Kraft Heinz to Report Q3 Earnings: Key Factors to Watch Ahead

Core Insights - The Kraft Heinz Company (KHC) is expected to report declines in both revenue and earnings for the third quarter of 2025, with revenues projected at $6.26 billion, reflecting a 2% decrease year-over-year [1][8] - The earnings consensus has been revised downward to 57 cents per share, indicating a 24% decline from the previous year's quarter [2][8] Revenue and Earnings Projections - The Zacks Consensus Estimate for KHC's revenues is $6.26 billion, which represents a 2% drop from the same quarter last year [1][8] - The earnings per share estimate has been adjusted down by one cent to 57 cents, projecting a 24% decline compared to the year-ago quarter [2][8] Factors Impacting Performance - KHC is facing challenges in volume performance, which is affecting top-line growth due to shifting consumer preferences and macroeconomic pressures such as tariffs and inflation [3][4] - The company is experiencing a projected year-over-year decline of 2.8 percentage points in volume/mix, leading to an expected drop of 2.3 percentage points in organic net sales [4][5] Margin Pressures - KHC is dealing with margin pressure attributed to unfavorable volume/mix shifts, rising manufacturing and procurement costs, and adverse foreign currency impacts [4][5] - The adjusted gross margin is expected to contract by 140 basis points year-over-year to 32.9% in the third quarter of 2025 [5] Growth Strategies - The company is pursuing growth through targeted pricing, operational efficiencies, and innovation, with its Brand Growth System gaining momentum [6]