Kraft Heinz (KHC - Free Report) closed the most recent trading day at $24.80, moving -1.16% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.52% for the day. Meanwhile, the Dow experienced a drop of 1.24%, and the technology-dominated Nasdaq saw a decrease of 0.21%.
The processed food company with dual headquarters in Pittsburgh and Chicago's shares have seen an increase of 5.16% over the last month, not keeping up with the Consumer Staples sector's gain of 6.6% and outstripping the S&P 500's loss of 1.21%.
Investors will be eagerly watching for the performance of Kraft Heinz in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 4, 2026. The company is forecasted to report an EPS of $0.43, showcasing a 29.51% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.05 billion, down 2.94% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.05 per share and a revenue of $24.53 billion, signifying shifts of -21.15% and -1.64%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Kraft Heinz. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% lower. Kraft Heinz presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Kraft Heinz is currently trading at a Forward P/E ratio of 12.25. This expresses a discount compared to the average Forward P/E of 15.26 of its industry.
Investors should also note that KHC has a PEG ratio of 3.06 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Food - Miscellaneous industry held an average PEG ratio of 2.45.
The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 202, this industry ranks in the bottom 18% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Investors in Kraft Heinz (KHC +6.77%) have been frustrated for a long time now. Unfortunately, this year isn't any different.
In early October, the stock of this packaged food and beverage company was hovering above its 52-week low, and its price-to-sales ratio was near a 10-year low. There doesn't appear to be much optimism from Wall Street regarding Kraft's ability to grow in the future, either.
So what exactly is wrong?
Image source: Getty Images.
First and foremost, Kraft's core business is shrinking. In the second quarter of 2026, net sales fell 1.4% year over year, adjusted operating income was down 18.4%, and Kraft recorded a $6.4 billion operating loss. While emerging markets sales rose, North America was down 2.7%.
At the beginning of this year, the consumer staples giant appointed a new CEO, Steve Cahillane, who pivoted away from the company's plans to split into two businesses and instead chose to invest $600 million to revitalize its U.S. market. So far, the strategy doesn't have much to show for itself, but to be fair, it's still quite early in Cahillane's tenure and turnaround plan.
$25.09+$1.59 (+6.77%)
NYSE · As of 4:00 PM ET 10/22/26
Wall Street is divided on Kraft's comeback. The company's outlook has improved slightly, but business will still likely contract in the coming quarters. Kraft's dividend yield is quite high at 6.75%, and the payout is consistent at $0.40 per share quarterly.
Ultimately, the low price doesn't warrant a buy from me quite yet. The company's turnaround strategy really needs to take hold over the coming year, and my unhealthy ketchup consumption alone isn't enough to do it.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool recommends Kraft Heinz. The Motley Fool has a disclosure policy.
CWA Asset Management Group LLC lifted its stake in Kraft Heinz Company (NASDAQ:KHC – Free Report) by 17.1% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 300,708 shares of the company’s stock after acquiring an additional 43,896 shares during the period. CWA Asset Management Group LLC’s holdings in Kraft Heinz were worth $6,832,000 at the end of the most recent quarter.
Other hedge funds have also recently made changes to their positions in the company. BlackRock Inc. bought a new position in Kraft Heinz in the second quarter worth about $1,803,911,000. Pacer Advisors Inc. boosted its holdings in shares of Kraft Heinz by 7.3% in the 1st quarter. Pacer Advisors Inc. now owns 9,270,503 shares of the company’s stock valued at $208,494,000 after buying an additional 633,645 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of Kraft Heinz by 1.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 7,944,618 shares of the company’s stock valued at $178,663,000 after buying an additional 149,034 shares in the last quarter. Nykredit A S bought a new stake in shares of Kraft Heinz in the 2nd quarter valued at about $181,408,000. Finally, Deutsche Bank AG purchased a new position in shares of Kraft Heinz in the 2nd quarter worth approximately $179,876,000. 78.17% of the stock is currently owned by hedge funds and other institutional investors.
Kraft Heinz Price Performance Shares of NASDAQ KHC opened at $23.18 on Tuesday. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.68 and a current ratio of 1.06. The company has a market cap of $27.49 billion, a PE ratio of -8.10, a P/E/G ratio of 2.99 and a beta of 0.12. The business has a 50-day simple moving average of $24.19 and a two-hundred day simple moving average of $24.01. Kraft Heinz Company has a fifty-two week low of $21.03 and a fifty-two week high of $28.09.
Kraft Heinz (NASDAQ:KHC – Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.56 earnings per share for the quarter, topping analysts’ consensus estimates of $0.53 by $0.03. Kraft Heinz had a positive return on equity of 7.10% and a negative net margin of 13.64%. The business had revenue of $6.26 billion for the quarter, compared to analyst estimates of $6.18 billion. During the same quarter in the previous year, the firm earned $0.69 earnings per share. The company’s revenue was down 1.4% on a year-over-year basis. Kraft Heinz has set its FY 2026 guidance at 2.030-2.090 EPS. As a group, equities analysts expect that Kraft Heinz Company will post 2.06 EPS for the current fiscal year. Kraft Heinz Announces Dividend The business also recently declared a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, September 4th were issued a $0.40 dividend. The ex-dividend date of this dividend was Friday, September 4th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 6.9%. Kraft Heinz’s dividend payout ratio (DPR) is currently -55.94%.
Analysts Set New Price Targets KHC has been the subject of several recent analyst reports. Evercore set a $24.00 price objective on shares of Kraft Heinz in a research note on Thursday, August 6th. BNP Paribas Exane increased their target price on shares of Kraft Heinz from $17.00 to $19.00 and gave the company an “underperform” rating in a research report on Tuesday, June 30th. Piper Sandler raised their target price on shares of Kraft Heinz from $24.00 to $25.00 and gave the company a “neutral” rating in a research note on Thursday, August 6th. Wall Street Zen downgraded shares of Kraft Heinz from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Kraft Heinz from $21.00 to $22.00 and gave the stock an “underweight” rating in a report on Wednesday, July 15th. One investment analyst has rated the stock with a Buy rating, eleven have assigned a Hold rating and five have given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Reduce” and a consensus target price of $23.75.
View Our Latest Stock Report on Kraft Heinz
Kraft Heinz Company Profile (Free Report)
The Kraft Heinz Company (NASDAQ: KHC) is a global food and beverage company that develops, manufactures and markets branded products for consumers, retailers and foodservice customers. Its portfolio includes condiments and sauces, cheese and dairy products, meals, meats, snacks, beverages and desserts.
The company’s brands include Kraft, Heinz, Oscar Mayer, Philadelphia, Velveeta, Jell-O, Maxwell House, Lunchables, Capri Sun, Planters and Classico, among others. Products are sold through grocery stores, mass merchants, club stores, convenience retailers, e-commerce channels and foodservice distributors.
Kraft Heinz was created in 2015 through the merger of Kraft Foods Group and H.J.
Featured Articles Five stocks we like better than Kraft Heinz Tesla’s Roadster Reveal Hints at 2 Much Bigger Moves The AI Sell-Off Continues—These 3 Stocks Keep Raising Guidance Anyway Mr. Wonderful’s Test for AI Data Center Stocks: Power, Permits, and Tenants Alcoa Beat Earnings, But Can It Escape the Aluminum Bears? Want to see what other hedge funds are holding KHC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Kraft Heinz Company (NASDAQ:KHC – Free Report).
Receive News & Ratings for Kraft Heinz Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kraft Heinz and related companies with MarketBeat.com's FREE daily email newsletter.
A yield above 6% looks like a retirement lifeline until the math behind it starts to crack. Five familiar dividend names are flashing the kind of payout warnings that show up quietly in the numbers long before a cut hits…
A 6% or 7% yield can carry a retirement income plan, but only for as long as the company can afford it. Kraft Heinz (NASDAQ:KHC | KHC Price Prediction) shows the problem. It yields 6.87%, and its shares have fallen 57.34% over the past ten years. Below are five familiar income names, each with a specific problem in its payout math.
A simple rule: a dividend is sustainable when earnings and free cash flow cover it with room to spare. When the company needs debt, asset sales, or one-time items to fill the gap, the payout is at risk.
Kraft Heinz: A Flat Payout on a Shrinking Business Kraft Heinz has paid $0.40 per quarter on every listed payment since 2020. That kind of stability appeals to retirees. Much of the yield, though, comes from a falling stock price rather than a rising payout. Shares are down 17.71% over five years, and the current rate is already below the $0.625 the company paid in 2018.
The warning signs are piling up. A $7.4B non-cash impairment of goodwill and intangible assets produced a second-quarter net loss of $5.46B and trailing diluted EPS of -$2.87. Management expects organic sales to fall 0.5% to 2.0% and constant-currency adjusted operating income to drop 16% to 18%. On adjusted EPS guidance of $2.03 to $2.09, the $1.60 annual dividend takes roughly 77% to 79% of earnings, leaving little margin as profits shrink.
For the payout to hold, Kraft Heinz needs to deliver its guided free cash flow conversion of about 110% and get a return on ~$700 million in brand investment.
Pfizer: GAAP Earnings Fall Well Short of the Dividend Pfizer (NYSE:PFE) yields 5.84% on a $1.72 annualized payout. Shares have gained 30.68% over the past year but are still down 7.02% over five years.
Measured against trailing diluted EPS of $0.76, the dividend comes to about 226% of GAAP earnings. Cash flow also falls short. In 2025, operating cash flow less capital spending left roughly $9.08 billion, while dividends cost $9.77 billion, a payout of about 108% of free cash flow. In the June 2026 quarter, operating cash flow was $835 million against $2.45 billion in dividends. Net debt runs at 3.01x EBITDA, Paxlovid revenue fell 95%, and buybacks are suspended so the company can reduce debt.
Management is firm on the payout. CEO Albert Bourla said: “We feel extremely confident that, even in the most stretched scenarios that we are running, we will be able to maintain our dividend.” Adjusted EPS guidance of $2.80 to $3.00 supports that view. Still, a dividend held flat through patent expirations is a stress signal and should not be read as a guarantee.
Dow Inc.: A Halved Dividend Leaning on a Cyclical Rebound Dow Inc. (NYSE:DOW) yields 4.72% on a $0.35 quarterly payout. That rate is half the $0.70 Dow paid through mid-2025. The stock is up 43.33% in a year but down 33.37% over five.
The 2025 numbers explain the cut. Operating cash flow of $1.03 billion fell short of $2.48 billion in capital spending, leaving free cash flow of roughly -$1.45 billion while dividends cost $1.49 billion. Trailing diluted EPS is still -$1.84. The second quarter of 2026 was better, with free cash flow of $692M against $253M in dividends. Even so, management forecast third-quarter EBITDA to about $1.7 billion, down from $2.3 billion, and said extra cash goes to debt reduction first. The call included no clear commitment to the dividend.
A bright spot is that Dow has approximately $14 billion of liquidity and no substantive debt maturities due until 2029.
Verizon: Clean Coverage, but Debt Is Rising Verizon (NYSE:VZ) yields 6.3% and raised its quarterly dividend to $0.7075 this year. Shares are up 18.54% over the past year, so the stock’s drop isn’t driving this yield. Coverage looks solid: the dividend takes about 74% of trailing EPS and roughly 54% of the low end of full-year free cash flow guidance.
The concern is the balance sheet. Unsecured debt stands at $136.5B, and net unsecured debt to adjusted EBITDA rose to 2.5x from 2.2x at the end of 2025. Revenue slipped 0.7%, and the company still plans buybacks of up to $4.5B. Verizon belongs on a watch list for now. Its coverage does not yet point to a cut.
AT&T: Ample Cash Flow, Heavy Spending and Debt AT&T (NYSE:T) yields 4.72% on a $0.2775 quarterly dividend, the level it set in 2022 after cutting from $0.52. The dividend uses about 42% of 2026 free cash flow guidance of $18B+, and management guides to keeping it through 2028.
The pressure points are debt and spending. Total debt is $144B, leverage is 2.68x (above the company’s 2.5x target), and interest expense rose 13.8%. Legacy copper revenue fell 25.9%, and annual capex is forecast at $23 to $24B. One analyst has also warned that a SpaceX threat could weigh on the stock.
Signals That Show Whether a Dividend Is Stabilizing Dividend cuts usually send shares lower too, so a high yield can lose income and principal at the same moment. Each quarter, compare free cash flow with dividends paid, and track whether leverage ratios are rising or falling. Also watch the gap between adjusted and GAAP earnings. Yield alone is never a reason to buy a stock (we pulled together key warning signs that a fat yield is about to be cut in a free report here: Dividend Traps).
Contact [email protected] for any questions or corrections.
In the latest close session, Kraft Heinz (KHC - Free Report) was up +1.83% at $23.71. This move outpaced the S&P 500's daily loss of 1.09%. Meanwhile, the Dow experienced a drop of 0.34%, and the technology-dominated Nasdaq saw a decrease of 2.15%.
The stock of processed food company with dual headquarters in Pittsburgh and Chicago has fallen by 5.86% in the past month, lagging the Consumer Staples sector's gain of 1.5% and the S&P 500's gain of 2.44%.
The investment community will be closely monitoring the performance of Kraft Heinz in its forthcoming earnings report. The company is scheduled to release its earnings on November 4, 2026. The company's upcoming EPS is projected at $0.43, signifying a 29.51% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $6.04 billion, showing a 3.08% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.05 per share and revenue of $24.52 billion, which would represent changes of -21.15% and -1.7%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Kraft Heinz. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.38% lower. Right now, Kraft Heinz possesses a Zacks Rank of #4 (Sell).
Investors should also note Kraft Heinz's current valuation metrics, including its Forward P/E ratio of 11.36. This expresses a discount compared to the average Forward P/E of 14.93 of its industry.
Also, we should mention that KHC has a PEG ratio of 2.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Food - Miscellaneous industry currently had an average PEG ratio of 2.31 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
General Mills and Kraft Heinz both hand income investors a yield above 7%, but the cash sitting behind those payouts tells two very different stories about which quarterly check is actually safe.
General Mills (NYSE:GIS | GIS Price Prediction) or Kraft Heinz (NASDAQ:KHC): which dividend is the safer bet for someone living off their portfolio right now? Both pay yields above 7%. General Mills yields 7.67% and Kraft Heinz yields 7.13%. Both companies expect lower operating profit this year. Only one of them has a cash reserve that matches its yield.
Dividend Track Record: General Mills Wins on History
General Mills is paying dividends for the 127th consecutive year without interruption. Its quarterly payout rose from $0.49 in 2020 to $0.51, then $0.54, $0.59, $0.60 and finally $0.61 in July 2025. That run has now stalled. The board declared $0.61 again in July 2026 and on September 29, 2026, so this year brought no increase.
Kraft Heinz has a weaker record. It cut its quarterly payout from $0.625 to $0.40 starting with the March 7, 2019 ex-dividend date. It has paid $0.40 every quarter since, most recently on September 25, 2026. General Mills clearly has the edge here.
Payout Coverage: Kraft Heinz Has the Wider Margin
General Mills pays $2.44 a year against fiscal 2027 adjusted EPS guidance of $3.00 to $3.20, which sets the payout ratio at roughly 76% to 81%. Earnings are also moving the wrong way: adjusted EPS was $3.55 in fiscal 2026. Free cash flow that year was $1.63B, against $1.3153B in dividends. That covers the dividend only about 1.24 times. In the first fiscal quarter, dividends of $330.5M topped operating cash flow of $297.8M.
Kraft Heinz’s payout ratio is similar, at about 77% to 79% of its raised adjusted EPS guidance of $2.03 to $2.09. Its cash coverage is much stronger. Free cash flow of $3.66B in 2025 covered $1.898B in dividends about 1.93 times. Management also guides to free cash flow conversion of ~110%, compared with ~95% at General Mills. Kraft Heinz takes this round.
Balance Sheet and Brand Momentum: Kraft Heinz Carries Its Load Better
General Mills has $13.614B of debt and holds just $433.1M in cash. That debt equals roughly 4.0 times trailing EBITDA. Kraft Heinz has more debt in dollar terms, at $19.001B, but it holds $2.419B in cash and its leverage is lower, at about 3.5 times EBITDA.
The brand stories are also heading in different directions. Cheerios, Pillsbury and Blue Buffalo make up a strong portfolio, but General Mills’ North America Retail sales fell 7% last quarter. The company also took $1.75B in impairments on its pet business. Kraft Heinz recorded a larger $7.4B non-cash impairment, but the operating trend is better: adjusted EPS beat estimates for the fifth consecutive quarter, Emerging Markets rose 10.4% and management raised full-year guidance.
It is also adding $100M to brand investment, bringing the 2026 total to about $700M. That money supports brands such as Heinz and Philadelphia. On Mad Money, Jim Cramer said Kraft Heinz “actually has the best story” among the high-yield food stocks.
Verdict: Kraft Heinz Is the Safer Dividend
Kraft Heinz wins for income investors who need the quarterly check to keep coming. Its dividend suffered a cut in 2019, and that reset is now its biggest strength. The $0.40 payout is covered nearly twice by free cash flow, supported by more cash and lower leverage, and backed by guidance that is rising. Investors who hold Kraft Heinz should expect a flat dividend.
General Mills has the better record and the slightly higher yield, but the numbers behind the payout are getting weaker. Its earnings guidance is lower, its free cash flow coverage is thin and its run of raises stopped this year. Shares have fallen 26.82% over the past year, which shows investors are already pricing in that risk. General Mills fits only the investor who values a 127-year run more than current coverage. For income built on reliable payouts, Kraft Heinz has the stronger dividend profile. Investors should track General Mills’ cost-savings progress and Kraft Heinz’s free cash flow conversion in upcoming earnings reports.
Contact [email protected] for any questions or corrections.
Should you invest in Kraft Heinz (KHC +2.56%) or Monster Beverage (MNST +2.53%)? One is better known for stability, while the other offers greater potential for stock price appreciation. Choosing between them depends on your specific financial goals.
Investors looking for stability often turn to the consumer defensive sector because of its consistent demand regardless of the economy. Kraft Heinz offers a wide array of household brands, while Monster dominates the high-margin energy drink space. This comparison explores which business model offers greater long-term value.
The case for Kraft HeinzKraft Heinz produces branded food products for home and restaurant use, making it a prominent name among consumer staples stocks. A significant portion of its success depends on large retail partners, including supermarkets and warehouse clubs. Walmart (WMT +1.47%) is its most critical customer, accounting for approximately 21% of net sales in FY 2025. Customer concentration like this adds a layer of risk to the business.
In FY 2025, revenue reached $24.9 billion, which is a decrease of approximately 3.5% from the previous year. The company reported a net loss of close to $5.8 billion for the period. This result was primarily due to significant non-cash impairment charges, which occur when the value of assets like brands or goodwill drops below their recorded balance sheet value.
Kraft Heinz has total cash of $2.6 billion, with total debt of $19 billion, resulting in a 52.5% total debt-to-equity ratio. Its operating cash flow for the trailing 12-month period is $4.6 billion, and its leveraged free cash flow for the same period is $3.2 billion.
$23.28+$0.58 (+2.56%)
NYSE · As of 4:00 PM ET 10/15/26
The case for Monster BeverageMonster Beverage develops and distributes energy drinks under brands like Monster Energy and Reign. It relies heavily on a global distribution network, mainly through partnerships with Coca-Cola (KO +0.24%) bottlers. One partner, Coca-Cola Europacific Partners (CCEP +2.38%), accounted for nearly 15% of net sales in FY 2025. Customer concentration like this adds a layer of risk to the business.
In FY 2025, revenue reached approximately $8.3 billion, indicating sales growth of 10.8%. Net income for the year was roughly $1.9 billion, a noticeable increase from the $1.5 billion reported in 2024. Revenue growth remained consistent as the company expanded its presence in international markets.
Monster is essentially debt free, with $3.4 billion in cash and $92.9 million worth of debt. Its debt-to-equity ratio sits at 0.9%. Operating cash flow for the trailing 12-month period is $2.2 billion, while leveraged free cash flow is $1.6 billion.
MNST Monster Beverage$45.34+$1.12 (+2.53%)
NASDAQ · As of 4:00 PM ET 10/15/26
Risk profile comparisonKraft Heinz faces intense competition from both branded rivals and private-label products, which can limit its ability to raise prices. The company also deals with significant risk from its reliance on large retailers like Walmart and the potential for further goodwill impairments. Other concerns include volatile commodity prices and ongoing regulatory scrutiny regarding environmental and tax matters.
Monster Beverage is highly dependent on its distribution agreement with Coca-Cola, making any disruption to that relationship a major threat. It competes for market share against established players like PepsiCo (PEP -0.69%) and new entrants in the energy and alcohol categories. Additionally, the company is vulnerable to rising costs for aluminum cans.
Valuation comparisonKraft Heinz appears much cheaper based on a forward price-to-earnings (P/E) basis, which represents the current stock price divided by future earnings estimates. The price-to-sales (P/S) ratio measures the market capitalization of the company divided by sales over the past twelve months, and here too, Kraft Heinz trades at a significantly lower multiple.
MetricKraft HeinzMonster BeverageForward P/E11.1x33.6xP/S ratio1.1x9.4xWhich stock would I buy in 2026?Even though Kraft Heinz pays a dividend that yields 7.1%, I would buy Monster in a head-to-head battle. As consumer tastes have changed, Kraft Heinz was simply late in meeting new demands and is now playing catch-up. That lateness is showing up in the earnings: for its 2026 second-quarter report, Kraft's organic sales were $6.2 billion, down 1.3% from the prior-year period. In addition, adjusted earnings per share of $0.56 were also down 18.8%. The company's struggles caught the eye of new Berkshire Hathaway CEO Greg Abel when he took over for Warren Buffett in January, as he reportedly mulled a full exit from Kraft. That didn't come to pass as Berkshire is giving the food conglomerate more time to turn things around, but still, it was one of the first moves Abel was eyeing in his early tenure.
In comparison, Monster offers a compelling growth story. As of this writing, shares have climbed nearly 18% in 2026, outpacing the 13.1% return of the S&P 500. It has opportunities to continue expanding internationally, with international revenue accounting for 46% of total sales in the second quarter of 2026. In addition, while it's only a minor part of its business now, Monster is building out its alcohol brand, which just gives it more shelf space and further increases brand awareness. And while Kraft's beta of 0.1 is lower, Monster's beta is only 0.4, indicating generally stable stock price movements for a growth stock. Between the two, I'd rather own the company with more sales opportunities ahead of it than the company working on a turnaround plan.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
CHICAGO--(BUSINESS WIRE)--Snack time is getting a visit from one very famous Cat. Kraft Natural Cheese is teaming up with Dr. Seuss Enterprises and Warner Bros. Pictures Animation to bring “The Cat in the Hat” to limited-edition Kraft String Cheese packaging, alongside the brand's playful Stringy character. The 12-count packs are available at retailers nationwide while supplies last. And with “The Cat in the Hat” new fully animated feature film arriving only in theaters on November 6, there cou.
Kraft Heinz (KHC - Free Report) closed the most recent trading day at $22.70, moving +1.2% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 1.11%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 1.88%.
Coming into today, shares of the processed food company with dual headquarters in Pittsburgh and Chicago had lost 9.3% in the past month. In that same time, the Consumer Staples sector lost 0.28%, while the S&P 500 gained 2.06%.
Investors will be eagerly watching for the performance of Kraft Heinz in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 4, 2026. The company's upcoming EPS is projected at $0.43, signifying a 29.51% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $6.04 billion, reflecting a 3.08% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.05 per share and revenue of $24.52 billion. These totals would mark changes of -21.15% and -1.7%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Kraft Heinz. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.38% downward. Kraft Heinz is currently a Zacks Rank #4 (Sell).
In terms of valuation, Kraft Heinz is currently trading at a Forward P/E ratio of 10.94. This denotes a discount relative to the industry average Forward P/E of 14.59.
It is also worth noting that KHC currently has a PEG ratio of 2.74. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Food - Miscellaneous industry had an average PEG ratio of 2.21.
The Food - Miscellaneous industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 187, placing it within the bottom 24% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.
Kraft Heinz Co (NASDAQ:KHC, XETRA:KHNZ) faces worsening US retail demand as it ramps up a $700 million investment programme, with Jefferies retaining a 'hold' rating and cutting its price target to $21.
The broker expects North American retail sales to decline sequentially in the third quarter as weaker consumption and the reversal of an inventory benefit weigh on performance.
Jefferies said tracked-channel volumes had deteriorated over the latest 12 weeks compared with the previous six months, leaving Kraft Heinz at the weaker end of its peer group.
Seven of the food group's 10 largest brands recorded year-on-year declines, while Oscar Mayer remained a significant drag, with retail sales falling by about 4% in the latest period.
The broker noted early signs of improvement after Oscar Mayer refreshed its deli packaging, which was about 80% available on shelves by early August, although broader demand remained under pressure.
Kraft Heinz's share performance improved in roughly half of its leading product categories, but year-on-year market share trends remained negative on average.
The deterioration comes as the company increases promotional spending, launches new products and adds resources under a $700 million reinvestment plan, with most of the spending expected to reach the market in the second half.
Jefferies said the returns from that investment would be a key factor in determining whether the turnaround succeeds, particularly as other food companies have reported limited consumer responses to promotional activity.
New products include Power Mac, Capri Sun Hydrate and Philadelphia Lactose Free, although the broker said it remained unclear whether these launches would generate additional consumption or simply shift demand between brands.
Rising freight and logistics costs also threaten margins as spending increases, although commodity deflation could provide some offset to inflationary pressures.
Jefferies lowered its earnings estimates slightly to reflect a slower recovery in North America, higher logistics inflation and foreign exchange effects.
The broker maintained its 'hold' rating and reduced its price target to $21, valuing the company at about 8.5 times its estimated 2027 earnings before interest, taxes, depreciation and amortisation.
Jefferies said the turnaround remained at an early stage, with weakening demand and unproven returns on investment limiting confidence in a sustained recovery.
No Investment Advice
Proactive Investors Australia Pty Ltd ACN 132 787 654 (the Company, we or us) provides you with access to the content set out above, including any news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) and this website (the Site) on the terms set out in this disclaimer, together with all other terms and conditions, disclaimers and other notices displayed elsewhere on this Site.
It is important for you to know that:
(a) none of the Content is, or is intended to be, general or personal advice
(b) the principal purpose of the Content is to provide factual information only and to comment on news;
(c) the Content does not contain or imply any recommendation or opinion intended to influence your financial decisions, including in respect of any particular security, portfolio of securities, transaction or investment strategy, and must not be relied upon by you as such;
(d) in providing you with the Content, we have not considered your objectives, financial situation or needs; and
(e) you should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
The Content contains data (including but not limited to prices, statistics and calculated information) obtained from a variety of third party sources (Third Party Data). The Company does not make any representation or warranty that any of the Content, including the Third Party Data, will be reliable, accurate or complete. The Company disclaims all responsibility and liability arising in any way from any errors or omissions in the Content, including the Third Party Data, including any loss you may incur in connection with any action or decision made by you in reliance upon the Content or Third Party Data.
In certain circumstances the Company, its related bodies corporate, or their affiliates, may have received, or be entitled to receive, financial or other consideration in connection with providing information about certain entities on the Site, which may include the above Content.
CHICAGO--(BUSINESS WIRE)--Parmesan just got a whole lot more portable.Kraft Natural Cheese is introducing Pocket Parm™, a miniature version of its beloved Grated Cheese made to clip onto your bag so you can bring the Parm wherever you go. Available in limited quantities this October, Pocket Parm gives fans an early taste of three new Kraft grated cheese flavors – Tomato Basil Parmesan, Garlic Herb Parmesan, and Cheddar - ahead of their full-size nationwide debut in January 2027. This Kraft Grate.
PITTSBURGH & CHICAGO--(BUSINESS WIRE)--The Kraft Heinz Company (NYSE: KHC) (“Kraft Heinz”) will release its third quarter 2026 financial results on Wednesday, Nov. 4, 2026. A press release and supplemental materials, including a pre-recorded management discussion, will be issued before the market opens. Kraft Heinz management will then host a live question-and-answer session with analysts beginning at 9:00 a.m. Eastern Standard Time.The earnings release, supplemental materials, and audio of Kraf.
Kraft Heinz, Pfizer, Verizon, and Dow all flash yields above 4%, but behind each payout sits a mix of impairments, rising debt, and shrinking sales that could turn a tempting income stream into a costly trap.
A high yield is only as good as the cash behind it. Kraft Heinz (NASDAQ:KHC | KHC Price Prediction) now yields about 7.19% on its $1.60 annual payout, yet it booked a GAAP net loss of $5.46 billion last quarter. Income investors who own names like this need to know whether the check can keep clearing.
The key signal: a dividend looks unsustainable when earnings and free cash flow (operating cash flow minus capital spending) fail to cover it and debt fills the gap. Keep the yield mechanic in mind too. A yield rises automatically when a stock falls, which makes the payout look richer without the income opportunity actually improving.
Pfizer (PFE): A 6% Yield Leaning on Adjusted Earnings Pfizer (NYSE:PFE) pays $0.43 quarterly, or $1.72 a year, an ultra-high yield of roughly 6.08% at $28.27. Shares are up 19.47% this year. But they are down 13.12% over five years, and the dividend has sat at $0.43 since early 2025 after years of steady raises.
The warning is in GAAP earnings. Trailing diluted EPS of $0.76 puts the GAAP payout ratio near 226%. Q2 turned to a net loss of $248 million. The loss stemmed from a $3.8 billion IPR&D impairment, a $525 million Oxbryta write-down and $867 million in legal charges. Net debt to EBITDA stands at 3.26, buybacks are off for 2026, Paxlovid revenue fell 95%, and generics pose a $1.1 billion revenue hit.
On the positive side, confirmed adjusted EPS guidance of $2.80 to $3.00 covers the dividend comfortably. What to watch: whether next year’s adjusted EPS guidance stays well above $1.72 as patent expirations bite.
Dow (DOW): Already Cut Once, Still Cyclically Exposed Dow (NYSE:DOW) yields about 4.92% on a $1.40 annual dividend. That figure already reflects a cut: the quarterly payout dropped from $0.70 to $0.35 starting with the August 29, 2025 ex-date. Shares are up 25.64% this year but down 36.46% over five years.
In 2025, operating cash flow of $1.032 billion fell short of both capex of $2.479 billion and dividends of $1.49 billion. Trailing EPS is -$1.83, and Q1 2026 adjusted EPS was -$0.14. Q2 bounced on a polyethylene price surge. Free cash flow reached $1.44 and $692 million, but management guided Q3 EBITDA to about $1.7 billion, down from $2.3 billion. Debt comes first: the CFO said paying down the “little over a billion dollars” borrowed recently is “the first priority.”
Offsetting that, Dow holds about $14 billion of liquidity with no substantive due dates until 2029. What to watch: whether Q3 free cash flow still covers the roughly $253 million quarterly dividend after polyethylene prices fell.
Verizon (VZ): Leverage Climbs as Shares Slide Verizon Communications (NYSE:VZ) yields about 6.79% on a $2.83 forward dividend, recently raised to $0.7075 a quarter. Some of that yield comes from price: shares fell 8.75% Friday and 14.84% over the past month as Starlink fears hit the telecom group.
The pressure point is leverage. Total debt rose to $172.5 billion after the Frontier deal closed on January 20, 2026. Net unsecured debt to adjusted EBITDA sits at 2.5x, up from 2.2x at year-end 2025, and Q1 interest costs climbed 18.9%. Free cash flow also has to fund $16 billion to $16.5 billion of capex and up to $4.5 billion in buybacks. Q2 GAAP net income fell 21.07%.
On earnings, coverage looks solid: adjusted EPS guidance of $4.99 to $5.04 implies a payout ratio near 57%, and free cash flow is guided above $21.5 billion. What to watch: whether leverage drifts back toward 2.2x as Verizon pays off Frontier’s debt by year-end.
Kraft Heinz (KHC): Shrinking Sales Behind a 7% Yield Kraft Heinz has paid $0.40 a quarter since 2019, after cutting from $0.625. The ultra-high yield is largely price-driven: shares are down 59.1% over ten years and 9.51% in the past month. For more background, see our earlier look at Kraft Heinz’s dividend history.
Q2 brought $7.4 billion in goodwill and intangible impairments, and trailing EPS is -$2.84. Organic sales are guided down 0.5% to 2.0%, constant-currency adjusted operating income down 16% to 18%, and North America adjusted operating income fell 15.8%. The planned breakup is paused. Adjusted EPS guidance of $2.03 to $2.09 puts the payout at roughly 77% to 79% of a shrinking base.
Cash flow is the defense. Q2 free cash flow was about $893 million against $475 million of dividends, and the company paid down $1.9 billion of debt. What to watch: whether consumption improves sequentially in Q4, as management expects, after declining about 2.5% in Q2.
What Separates a Stretched Payout From a Broken One A stretched dividend is still funded by free cash flow even as earnings are pressured. A broken one needs debt or asset sales to stay alive, which is exactly where Dow stood in 2025 before it halved its payout. Cuts usually take the share price down with them, so a big yield should never be a buy thesis on its own (we outlined the key red flags of an upcoming dividend cut in a free dividend trap guide). For more names on our radar, see dividend stocks with huge yields and even bigger warning signs.
Contact [email protected] for any questions or corrections.
Over the last five years, as of this writing, Kraft Heinz's (KHC -0.93%) stock price has dropped 40%, with shares now trading under $22.
On the surface, that may sound like a rebound candidate, based on what Kraft Heinz sells. After all, its products, from Kraft Mac & Cheese to Maxwell House coffee, are staples for many homes. Even at less than $22 per share, however, there's a simple reason I still wouldn't buy Kraft Heinz stock.
Image source: Getty Images.
The investable budget Everyone only has so many investable dollars, and if you're investing in one company, that money isn't going into another. With Kraft Heinz, that creates an opportunity cost. As you invest in the owner of the Jell-O and Oscar Mayer brands, you may not be investing in a higher-growth company that offers more significant share price appreciation opportunities. That's because Kraft Heinz is updating its product line after falling behind in keeping up with changing consumer tastes. That disconnect with consumers is showing up in the revenue totals; in its 2026 second-quarter earnings report, Kraft Heinz reported organic net sales of $6.2 billion, a 1.3% decrease from the prior-year period.
Premium Feature
Moneyball Superscore
41/100
Today's Change
(
-0.93
%) $
-0.21
Current Price
$
22.27
Granted, for income investors, the 7.2% dividend yield the company offers looks attractive, and while it does seem to be in a financial position to continue its payouts, over the years, continued large stock price declines can negate dividend payouts. Also, Kraft Heinz has a high debt load of $19 billion compared to total cash of $2.6 billion, which is always a risk factor for a dividend cut, as the money from those dividend payouts may be needed to pay down debt at some point. In 2019, Kraft Heinz cut its dividend payout by 36% to strengthen its balance sheet.
Given the opportunity cost, I'd pass on Kraft Heinz, as there are other, likely better, investments I'd rather make.
Jack Delaney has no position in any of the stocks mentioned. The Motley Fool recommends Kraft Heinz. The Motley Fool has a disclosure policy.
Four household names are dangling yields above 5% at a moment when their earnings, cash flow, and debt levels raise serious questions about whether those payouts can last. Retirees counting on that income should look carefully before the next dividend…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
A big yield looks like free money until the company can no longer afford to pay it. United Parcel Service (NYSE:UPS | UPS Price Prediction) yields 7.02%, and it sits on this list next to three other household names whose payouts carry real warning signs. A high yield is only as good as the payout’s sustainability, and for retirees who rely on that income, a cut hurts twice: the checks shrink, and the share price usually falls with them.
Quick test for sustainability: earnings and free cash flow should cover the dividend with room left over, and the payout shouldn’t depend on rising debt or a falling share price.
Pfizer: A 6% Yield Resting on Thin Coverage The drugmaker Pfizer (NYSE:PFE) pays $0.43 a quarter, which works out to a yield of 6.10%. Part of that yield comes from a low share price. The stock is down 16.28% over five years.
Coverage is where the problems start. Trailing diluted EPS is $0.76 versus a $1.72 annual dividend, putting the GAAP payout ratio near 226%. Cash flow is tight as well. Free cash flow in 2025 came to $9.076 billion, short of the $9.771 billion paid out in dividends. In the first half of 2026, free cash flow was $2.481 billion while dividends totaled $4.896 billion. Leverage stands at 2.7 times, and management expects it to stay “around current level or modestly higher” as patent expirations reduce revenue.
Pfizer’s case for keeping the dividend rests on its adjusted earnings guidance of $2.80 to $3.00, which comfortably covers the payout. Chief Executive Albert Bourla said on the August earnings call that “the dividend will be maintained and eventually after the LOE period will start growing it again.” For that promise to hold, growth from Pfizer’s newer drugs has to outpace the fall in its COVID products. Our earlier look at Pfizer’s fragile dividend story covers the details.
UPS: A 7% Payout Above GAAP Earnings UPS pays $6.56 per share each year. The stock has fallen 34.49% over five years, pushing the yield above 7%.
Trailing GAAP EPS of $5.41 means the company pays out about 121% of its earnings. Free cash flow in 2025 was $5.47 billion, against expected dividend payments of around $5.5 billion. In the first quarter of 2026, free cash flow of $1.28 billion fell short of the $1.352 billion paid to shareholders. Cash dropped from $5.887 billion to $4.653 billion over six months, and second-quarter interest expense rose 14.3%.
On the positive side, management expects adjusted EPS of about $7.22 this year, helped by roughly $3 billion in transformation savings. If those savings turn into cash, coverage improves. If they slip, the roughly $5.4 billion planned for 2026 dividends will strain the balance sheet.
Kraft Heinz: Shrinking Sales Behind a Yield Lifted by the Falling Stock The packaged-food maker Kraft Heinz (NASDAQ:KHC) yields 6.82% on a $1.60 annual dividend. Most of that yield comes from the stock’s fall. The stock is down 59.6% over ten years and 11.78% in the past month alone.
Trailing GAAP EPS is −$2.88, pulled down by $7.4 billion in goodwill and intangible impairments in the second quarter, following $9.3 billion in 2025. Revenue fell 3.5% last year, and 2026 guidance calls for organic sales to fall 0.5% to 2.0% and constant-currency adjusted operating income to drop 16% to 18%. A company whose sales and earnings are both shrinking has less room to maintain a flat dividend.
Free cash flow is the strongest part of the bull case. It reached $3.661 billion in 2025, well above the $1.898 billion paid in dividends, and adjusted EPS guidance of $2.03 to $2.09 covers the payout. Everything depends on the volume recovery that management is spending heavily to achieve.
Ford: Heavy Debt and GAAP Losses Ford Motor (NYSE:F) pays a regular 15 cents per quarter, for a yield of 4.98%. Shares have dropped 11.34% over the past month.
Ford lost $8.162 billion in 2025 after $10.7 billion in EV impairments and program cancellations, and trailing EPS is −$1.87. Free cash flow fell 47.87% to $3.513 billion last year, against a regular dividend that costs roughly $2.35 billion a year. First-quarter 2026 free cash flow was negative $1.874 billion. Debt-to-equity stands at 4.66, and interest coverage is only about 2x. Ford’s Model E segment expects losses of $4.0 billion to $4.5 billion this year.
Management is guiding to adjusted free cash flow of $5.0 billion to $6.0 billion, which would cover the payout if commodity and tariff costs stay manageable. Ford’s long-term outlook depends on its EV spending slowing down.
Look Past the Yield Before You Buy A dividend cut usually drags the share price down with it, meaning income investors can lose both their dividend income and part of their principal. All four of these companies say their payouts are safe, but their earnings, cash flow, and balance sheets point to real strain. A high yield alone is never a reason to buy. (We laid out the seven warning signs a big yield is about to be cut in a free dividend trap guide.) Before counting on one of these payouts, check coverage, free cash flow, and debt in every earnings report.
Contact [email protected] for any questions or corrections.
Kraft Heinz (KHC - Free Report) closed at $22.48 in the latest trading session, marking a +2.27% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.47% for the day. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 1.25%.
Shares of the processed food company with dual headquarters in Pittsburgh and Chicago witnessed a loss of 10.69% over the previous month, trailing the performance of the Consumer Staples sector with its loss of 4.53%, and the S&P 500's gain of 1.15%.
The investment community will be closely monitoring the performance of Kraft Heinz in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.43, marking a 29.51% fall compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $6.04 billion, indicating a 3.08% downward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.05 per share and a revenue of $24.52 billion, indicating changes of -21.15% and -1.7%, respectively, from the former year.
Any recent changes to analyst estimates for Kraft Heinz should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, the Zacks Consensus EPS estimate has moved 0.38% lower. At present, Kraft Heinz boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Kraft Heinz is at present trading with a Forward P/E ratio of 10.72. For comparison, its industry has an average Forward P/E of 14.33, which means Kraft Heinz is trading at a discount to the group.
One should further note that KHC currently holds a PEG ratio of 2.68. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Food - Miscellaneous industry currently had an average PEG ratio of 2.16 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 210, positioning it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow KHC in the coming trading sessions, be sure to utilize Zacks.com.
PITTSBURGH & CHICAGO--(BUSINESS WIRE)--Today, Kraft Mac & Cheese debuts Kraft Mac & Cheese Cheesy Ramen, marking the brand's entry into a new category for the first time in nearly 20 years. Available in Spicy, Chicken and Pork varieties, the new lineup brings the familiar cheesy taste fans have loved for nearly 90 years to the ramen aisle in an entirely new format. WHERE CHEESE MEETS RAMEN The ramen category, valued at $2.7 billion and growing nine percent year over year, has become a p.
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider Kraft Heinz?The final step today is to look at a stock that meets our ESP qualifications. Kraft Heinz (KHC - Free Report) earns a #3 (Hold) 29 days from its next quarterly earnings release on November 4, 2026, and its Most Accurate Estimate comes in at $0.44 a share.
KHC has an Earnings ESP figure of +2.47%, which, as explained above, is calculated by taking the percentage difference between the $0.44 Most Accurate Estimate and the Zacks Consensus Estimate of $0.43. Kraft Heinz is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
KHC is part of a big group of Consumer Staples stocks that boast a positive ESP, and investors may want to take a look at e.l.f. Beauty (ELF - Free Report) as well.
Slated to report earnings on November 4, 2026, e.l.f. Beauty holds a #1 (Strong Buy) ranking on the Zacks Rank, and its Most Accurate Estimate is $0.63 a share 29 days from its next quarterly update.
e.l.f. Beauty's Earnings ESP figure currently stands at +6.10% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $0.59.
KHC and ELF's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Kraft Heinz (KHC - Free Report) . This company, which is in the Zacks Food - Miscellaneous industry, shows potential for another earnings beat.
This processed food company with dual headquarters in Pittsburgh and Chicago has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 10.83%.
For the last reported quarter, Kraft Heinz came out with earnings of $0.56 per share versus the Zacks Consensus Estimate of $0.53 per share, representing a surprise of 5.66%. For the previous quarter, the company was expected to post earnings of $0.5 per share and it actually produced earnings of $0.58 per share, delivering a surprise of 16.00%.
Price and EPS Surprise
For Kraft Heinz, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Kraft Heinz currently has an Earnings ESP of +2.47%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
As inflation continues to influence consumer behavior, investors often look toward established giants for stability. Deciding between Kraft Heinz (KHC -1.20%) and PepsiCo (PEP +0.23%) requires weighing a deep-value turnaround story against a global snacking powerhouse.
Kraft Heinz focuses on pantry staples and condiments, attempting to revitalize legacy brands. PepsiCo dominates both the soda aisle and the snack rack, owning recognizable brands like Quaker, Doritos, and Mountain Dew. They represent different paths for conservative portfolios looking for stability.
The case for Kraft HeinzKraft Heinz operates through eight product platforms, including Taste Elevation, Easy Ready Meals, and Substantial Snacking. The company primarily sells its branded foods to large retailers and foodservice distributors. Walmart accounted for approximately 21% of net sales in 2025. Customer concentration like this adds a layer of risk to the business. The Board paused a previously announced plan to separate into two independent companies in February 2026.
In 2025, adjusted (non-GAAP) revenue was $24.9 billion, representing a decrease of approximately 3.5% from the previous year. The company reported an adjusted profit of roughly $3 billion for the period. This result was significantly lower than the prior year, when the company earned over $3.7 billion in adjusted net income.
Its debt-to-equity ratio stood at 0.5x as of June 2026. This metric compares total debt to shareholder equity to show how much a company relies on borrowing to fund its operations. The current ratio, which measures the ability to pay short-term debts with assets such as cash and inventory, is approximately 1.1x.
Trailing-12-month (TTM) free cash flow through Q2 2026 was $3.8 billion. This is the cash a company generates after accounting for the costs of maintaining its physical assets.
The case for PepsiCoIn the competitive world of consumer staples stocks, PepsiCo manages a massive global portfolio that includes brands like Lay's, Tostitos, and Gatorade. It operates a vast distribution network serving customers in more than 200 countries. Walmart is also a critical partner, accounting for roughly 14% of consolidated net revenue in 2025. This reliance on a major retail giant introduces potential pressure on pricing and terms.
In 2025, adjusted revenue reached $93.9 billion, representing approximately 2.3% growth over the prior year. Adjusted net income for the fiscal period was close to $11.2 billion. While revenue increased, adjusted profit declined 0.6% from the previous fiscal year.
The company carries a debt-to-equity ratio of nearly 2.4x, as of June 2026. This indicates that the company uses more debt relative to its equity than its peers do. The current ratio is roughly 0.9x, suggesting that current assets are slightly lower than current liabilities.
TTM free cash flow for the year hit a record $9.2 billion as of the second quarter of 2026.
Risk profile comparisonKraft Heinz faces intense pressure from private-label products that often offer lower prices. The company recorded roughly $9.3 billion in impairment charges in 2025, write-downs of asset values that no longer reflect their purchase prices. It also remains vulnerable to commodity price inflation and supply chain disruptions.
PepsiCo must navigate shifting consumer preferences as more shoppers prioritize health and wellness. This trend is amplified by the rising use of weight-loss drugs, which may impact snack and soda consumption. The company also faces competition from Coca-Cola and Keurig Dr. Pepper. Persistent volatility in raw material costs, such as packaging and transportation, remains a constant threat to profit margins.
Valuation comparisonKraft Heinz appears cheaper based on its lower Forward P/E and its P/S ratio, which compares price to sales over the past twelve months.
MetricKraft HeinzPepsiCoForward P/E10.9x14.7xP/S ratio1.1x1.8xValuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.
Kraft Heinz has spent years underinvesting in its brands. The company is undergoing a turnaround under CEO Steve Cahillane, who took over in January 2026. Sales have not grown much in several years. For this reason, I would buy PepsiCo, which has shown much greater resilience in an inflationary environment.
PepsiCo revenue grew 7% year over year through the first half of 2026. It has prioritized volume growth through lower prices over driving revenue, which has led to improved market share.
Kraft Heinz has not raised its dividend in years, and it still sits at an annualized payout of $1.60 per share. This reflects the lack of growth in its brands. Meanwhile, Pepsi increased its dividend by 4% earlier this year, marking the 54th consecutive year of dividend increases.
PepsiCo is the better business and the stock I would buy right now.
A fat dividend yield can mean a generous payout or a stock the market has already written off, and right now six familiar names are flashing signals that suggest the difference matters more than ever.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Income investors have a real alternative right now. The 10-year Treasury yielded 5.26% as of September 29, 2026, so any stock paying more has to earn that extra income with real cash. A headline yield only holds up if the company can keep funding it. Often a fat yield is the market signaling trouble the payout has not yet admitted.
Here is the test: a dividend is sustainable when the right earnings measure covers it, free cash flow pays for it after capital spending, and debt is not doing the heavy lifting. (We counted seven red flags that a fat yield is about to be cut in a free dividend trap guide, which is a useful checklist to run against the names below.)
Kraft Heinz (KHC): A Yield Built on a Falling Price Kraft Heinz (NASDAQ:KHC | KHC Price Prediction) pays $1.6 per share a year, a dividend yield of 6.79%. The payout has not grown. The quarterly dividend has sat at $0.4 since 2020, down from $0.625 in 2018. Shares at $22.77 are down 59.24% over ten years. That marks a price-driven yield.
Earnings coverage is the second problem. A $7.4B impairment left trailing diluted EPS at -$2.88. Adjusted EPS guidance of $2.03 to $2.09 still covers the dividend, but organic sales are guided -0.5% to -2.0% and brand spending is rising $100M to ~$700M. Cash flow holds up for now: Q2 operating cash flow of $1.082B against capex of $189M and dividends of $475M. Hitting the ~110% FCF conversion target is what keeps this payout safe.
Verizon (VZ): Leverage Is Creeping Higher Verizon (NYSE:VZ) yields 6.08% on a forward dividend of $2.83. Share price has worked in Verizon’s favor: shares are up 18.28% year to date, and the quarterly payout rose to $0.7075 from $0.69.
The warning sign is what the company owes. Total unsecured debt stands at $136.5B, and net unsecured debt to adjusted EBITDA rose to 2.5x from 2.2x at year-end 2025. Revenue slipped 0.7% and GAAP net income fell 22.9%, while a buyback target of up to $4.5B competes for the same cash. Cash flow offers support: Q2 free cash flow of $6.43B rose 27.1%.
Altria (MO): Raising the Payout on a Shrinking Base Altria (NYSE:MO) just lifted its quarterly dividend to $1.11 from $1.06, a forward $4.44 on a $67.44 stock. Shares are up 22.63% year to date, so this yield reflects payout policy.
The danger is holding a dividend through structural stress. Stockholders’ equity is -$3.21B, cash fell 25% to $3.53B, and domestic cigarette volume dropped 5%. Marlboro share slipped to 39.7% and on! pouches lost 4.2 points. Adjusted EPS guidance of $5.56 to $5.72 covers the payout, but pricing power has to keep outpacing volume loss.
AT&T (T): A Cut Already on the Record AT&T (NYSE:T) pays $1.11 a year, a yield near 5%, with shares down 9.29% over the past year. The quarterly dividend was $0.52 until it fell to $0.2775 in 2022, flat ever since.
Here the pressure is cash allocation plus debt. Q2 free cash flow of $4.67B fell 4.0%, while the quarter funded $1.976B in dividends and $2.194B in buybacks. Net debt to adjusted EBITDA is 2.68x, above the 2.5x target, and interest expense rose 13.8%. Buybacks give management a lever to pull before cutting the dividend, and FCF guidance of $18B+ supports the payout.
Pfizer (PFE): Free Cash Flow Trails the Dividend Pfizer (NYSE:PFE) yields 5.99% on $1.72 a year, with shares down 13.48% over five years.
The sharpest warning is cash coverage: a free cash flow yield of 5.58% against a 6.01% dividend yield. Q2 operating cash flow was $835M against $2.451B in dividends, and trailing GAAP EPS of $0.76 sits below the payout. Net debt to EBITDA is 3.26. Adjusted EPS guidance of $2.80 to $3.00 covers it, and the chief executive said “even in the most stretched scenarios that we are running, we will be able to maintain our dividend.”
Medical Properties Trust: Expensive Debt Eats the Cushion Medical Properties Trust pays $0.09 quarterly, a yield of roughly 7% to 8% on a stock that last filed at $4.70, after prior cuts. As a REIT, it should be judged on normalized FFO: $0.15 per share, a payout near 60%.
Debt is the threat. New secured notes carry a 9.25% coupon against a 5.37% weighted average rate, net debt to EBITDAre is 8.9x, and interest coverage is just 1.9x. Tenant HSA was paying 75% of agreed rent. Asset sales and no due dates until a roughly $600 million note in June 2028 buy time.
What to Watch Before the Next Declaration Keep an eye on quarterly free cash flow against dividends paid, leverage ratios against stated targets, and whether buybacks decline first. When a cut comes, it usually pulls the share price down too, so the yield you locked in can cost principal. Yield by itself does not make a thesis.
Contact [email protected] for any questions or corrections.
In the latest trading session, Kraft Heinz (KHC - Free Report) closed at $22.72, marking a -3.11% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.25%. Meanwhile, the Dow experienced a drop of 0.86%, and the technology-dominated Nasdaq saw an increase of 0.24%.
Heading into today, shares of the processed food company with dual headquarters in Pittsburgh and Chicago had lost 9.35% over the past month, lagging the Consumer Staples sector's loss of 4.32% and the S&P 500's loss of 0.42%.
The upcoming earnings release of Kraft Heinz will be of great interest to investors. In that report, analysts expect Kraft Heinz to post earnings of $0.43 per share. This would mark a year-over-year decline of 29.51%. At the same time, our most recent consensus estimate is projecting a revenue of $6.04 billion, reflecting a 3.08% fall from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.05 per share and a revenue of $24.52 billion, signifying shifts of -21.15% and -1.7%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Kraft Heinz. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.38% lower. Kraft Heinz currently has a Zacks Rank of #3 (Hold).
Investors should also note Kraft Heinz's current valuation metrics, including its Forward P/E ratio of 11.44. This expresses a discount compared to the average Forward P/E of 14.02 of its industry.
We can also see that KHC currently has a PEG ratio of 2.86. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Food - Miscellaneous industry currently had an average PEG ratio of 2.29 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 202, which puts it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Investors often find themselves choosing between the steady income potential of established food giants and the high-growth trajectory of beverage leaders. Choosing between Kraft Heinz (KHC -0.30%) and Monster Beverage (MNST -2.90%) requires weighing these different priorities.
Kraft Heinz maintains a massive portfolio of household food brands, while Monster Beverage dominates the high-margin energy drink category. While both operate within the consumer staples sector, their financial profiles and growth expectations offer distinct paths for your capital.
The case for Kraft HeinzAs one of the world's most recognizable names among food stocks (food products), Kraft Heinz manages a vast portfolio including brands like Oscar Mayer and Philadelphia. The company sells these products through e-commerce platforms, large-format retailers, and discounters globally. Walmart (WMT +0.69%) remains the company's largest single customer, representing approximately 21% of net sales. Customer concentration like this adds a layer of risk to the business.
In FY 2025, revenue reached nearly $24.9 billion, indicating a decline of roughly 3.5% compared to the prior year. This drop in revenue contributed to a net loss of approximately $5.8 billion for the period. This performance was a sharp contrast to the previous year, primarily due to substantial asset impairment charges. These non-cash charges significantly impacted reported earnings despite the company's broad market presence.
As of its December 2025 balance sheet, the debt-to-equity ratio sits at approximately 0.5x. This ratio compares total debt to shareholder equity to show how much a company relies on borrowing. The current ratio, which measures the ability to cover short-term liabilities with short-term assets, is roughly 1.2x. Free cash flow reached close to $3.7 billion, representing the cash remaining after paying for operations and capital expenditures.
The case for Monster BeverageMonster Beverage focuses on the development and sale of energy drinks under brands like Monster Energy and Reign. The company utilizes a global distribution network primarily comprised of Coca-Cola (KO -0.72%) affiliated bottlers. This partnership provides Monster with massive scale across roughly 158 countries and territories. By focusing on high-demand categories like energy and craft beverages, the company maintains a strong competitive position.
In FY 2025, revenue reached approximately $8.3 billion, representing a growth rate of nearly 10.7%. Net income for the same period was close to $1.9 billion, resulting in a net margin of approximately 23%. Net margin indicates the percentage of revenue that remains as profit after all expenses are paid. This steady growth reflects the company's ability to expand its brand presence in international markets.
As of its December 2025 balance sheet, the company carries no debt, resulting in a debt-to-equity ratio of 0.0x. This suggests the company funds its operations entirely through its own equity and earnings. The current ratio is a robust 3.7x, indicating a strong ability to meet short-term obligations. Free cash flow for FY 2025 was nearly $2.0 billion, providing ample capital for further expansion or acquisitions.
Risk profile comparisonKraft Heinz faces significant pressure from private label products and other branded manufacturers that limit its pricing power and shelf space. The company also deals with operational risks related to its massive size, requiring constant innovation to match changing consumer preferences. Financial risks are a concern, particularly regarding high indebtedness and the potential for further impairment of intangible assets. Regulatory scrutiny over food ingredients and marketing practices also remains a persistent challenge for the business.
Monster Beverage is heavily dependent on the distribution network of Coca-Cola, which could lead to conflicts regarding commercial interests. The company is highly concentrated in the energy drink category, making it vulnerable to specific safety regulations or negative health-related publicity. It faces intense competition from established players like PepsiCo (PEP -0.10%) and rapidly growing rivals like Celsius Holdings (CELH +0.04%). Additionally, integrating acquired brands like Bang Energy presents ongoing operational and production risks.
Valuation comparisonKraft Heinz offers a significantly lower valuation on both earnings and sales metrics, while Monster Beverage commands a premium for its higher growth.
MetricKraft HeinzMonster BeverageForward P/E11.5x37.1xP/S ratio1.1x9.1xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
I'd go with Monster Beverage. The company has spent more than 20 years turning energy drinks into a global phenomenon, and the results keep proving it. Its most recent quarter surpassed $2.5 billion in revenue for the first time, with double-digit growth across every geographic region simultaneously. International markets now account for nearly half the business, and that runway keeps expanding into countries where energy drinks are still gaining household penetration.
Kraft Heinz has made encouraging progress on its turnaround. It beat estimates in the most recent quarter, raised its organic sales outlook, and is investing heavily in its brands to win back market share. The free cash flow generation is one of the stronger aspects of the business.
But organic sales at Kraft are still declining, earnings fell sharply year over year, and the recovery depends on consumers responding to a brand investment program that is still proving itself. That is a lot to ask investors to sit through. Monster is already winning and has proven momentum. For investors who measure success in years rather than quarters, that's the better place to put your money right now.
Does the stability of a beverage king outweigh the turnaround potential of a food giant? Investors choosing between Kraft Heinz (KHC -0.11%) and Coca-Cola (KO -0.99%) must weigh valuation against consistent profitability.
Kraft Heinz focuses on packaged meals and condiments, while Coca-Cola dominates the global non-alcoholic beverage market. Both companies provide essential products that consumers buy regardless of the economy, making them staples in many long-term portfolios. This comparison looks at their financial health, growth prospects, and current risks to see which is a better buy.
The case for Kraft HeinzKraft Heinz produces household brands like Kraft Mac & Cheese, Heinz Ketchup, and Oscar Mayer. It sells through various channels, including e-commerce and large retailers. According to its latest filings, Walmart is its largest customer, representing approximately 21% of net sales. Customer concentration like this adds a layer of risk to the business.
In FY 2025, revenue reached nearly $24.9 billion, representing a decline of roughly 3.5% compared to the prior year. The company reported a net loss of approximately $5.8 billion during this period, resulting in a net margin of roughly -23.4%. This result was significantly influenced by a $7.4 billion impairment charge, which occurs when a company acknowledges its assets are worth less than their recorded book value.
As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 0.5x. This ratio measures total debt against shareholder equity, which is what remains for owners after all liabilities are paid.
The current ratio, which indicates if a company can cover short-term debts with short-term assets, is close to 1.2x. Free cash flow, or the cash left after paying for operations and equipment, was nearly $3.7 billion for the year.
The case for Coca-ColaCoca-Cola manages a massive portfolio including sparkling drinks, water, and coffee across more than 200 countries. It relies on a global network of independent bottling partners to distribute its products. One of these partners accounted for roughly 10% of total revenue in 2025. This strategy allows the company to focus on brand building and syrup production rather than the heavy manufacturing typical of many consumer staples stocks.
In FY 2025, revenue reached nearly $47.9 billion, a growth of approximately 1.9% over the previous fiscal period. The company achieved a net income of close to $13.1 billion, resulting in a net margin of approximately 27.3%. Net margin tells you how much of every dollar in sales actually becomes profit for the company.
As of its December 2025 balance sheet, the debt-to-equity ratio was roughly 1.5x. The current ratio stands at approximately 1.5x, suggesting a comfortable cushion for meeting immediate financial obligations. Free cash flow for the period reached nearly $5.3 billion.
Risk profile comparisonKraft Heinz faces an intensely competitive environment from private-label products and retailers pushing for lower prices. Volatility in commodity and energy costs can also impact its financial performance.
The recent $7.4 billion impairment charge highlights the difficulty of maintaining brand value in a changing market. Additionally, the company must manage its debt levels while navigating strict regulations on product labeling and ingredients.
Coca-Cola faces pressure from rivals like PepsiCo and Keurig Dr Pepper. Volatility in the price of raw materials like aluminum for cans and sweeteners can hurt the bottom line.
Regulatory changes, including taxes on sugary drinks, pose ongoing challenges to its traditional product lines. Furthermore, the company is highly exposed to foreign currency fluctuations and depends on the success of its independent bottling partners.
Valuation comparisonKraft Heinz looks cheaper based on its Forward P/E, which uses future earnings estimates, while Coca-Cola carries a higher P/S ratio using sales over the past twelve months.
MetricKraft HeinzCoca-ColaForward P/E11.5x26.6xP/S ratio1.1x7.5xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Kraft Heinz and Coca-Cola are often considered to be stable, blue chip consumer staples stocks. The companies sell products that tend to be recession-resistant, and while they don't produce exciting growth, their stocks are known for generous and reliable dividends that appeal to income investors. Coca-Cola is famously one of Warren Buffett's earliest and largest investments via the Berkshire Hathaway portfolio, generating nearly $850 million in dividend income every year.
Kraft Heinz pays out 6.77% in dividend yield, an attractive option for income investors -- though it may actually be a warning sign. The business's revenue is declining and it's posting net losses as it navigates mounting sales pressures in its core brands.
Coca-Cola's 2.41% dividend yield is less exciting, but likely more reliable, though investors will have to pay a higher multiple to get it. One thing that works in Coca-Cola's favor is its asset-light business model. The company focuses on its well-known syrups and concentrates, as well as its legendary branding, and franchises the higher-margin bottling and production operations, which means it isn't responsible for factory or transport overheads. This model results in operating margins that often exceed 30% (Kraft-Heinz's FY 2025 operating margin was -18.88%). It's not an exciting business, and it likely won't produce massive growth. But Coca-Cola remains a solid defensive investment with income-generation potential for conservative, long-term shareholders.
Chasing high-yielding stocks can be risky. Dividend payments are, after all, never a guarantee. If a company runs into a situation where it needs to divert more cash to growth initiatives or simply can no longer afford to pay the dividend, it may have little choice but to cut or possibly even suspend its payout.
Three popular dividend stocks that are paying more than 6% right now include Pfizer (PFE +0.69%), United Parcel Service (UPS +1.18%), and Kraft Heinz (KHC -1.52%). Which one of these stocks looks to be the safest option for dividend investors right now? Let's take a closer look and analyze their respective payout ratios, cash flows, and long-term risks.
Image source: Getty Images.
Which payout ratio looks the best?The payout ratio is often the default ratio many income investors look to when analyzing a dividend stock's risk. It tells investors how much of a company's earnings are being paid out in dividends. A ratio of more than 80% can signal trouble, and over 100% may indicate that it's unsustainable or that other factors are at play, such as an unusually poor quarter due to nonrecurring expenses.
PFE Payout Ratio (TTM) data by YCharts
None one of these payout ratios look great. Kraft's is in the negative as it posted a net loss recently due to significant impairment charges.
All of these companies are facing challenges and making changes to their operations to improve their financial situations, so it can be difficult to make a decision based on this metric alone. If there is an edge here, it goes to UPS, which is closest to 100%.
Which stock has the better free cash flow?Free cash flow can sometimes be a better indicator of a company's ability to pay dividends, as it excludes the impact of non-cash items such as revaluation charges, impairment, and depreciation.
PFE Free Cash Flow data by YCharts
All three companies are generating positive free cash flow, which is encouraging. But it's important to put this into the context of how much dividends they are paying out.
Pfizer: It has paid out $9.8 billion in dividend payments over the trailing 12 months; thus, its free cash of nearly $11 billion puts it in a good position to continue making payments.
UPS: Its dividend payments have totaled $5.4 billion during the past 12 months. Its free cash flow is sufficient to cover the payouts, but there isn't a huge buffer here.
Kraft Heinz: Its dividend payments have totaled $1.9 billion over the past 12 months. Given its free cash flow of $3.8 billion, it has the largest buffer of the stocks listed here.
Premium Feature
Moneyball Superscore
39/100
Today's Change
(
-1.52
%) $
-0.37
Current Price
$
24.00
What are the big risks facing these stocks?It's important to do a qualitative analysis of dividend stocks in addition to a quantitative one, as numbers may only tell part of the story.
Pfizer is adjusting to a post-COVID growth era, as it looks to develop new drugs to generate future growth, which is particularly crucial as it is also facing patent cliffs on multiple top drugs. The risk for investors is that the growth strategy does not go as planned, requiring more cash and potentially leading to pressure to reduce the dividend.
UPS has cut its business with Amazon by more than 50% as it looks to focus on improving its margins. It's been reducing its workforce as well as it gets leaner. The risk is that with global trade uncertainty and tariffs potentially weighing on its operations, it may also need to spend more cash to shore up its business. Investors may also worry about how strong the business will be with Amazon being a smaller customer.
Premium Feature
Moneyball Superscore
59/100
Today's Change
(
1.18
%) $
1.12
Current Price
$
95.87
Kraft faces no shortage of challenges on its own. As consumers are using GLP-1 drugs, which can curb appetites, there is concern about where its growth will come from in the future. It even contemplated splitting up its business. There are some massive question marks ahead for Kraft, which is why it may be the riskiest stock on this list.
Which of these dividend stocks is the best buy right now?All of these three stocks carry risks, but the one I'd go with right now is Pfizer. The healthcare company has strong free cash flow, and it has been investing in its future growth and pipeline. While there is uncertainty ahead, even one big blockbuster drug could be a game changer for its business, and with its business still doing well, it may be an underrated buy.
Premium Feature
Moneyball Superscore
65/100
Today's Change
(
0.69
%) $
0.19
Current Price
$
27.93
UPS comes in at a close second, but tight free cash flow and trade uncertainty make it a slightly riskier option. Kraft, meanwhile, with its core business in trouble, it's hard to want to take a chance on it, even though its free cash flow is strong. The dividend may be safe for now, but it may not be in the long term.
Key Takeaways Kraft Heinz's Q2 2026 volume/mix fell 2.6 points, with North America down 3.8 points.Kraft Heinz improved promotional ROI by 3.4 points year to date versus the prior year. KHC plans to step up second-half investments, with promotional timing a third-quarter headwind. The Kraft Heinz Company (KHC - Free Report) is placing a greater emphasis on affordability as consumers continue to face economic pressure. Its pricing approach includes improving the return on promotional spending, expanding access to opening price points and making selective base-price adjustments. The company has also introduced smaller, more accessible pack sizes in categories such as pasta sauce, cheese and salad dressings as part of its broader effort to return to volume-led, sustainable and profitable top-line growth.
The focus comes as volume trends remain under pressure. In the second quarter of 2026, Kraft Heinz’s volume/mix declined 2.6 percentage points year over year, while North America volume/mix fell 3.8 percentage points. Results included an approximately 100-basis-point headwind from Easter timing and an approximately 80-basis-point benefit from customer inventory pull-forward related to summer grilling and anticipated Fourth of July activations.
Kraft Heinz has been working to strengthen the effectiveness of its promotional activity. During the year, the company improved promotional ROI while laying the groundwork for second-half price investments. It has also partnered with retailers on stronger joint business plans, with an emphasis on quality merchandising through displays and features.
The reported returns show progress in promotional efficiency. Year to date, return on promotions increased 3.4 percentage points versus the prior year, while the percentage of promotional spending with net positive ROI increased 6.6 percentage points. Kraft Heinz plans to step up investments further in the second half, with promotional timing expected to be a headwind in the third quarter.
The promotional strategy centers on improving affordability while generating better returns from the dollars being deployed. With volume/mix still declining, the second-half investment cycle will provide a clearer indication of how these actions are reflected in Kraft Heinz’s volume performance.
KHC Stock Price Performance, Valuation & EstimatesThe Zacks Rank #3 (Hold) stock has risen 8.5% over the past three months, outpacing the industry’s growth of 2.9%.
KHC Price Performance Versus Industry
Image Source: Zacks Investment Research
From a valuation standpoint, KHC trades at a forward price-to-earnings ratio of 11.55, below the industry’s average of 14.22.
KHC Valuation Compared to Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for The Kraft Heinz Company’s earnings per share (EPS) implies a year-over-year decline of 13.5%, while the consensus mark for the next fiscal year EPS suggests 4.9% growth.
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.
Utz Brands, Inc. (UTZ - Free Report) , a leading U.S. manufacturer of branded salty and savory snacks, currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Utz Brands’ current fiscal-year sales suggests a 3.7% jump from the prior-year levels. However, the consensus estimate for current fiscal-year EPS indicates a 2.4% decline from the year-ago period. UTZ delivered a trailing four-quarter surprise of 1.8%, on average.
Laird Superfood, Inc. (LSF - Free Report) is a consumer product company that develops, manufactures and markets plant-based, natural and functional food and beverage products. LSF currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Laird Superfood’s current fiscal-year sales and EPS calls for growth of 188.2% and 104%, respectively, from the year-ago figures. LSF delivered an earnings surprise of 100% in the last reported quarter.
When valuing a company, you need to look beyond the share price. It's important to use a metric like the price-to-earnings (P/E) ratio or price-to-sales (P/S) ratio to make an objective judgment.
However, that's only one part of the investing process. You have to see why a company trades at a relatively cheap valuation. Sometimes, the market is signaling long-term concerns, and in other cases, investors have become overly focused on short-term issues.
You can't use the P/E ratio to evaluate Kraft Heinz (KHC -0.25%) due to its lack of earnings. But investors can apply the P/S ratio. On that basis, it trades at a much lower valuation than PepsiCo (PEP -0.12%).
Should investors view Kraft Heinz as a value opportunity or a value trap they should avoid?
Image source: Getty Images.
The comparison Kraft Heinz's shares have a P/S ratio of 1.2 versus 1.8 for PepsiCo, as of Sept. 18. That's a significant difference. And both trade at a significant discount to the S&P 500 index's (^GSPC +1.49%) 3.8 multiple.
Things haven't gone well since Kraft Foods and H.J. Heinz merged in July 2015. In an effort to turn the business around, the board of directors brought in Steve Cahillane as CEO, and he started on Jan. 1.
Premium Feature
Moneyball Superscore
39/100
Today's Change
(
-0.25
%) $
-0.06
Current Price
$
24.37
Early in his tenure, Cahillane canceled the previously announced split of the businesses into groceries and sauces/spreads. He decided to increase spending on marketing, sales, and R&D by $600 million.
Still, it's hard to see how this impacted results, with sales continuing to weaken. Second-quarter sales fell 1.3%, after adjustments to exclude foreign-currency translations and divested assets. For all of 2026, management expects a 0.5% to 2% decline in sales.
PepsiCo's turnaround has been going better. After discussions with activist investor Elliott Investment Management, the company took steps to increase sales growth. This included lowering prices, developing new products, and cutting costs.
Premium Feature
Moneyball Superscore
69/100
Today's Change
(
-0.12
%) $
-0.16
Current Price
$
129.59
The immediate consumer response to cutting prices has been positive, with volume picking up. PepsiCo's second-quarter adjusted revenue grew 2.4% compared to a year ago, with higher volume accounting for 1 percentage point of the increase.
Value stock or value trap? After looking at both companies, it's time to make an informed investment decision.
With Kraft Heinz's challenges reflected in its slumping sales, it seems like the discounted valuation to PepsiCo and the S&P 500 is warranted. Hence, it has all the makings of a value trap, and I'd avoid Kraft Heinz's shares.
However, PepsiCo's stock should pique value investors' interest given its lower valuation versus the market and the company seemingly moving in the right direction.
Greg Abel took the reins as the CEO of Berkshire Hathaway (NYSE:BRK)(NYSE:BRK) at the start of 2026. While the Warren Buffett successor has made many changes to the company’s investment portfolio, one of the first stocks he said he would sell remains a prominent holding.
Kraft Heinz Charts Turnaround Under New CEOLike Berkshire Hathaway, food company Kraft Heinz (NYSE:KHC) began 2026 with a new CEO. The company is now led by Steve Cahillane, who is helping oversee a turnaround after years of stock underperformance.
The new CEO and his plan appear to be enough to have won over Abel, even if temporarily, after the new Berkshire CEO said he wasn’t pleased with the stock performance and was ready to sell Berkshire’s stake in Kraft Heinz.
In a recent interview with NBC News, Cahillane emphasized Kraft Heinz’s focus on keeping its legacy brands affordable, as consumers look at prices and off-label alternatives amid rising inflation and costs.
The CEO highlighted promotions, packaging, and strategic price cuts as three key areas of focus for the company.
"We can’t just rely on having a strong brand and saying that’s enough to be enough," Cahillane told NBC News.
A report from McKinsey, highlighted by NBC News, says 85% of consumers believe private-label products are as good as or better than name-brand products.
"Consumers have only so many dollars available for their food budget in a month’s time, and so you have to earn the right to be in that basket each and every day," Cahillane added.
Cahillane said the company’s sizing strategy isn’t shrinkflation, but rather a focus on having more sizes at different prices.
For Kraft Heinz, the strategies may be working. The company has been beating earnings per share estimates from analysts, but until recently struggled to beat revenue estimates.
Kraft Heinz beat analyst estimates for revenue in the first and second quarters of the current fiscal year, after missing estimates in eight of the nine previous quarters.
Read Next
Berkshire’s Change of HeartEarlier this year, Berkshire filed plans to sell up to 325,442,152 shares of Kraft Heinz, a position that represents around 27.5% of the entire food company. The position is part of a stake acquired by Berkshire Hathaway after the conglomerate helped fund the purchase of H.J. Heinz with 3G Capital in 2013 and later helped fund the merger of Kraft and Heinz in 2015.
Berkshire Hathaway has seen a significant loss on the investment in Kraft Heinz over the years.
In a shareholder letter, Abel was critical of the company and Berkshire’s position.
"Our investment in Kraft Heinz has been disappointing," Abel said. "Even after considering the preferred equity component in our original Heinz investment, our return has been well short of adequate."
With the Kraft Heinz filing and Abel’s comments, it seemed inevitable that Berkshire Hathaway would sell its stake in the first or second quarter.
While Abel cut the Berkshire holdings from 42 to 29 in the first quarter and sold some stocks previously held for more than a decade, Kraft Heinz remained strong in the conglomerate’s portfolio. The stake has not been trimmed in the first or second quarter.
At the end of the second quarter, Kraft Heinz was the 11th largest position in the Berkshire Hathaway portfolio at 2.6% of assets, valued at around $7.7 billion.
The turnaround strategy by Cahillane appears to be working with consumers and Berkshire Hathaway. Could investors be next?
Kraft Heinz shares are down 0.4% year-to-date and down 6.8% over the last 52 weeks.
Nykredit A S purchased a new position in shares of Kraft Heinz Company (NASDAQ:KHC – Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 5,583,336 shares of the company’s stock, valued at approximately $131,878,000. Nykredit A S owned 0.47% of Kraft Heinz as of its most recent SEC filing.
Several other hedge funds have also made changes to their positions in the business. Alyeska Investment Group L.P. purchased a new stake in Kraft Heinz in the second quarter valued at approximately $1,968,000. OMERS ADMINISTRATION Corp acquired a new position in shares of Kraft Heinz in the 2nd quarter valued at $1,076,000. Swedbank AB grew its stake in shares of Kraft Heinz by 10.2% during the 4th quarter. Swedbank AB now owns 1,359,161 shares of the company’s stock valued at $32,960,000 after buying an additional 125,307 shares during the period. Franklin Street Advisors Inc. NC increased its holdings in shares of Kraft Heinz by 70.2% during the 2nd quarter. Franklin Street Advisors Inc. NC now owns 994,375 shares of the company’s stock worth $23,487,000 after buying an additional 410,029 shares during the last quarter. Finally, Janus Henderson Group PLC raised its position in shares of Kraft Heinz by 60.4% in the 1st quarter. Janus Henderson Group PLC now owns 107,535 shares of the company’s stock worth $2,418,000 after buying an additional 40,473 shares during the period. Institutional investors and hedge funds own 78.17% of the company’s stock.
Kraft Heinz Stock Up 0.1% Shares of NASDAQ KHC opened at $24.76 on Friday. The stock has a fifty day moving average price of $25.43 and a 200 day moving average price of $23.97. The company has a current ratio of 1.06, a quick ratio of 0.68 and a debt-to-equity ratio of 0.49. Kraft Heinz Company has a 12-month low of $21.03 and a 12-month high of $28.09. The company has a market cap of $29.36 billion, a P/E ratio of -8.66, a P/E/G ratio of 2.99 and a beta of 0.09.
Kraft Heinz (NASDAQ:KHC – Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $0.56 earnings per share for the quarter, topping the consensus estimate of $0.53 by $0.03. The company had revenue of $6.26 billion during the quarter, compared to the consensus estimate of $6.18 billion. Kraft Heinz had a positive return on equity of 7.10% and a negative net margin of 13.64%.The company’s revenue was down 1.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.69 earnings per share. Kraft Heinz has set its FY 2026 guidance at 2.030-2.090 EPS. Research analysts anticipate that Kraft Heinz Company will post 2.06 EPS for the current fiscal year. Kraft Heinz Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Friday, September 4th will be given a $0.40 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $1.60 annualized dividend and a yield of 6.5%. Kraft Heinz’s dividend payout ratio (DPR) is -55.94%.
Wall Street Analysts Forecast Growth A number of research analysts recently weighed in on KHC shares. Evercore set a $24.00 target price on Kraft Heinz in a report on Thursday, August 6th. UBS Group upped their price target on Kraft Heinz from $25.00 to $27.00 and gave the stock a “neutral” rating in a research note on Thursday, August 6th. Weiss Ratings lowered Kraft Heinz from a “sell (d)” rating to a “sell (d-)” rating in a research note on Thursday, August 6th. Royal Bank Of Canada initiated coverage on Kraft Heinz in a report on Thursday. They set an “outperform” rating and a $32.00 target price for the company. Finally, JPMorgan Chase & Co. increased their target price on shares of Kraft Heinz from $21.00 to $22.00 and gave the stock an “underweight” rating in a research report on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, eleven have issued a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, Kraft Heinz has an average rating of “Reduce” and an average target price of $23.88.
Read Our Latest Analysis on Kraft Heinz
Kraft Heinz Profile (Free Report)
The Kraft Heinz Company (NASDAQ: KHC) is a global food and beverage company that develops, manufactures and markets branded products for consumers, retailers, foodservice operators and other customers. Its portfolio includes condiments and sauces, cheese and dairy products, meals, meats, beverages, snacks and other packaged foods.
The company’s well-known brands include Kraft, Heinz, Oscar Mayer, Philadelphia, Velveeta, Lunchables, Capri Sun, Jell-O, Maxwell House and Classico, among others.
See Also Five stocks we like better than Kraft Heinz Aeluma’s Selloff Could Be Setting Up Its Next Big Move Crypto Bill Stalls, Smart Money Calls: Time to Buy the Dip? The September Scramble: Find Sanctuary in These 3 Defensive Dividend Stocks The Fed’s Rate Hike Could Backfire If Oil Prices Collapse Want to see what other hedge funds are holding KHC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Kraft Heinz Company (NASDAQ:KHC – Free Report).
Receive News & Ratings for Kraft Heinz Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kraft Heinz and related companies with MarketBeat.com's FREE daily email newsletter.
Both General Mills and Kraft Heinz offer nearly identical 6.5% yields at beaten-down valuations, but one of them already cut its dividend once and just wrote down billions in brand value for the second year running. Picking the wrong one…
For a retirement-focused income investor weighing General Mills (NYSE:GIS | GIS Price Prediction) against Kraft Heinz (NYSE:KHC), the real question is which quarterly check is most likely to keep arriving, and growing, through the next recession. Both trade at forward multiples in the low teens (12 for GIS, 11 for KHC), both took massive brand impairments in the last fiscal year, and both yield roughly 6.5%. The similarities end there.
Yield and Payout Coverage GIS pays a quarterly dividend of $0.61 per share, or $2.44 annualized, for a yield of 6.69%. KHC pays $0.40 per share quarterly, $1.60 annualized, yielding 6.5%. On headline yield, GIS edges ahead. But coverage matters more. GIS guides FY2027 adjusted EPS to $3.00 to $3.20, down from $3.55 in FY2026. KHC guides FY2026 adjusted EPS to $2.03 to $2.09. Against the $2.44 annual payout, GIS covers its dividend with room to spare on adjusted earnings. KHC’s $1.60 payout is comfortably covered too, but the cushion is thinner and shrinking, with constant-currency adjusted operating income guided down 16% to 18%. Winner: GIS.
Free Cash Flow Durability and Balance Sheet This is where KHC actually punches back. Kraft Heinz generated $3.66 billion in free cash flow in FY2025, guides FY2026 free cash flow conversion at ~110%, and used the cash to pay down $1.9 billion of debt in the quarter plus another $1 billion after quarter-end. GIS produced $1.63 billion in free cash flow in FY2026, down 29.07%, and guides FY2027 free cash flow conversion to only ~95% of adjusted after-tax earnings. On raw cash coverage of the payout, KHC has the bigger cushion and is actively deleveraging. Winner: KHC.
Dividend Track Record and Brand Portfolio The dividend histories tell opposing stories. GIS just declared its 127th consecutive year of uninterrupted dividends, and the payment history shows a clean progression from $0.49 per share in 2019-2020 up through the current $0.61, with the latest raise taking hold at the July 2025 ex-date. KHC’s record is uglier. The dividend was reset from $0.625 to $0.40 in 2019 and has stayed frozen ever since, 27 consecutive quarters at $0.40, the exact profile of a payout our free guide to dividend traps flags before a second cut lands. Underlying brand momentum also favors GIS: management cited household penetration growth and pound-share gains, while KHC absorbed $7.4 billion in non-cash goodwill and intangible impairments in Q2 alone, on top of $9.3 billion in FY2025, an explicit accounting acknowledgment that brand equity has eroded. Winner: GIS, decisively.
Verdict GIS wins the head-to-head for a retirement-focused income investor. The yields are close, but a 6.69% yield backed by a 127-year unbroken payment record, still-rising per-share distributions, and adjusted earnings that cover the dividend comfortably is a fundamentally different proposition than a 6.5% yield attached to a company that already cut once, has held flat for seven years, and just wrote down billions in brand value for the second year running. KHC’s stronger free cash flow conversion and aggressive debt paydown are real, and the stock is up 7.74% year to date versus GIS’s -16.26%, but the ten-year total-return picture, KHC -55.22% versus GIS -16.89%, tells you which brand portfolio has actually held up. The specific risk in GIS is a stalled top line and a stressed consumer eating into FY2027 earnings. The specific risk in KHC is another impairment cycle forcing a second dividend reset. For a retiree who needs the check to keep coming, General Mills is the safer bet.
Contact [email protected] for any questions or corrections.
Kraft Heinz has teamed up with Mike's Hot Honey to roll out Philadelphia Mike's Hot Honey Whipped Cream Cheese exclusively at Walmart stores nationwide.
Philadelphia Turns Up the Heat with its First-Ever Sweet Heat Cream Cheese in the United States in Partnership with Mike's Hot Honey® As temperatures cool off, Philadelphia is turning up the heat on a familiar favorite with the introduction of Philadelphia Mike’s Hot Honey Whipped Cream Cheese. In a collaboration with America's original and leading hot honey brand, the craveable new spread swirls the iconic sweet heat of Mike’s Hot Honey into Philadelphia’s light and fluffy whipped cream cheese, bringing a little kick to everything from bagels and charcuterie boards to pizza. Available exclusively at Walmart now, the new flavor will expand to additional retailers beginning in January 2027.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260915992886/en/
Philadelphia turns up the heat with new Philadelphia Mike’s Hot Honey Whipped Cream Cheese, combining Philadelphia’s light and fluffy whipped cream cheese with Mike’s Hot Honey’s signature sweet heat.
HOT HONEY IS HERE TO STAY
Since Mike’s Hot Honey first hit the food scene in 2010, hot honey has evolved from buzzworthy newcomer to menu mainstay. Philadelphia has been part of that journey from the start, with founder Mike Kurtz using the brand’s cream cheese as a canvas for his creation. More than 15 years later, nearly half of consumers have tried hot honey, led by millennials and Gen Z, and sweet-and-spicy flavors have surged nearly 230% on menus over the past four years.¹ Now, the pairing that helped introduce consumers to hot honey is becoming official.
“Philadelphia has been part of the Mike’s Hot Honey story since the early days,” said Mike Kurtz, founder of Mike’s Hot Honey. “When I was first building the brand, I used to sample our hot honey on bricks of Philadelphia cream cheese to show people just how delicious and versatile the combination could be. To now bring that pairing to life in a partnership with Philadelphia feels like a full-circle moment. Together, we worked closely to get the balance of creamy, sweet heat just right, creating a schmear ready for everything from breakfast sandwiches to pizza — or straight from the tub.”
Featuring Mike’s Hot Honey’s signature blend, the new flavor marks Philadelphia’s first-ever sweet heat cream cheese flavor in the U.S. Made with real milk and cream and no artificial preservatives, flavors or dyes, the result is a smooth, subtly indulgent cream cheese finished with just the right kick.
DOUBLING DOWN ON FLAVOR
The flavor innovation doesn’t stop there. Continuing to evolve its portfolio around changing consumer tastes and flavor preferences, Philadelphia is also introducing two new fall-inspired flavors: Cranberry Orange, a limited-time seasonal spread, and Salted Caramel, a permanent addition to the portfolio. With 85% of consumers saying familiar flavors influence what they eat and drink,2 both varieties tap into the comfort and familiarity consumers crave while bringing something new to the cream cheese aisle. From baking and spreading to snacking, the new flavors offer an easy way to elevate everything from cinnamon rolls and cookies to salty snacks like pretzels.
“Philadelphia has set the cream cheese standard for over 150 years, and staying at the forefront means continuing to evolve with the way people eat and the flavors they crave,” said Maddy Zingle, Vice President of Marketing at Philadelphia Cream Cheese. “Hot Honey, Cranberry Orange and Salted Caramel are proof points in how we’re accelerating flavor innovation, with 10 new flavors joining our lineup in the last two years. We’re building on our legacy by bringing fresh energy, bold flavors and new possibilities to the cream cheese category.”
Starting today, shoppers can find Philadelphia Mike’s Hot Honey Whipped Cream Cheese exclusively at Walmart, while Philadelphia Cranberry Orange and Salted Caramel Cream Cheese are available at major retailers nationwide. For a limited time, fans located near Pedaler’s Pub in Bentonville, Arkansas and Pizza One in Wayne, New Jersey can visit in-store to try limited-edition edition menu items made with the new Philadelphia Mike’s Hot Honey Whipped Cream Cheese.
To learn more, visit creamcheese.com and follow Philadelphia (Instagram, TikTok) and Mike’s Hot Honey (Instagram, TikTok) on social media.
ABOUT THE KRAFT HEINZ COMPANY
Kraft Heinz (NYSE: 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.
ABOUT MIKE’S HOT HONEY
Mike's Hot Honey is America's original and leading brand of hot honey and has been elevating everyday eating experiences since 2010, when its first drizzle on a pizza at Paulie Gee's in Brooklyn sparked a word-of-mouth sensation and created a new category of pizza topping. By popular demand, Mike started selling his small-batch, hand-labeled hot honey bottles to visitors of the pizzeria, as well as other local restaurants and businesses. Today, Mike's Hot Honey can be found in thousands of restaurants and retailers across the country, with the same original recipe in the bottle. Using only 100% pure honey infused with real chili peppers, Mike's Hot Honey's one-two flavor punch of sweetness then heat makes any dish more dynamic, from the original pairing on pepperoni pizza to chicken, cheese and charcuterie, ice cream, cocktails, and so much more. Mike's Hot Honey empowers chefs and eaters everywhere to customize, create, and share extraordinary meals. Happy drizzling! For more information about Mike's Hot Honey, please visit mikeshothoney.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260915992886/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.
Philadelphia cream cheese will release three new flavors on Tuesday as part of Kraft Heinz's broader plan to reinvest in its iconic brands and win back shoppers.
Previously, the 154-year-old brand released about one or two new flavors such as garden vegetable or pineapple every year. Over the next two years, it plans to launch 10 new varieties, with the goal of "creating some excitement" within the cream cheese category, according to Jerome Drolet, Kraft Heinz's president of taste elevation.
Drolet's position is a nod to Kraft Heinz's now-paused split. When the packaged foods giant planned to spin off into two separate companies, one had the temporary name of "Global Taste Elevation," which would house condiments, sauces and Kraft Mac & Cheese. For now, Kraft Heinz is sticking together and trying to stage a comeback by making its legacy brands more relevant.
In the period since Kraft Heinz announced the split was paused, the company's shares have fallen 2%. Some investors are pessimistic that its well-known but stalled brands can ever regain shoppers' favor, even with a $700 million investment from Kraft Heinz.
Some of that money is pouring into Philadelphia. The company's spending on the cream cheese brand is expected to climb 63% this year compared with 2025, including more backing for its research and development, according to Drolet. And investment in new flavors has quadrupled, he said.
Philadelphia accounts for about 62% of U.S. cream cheese sales, according to data from Euromonitor International. But its dominance means that it is responsible for growing sales of the overall cream cheese category.
Kraft Heinz is hoping that new flavors will drive more cream cheese sales. The first round of new Philadelphia releases includes Mike's Hot Honey whipped cream cheese, salted caramel and a seasonal cranberry orange, which will only be available for a limited time. The Mike's Hot Honey flavor will launch in Walmart exclusively until it hits other retailers' shelves in January.
"We want to make sure that the profile of the products we're launching are hitting critical masses," Drolet said. "It needs to be incremental, but it also cannot be too niche so that it only sells a few units."
As part of the strategy to widen cream cheese's appeal to shoppers, Philadelphia also launched a lactose-free version earlier this year.
Some of Philadelphia's expanded marketing spend will once again focus on the brand's "pure dairy equity," according to Drolet. The strategy recalls the ethos that inspired its Philadelphia cream cheese angel campaigns of the 1990s. In February, it launched its "Really Philly good" campaign.
The brand is also trying to reach consumers to encourage them to use cream cheese as more than a schmear for a bagel. Philadelphia's cream cheese brick has already been a cooking and baking staple for decades. Expect to see more TikTok influencers and recipe websites using Philadelphia cream cheese in creative ways.
Drolet sees opportunities to use them in dips and even pasta sauce — like swapping out heavy cream for the Mike's Hot Honey cream cheese in a Bolognese.
"We're definitely the leader in the category, and as the leader, it's also on us to really drive the occasion," he said.
Spreading the investmentWhile Kraft Heinz does not break down sales for Philadelphia, the cream cheese is one of the company's billion-dollar brands, along with the likes of Kraft Mac & Cheese, Kraft Singles, Heinz, Lunchables and Oscar Mayer.
But the size of those brands conceals their struggles. For years after the 2015 megamerger that created Kraft Heinz, the company saw its U.S. sales slip as its biggest names lost shoppers. In early 2019, Philadelphia was one of six brands the company wrote down as the value of its intangible assets fell.
Executives and analysts have pointed to previous management's underinvestment in the company's products as the primary culprit for many of its business challenges.
A year ago, Kraft Heinz announced plans to break up, which would effectively unwind much of the merger that combined Kraft with Heinz. But in February, new CEO Steve Cahillane announced that Kraft Heinz would pause the split to fix the company instead. He also said that Kraft Heinz would invest $600 million back into the business.
Kraft Heinz recently upped that number to $700 million, saying that early investments were already paying off for the company. About 35% of Kraft Heinz's portfolio is holding or gaining market share, up from 21% at the end of 2025, Cahillane said at the Barclays Global Consumer Conference earlier this month.
Of course, Philadelphia isn't the only Kraft Heinz brand netting more investment during the company's turnaround. The company has released improved packaging for Oscar Mayer products and unveiled Kool-Aid electrolyte packets and protein-packed Kraft Mac & Cheese PowerMac, among other efforts to grow sales for some of its best-known brands.
In the latest trading session, Kraft Heinz (KHC - Free Report) closed at $24.27, marking a -1.34% move from the previous day. This change lagged the S&P 500's daily loss of 0.48%. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq lost 0.56%.
The processed food company with dual headquarters in Pittsburgh and Chicago's shares have seen a decrease of 3.57% over the last month, not keeping up with the Consumer Staples sector's loss of 0.52% and the S&P 500's loss of 0.82%.
Market participants will be closely following the financial results of Kraft Heinz in its upcoming release. The company is predicted to post an EPS of $0.43, indicating a 29.51% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $6.03 billion, reflecting a 3.31% fall from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.06 per share and a revenue of $24.51 billion, signifying shifts of -20.77% and -1.75%, respectively, from the last year.
Investors should also take note of any recent adjustments to 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.11% lower within the past month. Right now, Kraft Heinz possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Kraft Heinz is holding a Forward P/E ratio of 11.96. Its industry sports an average Forward P/E of 14.21, so one might conclude that Kraft Heinz is trading at a discount comparatively.
It is also worth noting that KHC currently has a PEG ratio of 2.99. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Food - Miscellaneous industry had an average PEG ratio of 2.2 as trading concluded yesterday.
The Food - Miscellaneous industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 212, positioning it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Kraft Heinz announced a blockbuster split into two companies, then a new CEO walked in and stopped everything. Now the question is whether a massive reinvestment bet can rescue brands that have been losing ground for years.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Kraft Heinz (NASDAQ: KHC | KHC Price Prediction) is moving its stock listing to the New York Stock Exchange. The company’s ticker remains KHC, no shares convert, and the economic effect on holders is essentially nil. The interesting story sits behind the venue change: a breakup that was announced, then shelved, and the strategic reset that took its place.
Breakup on Ice: Separation Paused In September 2025, then-CEO Carlos Abrams-Rivera announced that the board had approved splitting the company into two independent public companies, Global Taste Elevation and North American Grocery, targeted to close in the second half of 2026. That plan effectively unwound the 2015 merger that created Kraft Heinz. On February 11, 2026, new CEO Steve Cahillane hit pause:
Since joining the company, I have seen that the opportunity is larger than expected and that many of our challenges are fixable and within our control … we believe it is prudent to pause work related to the separation.
The Kraft Heinz company profile still describes the separation as currently paused rather than cancelled. The Q2 2026 filing continues to list the uncertain timeline as a risk.
Cash Poured Into Brands to Fund the Turnaround Cahillane’s answer was reinvestment. The company committed $600 million of incremental investment at Q4 2025, then raised that by another $100 million to roughly $700 million for 2026 after first-half results. CFO Andre Maciel said first-half share loss narrowed to 30 basis points from roughly 90 basis points earlier in 2025, with recent weeks near 20 basis points. Cahillane refused a lap: “Nobody’s doing a victory lap that we’re declining less than … we anticipated but it is moving in the right direction.” Heinz worldwide is up 3% year to date, U.S. condiments have swung from flat to 3% growth, and Cahillane said, “Global away from home is back to growth as well.”
Oscar Mayer as the Swing Factor Cahillane pinned the majority of first-half share losses on Oscar Mayer, and inside Oscar Mayer on one product: Deli Fresh, where a packaging issue drove the problem. The brand introduced new packaging that began shipping in early August. Distribution lost during that window will need to be rebuilt. Kraft Heinz reportedly explored a sale of Oscar Mayer back in 2024 and is now investing to repair the brand. Management has kept the entire portfolio intact.
Balance Sheet and the Overhang Maciel said, “We have paid down $1.9 billion of debt in the quarter” and “After the quarter closed, we also paid another $1 billion in 2027,” alongside a refinancing of an expensive maturity. Free cash flow conversion is guided to approximately 110% for 2026. A disclosed Berkshire Hathaway (NYSE: BRK.B) position remains a genuine overhang given its size.
Scorecard Into November Shares are up 1.4% year to date at $24.60, yet down 71.4% over ten years. That gap illustrates how much ground the turnaround must recover. An investor day in November is the next real catalyst. Use Cahillane’s own scorecard: market share, productivity, and emerging markets, where Q2 revenue grew 10.4%.
Contact [email protected] for any questions or corrections.
Big Beautiful Boycott: Can It Really Hurt Coca-Cola, Amazon, and Kraft Heinz Stocks?Kraft Heinz NASDAQ: KHC Chief Executive Officer Steve Cahillane said the company is seeing early evidence that its increased brand investment is improving consumption and market-share trends, though he emphasized that performance has not yet reached acceptable levels.
Speaking at a fireside chat, Cahillane said the company initially announced a $600 million reinvestment program focused on brands, capabilities and marketing, then increased that amount to $700 million after encouraging first-half results. The company had ended the prior year with 21% of its business holding or gaining share, a figure that has risen to 35%, according to Cahillane.
Get Kraft Heinz alerts:
The USMCA Review Is Coming: 3 Border-Sensitive Stocks to Watch“Is that good enough? No, it is not good enough, but it is much better than 21%-35%,” Cahillane said.
Early gains in condiments, emerging markets and foodservice Cahillane pointed to a reversal in North American Heinz condiment trends as an example of the impact of investment. Heinz brand consumption declined 3% last year, but is now up 3% and gaining share, he said. The company has also seen improving trajectories in hydration and desserts, while 90% of its portfolio has a better trend than it did in 2025.
5 High-Yield Stocks to Shield Your Portfolio From the StormGlobal Away From Home sales have returned to 3% growth, with U.S. growth running somewhat higher, Cahillane said. In U.S. foodservice, the company is gaining share in tomato ketchup and mayonnaise, helped by customer wins and its effort to expand Heinz’s presence beyond ketchup through a program called Heinz Verified.
Emerging markets have also become a major source of growth. Cahillane said the segment is growing at a high-single-digit rate and gaining share in every market where the company operates except Indonesia, where it had distributor challenges last year.
In Brazil, Heinz Zero launched early in the year and has delivered 80% incrementality, Cahillane said. He also noted that Heinz has 96% worldwide awareness and 20% household penetration, compared with 94% awareness and 50% penetration for Coca-Cola. Kraft Heinz is increasing quality distribution for Heinz products at a 5% rate in the first half, he added.
Cahillane said he sees “years and years” of potential high-single-digit to low-double-digit growth in emerging markets.
Oscar Mayer remains a key U.S. challenge Despite broad portfolio improvement, Cahillane identified Oscar Mayer as a significant remaining issue. He said 60% of Kraft Heinz’s share losses in the first half were tied to Oscar Mayer, primarily its Deli Fresh product line.
The company identified a resealability issue with Deli Fresh packaging and introduced new packaging that began shipping in early August. While distribution was lost during the problem period, sales per point of distribution are now growing, according to Cahillane.
“We had a resealability issue. We did not do the job for the consumer and the retailer that we needed to do,” Cahillane said. He added that the company must regain distribution and continue to build consumer trial.
Frozen foods also represent an area for improvement, he said. Beyond fixing underperforming businesses, Kraft Heinz plans to focus on larger brands and selected smaller “gems,” including Lea & Perrins, A.1. Sauce and Grey Poupon.
Innovation and renovation focus on nutrition, convenience and value Cahillane pushed back on the view that legacy food brands have become inherently less relevant. He said brands can remain vibrant when companies invest in innovation that meets changing consumer preferences.
Examples cited included resealable bottles and Capri Sun Hydrate, Heinz Zero and Heinz Simply products, lactose-free Philadelphia Cream Cheese, and Kraft PowerMac & Cheese. The PowerMac product contains 17 grams of protein and 6 grams of fiber, he said.
The company is also pursuing product renovation, including a previously stated goal to remove all FD&C artificial colors by the end of 2027. Cahillane said consumers increasingly want cleaner labels, protein, fiber, affordability and convenience.
Kraft Heinz has also begun activating a new NFL partnership. Cahillane said the company’s in-store displays were up 150% from the same four-week period a year earlier, which he attributed in part to the NFL activation.
Productivity, cash flow and capital priorities Executive Vice President and Global CFO Andre Maciel said the company expects productivity to be its primary tool for supporting gross-margin expansion amid inflation. Kraft Heinz has generated productivity of more than 3.5% of cost of goods sold for five years, including more than 4% in each of the past three years, he said.
Maciel said the company recently completed an exercise to identify opportunities to raise productivity to roughly 4.5% of cost of goods sold. Pricing may be used selectively if needed, while favorable product mix from higher-margin brands and categories could also support margins.
On capital allocation, Maciel said Kraft Heinz’s free cash flow after dividends has remained strong despite the reinvestment program. The company has paid down $2.9 billion of debt this year, including $1 billion that had been scheduled to mature the following year. It also refinanced $1 billion of more expensive debt, a move expected to save $250 million in interest expense over 10 years.
Cahillane said investors should evaluate the turnaround through market-share progress, productivity, innovation and distribution gains, sustained emerging-market growth, and stable share growth in international developed markets. The company plans to provide additional perspective on 2027 and beyond at its investor day in November.
About Kraft Heinz (NASDAQ:KHC)The Kraft Heinz Company NASDAQ: KHC is a global food and beverage company that develops, manufactures and markets branded products for consumers, retailers, foodservice operators and other customers. Its portfolio includes condiments and sauces, cheese and dairy products, meals, meats, beverages, snacks and other packaged foods.
The company's well-known brands include Kraft, Heinz, Oscar Mayer, Philadelphia, Velveeta, Lunchables, Capri Sun, Jell-O, Maxwell House and Classico, among others.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Kraft Heinz Right Now?Before you consider Kraft Heinz, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Kraft Heinz wasn't on the list.
While Kraft Heinz currently has a Reduce rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Enter your email address and we’ll send you MarketBeat’s list of ten stocks set to soar in Fall 2026, despite the economic uncertainty rattling markets right now. These ten stocks are incredibly resilient and are likely to thrive in any economic environment.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
The 30-year Treasury bond pays about 5.24% right now, which is a genuinely difficult number for dividend stocks to beat. It is also the highest that benchmark has been in years, well above its 10-year yield average of 4.74%, and it comes with a guarantee from the U.S. government that no company can match. Recently, the U.S. Treasury announced a larger-than-expected $6 billion buyback of longer-dated Treasuries, while Secretary Scott Bessent challenged this week's investors to bet against his yen strategy.
So when a consumer goods stock offers more, the honest question is not "Why is the yield so high?" but "What is the market afraid of, and is that fear correct?" Two consumer names clear the bar today. Each one is priced for something to go wrong. My read is that in two of the three cases, the market has the direction right and the magnitude wrong.
Image source: Getty Images.
1. Altria pays 6.4% and just found money in the tax code Altria Group (MO +1.33%) raised its quarterly dividend 4.7% to $1.11 a share in late August, marking the 61st increase in 57 years and putting the yield at about 6.4%. What interests me more than the raise is what came three days earlier. Philip Morris USA, an Altria operating company, entered a contract manufacturing arrangement with non-U.S. affiliates of Philip Morris International Inc., with first shipments expected in early 2027.
Reuters reporter Emma Rumney explained the mechanism as a rebate called the "double duty drawback" that lets U.S. tobacco companies that export products claw back federal excise taxes already paid on domestic sales. Altria makes Marlboro in the United States and sells it nowhere else, so building an export channel is a way to unlock a money source it previously could not touch.
That is a real, structural profit source that has nothing to do with selling more cigarettes to Americans, which matters because Americans keep buying fewer of them. The risk is unresolved: Njoy Ace, Altria's vaping product, has been off shelves since April 2025 after a patent ruling, and management still has not announced when it might return. A federal judge also rejected Altria's constitutional challenge to the trade commission's authority in early September. Buy this for the cash potential, not the transition.
Premium Feature
Moneyball Superscore
53/100
Today's Change
(
1.33
%) $
0.90
Current Price
$
68.79
2. Kraft Heinz yields 6.4% and rented Disney's imagination The Kraft Heinz Company (KHC -0.89%) declared its regular $0.40 quarterly dividend in August, good for roughly 6.4%. The payout has been flat for years, and the payout ratio looks alarming on paper because of writedowns, so nobody should mistake this for a growth dividend.
What changed my thinking was July's multiyear alliance with The Walt Disney Company, putting 10 Kraft Heinz brands into Disney parks, cruise ships, studios, and streaming. Kraft Heinz chief executive Steve Cahillane, who took over in January, paused the planned company split and redirected roughly $700 million into brands instead.
Here is my actual stance. Shelf space is a shrinking asset for legacy food brands.Walk into many grocery stores, and you see condiments being rebranded as the store's own brand. Building condiment stations in a massive customer park is Kraft Heinz buying cultural relevance it can no longer generate on its own. This seems to me to be a safe bet on consistent volume for consistent product sales.
Premium Feature
Moneyball Superscore
39/100
Today's Change
(
-0.89
%) $
-0.22
Current Price
$
24.39
Both these companies are built around consistency and solid day-to-day products, and that matters when you're looking for income. But bonds offer consistency, too, so at these yields, the choice comes down to whether you want the certainty of Treasuries or the higher potential return of owning these companies.
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.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
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.
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.
Management is investing in the business to reinvigorate growth.
*Stock prices used were the afternoon prices of Aug. 31, 2026. The video was published on Sept. 2, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Kraft Heinz. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
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.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
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.
PITTSBURGH & CHICAGO--(BUSINESS WIRE)--The Kraft Heinz Company (NASDAQ: KHC) (“Kraft Heinz” or the “Company”) today announced that it will host an Investor Day on Nov. 12, 2026, in New York City at 10:30 a.m. EDT.Members of Kraft Heinz's leadership team will present the company's long-term strategy to drive sustainable volume-led and profitable growth. In addition, the Company will discuss its financial outlook and key milestones.“Our brand investments are gaining traction and driving improved p.
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.
PITTSBURGH & CHICAGO--(BUSINESS WIRE)--The Kraft Heinz Company (Nasdaq: KHC) will participate in a fireside chat at the Barclays Global Consumer Conference on Wednesday, Sept. 9, 2026, to discuss the Company's business strategy.The session will begin at 11:15 a.m. Eastern Daylight Time, and a live webcast will be available at ir.kraftheinzcompany.com. A replay will be accessible after the event on the same website and will be available for six months.ABOUT THE KRAFT HEINZ COMPANYKraft Heinz (Nas.
Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in Kraft Heinz Company (NASDAQ:KHC – Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 63,357 shares of the company’s stock, valued at approximately $1,496,000.
A number of other institutional investors also recently bought and sold shares of the business. BlackRock Inc. acquired a new stake in Kraft Heinz during the second quarter worth approximately $1,803,911,000. Auto Owners Insurance Co boosted its holdings in shares of Kraft Heinz by 3,034.1% in the 4th quarter. Auto Owners Insurance Co now owns 16,477,002 shares of the company’s stock valued at $39,957,000 after buying an additional 15,951,271 shares in the last quarter. Norges Bank acquired a new position in shares of Kraft Heinz in the 4th quarter valued at $332,382,000. Deutsche Bank AG purchased a new position in shares of Kraft Heinz in the 2nd quarter valued at $179,876,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of Kraft Heinz in the 2nd quarter valued at $170,097,000. 78.17% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analyst Weigh In A number of equities research analysts recently weighed in on the stock. Piper Sandler boosted their price target on shares of Kraft Heinz from $24.00 to $25.00 and gave the company a “neutral” rating in a research report on Thursday, August 6th. Deutsche Bank Aktiengesellschaft raised their price objective on Kraft Heinz from $20.00 to $22.00 and gave the stock a “hold” rating in a report on Thursday, May 7th. Wells Fargo & Company lifted their target price on Kraft Heinz from $23.00 to $25.00 and gave the stock an “equal weight” rating in a research report on Wednesday, July 8th. UBS Group upped their target price on Kraft Heinz from $25.00 to $27.00 and gave the company a “neutral” rating in a research report on Thursday, August 6th. Finally, BNP Paribas Exane upped their target price on Kraft Heinz from $17.00 to $19.00 and gave the company an “underperform” rating in a research report on Tuesday, June 30th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Hold rating and five have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Kraft Heinz currently has an average rating of “Reduce” and an average price target of $23.62.
View Our Latest Stock Analysis on KHC Insider Transactions at Kraft Heinz In related news, insider Diana Frost sold 18,502 shares of the stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $23.05, for a total transaction of $426,471.10. Following the completion of the transaction, the insider directly owned 102,667 shares of the company’s stock, valued at $2,366,474.35. This represents a 15.27% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. 0.24% of the stock is owned by corporate insiders.
Kraft Heinz Price Performance Shares of NASDAQ KHC opened at $25.67 on Tuesday. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.06 and a quick ratio of 0.68. The stock has a fifty day moving average price of $25.03 and a 200 day moving average price of $23.90. Kraft Heinz Company has a 1-year low of $21.03 and a 1-year high of $28.09. The company has a market cap of $30.44 billion, a PE ratio of -8.98 and a beta of 0.08.
Kraft Heinz (NASDAQ:KHC – Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.53 by $0.03. The company had revenue of $6.26 billion for the quarter, compared to analysts’ expectations of $6.18 billion. Kraft Heinz had a negative net margin of 13.64% and a positive return on equity of 7.10%. Kraft Heinz’s revenue was down 1.4% compared to the same quarter last year. During the same period in the previous year, the company posted $0.69 EPS. Kraft Heinz has set its FY 2026 guidance at 2.030-2.090 EPS. Sell-side analysts forecast that Kraft Heinz Company will post 2.06 EPS for the current year.
Kraft Heinz Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be paid a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 6.2%. The ex-dividend date is Friday, September 4th. Kraft Heinz’s payout ratio is -55.94%.
Kraft Heinz Profile (Free Report)
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.
Further Reading Five stocks we like better than Kraft Heinz Visa Just Put Hims & Hers in the Penalty Box—Here’s Why It Matters Treasury Yields Are Surging Again: 3 Stocks That Could Feel the Pain Snowflake Could Be Headed for New Highs Despite Insider Selling MongoDB Is Surging—And the Next Catalyst Is Almost Here
Receive News & Ratings for Kraft Heinz Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kraft Heinz and related companies with MarketBeat.com's FREE daily email newsletter.
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.
Image Source: Zacks Investment Research
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.
