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

Kraft Heinz (NASDAQ:KHC) issued its earnings results on Wednesday. The company reported $0.53 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 business’s quarterly revenue was down 2.0% on a year-over-year basis. During the same period in the previous year, the firm earned $0.61 earnings per share.

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 Stock Up 5.3%

Shares of KHC traded up $1.30 during mid-day trading on Wednesday, hitting $25.82. 15,757,977 shares of the company’s stock were exchanged, compared to its average volume of 15,716,659. The company has a market cap of $30.62 billion, a price-to-earnings ratio of -9.00, a P/E/G ratio of 2.99 and a beta of 0.12. Kraft Heinz has a fifty-two week low of $21.03 and a fifty-two week high of $28.09. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.68 and a current ratio of 1.06. The stock’s 50-day moving average is $24.00 and its 200-day moving average is $23.90.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on KHC shares. Barclays reduced their price target on shares of Kraft Heinz from $26.00 to $25.00 and set an “equal weight” rating on the stock in a research note on Friday, October 16th. Jefferies Financial Group reaffirmed a “hold” rating and set a $21.00 price objective on shares of Kraft Heinz in a research report on Wednesday, October 14th. Evercore set a $24.00 target price on shares of Kraft Heinz in a report on Thursday, August 6th. Weiss Ratings lowered Kraft Heinz from a “sell (d)” rating to a “sell (d-)” rating in a research report on Thursday, August 6th. Finally, TD Cowen restated a “hold” rating and set a $22.00 price target on shares of Kraft Heinz in a research note on Tuesday, September 22nd. One equities research analyst has rated the stock with a Buy rating, ten have assigned a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Reduce” and an average target price of $23.60.

Trending Headlines about Kraft Heinz

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

• Positive Sentiment: Adjusted third-quarter earnings were $0.53 per share, above analyst estimates of about $0.42–$0.43, while revenue also beat expectations. Emerging Markets growth helped support results, and Kraft Heinz raised its 2026 earnings and sales outlook. KHC Q3 Earnings Top Estimates, Emerging Markets Sales Rise
• Positive Sentiment: The company agreed to sell its North American coffee business to One Rock Capital Partners at a $650 million enterprise value, while retaining a 30% stake. The divestiture fits CEO Steve Cahillane’s plan to focus investment on core brands, though the strategic benefits will depend on execution. Kraft Heinz to divest its North American coffee business
• Neutral Sentiment: Kraft Heinz declared its regular quarterly dividend of $0.40 per share, payable Dec. 23 to shareholders of record Dec. 4. Kraft Heinz declares quarterly dividend
• Negative Sentiment: Despite the quarterly beat, revenue fell 2% year over year to $6.12 billion, and adjusted earnings declined from $0.61 per share a year earlier—evidence that underlying growth remains challenging.

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.