The market expects Kraft Heinz (KHC) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on April 29, 2025, might help the stock move higher if these key numbers are bett ...

The Kraft Heinz Company (KHC) is likely to register a decline in both top and bottom lines when it reports first-quarter 2025 earnings on April 29. The Zacks Consensus Estimate for revenues is pegged at $6 billion, indicating a 6.5% decline from the prior-year quarter’s reported figure. The consensus mark for quarterly earnings has remained unchanged in the past 30 days at 60 cents per share, projecting a decline of 13% from the figure reported in the year-ago quarter. KHC has a trailing four-quarter earnin ...

Core Viewpoint - Kraft Heinz has experienced significant stock underperformance since its 2015 merger, with a 60% decline compared to the S&P 500's 155% return, despite being a strong consumer staple with consistent cash flows and dividends [1][2] Financial Performance - Kraft Heinz's 2024 organic net sales fell by 2.1% to $25.9 billion, but adjusted earnings per share slightly increased to $3.06, indicating maintained margins [3] - The company's free cash flow for 2024 increased by 7% to $3.2 billion, funding $1.9 billion in dividends and $1.0 billion in share repurchases, resulting in Berkshire Hathaway earning $521 million in annual dividend income from its stake [7] Investment Considerations - The stock is trading at less than 10 times 2024 adjusted earnings, suggesting it may be undervalued, which could explain Warren Buffett's continued holding [3][4] - Despite the attractive dividend yield over 5%, concerns arise regarding the erosion of Kraft Heinz's brand value amid changing consumer preferences and inflation [4][5] Strategic Partnerships and Management - Berkshire Hathaway's partnership with 3G Capital, known for aggressive cost-cutting, has not yielded expected financial results, with annual sales down 2% since 2016 [5] - The presence of former Berkshire subsidiaries on Kraft's board may influence management decisions, potentially leading to a more patient investment approach from Buffett [6] Market Opportunities - Kraft Heinz is experiencing growth in emerging markets, with sales up 4% last year, and its Heinz ketchup brand has seen over $600 million in sales growth in the last two years [9] - Management identifies a $4 billion opportunity to further increase sales through enhanced brand awareness [9] Future Outlook - Management's guidance indicates a potential adjusted sales decline of up to 2.5% in 2025, raising concerns about further stock price declines [11] - There are alternative dividend stocks within Berkshire's portfolio, such as Coca-Cola, that are showing stronger growth prospects for 2025 and beyond [11]

Core Insights - Heinz is launching the "Heinz Trade-Up" campaign in Dubai, allowing residents to exchange unwanted ketchup sachets for bottles of Heinz ketchup, addressing the common issue of excess sachets in households [1][2][3] Group 1: Campaign Details - The Heinz Trade-Up campaign runs from April 16 to April 20, 2025, in specific locations across Dubai, where residents can trade five sachets for one bottle of Heinz ketchup [3][4] - A survey indicated that 70% of UAE residents have unwanted ketchup sachets, with 48% having 5-10 sachets at home, highlighting a significant consumer pain point [1][2] Group 2: Consumer Engagement - The campaign aims to enhance consumer engagement by providing a fun and practical solution for the surplus of ketchup sachets, reinforcing brand loyalty among Heinz fans [4] - Marketing Director Passant El Ghannam emphasized the strong consumer attachment to Heinz ketchup, which often leads to an accumulation of sachets [4] Group 3: Company Overview - The Kraft Heinz Company reported net sales of approximately $26 billion in 2024, focusing on growth across its food and beverage brands globally [5] - The company is committed to sustainability and ethical practices while aiming to make a positive impact on global food consumption [5]

DUBAI, UAE, April 8, 2025 /PRNewswire/ -- In a world where everything is skippable, Heinz is reminding people that some things, just like its thick, rich ketchup, are worth the wait. Introducing Heinz's Post-Post Credits; the first-ever ad that gets interrupted by a movie.  Heinz launches the world’s first ad interrupted by a movie Exclusively playing during the showings of A Working Man on April 9th and, Mickey 17 and The Amateur on April 10th and 11th at Dubai Mall Reel Cinemas, this one-of-a-kind ci ...

Core Viewpoint - Kraft Heinz offers a high dividend yield of 5.3%, which is attractive compared to other investment options, but the company's growth is stagnant, raising concerns about the sustainability of its dividend payout [2][3][10]. Financial Performance - In 2024, Kraft Heinz experienced a 3% decline in net sales year over year, while adjusted operating income rose by 1.2% and adjusted earnings per share (EPS) increased by 2.7%. Free cash flow (FCF) was a positive aspect, growing by 6.6% year over year [3]. - The company's guidance for the current year indicates flat organic sales or a decline of up to 2.5%, with adjusted EPS expected to fall by 12.3% at the midpoint and flat FCF [4]. Dividend Sustainability - Kraft Heinz has maintained its dividend payout at $0.40 per share for 25 consecutive quarters since cutting it from $0.625 per share in 2019, reflecting the company's cautious approach due to poor business performance [6][7]. - The company generated $3.2 billion in FCF last year, using $1.9 billion for dividends and $988 million for share repurchases, indicating a strong ability to support its capital return program [3][7]. Balance Sheet and Credit Ratings - Kraft Heinz has improved its balance sheet, with reductions in total net long-term debt and better leverage ratios, which are positive indicators for its financial health [8]. - The company holds investment-grade credit ratings from major agencies, including BBB from S&P Global and Fitch Ratings, and Baa2 from Moody's, reflecting its efforts to strengthen its financial position [9]. Market Position and Growth Challenges - The company faces long-term challenges in adapting to changing consumer preferences, which have contributed to its stagnant growth and underperformance relative to the market [11]. - To enhance growth, Kraft Heinz may need to diversify its product lineup, similar to strategies employed by competitors like PepsiCo, which has successfully acquired brands in the healthy snacks and ready-to-eat meal segments [12]. Investment Outlook - Despite growth challenges, Kraft Heinz is considered a solid value stock with a high yield, making it an attractive option for risk-averse investors seeking to boost passive income [13].

Profit margins, meanwhile, have remained a bit steadier, but there have been some severe quarterly stumbles due to supply chain issues and a limited ability to pass on higher costs to customers. All in all, the company's price-to-earnings ratio now sits around 13.3 -- hovering around its lowest levels since 2020. On a forward basis -- that is, based on what analysts expect the company to earn next year -- shares trade at just 11 times earnings. That looks very cheap on paper, but there's one issue: Kraft He ...

Group 1: Stock Performance - Kraft Heinz (KHC) closed at $30.24, marking a +0.57% move from the prior day, outperforming the S&P 500 which lost 1.97% [1] - Over the last month, KHC shares decreased by 1.89%, underperforming the Consumer Staples sector's gain of 1.27% and the S&P 500's loss of 2.79% [1] Group 2: Financial Expectations - Analysts expect Kraft Heinz to post earnings of $0.60 per share, representing a year-over-year decline of 13.04% [2] - Revenue is projected at $6 billion, down 6.49% from the prior-year quarter [2] - For the full year, earnings are projected at $2.67 per share and revenue at $24.94 billion, indicating changes of -12.75% and -3.5% respectively from the prior year [3] Group 3: Analyst Projections and Rankings - Recent shifts in analyst projections for Kraft Heinz should be monitored, as they reflect short-term business dynamics [4] - The Zacks Rank system, which integrates estimate changes, currently rates Kraft Heinz at 4 (Sell) [6] - The consensus EPS projection has moved 0.21% lower in the past 30 days [6] Group 4: Valuation Metrics - Kraft Heinz has a Forward P/E ratio of 11.25, which is a discount compared to the industry's average Forward P/E of 16.57 [7] - The PEG ratio for KHC is 3.38, compared to the industry average PEG ratio of 1.94 [7] Group 5: Industry Context - The Food - Miscellaneous industry, part of the Consumer Staples sector, has a Zacks Industry Rank of 179, placing it in the bottom 29% of all industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Analyst's Disclosure: I/we have a beneficial long position in the shares of KHC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any in ...

A month has gone by since the last earnings report for Kraft Heinz (KHC) . Shares have added about 3.2% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Kraft Heinz due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then?It turns out, ...