Kraft Heinz Earnings Preview: What to Expect

Core Insights - The Kraft Heinz Company (KHC) is a major global food and beverage entity with a market capitalization of $30.2 billion, formed from the merger of Kraft Foods and H.J. Heinz in 2015, and is known for brands like Kraft, Heinz, Oscar Mayer, and Philadelphia [1] Financial Performance - KHC is expected to announce its fiscal third-quarter earnings for 2025 on October 29, with analysts predicting a profit of $0.57 per share, a decrease of 24% from $0.75 per share in the same quarter last year [2] - For the current fiscal year, analysts forecast an EPS of $2.57, down 16% from $3.06 in fiscal 2024, but expect a slight recovery with an EPS of $2.62 in fiscal 2026, reflecting a 2% year-over-year increase [3] Stock Performance - Over the past year, KHC shares have declined by 29%, underperforming the S&P 500 Index, which gained 14.1%, and the Consumer Staples Select Sector SPDR Fund, which fell by 2.8% [4] - Since February 2017, KHC's stock has lost over 70% of its value, attributed to a focus on cost-cutting, slow adaptation to healthier consumer trends, increased competition, and tighter household budgets [5] Recent Earnings and Market Reaction - Following the Q2 earnings release on July 30, KHC's stock experienced a slight dip, reporting a 2% drop in organic sales and a 1.9% decline in revenue to $6.35 billion, with adjusted operating income falling 7.5% to $1.3 billion; however, adjusted EPS of $0.69 exceeded expectations by 7.8% [6] Analyst Sentiment - The consensus among analysts regarding KHC stock is cautious, with a "Hold" rating overall; out of 22 analysts, 2 recommend a "Strong Buy," 19 suggest a "Hold," and 1 proposes a "Moderate Sell," with an average price target of $28.24, indicating a potential upside of 10.7% from current levels [7]