Kraft Heinz Stock Drops as Q4 Sales, 2025 Outlook Lag Estimates

Core Insights - Kraft Heinz (KHC) shares fell 3.5% intraday as the company reported fourth-quarter sales that missed analysts' estimates and issued disappointing guidance for 2025 [1][4] - Fourth-quarter sales declined 4% year-over-year to $6.58 billion, falling short of Visible Alpha consensus, while adjusted earnings per share (EPS) of 84 cents rose nearly 8$6.58 billion, a 4% decline from the previous year [1][4] - Adjusted EPS for the quarter was 84 cents, reflecting an increase of nearly 8% [1] - The company expects 2025 organic sales to be between 2.5% lower and flat, with adjusted EPS projected between $2.63 and$2.74, both missing analysts' estimates [4] Strategic Decisions and Market Response - The company removed Lunchables prepackaged meal kits from schools due to opposition from health advocates, citing that demand did not meet targets, with the business impact deemed "negligible" [3] - CEO Carlos Abrams-Rivera described 2024 as "a challenging year," noting that sales of $25.85 billion were below expectations [3] - Kraft Heinz shares have lost more than a fifth of their value over the past 12 months [4]