Financial Performance - Net sales decreased 6.4% year-over-year to $6.0 billion, with Organic Net Sales down 4.7%[5] - Gross profit margin decreased by 60 basis points to 34.4%, while Adjusted Gross Profit Margin also decreased by 10 basis points to 34.4%[5] - Operating income decreased 8.1% to $1.2 billion, with Adjusted Operating Income down 5.2% to $1.2 billion[8] - Diluted EPS was $0.59, down 10.6%, and Adjusted EPS was $0.62, down 10.1%[5] - Net income attributable to common shareholders for the three months ended March 29, 2025, was $712 million, compared to $801 million for the same period in 2024, representing a decrease of 11.1%[31] - Adjusted Operating Income for the same period was $1,199 million, down from $1,265 million year-over-year, reflecting a decline of 5.2%[36] - The adjusted EPS for the three months ended March 29, 2025, was $0.62, down from $0.69 in the same period last year, a decrease of 10.1%[48] - Adjusted Net Income for Q1 2025 was $743 million, a decline from $847 million in Q1 2024[55] Cash Flow and Capital Expenditures - Year-to-date net cash provided by operating activities was $0.7 billion, down 6.6%, while Free Cash Flow was $0.5 billion, up 1.0%[9] - Cash and cash equivalents increased to $2,113 million as of March 29, 2025, compared to $1,334 million at the end of the previous year[52] - The company reported a net cash provided by operating activities of $720 million for the three months ended March 29, 2025, compared to $771 million in the prior year[54] - Capital expenditures for Q1 2025 were $238 million, down from $294 million in Q1 2024[55] - Free Cash Flow for Q1 2025 increased to $482 million, compared to $477 million in Q1 2024[55] - Free Cash Flow Conversion improved to 65% in Q1 2025, up from 56% in Q1 2024[55] Future Guidance - The company expects Organic Net Sales to decline between 1.5% and 3.5% for the fiscal year 2025[9] - Adjusted EPS guidance for the fiscal year 2025 is projected to be in the range of $2.51 to $2.67[9] - The company anticipates a decrease in Constant Currency Adjusted Operating Income by 5% to 10% compared to the prior year[9] - The effective tax rate on Adjusted EPS is expected to be approximately 26%, reflecting a $0.23 cent headwind year-over-year[9] Segment Performance - The North America segment reported Adjusted Operating Income of $1,101 million for the three months ended March 29, 2025, down from $1,215 million in the prior year, reflecting a decline of 9.4%[36] - Emerging Markets segment Adjusted Operating Income increased by 20.3% year-over-year, reaching $99 million for the three months ended March 29, 2025[38] Non-GAAP Measures - The company emphasizes the importance of non-GAAP financial measures to provide investors with a clearer view of operational performance, excluding certain items that do not reflect underlying operations[22]

Financial Data and Key Metrics Changes - Organic net sales declined by 4.7% year-over-year, with price up 0.9 percentage points and volume mix down 5.6 percentage points [42] - Adjusted operating income decreased by 5.2%, while adjusted operating income margin increased by 30 basis points due to strong performance in emerging markets [44] - Free cash flow conversion improved by 9 percentage points year-over-year, reaching 65% [49] Business Line Data and Key Metrics Changes - North America organic net sales declined by 6.5%, impacted by lower sales in U.S. retail and away from home [42] - Emerging markets saw organic net sales growth of 3.9%, an improvement from 2.2% in the previous quarter [43] - Adjusted operating income in North America decreased by 9.4%, while in emerging markets, it increased by 20.3% [44][45] Market Data and Key Metrics Changes - The U.S. away from home market faced a downturn due to economic uncertainty, with traffic declining across the sector [29][31] - International developed markets experienced a 1.7% decline in organic net sales, primarily due to weakening consumer sentiment in the UK [43] - Emerging markets are expected to reach double-digit growth by the fourth quarter of 2025 [43] Company Strategy and Development Direction - The company is focused on unlocking efficiencies and reinvesting in the business to drive brand and product growth [9][11] - A commitment to continuous improvement is emphasized, with a goal to unlock $2.5 billion in gross efficiencies by 2027 [10] - The brand growth system is being expanded to cover 40% of sales by year-end, up from 10% in 2024 [11][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged pressures from inflation and tariffs, impacting consumer sentiment and business operations [6][60] - The company has lowered its organic net sales expectations for 2025, now anticipating a decline of 1.5% to 3.5% [53][54] - Future guidance reflects increased costs and a wider range of uncertainty due to macroeconomic dynamics [55] Other Important Information - The company returned nearly $900 million to shareholders year-to-date, maintaining a net leverage target of approximately 3x [52] - Adjusted EPS is expected to be in the range of $2.51 to $2.67, reflecting changes in organic net sales and operating income estimates [56] - The company is investing in strategic areas, including marketing efficiency and brand support, to drive growth [47] Q&A Session Summary Question: What are the expectations for organic net sales in 2025? - The company now expects organic net sales to decline by 1.5% to 3.5%, a revision from previous expectations of flat to down 2.5% [53][54] Question: How is the company addressing inflation and consumer sentiment challenges? - The company is focusing on unlocking efficiencies, optimizing marketing spend, and increasing investments in pricing to support brands [46][60] Question: What is the outlook for emerging markets? - Emerging markets are expected to continue growing, with a target of reaching double-digit growth by the fourth quarter of 2025 [43]

Core Viewpoint - The market anticipates a year-over-year decline in Kraft Heinz's earnings due to lower revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Kraft Heinz is expected to report quarterly earnings of $0.60 per share, reflecting a 13% decrease year-over-year, with revenues projected at $6 billion, down 6.5% from the previous year [3]. - The consensus EPS estimate has been revised 0.38% lower in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -0.94%, which indicates a bearish outlook on earnings prospects [10][11]. - Historically, Kraft Heinz has beaten consensus EPS estimates in the last four quarters, with a notable surprise of +7.69% in the last reported quarter [12][13]. Stock Movement Factors - The potential for stock movement hinges on whether the earnings report exceeds or falls short of expectations, with management's commentary on business conditions being crucial [2][14]. - Despite the negative Earnings ESP, other factors may influence stock performance, making it essential to consider a broader range of indicators [14][16].

Core Viewpoint - The Kraft Heinz Company (KHC) is expected to report a decline in both revenue and earnings for the first quarter of 2025, with projected revenues of $6 billion, reflecting a 6.5% decrease year-over-year, and earnings per share estimated at 60 cents, indicating a 13% decline from the previous year [1][2]. Group 1: Revenue and Earnings Projections - The Zacks Consensus Estimate for KHC's revenues is $6 billion, which represents a 6.5% decline from the same quarter last year [1]. - The consensus estimate for quarterly earnings remains at 60 cents per share, projecting a 13% decrease compared to the year-ago quarter [1]. - KHC has a trailing four-quarter earnings surprise average of 4.3% [1]. Group 2: Volume and Sales Challenges - KHC is experiencing headwinds in volume performance, which is negatively impacting top-line growth due to changing consumer behavior amid economic uncertainty and weakness in the U.S. Away from Home segment [2]. - A model suggests a 4.6 percentage point year-over-year decline in volume/mix for the first quarter of 2025, leading to a projected 4.1 percentage point drop in organic net sales [3]. Group 3: Margin Pressures - The company is facing margin pressure attributed to unfavorable volume/mix shifts, rising manufacturing and procurement costs, and adverse foreign currency impacts [4]. - The adjusted gross margin is expected to contract by 30 basis points year-over-year, reaching 34.2% in the first quarter of fiscal 2025 [4]. Group 4: Earnings Prediction Model - The current model does not predict an earnings beat for KHC, as it has a Zacks Rank of 3 (Hold) and an Earnings ESP of -0.04% [5].

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]