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

Key Points

• Kraft Heinz beat quarterly expectations, reporting adjusted EPS of $0.56 versus the $0.53 consensus and revenue of $6.26 billion versus $6.13 billion expected.
• Despite the earnings beat, revenue fell 1.4% year over year, adjusted EPS declined from $0.69, and a $7.4 billion non-cash impairment charge pushed reported results into a loss.
• Management raised its 2026 investment plan and updated adjusted EPS guidance to $2.03–$2.09, while shares fell about 4% amid margin pressure, higher costs and a challenging consumer environment.

Kraft Heinz (NASDAQ:KHC - Get Free Report) released 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 business had revenue of $6.26 billion for the quarter, compared to analyst estimates of $6.13 billion. During the same quarter in the previous year, the business earned $0.69 earnings per share. Kraft Heinz'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 Stock Down 4.0%

Shares of KHC stock traded down $1.05 during mid-day trading on Wednesday, reaching $25.59. 13,341,478 shares of the company's stock traded hands, compared to its average volume of 15,170,142. The company has a quick ratio of 0.82, a current ratio of 1.20 and a debt-to-equity ratio of 0.46. The company's 50-day moving average price is $24.59 and its 200-day moving average price is $23.73. The company has a market cap of $30.34 billion, a P/E ratio of -5.27 and a beta of 0.08. Kraft Heinz has a 12 month low of $21.03 and a 12 month high of $28.10.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the company. Wells Fargo & Company lifted their price target on Kraft Heinz from $23.00 to $25.00 and gave the company an "equal weight" rating in a research report on Wednesday, July 8th. BNP Paribas Exane increased their price objective on Kraft Heinz from $17.00 to $19.00 and gave the stock an "underperform" rating in a research report on Tuesday, June 30th. Deutsche Bank Aktiengesellschaft raised their price target on Kraft Heinz from $20.00 to $22.00 and gave the company a "hold" rating in a report on Thursday, May 7th. Sanford C. Bernstein lowered Kraft Heinz from a "market perform" rating to an "underperform" rating and cut their price objective for the stock from $25.00 to $21.00 in a report on Wednesday, June 3rd. Finally, Evercore set a $23.00 price target on shares of Kraft Heinz in a research note on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Hold rating and five have issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Reduce" and a consensus price target of $23.19.

Insiders Place Their Bets

In other news, insider Diana Frost sold 18,502 shares of Kraft Heinz stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $23.05, for a total transaction 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 trade represents a 15.27% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.24% of the company's stock.

Hedge Funds Weigh In On Kraft Heinz

Several large investors have recently modified their holdings of KHC. Jessup Wealth Management Inc purchased a new position in Kraft Heinz in the fourth quarter worth about $27,000. DV Equities LLC bought a new stake in shares of Kraft Heinz in the 4th quarter worth $29,000. Rakuten Securities Inc. raised 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 worth $32,000 after purchasing an additional 788 shares during the last quarter. O Domhnaill Enterprises Inc. bought a new stake in shares of Kraft Heinz in the fourth quarter worth approximately $35,000. Finally, Rossby Financial LCC raised its holdings in shares of Kraft Heinz by 83.7% during the fourth quarter. Rossby Financial LCC now owns 1,837 shares of the company's stock valued at $45,000 after purchasing an additional 837 shares during the last quarter. Hedge funds and other institutional investors own 78.17% of the company's stock.

Key Kraft Heinz News

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

About Kraft Heinz

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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