Management said market-share losses narrowed to 30 basis points and described improving consumption trends as “green shoots.” Kraft Heinz Q2 2026 Earnings Call Highlights
• Positive Sentiment: Kraft Heinz declared a regular quarterly dividend of $0.40 per share, payable September 25 to shareholders of record September 4. The annualized payout is $1.60 per share, representing an indicated yield of roughly 6.2% based on the provided stock information. Kraft Heinz Declares Regular Quarterly Dividend
• Neutral Sentiment: CEO Steve Cahillane said Kraft Heinz is increasing brand investment and innovation efforts, including roughly $100 million of additional marketing spending. Management views 2026 as a margin trough year, implying potential improvement later but greater near-term costs. Kraft Heinz CEO on Q2 Earnings Beat
• Negative Sentiment: Organic sales declined, revenue fell 1.4% year over year, and quarterly EPS dropped from $0.69 a year earlier. Adjusted operating income declined about 18%, reflecting volume pressure, inflation and higher investments.
• Negative Sentiment: A substantial $7.4 billion non-cash impairment charge pushed reported operating results into a loss. Investors also remain concerned that approximately $700 million of incremental investment will weigh on margins, while full-year adjusted operating income is expected to decline 16% to 18%. Kraft Heinz Slips as Heavier Spending and Profit Pressure Overshadow Q2 Beat

Analysts Set New Price Targets

A number of equities research analysts have commented on the stock. BNP Paribas Exane increased their price objective on shares of Kraft Heinz from $17.00 to $19.00 and gave the company an “underperform” rating in a research report on Tuesday, June 30th. Wells Fargo & Company boosted their target price on Kraft Heinz from $23.00 to $25.00 and gave the company an “equal weight” rating in a report on Wednesday, July 8th. JPMorgan Chase & Co. upped their price target on shares of Kraft Heinz from $21.00 to $22.00 and gave the company an “underweight” rating in a research report on Wednesday, July 15th. Evercore set a $23.00 price objective on Kraft Heinz in a research note on Thursday, July 23rd. Finally, Zacks Research raised shares of Kraft Heinz from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 21st. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Hold rating and five have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Kraft Heinz currently has a consensus rating of “Reduce” and an average price target 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.