Kraft Heinz (KHC) Company Report

Kraft Heinz beat Q3 EPS expectations at $0.61 but missed revenue forecasts as sales fell 2.2% to $6.2 billion, with organic sales down 2.5%
The company trimmed its fiscal 2025 adjusted EPS guidance to $2.50–$2.57, below analyst expectations
Plans to spin off its global sauces arm from the North American grocery segment by H2 2026 to sharpen focus and improve efficiencies
Will increase marketing and product innovation investments to address headwinds like high commodity costs and slower emerging-market growth

Oct 29, 2025, 2:16 PM

Bloomberg

Kraft Heinz reports modest top-line recovery with improved cash flow in Q3 2025

KHC

Earnings

Guidance Update

Dividends

Organic net sales of $6.2 B declined 2.5% vs. prior year; constant-currency adjusted operating income of $1.1 B and adjusted EPS of $0.61; YTD free cash flow of $2.5 B (+23%).
North America organic net sales down 3.8%, while Emerging Markets grew 4.7%; volume/mix headwinds partially offset by price contributions.
Continued investments in Marketing, R&D, and Technology are driving modest top-line recovery; gross efficiencies of 4.3% YTD against a 3.0% annual goal.
Returned $1.8 B of incremental capital to stockholders YTD; net leverage remains at ~3.0x as company separation on track for H2 2026.
2025 outlook updated: organic net sales down 3.0–3.5%, constant-currency adjusted operating income down 10–12%, adjusted EPS of $2.50–$2.57.

Oct 29, 2025, 1:00 PM

Presentation

Kraft Heinz updates Q3 2025 outlook

KHC

Guidance Update

Demand Weakening

Kraft Heinz delivered a modest year-over-year top-line recovery in Q3 2025 and updated its 2025 outlook due to weaker U.S. consumer sentiment, incremental meat and coffee inflation, and supply-chain one-offs that will persist for the year.
The 25% profit revision reflects lower U.S. consumption, slower taste-elevation recovery (70% of revenue gaining share), and un-recouped inflation rather than incremental spending beyond the $300 million of added U.S. promotions and marketing investments announced earlier.
Emerging markets ex-Indonesia grew 9.2%, while Indonesia (≈$300 million revenue) was hit by a nearly 10-point drop in consumer sentiment, distributor disruptions, and inventory corrections, with full recovery expected in H2 2026.
Kraft Heinz remains on track to separate into two investment-grade independent companies in 2026, targeting net debt below 4× EBITDA and maintaining disciplined cash flow and organic investment priorities.

Oct 29, 2025, 1:00 PM

Transcript

Kraft Heinz reports Q3 2025 results

KHC

Earnings

Net sales decreased 2.3% to $6.237 billion, with organic net sales down 2.5% year-over-year.
Gross profit margin declined 230 bps to 31.9%; adjusted gross profit margin fell 200 bps to 32.3%.
Operating income was $1.025 billion (up 1,114.9%); adjusted operating income was $1.106 billion (down 16.9%).
Diluted EPS rose to $0.52 from $(0.24); adjusted EPS was $0.61, down 18.7%.
Year-to-date operating cash flow reached $3.1 billion (up 10.4%) and free cash flow was $2.5 billion (up 23.3%); the planned separation into two companies remains on track for 2H 2026.

Oct 29, 2025, 11:01 AM

8-K

Kraft Heinz reports Q3 2025 results

KHC

Earnings

Guidance Update

M&A

Kraft Heinz delivered Q3 net sales of $6.2 B, with organic net sales down 2.5% YoY, adjusted EPS of $0.61, and YTD free cash flow of $2.5 B (up 23% YoY).
Constant currency adjusted operating income declined 17.0%, with an adjusted operating margin of 17.7%, as inflation and volume pressures were only partially offset by productivity savings.
2025 guidance maintained: organic net sales expected to decline 3.0%–3.5%, constant currency adjusted operating income down 10%–12%, adjusted EPS of $2.50–$2.57, and free cash flow to increase versus prior year.
Company separation into Global Taste Elevation Co. and North American Grocery Co. remains on track to close in H2 2026.

Oct 29, 2025, 11:00 AM

Presentation

Kraft Heinz reports Q3 2025 results

KHC

Earnings

Guidance Update

Organic net sales declined 2.5% in Q3, an improvement of 80 bps from H1, with price up 1% and volume/mix down 3.5%.
Adjusted operating income of $1.1 billion and adjusted EPS of $0.61 in Q3, reflecting ongoing inflation and targeted investments.
Year-to-date free cash flow of $2.5 billion, up >20% YoY, and $1.8 billion returned to shareholders through dividends and share repurchases.
Full-year 2025 outlook updated: organic net sales down 3–3.5%, adjusted gross profit margin down ~100 bps, adjusted operating income down 10–12%, and adj. EPS of $2.50–2.57; free cash flow conversion ≥ 100%.
Separation into two focused companies (Global Taste Elevation and North America Grocery) remains on track to close in 2026.

Oct 29, 2025, 11:00 AM

Transcript

Kraft Heinz considers breaking up business

KHC

M&A

Kraft Heinz is planning to spin off a portion of its grocery business into a new entity valued at up to $20 billion.
The remaining company would focus on sauce brands, including Heinz Ketchup and Grey Poupon mustard.
Since the 2015 merger, Kraft Heinz shares are down about 60%, though they were up 1.7% on the morning following the report.
Executives noted strong margins in the ketchup segment, while other packaged foods face more headwinds due to declining consumer demand.

Jul 14, 2025, 10:53 AM

CNBC Television

Kraft Heinz plans $20B breakup to boost value

KHC

M&A

Kraft Heinz intends to split into two entities, spinning off its grocery division into a standalone company potentially valued at $20 billion to unlock shareholder value.
The remaining business will concentrate on household products to sharpen operational focus amid sluggish processed foods sales.
Following the news, shares jumped 2.7% to $27.18, though they remain about 12% lower year-to-date.
Analysts maintain a Hold rating with an average target price of $30.39 (13% upside) and a one-year fair value estimate of $34.78.

Jul 11, 2025, 6:24 PM

Bloomberg

Kraft Heinz sells Italian baby food brands to NewPrinces

KHC

M&A

Kraft Heinz is divesting its Italian infant and specialty food business—including Plasmon, Nipiol, Dieterba, Aproten and Biaglut—and the Latina production facility to NewPrinces for €120 million to focus on core product lines.
The Latina facility, which produces about 1.8 billion Plasmon biscuits annually and employs ~300 people, will continue operations with all jobs retained under NewPrinces.
The transaction is expected to close by late 2025, pending regulatory approvals and union consultations; it is advised by Houlihan Lokey and Vitale&Co.
NewPrinces, rebranded from Newlat Food after its £700 million acquisition of Princes Limited in 2024, saw its stock price rise 4.7% on the announcement.

Jul 10, 2025, 6:59 AM

Morningstar

Kraft Heinz Outlines Strategic Initiatives at Global Consumer Conference 2025

KHC

New Projects/Investments

M&A

Senior executives discussed evolving consumer challenges in the U.S. and internationally, emphasizing a renewed focus on delivering value through initiatives like a revamped brand growth system and product improvements (e.g., launch of a family-sized mac and cheese at $2).
Leadership highlighted plans to accelerate investments in marketing, supply chain efficiency, and technology while evaluating strategic transactions to unlock shareholder value, reinforcing an offensive strategy in a challenging market environment.

Jun 4, 2025, 10:56 AM

Earnings Transcripts

Quarterly earnings call transcripts for Kraft Heinz.

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