Kraft Heinz to Report Q1 Earnings: What Investors Should Expect

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$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].