Medical Properties Trust, Kraft Heinz a UPS nabízejí vysoký dividendový výnos, ale článek upozorňuje na slabé krytí, zadlužení a tlak na cash flow. U všech tří je riziko snížení dividendy snadno podceněné.
A fat dividend yield can mean generosity or distress, and three well-known stocks paying some of the biggest yields in the market right now are showing cracks that most income investors are dangerously quick to overlook.
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Chasing yield is easy. Getting paid it, year after year, is the hard part. Income investors know the sting of a payout cut: the check shrinks and the share price usually goes with it. A quick reminder of what that looks like in the wild: Kraft Heinz (NASDAQ:KHC | KHC Price Prediction) has watched its stock slide -55.27% over ten years while the payout has stayed frozen at $0.40 a share quarterly since 2020. A rich yield often signals a company under strain rather than shareholder generosity.
A dividend is sustainable when the business generates enough earnings and free cash flow to pay it, service its debt, and reinvest. When any leg wobbles (coverage, cash flow, or the balance sheet) the payout starts to look borrowed rather than earned. We cataloged seven of these tells in a free dividend trap guide, and they show up plainly in the three high-yield names below.
Medical Properties Trust (MPW) Medical Properties Trust (NYSE:MPW) is a hospital-focused REIT. Shares closed at $4.70 at the Q2 2026 filing, down from $5.14 at Q1, and the quarterly dividend was $0.09 per share paid in July 2026, raised earlier in the year from $0.08. The yield looks generous because the share price collapsed years ago after a much larger dividend was slashed in 2023, a classic price-inflated yield setup.
For REITs, the right coverage metric is FFO/NFFO, not EPS. On that basis, Q2 NFFO of $0.15 per share comfortably covers the $0.09 dividend. The trap sits on the balance sheet. Financial leverage stands at 59.6%, adjusted net debt to EBITDAre is 8.9x, and interest coverage is only 1.9x. New secured notes were placed at a punishing 9.25% coupon due 2032 to term out 2026 and half of 2027 maturities. Tenant quality is another wobble: Prospect Medical bankruptcy recovery remains uncertain, and Swiss Medical Network rent coverage is a scant 0.3% of revenues despite 5.8% of assets.
What would keep the payout intact: hitting management’s annualized cash rent target of at least $1B by year-end 2026, executing ~$172M of asset sales expected in Q3 2026, and steady deleveraging. The refi bought time; it did not lower the cost of capital.
Kraft Heinz (KHC) Kraft Heinz is a packaged-foods giant with a market cap near $30.17B. The current quarterly dividend of $0.40 (annualized forward $1.60) looks tempting against a share price of $25.42, especially with the stock still down -10.27% over five years.
Coverage on adjusted EPS looks fine against FY26 guidance of $2.03 to $2.09, and quarterly operating cash flow of $1.082 billion against a dividend payout of $475 million in Q2 2026 still clears the bar. The warning signs are qualitative. Q2 included a $7.4B non-cash goodwill and intangibles impairment, producing a GAAP net loss of -$5.46B. Organic sales are guided down 0.5% to 2.0% for the year, North America adjusted operating income fell 15.8%, and Constant Currency Adjusted Operating Income is guided down 16% to 18%. The planned separation into two public companies is paused, adding strategic uncertainty. Meanwhile, brand reinvestment is being lifted to roughly $700M.
The counter-case is real. CFO Andre Maciel said on the Q2 call, “You have seen that we have paid down $1.9 billion of debt in the quarter. After the quarter closed, we also paid another $1 billion in 2027.” He added, “Our balance sheet remains very strong.” Keeping the dividend safe requires the brand spending to translate into volume, not just market-share stabilization.
United Parcel Service (UPS) UPS (NYSE:UPS) pays $1.64 per share quarterly, an annualized $6.56, with the last raise a nominal step from $1.63. Shares closed at $103.50, still down -33.59% over five years even after a 29.41% one-year rebound. The elevated yield reflects that multi-year price weakness more than payout growth.
For a corporate, look at EPS and free cash flow. Full-year 2026 guidance calls for adjusted diluted EPS of about $7.22, dividends of around $5.4 billion, and free cash flow of approximately $5.5 billion. That leaves almost no cushion once you layer in $3 billion in capex and a $1.3 billion pension contribution. The quarterly picture is worse: in Q2 2026, dividend payout of $1.356 billion exceeded operating cash flow of $887 million. Consolidated volume fell 3.6% year over year in Q2, cash on the balance sheet slipped from $5.887B to $4.653B over six months, and interest expense rose 14.3% to $272M. Management’s dividend line was explicitly framed as “subject to Board approval.”
What would resolve the concern: delivering the approximately $3 billion in 2026 benefits from the Amazon glide-down and network reconfiguration, sustaining the Q2 revenue-per-piece gain of 9.3%, and holding U.S. Domestic margins near the approximately 7.5% full-year target.
What Income Investors Should Actually Do None of these three companies has told the market a cut is coming, and each has levers left to pull. That is precisely why the risk is easy to under-price. Yield alone is never a buy thesis, and when a payout gets funded by asset sales, refinancings, or shrinking cash balances, the math eventually catches up. For retirement-focused portfolios, MPW screens as speculative rather than income-core, KHC’s coverage depends on organic sales stabilizing, and UPS bears watching through the next two quarters of free-cash-flow reports. A high yield is only as good as the coverage behind it.
Contact [email protected] for any questions or corrections.
Kraft Heinz za poslední měsíc přidal asi 1,8 % po výsledcích za 2Q, kdy upravený zisk na akcii 56 centů překonal odhad 53 centů. Firma zároveň zlepšila výhled pro rok 2026.
A month has gone by since the last earnings report for Kraft Heinz (KHC - Free Report) . Shares have added about 1.8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Kraft Heinz due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Kraft Heinz Q2 Earnings Beat Estimates Despite Organic Sales DipThe Kraft Heinz Company posted second-quarter 2026 results. The company posted adjusted earnings of 56 cents per share, beating the Zacks Consensus Estimate of 53 cents. Quarterly adjusted earnings fell 18.8% year over year, mainly due to lower adjusted operating income, partially offset by reduced tax expenses.
The company generated net sales of $6,262 million, down 1.4% year over year. However, the metric beat the Zacks Consensus Estimate of $6,162 million. The decrease included a 0.6 percentage-point drag from divestitures partially offset by a favorable 0.5 percentage-point impact from foreign currency. Organic net sales fell 1.3%. Our model expected a 3.8% dip in organic sales.
Price contributed 1.3 percentage points of growth, with increases across all segments, primarily reflecting pricing actions in select categories to offset higher input costs, particularly in coffee and ready-to-drink beverages. Volume/mix declined 2.6 percentage points, driven by lower volumes in the North America and International Developed Markets segments, partly offset by growth in the Emerging Markets segment. The volume/mix decline was primarily attributable to weaker performance in meats and spoonables, along with the timing shift of Easter, which reduced growth approximately 100 basis points. These headwinds were partially offset by an approximately 80-basis-point benefit from inventory pull-forward in the quarter.
The adjusted gross profit of $2,136 million decreased from the $2,168 million reported in the year-ago quarter. Adjusted gross profit margin was flat year over year at 34.1%. Adjusted operating income declined 18.4% year over year to $1,041 million. The drop was primarily caused by higher advertising expenses, unfavorable volume/mix, inflationary pressures in manufacturing and logistics and higher variable compensation expense. These headwinds more than offset the benefits from higher pricing and efficiency initiatives.
Decoding KHC’s Segment-Wise ResultsNorth America net sales declined 2.7% to $4,626 million. Organic sales also fell 2.7%, as a 1.1-percentage-point pricing contribution was outweighed by a 3.8-percentage-point volume/mix decline. We expected a 5.3% decline in segment organic sales.
International Developed Markets sales decreased 3.5% to $865 million, while organic sales slipped 0.7% as a 0.7-percentage-point pricing contribution was outweighed by a 1.4-percentage-point volume/mix decline. We expected a 1.4% decrease in segment organic sales.
Emerging Markets sales rose 10.4% to $771 million, and organic sales advanced 8.5%, driven by 4.5-percentage-point pricing and 4-percentage-point volume/mix contributions. We expected 3.6% growth in segment organic sales.
Kraft Heinz: Other Financial AspectsKraft Heinz ended the quarter with cash and cash equivalents of $2,419 million, long-term debt of $17,619 million and total shareholders’ equity (excluding noncontrolling interest) of $36,006 million. Net cash provided by operating activities was $2,088 million for the six months ended June 27, 2026, and free cash flow was $1,659 million. The company returned $949 million to its shareholders through cash dividends in the first half. Kraft Heinz did not repurchase any shares under its existing buyback program.
What to Expect From KHC in 2026?For 2026, Kraft Heinz now expects organic net sales to decline 0.5-2%, compared with its previous forecast for a 1.5-3.5% drop. The outlook continues to include an estimated 100-basis-point headwind from lower SNAP benefits.
Constant-currency adjusted operating income is now projected to fall 16-18%, compared with the prior range of 14-18% decrease.
Adjusted earnings are expected between $2.03 and $2.09 per share, compared with the previous range of $1.98-$2.10.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -8.25% due to these changes.
VGM ScoresCurrently, Kraft Heinz has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Kraft Heinz has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerKraft Heinz is part of the Zacks Food - Miscellaneous industry. Over the past month, Chefs' Warehouse (CHEF - Free Report) , a stock from the same industry, has gained 4.7%. The company reported its results for the quarter ended June 2026 more than a month ago.
Chefs' Warehouse reported revenues of $1.17 billion in the last reported quarter, representing a year-over-year change of +12.9%. EPS of $0.78 for the same period compares with $0.52 a year ago.
For the current quarter, Chefs' Warehouse is expected to post earnings of $0.61 per share, indicating a change of +22% from the year-ago quarter. The Zacks Consensus Estimate has changed +11.7% over the last 30 days.
Chefs' Warehouse has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
Campbell’s snížila čtvrtletní dividendu o 36 % na 0,25 USD na akcii a výhled na příští fiskální rok počítá s poklesem čistých tržeb o 2 až 4 % a upraveným ziskem na akcii v rozmezí 1,65 až 1,80 USD, což je pod odhady Wall Street. Akcie klesly o 9 % během poledního obchodování a stáhly dolů i General Mills a Kraft Heinz.
Campbell's just slashed its dividend and reset guidance well below Wall Street's bar, and the fallout is spreading fast to peers that haven't reported a single number yet.
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Packaged-food names are selling sharply Thursday even as the broader staples complex holds firm and the wider tape climbs. The Consumer Staples Select Sector SPDR ETF (NYSEARCA:XLP) is flat at $85.57, while the S&P 500 tracking SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 1% to $772.73. The selling is inside center-store food, evidently.
The Campbell’s Company (NYSE:CPB | CPB Price Prediction) stock is down 9% to $21.53 at midday after the company cut its dividend and guided the coming fiscal year below Wall Street’s bar. Meanwhile, General Mills (NYSE:GIS) stock is falling 4% to $38.88 in sympathy with that guidance reset. Kraft Heinz (NASDAQ:KHC) stock is sliding 3% to $25.43 as the read-across extends to peers with similar U.S. center-store exposure.
Dividend Reset and Guide-Down Campbell’s board approved a quarterly dividend of $0.25 per share, down 36% from $0.39, payable November 2 to shareholders of record as of October 1, which takes the annualized payout to $1.00 per share from $1.56. Management framed the reset as a way to accelerate debt reduction, and CEO Mick Beekhuizen didn’t soften the message. “Our performance is not where it needs to be, and we are taking decisive action to improve it,” he stated.
For the coming fiscal year, Campbell’s guided net sales to decline 2% to 4% and adjusted earnings per share to a range of $1.65 to $1.80. That sits below analyst consensus, which had called for a Campbell’s net sales decline of 0.8% and adjusted EPS of $1.86. In other words, the outlook is a contributing factor to the CPB share-price decline.
Snacks Weakness Against Meals Strength For the fiscal fourth quarter ended August 2, Campbell’s net sales fell 8% to $2.14 billion, reflecting a seven-point impact from an extra week in the year-earlier period, with organic net sales down 1% and adjusted EPS of $0.39. The mix is what matters here. Campbell’s snacks segment organic net sales fell 6% on weakness in the salty portfolio, while meals and beverages posted 3% organic net sales growth.
Salty snacks are where the damage concentrates. That’s where Campbell’s new $500 million cost program, targeting savings by fiscal 2030 and replacing a prior $375 million initiative, is aimed, with plant closures and workforce reductions already underway. GAAP results also carried trademark impairments on the Cape Cod and Kettle Brand lines, underscoring how much rework the salty portfolio still requires.
Peer Read-Across and Session Scorecard General Mills and Kraft Heinz aren’t reporting today. However, the concerns extend to any large U.S. center-store player after Campbell’s just flagged inflation, salty-snack weakness, and a multi-year cost reset. Both peers enter this session carrying their own volume-mix pressure in North America.
Campbell’s entered the day down 10% year to date through the prior close and had climbed 6% over the past month, a rebound today’s move erases. Kraft Heinz was up 12% year to date, while General Mills was down 9%. Those three starting points mean today’s shared decline shows the market pricing read-across from one company’s guidance.
Stock Session Move YTD Through Prior Close CPB Down 9% to $21.53 Down 10% GIS Down 4% to $38.88 Down 9% KHC Down 3% to $25.43 Up 12% What to Watch A flat staples fund and a rising broad tape tell you this is a category story inside packaged food. Traders can watch for whether the group stabilizes as the Campbell’s call fades, or whether the guidance reset pulls sell-side estimates lower on General Mills and Kraft Heinz over coming sessions.
Holders of these names may want to right-size their exposure ahead of the next round of analyst notes. A single company’s guide-down can compress peer multiples for weeks, and the sector’s yields no longer offer the same cushion after Campbell’s just showed a payout can move (we cataloged the seven warning signs a big yield is about to be cut in a free report). Their position sizing should reflect that risk.
Contact [email protected] for any questions or corrections.
Kraft Heinz ve 2. čtvrtletí 2026 snížila organické tržby o 1,3 %, protože pokles objemu/mixu o 2,6 procentního bodu převážil nad cenovým přínosem. Firma zároveň zvýšila výdaje na R&D o 22 % a její nové produkty ukazují ranou trakci.
Key Takeaways Kraft Heinz's organic sales fell 1.35 in Q2 2026 as volume/mix declined 2.6 percentage points. Kraft Heinz raised first-half R&D spending 22%, supporting innovation, renovation and productivity.PowerMac and Capri Sun Hydrate showed strong early velocities and incremental sales after launch. The Kraft Heinz Company (KHC - Free Report) is sharpening its innovation focus as it works toward its goal of returning to volume-led, sustainable and profitable growth. The strategy emphasizes fewer, bigger innovations centered on consumer-driven platforms such as convenience, new occasions and nutrition, supported by increased R&D investment.
The need for stronger volumes remains evident. Organic sales declined 1.3% in the second quarter of 2026, as a 1.3-percentage-point contribution from price was more than offset by a 2.6-percentage-point decline in volume/mix.
Kraft Heinz increased R&D spending 22% year over year in the first half, supporting innovation, renovation and productivity. One notable launch is Kraft Mac & Cheese PowerMac, which has reached more than 35,000 stores nationwide. Early velocities are in the top quartile, while initial sales have been highly incremental to both the existing business and the overall category.
Capri Sun Hydrate also showed early traction after reaching major retailers in the second quarter. The product became the fastest-turning innovation in kids' single-serve beverages, with top flavors driving incrementality. Meanwhile, Philadelphia lactose-free cream cheese has started shipping. Customer sell-in has been strong, distribution is expected to ramp up as retailer resets progress, and sales are anticipated to be highly incremental to the base business.
The innovation pipeline is showing early signs of incremental sales and healthy product velocities. However, with total volume/mix still down 2.6 percentage points, these gains have not yet translated into companywide volume growth. The next phase rests on scaling this early traction across a broader portion of the business.
KHC Stock Price Performance, Valuation & EstimatesShares of the Zacks Rank #3 (Hold) company have dipped 3.9% over the past year compared with the industry’s decline of 16.5%.
KHC Price Performance Versus Industry
Image Source: Zacks Investment Research
From a valuation standpoint, KHC trades at a forward price-to-earnings ratio of 12.25, lower than the industry’s average of 15.14.
KHC Valuation Compared to Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KHC’s current fiscal year earnings per share (EPS) suggests a decline of 20.8% from the year-ago period figure, while the consensus mark for the next fiscal year EPS implies 3.9% year-over-year growth.
Better-Ranked Stocks to ConsiderThe Chefs' Warehouse, Inc. (CHEF - Free Report) is a distributor of specialty food and center-of-the-plate products across the United States, Canada and the Middle East. CHEF currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings per share (EPS) implies growth of 10.6% and 33.7%, respectively, from the year-ago figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
The Vita Coco Company, Inc. (COCO - Free Report) , a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.
The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and EPS calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.
Darling Ingredients Inc. (DAR - Free Report) , a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients, currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Darling’s current fiscal-year sales suggests an 11.5% jump from the prior-year levels. The consensus estimate for current fiscal-year EPS stands at $6.98, which implies a substantial improvement from the year-ago period. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.
Kraft Heinz ve 2. čtvrtletí překonal odhady ziskem na akcii 56 centů a tržbami 6,262 miliardy USD. Zlepšil také výhled organických tržeb na rok 2026 na pokles o 0,5 % až 2 %.
Key Takeaways Kraft Heinz beat Q2 estimates with adjusted EPS of 56 cents and net sales of $6.262 billion. KHC now expects 2026 organic sales to decline 0.5%-2%, improved from its prior 1.5%-3.5%% forecast. Kraft Heinz's Emerging Markets organic sales rose 8.5%, while North America organic sales fell 2.7%. The Kraft Heinz Company (KHC - Free Report) topped second-quarter earnings and sales expectations while raising its 2026 organic sales outlook. The results give investors some evidence that execution is improving as brand investment and international growth begin to show traction.
The recovery is still incomplete. North American volumes remain weak, full-year margins are expected to contract and adjusted operating income is projected to decline sharply, keeping the focus on whether better demand trends can become sustainable.
KHC's Q2 Beat Came With Softer Organic SalesKraft Heinz reported adjusted earnings of 56 cents per share, above the Zacks Consensus Estimate of 53 cents. Net sales of $6.262 billion also surpassed the consensus mark of $6.162 billion.
The beat did not erase the underlying pressure. Adjusted earnings fell 18.8% year over year, while organic net sales declined 1.3% as a 2.6-point drop in volume/mix more than offset 1.3 points of pricing.
Kraft Heinz Raised Its 2026 Sales OutlookManagement now expects fiscal 2026 organic net sales to decline 0.5% to 2%, compared with its prior forecast for a 1.5% to 3.5% decline. The updated range still includes an approximately 100-basis-point impact from incremental SNAP headwinds.
Demand trends have improved from earlier in the year. Management said consumption declined about 2.5% in the second quarter but improved to roughly 1% in July, with sequential improvement expected in the third and fourth quarters.
Image Source: Zacks Investment Research
KHC's North America Volumes Remain the Pressure PointNorth America organic net sales fell 2.7% in the second quarter. A 3.8-point decline in volume/mix overwhelmed a 1.1-point pricing contribution, with softness in U.S. meats remaining a key drag.
The pressure is not unique to Kraft Heinz. The Campbell's Company (CPB - Free Report) reported a 4% decline in both reported and organic net sales in its fiscal third quarter of 2026, while adjusted earnings per share fell 32%.
Emerging Markets Offset Part of Kraft Heinz's WeaknessEmerging Markets net sales increased 10.4% and organic net sales rose 8.5% in the second quarter. Pricing contributed 4.5 points and volume/mix added 4 points, giving Kraft Heinz growth from both price and demand.
Management expects Emerging Markets growth to accelerate in the second half as an Indonesia-related drag is lapped. For broader branded-food context, Mondelez International, Inc. (MDLZ - Free Report) reported second-quarter 2026 organic net revenue growth of 2.2%, including a 0.7% volume/mix increase.
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KHC's Margin Outlook Limits the Earnings UpsideAdjusted gross profit margin was flat year over year at 34.1% in the second quarter. For fiscal 2026, Kraft Heinz still expects adjusted gross profit margin to decline 10 to 50 basis points.
Constant-currency adjusted operating income is projected to fall 16% to 18%. The outlook incorporates about $700 million of incremental investment versus 2025, while inflation and unfavorable volume/mix continue to pressure near-term earnings leverage.
KHC's Ratings Still Signal a Balanced SetupKraft Heinz's earnings beat and improved organic sales outlook strengthen the recovery narrative, but the investment case still depends on better volume trends and firmer profitability. The latest results improve visibility without removing the core execution risks.
KHC currently carries a Zacks Rank #3 (Hold). Its Value Score of A supports the value case, while the Growth Score of D, Momentum Score of F and VGM Score of C indicate that favorable valuation characteristics are not yet matched by equally strong growth and momentum signals. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Kraft Heinz Company (Nasdaq: KHC) (“Kraft Heinz” or the “Company”) today announced that it will transfer the listing of its common stock to the New York Stock Exchange (NYSE). Kraft Heinz expects its common stock to begin trading on the NYSE on September 14, 2026, under its existing ticker symbol, KHC.
“Our move to the New York Stock Exchange marks an exciting milestone in Kraft Heinz's transformation. We believe the NYSE is a natural home for Kraft Heinz as we enter our next chapter, reflecting the strength of our iconic portfolio, our global scale, and our focus on creating long-term shareholder value,” said Steve Cahillane, CEO of Kraft Heinz.
“We are proud to welcome Kraft Heinz to the NYSE, where it joins our community of iconic American brands and industry leaders,” said Lynn Martin, President, NYSE Group. “Kraft Heinz shares our commitment to innovation with its own unique mission to deliver high-quality, delicious and affordable foods to people around the world. We look forward to supporting the company as it continues to grow its global investor base and fulfill its promise to consumers everywhere.”
ABOUT THE KRAFT HEINZ COMPANY
Kraft Heinz (Nasdaq: KHC) is one of the world’s largest food and beverage companies, with approximately $25 billion in net sales in 2025 and a portfolio of iconic brands enjoyed by consumers in more than 40 countries. By investing in our capabilities and brands, including Heinz, Kraft, Philadelphia, Primal Kitchen, and Lunchables, we are unlocking the full power of our portfolio. We deliver high-quality, great-tasting, and affordable food for the consumers of today, while shaping the future of food. Learn more at www.kraftheinzcompany.com.
Category: Financial
View source version on businesswire.com: https://www.businesswire.com/news/home/20260826560484/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Key Takeaways Kraft Heinz's Global Away From Home organic sales grew 2.9% in the second quarter of 2026. KHC's U.S. growth included World Cup demand and inventory impacts that are not expected to repeat. Kraft Heinz targets new customers, broader QSR penetration and expansion into non-commercial channels. The Kraft Heinz Company (KHC - Free Report) is expanding its Away From Home presence as part of its effort to build growth across foodservice channels. The strategy centers on broadening the business beyond ketchup, reaching more non-commercial venues and increasing penetration in quick-service restaurants. The company is also targeting opportunities across channels such as stadiums and hotels.
Recent performance shows progress in this direction. Global Away From Home organic sales grew 2.9% in the second quarter of 2026, following a 0.6% decline in the first quarter and a 1.5% decrease in fiscal 2025. Growth was driven by a return to growth in the United States and continued gains in Emerging Markets.
The U.S. performance included an approximately 150-basis-point benefit from World Cup-driven demand, along with the impact of lapping a prior-year inventory deload. KHC does not expect these factors to repeat. Excluding these impacts, the business benefited from ongoing net-new customer wins, an important element of its efforts to expand the channel.
Emerging Markets are also contributing to the Away From Home push. Organic sales in the channel grew around 5% in these markets during the latest quarter as Kraft Heinz continued expanding distribution. The company expects Global Away From Home organic sales to grow at a low-single-digit rate in the third quarter. The key focus from here is the underlying expansion of the business as temporary benefits fade.
Kraft Heinz is seeking growth through net-new business wins, greater quick-service restaurant penetration, expansion into non-commercial channels and a broader product presence beyond ketchup. Continued progress across these areas will determine how effectively Away From Home develops into a more sustained contributor to sales growth.
Shares of KHC have rallied 5.5% over the past three months compared with the industry’s growth of 9.8%.
Image Source: Zacks Investment Research
Better-Ranked Stocks to ConsiderDarling Ingredients Inc. (DAR - Free Report) , a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients, currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for Darling’s current fiscal-year sales calls for 12.8% growth from the prior-year levels. The consensus estimate for current fiscal-year earnings per share (EPS) stands at $6.98, which implies substantial growth from the year-ago period. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.
The Vita Coco Company, Inc. (COCO - Free Report) , a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.
The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and earnings calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.
US Foods Holding Corp. (USFD - Free Report) engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2 (Buy). US Foods Holding delivered a trailing four-quarter earnings surprise of 1.5%, on average.
The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.3% and 16.3%, respectively, from the year-ago figures.
It's a big understatement to say that the Kraft Foods and H.J. Heinz merger has been disappointing. Since the combined company, Kraft Heinz (KHC -2.98%), began trading in July 2015, the shares have lost 43.4% through Aug. 14.
Including dividends, the stock returned just 2.3%. Those who invested passively in an S&P 500 index fund did much better, with the index returning 584.1% during this time.
The board of directors hired Steve Cahillane as CEO, and he started on Jan. 1. Can he turn around the company and reignite sales growth?
Image source: Getty Images.
Uninspiring results So far, the results have been uninspiring. Kraft-Heinz's second-quarter sales, adjusted to remove foreign-currency translations and the impact of divestitures, dropped 1.3% year over year. Even more concerning, while higher prices added 1.3 percentage points, lower volume/changing mix subtracted 2.6 percentage points. Clearly, consumers aren't willing to pay higher prices, as this has resulted in lower demand.
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Turning to operating income, it's more complicated. Kraft Heinz had an operating loss of $6.4 billion. This includes impairment charges of $7.4 billion. The year-ago period also included $9.3 billion of charges. Adding these back, the company earned $1 billion. However, that's still down more than 18% year over year.
While management noted it's a non-cash charge, it still reflects poorly on management's prior judgment. This year's charges include $2.4 billion for goodwill impairment and $4.9 billion for intangible asset impairment. Management took the former charge due to the market's assessment of Kraft Heinz's ability to achieve cash flow projections from investments in marketing, sales, and research and development (R&D). The intangible asset write-down reflects a charge primarily related to trademarks that no longer have the value management once thought they had.
Management's plan One of CEO Cahillane's first actions was to cancel the previously announced split of the businesses into groceries and sauces/spreads. Instead, management decided to increase spending on marketing, sales, and R&D by $600 million.
This hasn't worked out, at least not yet. You can see the proof in the sales results, which have continued dropping. Additionally, management's decision to take the goodwill charge also reflects this reality.
For the year, management expects sales to drop 0.5% to 2%. While that's better than the 1.5% to 3.5% decline that it previously expected, it's hard to get excited by the outlook.
Relying on dividends? Kraft Heinz has paid steady $0.40 quarterly dividends since 2019. However, that came after the board of directors slashed the payout from $0.625 per share.
With that kind of history and the company's losses, it's not out of the question that Kraft Heinz will cut dividends at some point. That's why I wouldn't rely on future dividends, despite the stock's high 6.3% yield.
While the stock has a price-to-sales (P/S) ratio of 1.2 versus the S&P 500's 3.8, I'd avoid Kraft Heinz's shares.
That's because the company continues to face sales and profitability challenges that could threaten its dividend. That means the company has the makings of a value trap rather than a value stock.
Kraft Heinz přidá ve druhé polovině roku 100 milionů USD do výdajů na marketing, protože po zlepšení spotřeby a tržního podílu zvýšil výhled organických tržeb. Spotřeba se v červenci zlepšila z asi -2,5 % ve 2. čtvrtletí na zhruba -1 %.
Key Takeaways KHC added $100 million to second-half marketing after early gains in consumption and market share.Organic sales guidance improved as consumption moved from about -2.5% in Q2 to roughly -1% in July.Kraft Heinz is backing stronger brands with marketing, innovation and productivity ahead of 2027. The Kraft Heinz Company (KHC - Free Report) used its Q2 2026 earnings call to increase brand investment after early improvements in consumption and market share. Management framed the added spending as preparation for volume-led growth in 2027.
Adjusted earnings of $0.56 per share topped the Zacks Consensus Estimate of $0.53. Revenues of $6.26 billion also exceeded the $6.16 billion estimate, although organic net sales declined 1.3%.
KHC Adds $100 Million to Brand SupportChief executive officer (CEO) Steve Cahillane said Kraft Heinz raised incremental fiscal 2026 investments to approximately $700 million versus 2025. The extra $100 million will go almost entirely toward second-half marketing.
A JPMorgan analyst asked about the spending cadence. Cahillane said third- and fourth-quarter investment should be broadly even.
Global CFO Andre Maciel said management does not expect spending to wrap into next year. Fiscal 2026 is intended to establish the base while preserving flexibility across marketing, pricing and product support.
Kraft Heinz Sees Consumption ImproveKraft Heinz raised its fiscal 2026 organic net sales outlook to a decline of 0.5% to 2.0%, compared with the previous forecast for a 1.5% to 3.5% decrease.
A Bank of America analyst pressed management on consumption. Global CFO Andre Maciel said the measure declined about 2.5% in the second quarter but improved to roughly negative 1% in July, with sequential progress expected through year-end.
The global chief financial officer said market share declined 30 basis points in the first half and about 20 basis points in recent weeks. Steve Cahillane cited better trends in Capri Sun, Mac & Cheese and Taste Elevation, while stressing that the turnaround remains unfinished.
KHC Directs Spending to Stronger BrandsAn Evercore ISI analyst asked why Heinz, Capri Sun, Ore-Ida, Kraft Mac & Cheese and Philadelphia were receiving more support. Andre Maciel cited brand equity, attractive gross margins and more advanced innovation plans.
Heinz grew 3% worldwide and U.S. condiments have increased 3% year to date. Cahillane said Heinz grew 12% in emerging markets during the quarter, while global Away From Home returned to growth.
Results remained uneven elsewhere. The CEO identified Oscar Mayer Deli Fresh as a major weakness, though new packaging was nearly fully deployed. PowerMac reached about 35,000 stores and ranked in the first quartile of innovation performance.
Kraft Heinz Calls 2027 Inflation ManageableA Barclays analyst asked whether expected inflation of 4% to 5% in 2027 threatened margin recovery. CEO Steve Cahillane said productivity would remain the first defense, and management intends to strengthen margins over time.
Second-quarter adjusted gross margin was flat at 34.1%. Adjusted operating income fell 18.4% as advertising, weaker volume and inflation outweighed efficiency gains and pricing.
Kraft Heinz expects fiscal 2026 constant-currency adjusted operating income to decline 16% to 18%. Adjusted earnings guidance was narrowed to $2.03-$2.09 per share from $1.98-$2.1.
KHC Protects Cash While InvestingAndre Maciel emphasized that higher spending has not changed the cash commitment. Year-to-date free cash flow is up 10.3% to $1.7 billion, and the conversion outlook has increased to approximately 110% from 100%.
Maciel also cited $1.9 billion of debt repayment during the quarter. Kraft Heinz paid $949 million in dividends during the first half.
A Wells Fargo analyst asked whether improving momentum created room for portfolio changes. Cahillane said management would consider transactions that add shareholder value, without outlining a specific action.
Kraft Heinz Keeps 2027 in FocusManagement's tone was confident about early traction but measured about the work ahead. North American demand remains pressured, the broader industry is soft and volume recovery is still developing.
Kraft Heinz is prioritizing sustained brand support, targeted pricing, innovation and productivity. Its near-term objective is to improve consumption and share through the second half and enter 2027 with a stronger operating base.
Zacks Signals Favor Value Over GrowthKHC carries a Zacks Rank #2 (Buy), with an A Value Score, C Growth Score, C Momentum Score and A VGM Score. The combined reading is favorable, while the individual scores show greater strength in value than in growth or momentum.
Zacks methodology favors Rank #1 (Strong Buy) and 2 stocks paired with an A or B Style Score. The current combination is constructive, but the Zacks Rank can change as earnings estimates are revised after the reported results.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Anne-Marie Megela
VP & Global Head of Investor Relations
Hello. This is Anne-Marie Megela, Head of Global Investor Relations at The Kraft Heinz Company. I'd like to welcome you to our second quarter 2026 business update. During the following remarks, we will make forward-looking statements regarding our expectations for the future, including related to our business plans and expectations, strategy, efforts and investments and related timing and expected impacts.
These statements are based on how we see things today, and actual results may differ materially due to risks and uncertainties. Please see the cautionary statements and risk factors contained in today's earnings release, which accompanies these remarks as well as our most recent 10-K, 10-Q and 8-K filings for more information regarding these risks and uncertainties.
Additionally, we will refer to non-GAAP financial measures, which exclude certain items from our financial results reported in accordance with GAAP. Please refer to today's earnings release and the non-GAAP information that accompany these remarks, which are available on our website at ir.kraftheinzcompany.com under News & Events for a discussion of our non-GAAP financial measures and reconciliations to the comparable GAAP financial measures.
Today, our Chief Executive Officer, Steve Cahillane, will provide an update on our business performance and overall strategy. Andre Maciel, our Chief Global Financial Officer, will then provide a financial review of the second quarter results, and we will conclude by discussing our 2026 outlook. We have also scheduled a separate live question-and-answer session with analysts. You can access our question-and-answer session at ir.kraftheinzcompany.com. A replay will also be available following the event through the same website. With that, I will now turn
Kraft Heinz (KHC - Free Report) came out with quarterly earnings of $0.56 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +5.66%. A quarter ago, it was expected that this processed food company with dual headquarters in Pittsburgh and Chicago would post earnings of $0.5 per share when it actually produced earnings of $0.58, delivering a surprise of +16%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Kraft Heinz, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $6.26 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.62%. This compares to year-ago revenues of $6.35 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Kraft Heinz shares have added about 9.9% since the beginning of the year versus the S&P 500's gain of 13%.
What's Next for Kraft Heinz?While Kraft Heinz has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Kraft Heinz was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.47 on $6.06 billion in revenues for the coming quarter and $2.07 on $24.45 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Miscellaneous is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, JBS N.V. (JBS - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10.
This company is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of -39.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
JBS N.V.'s revenues are expected to be $22.96 billion, up 9.3% from the year-ago quarter.
Heinz ketchup for sale at a supermarket in Queens, New York City, U.S., September 3, 2025. REUTERS/Kylie Cooper/File Photo Purchase Licensing Rights, opens new tab
Aug 5 (Reuters) - Kraft Heinz (KHC.O), opens new tab raised its annual forecasts after beating quarterly sales estimates on Wednesday, as CEO Steve Cahillane's turnaround efforts gained traction and price hikes helped counter lower volumes in North America and other markets.
The better-than-expected results give credence to Cahillane's turnaround strategy, which has driven an uptick in marketing and innovation spends as the company leans aggressively into protein-heavy foods and electrolyte-infused drinks to attract health-conscious consumers.
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The packaged goods company said it would increase its incremental investments by $100 million to about $700 million in 2026, a cash injection Cahillane had hinted at during an interview with Reuters in June. Cahillane became Kraft Heinz's CEO in January.
The company now expects annual organic sales to fall between 0.5% and 2.0%, compared with its prior view of a 1.5% to 3.5% decline.
It also expects annual adjusted earnings per share of $2.03 to $2.09, compared with its prior forecast of $1.98 to $2.10.
While Kraft Heinz benefited from price-led growth, its volumes remained under pressure in key markets including North America. "Growth in Canada and Away From Home was offset by declines in U.S. Retail, which were primarily driven by meats," CFO Andre Maciel said in prepared remarks.
Shares of the company remained largely unchanged in volatile premarket trading. A non-cash $7.4 billion impairment charge contributed to an operating loss during the quarter, though one smaller than the company reported a year earlier.
Kraft Heinz has been navigating a challenging environment as energy and raw material costs surge amid ongoing geopolitical conflicts.
Maciel said the company was well hedged on energy and edible oils for most of 2026, but was hedged on certain resins and metals only through the middle of the third quarter.
"As those roll off, we expect greater exposure to spot prices in the fourth quarter," he said.
Kraft Heinz's quarterly sales fell 1.4% to $6.26 billion from a year earlier, compared with analysts' expectations of a 3.6% decline to $6.12 billion, according to data compiled by LSEG.
On an adjusted basis, the company reported a profit of 56 cents per share, down 18.8% from a year ago but beating analysts' estimates of 53 cents per share.
Reporting by Anuja Bharat Mistry in Bengaluru and Alexander Marrow in London; Editing by Jonathan Ananda
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Kraft Heinz čeká ve 2. čtvrtletí pokles tržeb na 6,2 miliardy USD a zisku na 53 centů na akcii. Tlak mají vyvolat Velikonoce, nižší dávky SNAP a slabší poptávka po potravinách.
Key Takeaways Kraft Heinz is expected to post lower Q2 revenues and earnings than those reported in the year-ago quarter.KHC faces pressure from Easter timing, lower SNAP benefits and softer food category demand.Kraft Heinz expects emerging markets and Away From Home to help offset ongoing headwinds. The Kraft Heinz Company (KHC - Free Report) is likely to witness top and bottom-line declines when it reports second-quarter 2026 earnings on Aug. 5, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $6.2 billion, indicating a 3% decrease from the prior-year quarter’s reported figure.
The consensus mark for earnings has been unchanged over the past 30 days at 53 cents per share, implying a decline of 23.2% from the year-ago quarter’s reported figure.
KHC has a trailing four-quarter earnings surprise of 10.2%, on average. In the last reported quarter, the company’s bottom line topped the Zacks Consensus Estimate by 16%.
Things to Know About KHC’s Upcoming ResultsKraft Heinz's second-quarter top-line performance is expected to have been under pressure. On its first-quarter earnings call, management projected second-quarter organic net sales to decline 3-5% year over year due to the unfavorable timing of Easter, an approximately 100-basis-point headwind from lower SNAP benefits and continued softness across several food categories, which likely weighed on volumes during the second quarter. Our model suggests volumes to slip 4.3% in the second quarter of 2026.
The bottom line is likely to have been under pressure. Kraft Heinz continued increasing investments across marketing, sales, pricing, product superiority, and research and development to support its long-term growth strategy, while broader inflationary pressures likely remained a risk to margins despite productivity initiatives.
Despite these near-term pressures, Kraft Heinz’s second-quarter performance is likely to have benefited from continued execution improvements across targeted areas of its portfolio. Investments in product renovations, packaging enhancements, innovation and advertising have been driving stronger market-share trends, particularly within the U.S. Taste Elevation portfolio. The company planned to accelerate investments in e-commerce capabilities and add resources intended to improve retailer partnerships and strengthen in-store and online execution, supporting its market-share recovery efforts.
Emerging markets and the global Away From Home business are expected to have continued to offsets these headwinds. Continued support for the Heinz brand, distribution expansion in Emerging markets and expected improvement in Away From Home, together with disciplined price management and productivity savings, were expected to partially offset pressure from the Easter shift, SNAP-related headwinds and category softness.
Earnings Whispers for KHCOur proven model predicts an earnings beat for Kraft Heinz this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.
Kraft Heinz currently carries a Zacks Rank #2 and has an Earnings ESP of +0.82%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Other Stocks With the Favorable CombinationHere are a few other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this reporting cycle.
US Foods Holding Corp. (USFD - Free Report) currently has an Earnings ESP of +1.10% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for US Foods’ upcoming quarter’s EPS is pegged at $1.37, which implies 15.1% growth year over year. The consensus estimate for the quarterly revenues is pinned at $10.46 billion, which indicates 3.8% growth from the figure reported in the prior-year quarter. USFD delivered a trailing four-quarter earnings surprise of 1.4%, on average.
Primo Brands Corporation (PRMB - Free Report) presently has an Earnings ESP of +16.51% and a Zacks Rank of 2. The consensus estimate for the quarterly revenues is pegged at $1.76 billion, which indicates an increase of 1.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Primo Brands’ upcoming quarter’s EPS is pegged at 34 cents, which implies a 5.6% decrease year over year. PRMB delivered a trailing four-quarter earnings surprise of 1.4%, on average.
Monster Beverage Corporation (MNST - Free Report) currently has an Earnings ESP of +2.61% and a Zacks Rank of 3. The consensus mark for the upcoming quarter’s revenues is pegged at $2.42 billion, which indicates 14.5% growth from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for Monster Beverage’s quarterly earnings per share is pegged at 59 cents, implying an increase of 13.5% from the figure reported in the year-ago quarter. MNST delivered a trailing four-quarter earnings surprise of 9.6%, on average.
Kraft Heinz v poslední seanci vzrostl o 1,17 % na 27,62 USD a za poslední měsíc přidal 15,58 %. Investoři sledují výsledky, které mají přijít 5. srpna 2026.
Kraft Heinz (KHC - Free Report) ended the recent trading session at $27.62, demonstrating a +1.17% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 1.52%. At the same time, the Dow lost 2.19%, and the tech-heavy Nasdaq lost 1.74%.
Heading into today, shares of the processed food company with dual headquarters in Pittsburgh and Chicago had gained 15.58% over the past month, outpacing the Consumer Staples sector's gain of 2.93% and the S&P 500's gain of 1.92%.
The upcoming earnings release of Kraft Heinz will be of great interest to investors. The company's earnings report is expected on August 5, 2026. It is anticipated that the company will report an EPS of $0.53, marking a 23.19% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $6.16 billion, down 2.99% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.07 per share and a revenue of $24.45 billion, demonstrating changes of -20.38% and -1.96%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Kraft Heinz. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.2% higher. Currently, Kraft Heinz is carrying a Zacks Rank of #2 (Buy).
From a valuation perspective, Kraft Heinz is currently exchanging hands at a Forward P/E ratio of 13.18. This valuation marks a discount compared to its industry average Forward P/E of 13.68.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 210, putting it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
U Kraft Heinz budou investoři sledovat hlavně to, zda se zlepšující se podíl na trhu promítá do trvalejší poptávky a růstu výnosů. UBS čeká další tlak na výnosy a znovu potvrzený výhled na fiskální rok 2026.
Kraft Heinz Co (NASDAQ:KHC, XETRA:KHNZ) is scheduled to report second quarter earnings before the market opens on August 5, with investors expected to focus less on the quarterly results and more on whether improving market share trends are translating into more durable demand.
UBS forecasts adjusted earnings per share of $0.52 for the quarter, one cent below the Visible Alpha and FactSet consensus estimate.
The firm expects another quarter of top-line pressure but believes the key question will be whether recent share gains support the company's goal of returning to top-line growth by fiscal 2027.
"While we expect another quarter of pressured topline performance from KHC, we believe the primary focus this quarter will center less on the reported results and more on whether improving share trends are beginning to translate into a more durable improvement in demand, such that the company remains on track to deliver topline growth by fiscal year 2027," UBS wrote.
The brokerage noted that Kraft Heinz shares have risen 6.7% since reporting Q1 earnings, outperforming both the Consumer Staples Select Sector SPDR Fund (XLP) and US food peers over the same period.
UBS expects management to reaffirm its fiscal 2026 guidance, which calls for a net sales decline of 1.5% to 3.5%, an adjusted operating income decline of 14% to 18%, and adjusted earnings per share of $1.98 to $2.10.
For the full year, the firm projects an organic sales decline of 1.7%, slightly better than the Street expectation of a 2.0% decline. It forecasts pricing growth of 0.4% and a 2.1% decline in volume and mix. UBS also expects adjusted EPS of $2.08 for the year, near the upper end of the company's guidance range and one cent above consensus.
For the second quarter, UBS expects organic sales to decline 3.7%, compared with the consensus estimate for a 3.6% decline, reflecting continued weak retail takeaway trends during the period.
The firm forecasts North America organic sales to fall 5%, while International Developed Markets are expected to decline 2.2%. Emerging Markets are projected to remain a source of growth, with organic sales increasing 3.5%.
On costs, UBS believes Kraft Heinz is relatively well positioned despite ongoing inflation concerns across the packaged food sector.
"From a cost perspective, while inflation remains an area of debate across packaged food, we believe KHC remains largely insulated given its FY26 outlook already contemplates ~4% inflation, with hedging and productivity expected to offset much of the pressure," UBS wrote.
UBS maintained a ‘Neutral’ rating and a $25 price target on the stock, which traded hands at about $28 on Wednesday, describing the investment case as balanced until the company demonstrates that improving market share can translate into sustained top-line growth.
"Valuation remains attractive, but until KHC can demonstrate that these changes can result in durable top-line growth, we expect the investment case to remain a 'show me' story and view the risk/reward as balanced," the firm wrote.
Kraft Heinz spustila bezlaktózový Philadelphia cream cheese po dvou letech vývoje bez cenového příplatku. Jde o první viditelný výsledek širší investice ve výši 600 milionů USD do inovací.
Kraft Heinz's new lactose-free Philadelphia cream cheese targets the 30 to 50 million Americans who are lactose intolerant and one of the company's big strategic moves.
Courtesy Kraft Heinz
Kraft Heinz spent two years, and refused to charge a premium, solving a problem most of the food industry ignores: an estimated 30 to 50 million Americans who love cream cheese but cannot digest lactose. The result is a lactose-free version of Philadelphia cream cheese that costs exactly what the original does, contains no added preservatives, flavors or dyes, and tastes like real dairy cream. The launch is just one of the first visible outputs of a broader $600 million investment the company is making under new leadership.
Kraft Heinz Strategic Direction Under New LeadershipWhen CEO Steve Cahillane took the helm of Kraft Heinz in January 2026, the company posted its fiscal 2025 year-end results with a 3.5% sales decline. Still, the company made bold commitments to invest in U.S. operations and future innovation. Recently appointed to a new role, Jerome Drolet, President of Taste Elevation for Kraft Heinz, is excited about the roadmap for the company.
“We talk about $600 million worth of investment in the business. It's marketing, it's R&D, it's people, and all that is going toward fueling that growth. It's giving me an immense amount of confidence that we can be successful again, being consumer centric, but supporting that with the right levels of resources and investments,” said Drolet in an exclusive interview.
Two things excite Drolet most about his new role: his personal connection to the brands, rooted in backyard barbecues with his dad growing up, and the challenge of helping his team evolve as fast as consumer preferences shift, without losing focus on the consumer across a large, global business. “This combination is what makes the job both difficult and super interesting.”
Jerome Drolet, President of Taste Elevation at Kraft Heinz, is leading the company's $600 million push into consumer-driven innovation.
Courtesy Kraft Heinz
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Two Years to Get Lactose-Free RightThe company revealed one of its first products to market, backed by substantial research and development behind the scenes. The new lactose-free Philadelphia cream cheese targets millions of Americans who are lactose intolerant, as well as, a wider group of consumers who avoid lactose by choice. The global market for lactose-free dairy products is projected to grow from $10.6 billion in 2017 to $17.8 billion by 2027. Drolet explained that Kraft Heinz starts every innovation effort by studying why consumers leave or avoid a category. Once the company decides to invest in a specific product category based on shifting consumer diets, it works to bring a new product to market that meets Kraft Heinz's standards for quality, taste and price. “We don't want to put a product to market that's just an innovation for the sake of innovation,” said Drolet.
Kraft Heinz took two years to bring lactose-free Philadelphia cream cheese to market, a timeline Drolet attributes to a refusal to compromise on taste, texture, or price. “We're launching a product that tastes the same, looks the same, but also costs the same. There's no price premium to this it's making sure that we are democratizing the cream cheese consumption within the lactose intolerant consumer,” explained Drolet. Part of the two-year development process is testing the product.
Early this year, Kraft Heinz introduced JELL-O Simply, made with no FD&C Colors or artificial sweeteners as consumer demand for simpler ingredients continues to grow across market.
Courtesy Kraft Heinz
“We can sit in our Illinois Innovation Center and feel really good about the product in the kitchen, but until you put it to the test of how consumers actually use it like in a cream cheese recipe, not just on its own, you don't know if it holds up. A lot of the work was making sure that across every usage occasion; the product was a true one-for-one substitution. We tested it internally and externally, in our kitchen and in consumers' kitchens, across multiple recipes. That's what takes the time, but it's also why we're so proud of the product we're launching,” explained Drolet. The process that produced lactose-free Philadelphia is the same one applied across Heinz, Jell-O, and the rest of the portfolio.
Where the Innovation Dollars GoLarger brands like Philadelphia and Heinz command the biggest share of innovation investment, reflecting their scale and category weight. But smaller, more agile brands such as Grey Poupon, Lea & Perrins, Smart Ones, and Velveeta still receive purposeful innovation dollars when the opportunity fits, rather than being starved in favor of the flagship names. Drolet believes, “The brand choices are the last question. It starts first with the consumer.”
Balancing shifting consumer eating habits with new product development is a constant consideration. “As the consumer palate and needs are changing, we want to be there with them along for the journey,” said Drolet. Nearly 6 in 10 Americans report following a specific diet in the past year, a rising trend since 2018, according to a survey from the International Food Information Council (IFIC).
Retail partners are another consideration when bringing new products to market. “The process keeps us disciplined. There's a need for us to think about it from an internal resource perspective, but it's also pushing us to make the right decision, not just for ourselves and the consumers, but for what's accretive for retailers,” explains Drolet.
Why Some Trends Don't Make the CutThat discipline shows up in how the company distinguishes between ideas that look similar on the surface. Lactose-free and plant-based cream cheese, for instance, appear to serve the same dietary-restriction need, but Drolet's team treats them as distinct consumer needs: taste-and-texture loyalists managing a specific dietary limitation versus consumers avoiding dairy altogether. “Conflating the two would mean building the wrong product for both groups,” said Drolet.
Consumer Trends Kraft Heinz Is Betting OnThe IFIC survey reports the top diets Americans follow are high protein (23%) and mindful eating (19%), with clean eating (13%) ranking fifth. Drolet pointed to several forces he expects to shape the next five years of the business. Simple ingredients are one, reflected in products like Simply Ketchup. Fiber is emerging as a follow-on to protein's rise in consumer attention. Diet and weight-management shifts tied to GLP-1 medications are already showing up in zero-sugar Jell-O and ketchup.
Extending Trust Instead of Building New BrandsRather than following the consumer packaged goods industry’s habit traditional CPG habit of spinning up new brands to chase emerging trends, Kraft Heinz is focused on extending the trust and scale of the brands it already has. “You already have the trust with consumers, you already have a preferred product, and you already have the scale. Consumers don't want to compromise,” said Drolet. The consumer, not the brand roster, always drives the first decision, a philosophy that runs through every example Drolet raised, from cream cheese to condiments.
Kraft Heinz Bets On Consumer Emotional ConnectivityKraft Heinz's calculation is that lactose-free Philadelphia isn't really a cream cheese story, but a preview of how the company intends to spend the next several years of its $600 million innovation budget. Sugar comes out of Jell-O, ingredients get simplified in Simply Ketchup, and dips get built around chicken's rise as the protein of choice. All of these decisions run through the same funnel: identify why consumers are opting out, then ask which existing brand has the credibility to bring them back in. “There's something around real passion and emotional connectivity with our business, the products, and the brands,” expressed Drolet. The wager is simple: Kraft Heinz is betting that consumers will follow a name they already trust into new categories faster than they'll adopt one they've never seen before.
