Kraft Heinz (NASDAQ:KHC) Announces Earnings Results, Beats Estimates By $0.08 EPS
by Doug Wharley · The Cerbat GemKraft Heinz (NASDAQ:KHC – Get Free Report) issued its earnings results on Wednesday. The company reported $0.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.08, FiscalAI reports. Kraft Heinz had a positive return on equity of 7.26% and a negative net margin of 23.05%.The company had revenue of $6.05 billion during the quarter, compared to analysts’ expectations of $5.89 billion. During the same period in the prior year, the business earned $0.62 EPS. The firm’s quarterly revenue was up .8% on a year-over-year basis. Kraft Heinz updated its FY 2026 guidance to 1.980-2.100 EPS.
Here are the key takeaways from Kraft Heinz’s conference call:
- Q1 showed meaningful share recovery: total portfolio holding/gaining share rose from 21% last year to 35% YTD and reached 58% in March, while Taste Elevation brands improved to 81% in Q1 (87% in March).
- The company reclassified portfolio priorities — frozen moved from Win Big to Hold, hydration upgraded to Win Big (Capri Sun focus), and cheese moved from Hold to Win — signaling active portfolio optimization.
- Guidance was kept largely unchanged but near-term headwinds persist: Q2 revenue is expected down ~3%–5% (Easter timing), SNAP benefit cuts are a ~100 bp annual headwind starting in Q2, and energy/resin inflation spikes (resin hedged only through mid‑Q3) could pressure margins later in the year.
- Cash flow and capital allocation remain constructive: strong Q1 free cash flow, plans to pay down upcoming maturities, and continued deployment of $600 million in growth investments (marketing at least 5.5% of revenue; Q1 marketing +37%), with productivity (~4% of COGS) prioritized as the first line of defense versus inflation.
Kraft Heinz Stock Up 2.5%
KHC stock traded up $0.57 during midday trading on Thursday, hitting $23.64. 19,879,870 shares of the company’s stock were exchanged, compared to its average volume of 13,906,878. The stock has a market capitalization of $28.03 billion, a price-to-earnings ratio of -4.86 and a beta of 0.06. The company has a current ratio of 1.20, a quick ratio of 0.79 and a debt-to-equity ratio of 0.46. The firm has a 50 day moving average price of $22.78 and a 200-day moving average price of $23.82. Kraft Heinz has a 12-month low of $21.03 and a 12-month high of $29.19.
Kraft Heinz Dividend Announcement
The company also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Friday, June 5th will be paid a dividend of $0.40 per share. The ex-dividend date of this dividend is Friday, June 5th. This represents a $1.60 annualized dividend and a yield of 6.8%. Kraft Heinz’s payout ratio is -32.39%.
More Kraft Heinz News
Here are the key news stories impacting Kraft Heinz this week:
- Positive Sentiment: Q1 beat and improving top-line momentum — KHC reported Q1 revenue of $6.05B and adjusted EPS of $0.58, both ahead of expectations, and management said brand investments are starting to regain share in priority categories. Kraft Heinz Q1 results press release
- Positive Sentiment: Shareholder yield remains attractive — the board declared a regular quarterly dividend of $0.40 per share (strong yield near 6.8%), which supports income investors and can underpin the equity in the short term. Dividend press release
- Positive Sentiment: Investing behind growth/marketing — the company is increasing marketing spend (reported ~37% hike) and launching innovations (e.g., protein-packed Kraft Mac & Cheese, NFL sponsorship) to drive future volume and modernization of brands. Marketing Dive article
- Positive Sentiment: Balance-sheet action — Kraft Heinz Foods Company launched a cash tender offer to repurchase up to $1.1B of long-dated notes, a move that can reduce interest burden and manage maturities. Tender offer announcement
- Neutral Sentiment: FY-2026 guidance maintained but slightly below some forecasts — management updated EPS guidance to $1.98–$2.10 (near analyst consensus), leaving limited immediate upside from guidance alone. Q1 results & guidance
- Neutral Sentiment: Category strategy raises questions — CEO comments about reclassifying brands into “hold/win/win big” and remarks on the future of frozen products create strategic noise; this is a watch-item for execution risk rather than an immediate market mover. Just-Food coverage
- Negative Sentiment: Price/margin pressure from consumer affordability — management signaled consumers are “running out of money” and is cutting prices in places to preserve volume, which could weigh on margins even as it stabilizes demand. WSJ article
- Negative Sentiment: Analyst stance remains cautious — Deutsche Bank raised its price target to $22 but kept a “hold” rating, implying limited near-term upside from current levels and continued analyst conservatism. MarketScreener/Deutsche Bank note
Analyst Ratings Changes
Several research firms recently weighed in on KHC. Barclays lifted their target price on shares of Kraft Heinz from $24.00 to $25.00 and gave the company an “equal weight” rating in a report on Thursday, February 12th. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Kraft Heinz from $20.00 to $22.00 and gave the company a “hold” rating in a research report on Thursday. Weiss Ratings reiterated a “sell (d)” rating on shares of Kraft Heinz in a report on Tuesday, April 21st. UBS Group dropped their price objective on Kraft Heinz from $25.00 to $23.00 and set a “neutral” rating on the stock in a report on Tuesday, April 7th. Finally, BTIG Research started coverage on shares of Kraft Heinz in a report on Monday, April 13th. They issued a “neutral” rating on the stock. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus target price of $23.53.
Get Our Latest Stock Report on Kraft Heinz
Insider Transactions at Kraft Heinz
In other Kraft Heinz news, insider Cory Onell sold 4,991 shares of the stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $24.34, for a total transaction of $121,480.94. Following the transaction, the insider directly owned 197,463 shares in the company, valued at $4,806,249.42. This represents a 2.47% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.24% of the stock is owned by corporate insiders.
Institutional Inflows and Outflows
Several hedge funds and other institutional investors have recently modified their holdings of KHC. Invesco Ltd. lifted its stake in Kraft Heinz by 10.5% in the fourth quarter. Invesco Ltd. now owns 19,725,662 shares of the company’s stock valued at $478,347,000 after buying an additional 1,870,310 shares during the last quarter. Ameriprise Financial Inc. grew its position in shares of Kraft Heinz by 112.2% during the third quarter. Ameriprise Financial Inc. now owns 2,491,597 shares of the company’s stock worth $64,872,000 after acquiring an additional 1,317,201 shares during the last quarter. Amundi increased its holdings in shares of Kraft Heinz by 25.7% in the 4th quarter. Amundi now owns 4,387,962 shares of the company’s stock worth $106,407,000 after acquiring an additional 898,486 shares during the period. Victory Capital Management Inc. lifted its position in Kraft Heinz by 27.0% in the 4th quarter. Victory Capital Management Inc. now owns 3,587,927 shares of the company’s stock valued at $87,007,000 after purchasing an additional 761,775 shares during the last quarter. Finally, Danske Bank A S acquired a new position in Kraft Heinz during the 3rd quarter valued at about $16,634,000. 78.17% of the stock is owned by institutional investors and hedge funds.
Kraft Heinz Company Profile
The Kraft Heinz Company (NASDAQ: KHC) is a global food and beverage company formed in 2015 through the merger of Kraft Foods Group and H.J. Heinz Company. The combination created one of the largest packaged-food companies in the world, built around well-known consumer brands. The merger was supported by major investors and established a multi-national platform for branded food products.
Kraft Heinz develops, manufactures, markets and distributes a broad portfolio of branded packaged foods and condiments.