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Street Has a Mixed Opinion on The Kraft Heinz Company (KHC) Since FQ4 2025 Earnings
Yahoo Finance· 2026-02-20 08:35
Core Viewpoint - The Kraft Heinz Company (NASDAQ:KHC) is viewed as one of the best affordable stocks under $40, but Wall Street has mixed opinions following its fiscal Q4 2025 earnings release [1] Financial Performance - In fiscal Q4 2025, Kraft Heinz reported revenue of $6.35 billion, a decrease of 3.38% year-over-year, and fell short of expectations by $19.5 million [3] - The company's EPS was $0.67, exceeding estimates by $0.06 [3] - Revenue decline was attributed to weaker sales in North America and International Developed Markets, which fell by 5.4% and 2.4% year-over-year, respectively [3] - Conversely, the Emerging Markets segment saw a 2.2% improvement during the same period [3] Analyst Ratings and Outlook - Leah Jordan from Goldman Sachs maintained a Hold rating but reduced the price target from $27 to $23 [2] - Thomas Palmer from J.P. Morgan downgraded the stock from Hold to Sell, lowering the price target from $24 to $22 [2] - Analysts at Goldman noted a slight share price increase of 0.2% post-earnings release, despite the weaker performance [4] - J.P. Morgan analysts expressed concerns over the company's lowered 2026 outlook and ongoing issues that may hinder volume recovery, particularly noting that North American volumes have been declining for 19 consecutive quarters [6] Company Overview - The Kraft Heinz Company manufactures and distributes a variety of packaged food and beverages globally, including cheese, dairy products, meals, tomato products, condiments, meats, sauces, and refreshment beverages [7]