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A fat dividend yield can mean generosity or distress, and three well-known stocks paying some of the biggest yields in the market right now are showing cracks that most income investors are dangerously quick to overlook.

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Chasing yield is easy. Getting paid it, year after year, is the hard part. Income investors know the sting of a payout cut: the check shrinks and the share price usually goes with it. A quick reminder of what that looks like in the wild: Kraft Heinz (NASDAQ:KHC | KHC Price Prediction) has watched its stock slide -55.27% over ten years while the payout has stayed frozen at $0.40 a share quarterly since 2020. A rich yield often signals a company under strain rather than shareholder generosity.

A dividend is sustainable when the business generates enough earnings and free cash flow to pay it, service its debt, and reinvest. When any leg wobbles (coverage, cash flow, or the balance sheet) the payout starts to look borrowed rather than earned. We cataloged seven of these tells in a free dividend trap guide, and they show up plainly in the three high-yield names below.

Medical Properties Trust (MPW) Medical Properties Trust (NYSE:MPW) is a hospital-focused REIT. Shares closed at $4.70 at the Q2 2026 filing, down from $5.14 at Q1, and the quarterly dividend was $0.09 per share paid in July 2026, raised earlier in the year from $0.08. The yield looks generous because the share price collapsed years ago after a much larger dividend was slashed in 2023, a classic price-inflated yield setup.

For REITs, the right coverage metric is FFO/NFFO, not EPS. On that basis, Q2 NFFO of $0.15 per share comfortably covers the $0.09 dividend. The trap sits on the balance sheet. Financial leverage stands at 59.6%, adjusted net debt to EBITDAre is 8.9x, and interest coverage is only 1.9x. New secured notes were placed at a punishing 9.25% coupon due 2032 to term out 2026 and half of 2027 maturities. Tenant quality is another wobble: Prospect Medical bankruptcy recovery remains uncertain, and Swiss Medical Network rent coverage is a scant 0.3% of revenues despite 5.8% of assets.

What would keep the payout intact: hitting management’s annualized cash rent target of at least $1B by year-end 2026, executing ~$172M of asset sales expected in Q3 2026, and steady deleveraging. The refi bought time; it did not lower the cost of capital.

Kraft Heinz (KHC) Kraft Heinz is a packaged-foods giant with a market cap near $30.17B. The current quarterly dividend of $0.40 (annualized forward $1.60) looks tempting against a share price of $25.42, especially with the stock still down -10.27% over five years.

Coverage on adjusted EPS looks fine against FY26 guidance of $2.03 to $2.09, and quarterly operating cash flow of $1.082 billion against a dividend payout of $475 million in Q2 2026 still clears the bar. The warning signs are qualitative. Q2 included a $7.4B non-cash goodwill and intangibles impairment, producing a GAAP net loss of -$5.46B. Organic sales are guided down 0.5% to 2.0% for the year, North America adjusted operating income fell 15.8%, and Constant Currency Adjusted Operating Income is guided down 16% to 18%. The planned separation into two public companies is paused, adding strategic uncertainty. Meanwhile, brand reinvestment is being lifted to roughly $700M.

The counter-case is real. CFO Andre Maciel said on the Q2 call, “You have seen that we have paid down $1.9 billion of debt in the quarter. After the quarter closed, we also paid another $1 billion in 2027.” He added, “Our balance sheet remains very strong.” Keeping the dividend safe requires the brand spending to translate into volume, not just market-share stabilization.

United Parcel Service (UPS) UPS (NYSE:UPS) pays $1.64 per share quarterly, an annualized $6.56, with the last raise a nominal step from $1.63. Shares closed at $103.50, still down -33.59% over five years even after a 29.41% one-year rebound. The elevated yield reflects that multi-year price weakness more than payout growth.

For a corporate, look at EPS and free cash flow. Full-year 2026 guidance calls for adjusted diluted EPS of about $7.22, dividends of around $5.4 billion, and free cash flow of approximately $5.5 billion. That leaves almost no cushion once you layer in $3 billion in capex and a $1.3 billion pension contribution. The quarterly picture is worse: in Q2 2026, dividend payout of $1.356 billion exceeded operating cash flow of $887 million. Consolidated volume fell 3.6% year over year in Q2, cash on the balance sheet slipped from $5.887B to $4.653B over six months, and interest expense rose 14.3% to $272M. Management’s dividend line was explicitly framed as “subject to Board approval.”

What would resolve the concern: delivering the approximately $3 billion in 2026 benefits from the Amazon glide-down and network reconfiguration, sustaining the Q2 revenue-per-piece gain of 9.3%, and holding U.S. Domestic margins near the approximately 7.5% full-year target.

What Income Investors Should Actually Do None of these three companies has told the market a cut is coming, and each has levers left to pull. That is precisely why the risk is easy to under-price. Yield alone is never a buy thesis, and when a payout gets funded by asset sales, refinancings, or shrinking cash balances, the math eventually catches up. For retirement-focused portfolios, MPW screens as speculative rather than income-core, KHC’s coverage depends on organic sales stabilizing, and UPS bears watching through the next two quarters of free-cash-flow reports. A high yield is only as good as the coverage behind it.

Contact [email protected] for any questions or corrections.

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.

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.

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.

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.

PITTSBURGH & CHICAGO--(BUSINESS WIRE)--The Kraft Heinz Company (Nasdaq: KHC) (“Kraft Heinz” or the “Company”) today announced that it will transfer the listing of its common stock to the New York Stock Exchange (NYSE). Kraft Heinz expects its common stock to begin trading on the NYSE on September 14, 2026, under its existing ticker symbol, KHC. “Our move to the New York Stock Exchange marks an exciting milestone in Kraft Heinz's transformation. We believe the NYSE is a natural home for Kraft He.

Australian Oilseeds (NASDAQ:COOTW – Get Free Report) and Kraft Heinz (NASDAQ:KHC – Get Free Report) are both consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Earnings & Valuation This table compares Australian Oilseeds and Kraft Heinz”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Australian Oilseeds $43.82 million N/A N/A N/A N/A Kraft Heinz $24.90 billion 1.18 -$5.85 billion ($2.86) -8.67 Australian Oilseeds has higher earnings, but lower revenue than Kraft Heinz. Analyst Ratings This is a breakdown of recent recommendations and price targets for Australian Oilseeds and Kraft Heinz, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Australian Oilseeds 0 0 0 0 0.00 Kraft Heinz 5 12 0 1 1.83 Kraft Heinz has a consensus price target of $23.62, suggesting a potential downside of 4.70%. Given Kraft Heinz’s stronger consensus rating and higher probable upside, analysts plainly believe Kraft Heinz is more favorable than Australian Oilseeds.

Profitability This table compares Australian Oilseeds and Kraft Heinz’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Australian Oilseeds N/A N/A N/A Kraft Heinz -13.64% 7.10% 3.60% Institutional & Insider Ownership 78.2% of Kraft Heinz shares are owned by institutional investors. 0.2% of Kraft Heinz shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary Kraft Heinz beats Australian Oilseeds on 8 of the 9 factors compared between the two stocks.

About Kraft Heinz (Get Free Report)

The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in North America and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products under the Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Maxwell House, Kool-Aid, Jell-O, Heinz, ABC, Master, Quero, Kraft, Golden Circle, Wattie's, Pudliszki, and Plasmon brands. It sells its products through its own sales organizations, as well as through independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience, value, and club stores; pharmacies and drug stores; mass merchants; foodservice distributors; institutions, including hotels, restaurants, bakeries, hospitals, health care facilities, and government agencies; and online through various e-commerce platforms and retailers. The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is based in Pittsburgh, Pennsylvania.

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SummaryKraft Heinz is positioned for a turnaround, driven by increased investment in key brands and promising early market share improvements.KHC's 2026 earnings will be pressured by higher spending, but volumes and earnings are expected to rebound in 2027 as investments bear fruit.Emerging Markets offer robust growth, with 8.5% organic sales growth and significant long-term expansion potential for KHC.KHC trades at an attractive valuation with a 6.23% dividend yield, supporting a Buy rating based on risk/reward and improving fundamentals. JHVEPhoto/iStock Editorial via Getty Images

Investment Thesis Kraft Heinz (KHC) has a good chance for a turnaround following several years of market share underperformance. The company is ramping up investment behind its key brands, and the early signs of improvement

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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.

Alamar Capital Management LLC purchased a new stake in Kraft Heinz Company (NASDAQ:KHC – Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The firm purchased 49,952 shares of the company’s stock, valued at approximately $1,180,000.

A number of other institutional investors have also recently added to or reduced their stakes in KHC. Cassaday & Co Wealth Management LLC acquired a new position in Kraft Heinz during the first quarter worth about $27,000. Jessup Wealth Management Inc acquired a new stake in shares of Kraft Heinz during the 4th quarter valued at approximately $27,000. Reflection Asset Management acquired a new stake in shares of Kraft Heinz during the 4th quarter valued at approximately $28,000. DV Equities LLC purchased a new stake in shares of Kraft Heinz during the 4th quarter worth approximately $29,000. Finally, New England Capital Financial Advisors LLC boosted its stake in shares of Kraft Heinz by 70.2% during the 4th quarter. New England Capital Financial Advisors LLC now owns 1,239 shares of the company’s stock worth $30,000 after acquiring an additional 511 shares in the last quarter. Hedge funds and other institutional investors own 78.17% of the company’s stock.

Analyst Upgrades and Downgrades Several equities analysts recently weighed in on the company. Wall Street Zen downgraded Kraft Heinz from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. TD Cowen boosted their target price on Kraft Heinz from $20.00 to $22.00 and gave the stock a “hold” rating in a research report on Thursday, August 6th. Morgan Stanley set a $22.00 target price on Kraft Heinz in a report on Thursday, April 23rd. JPMorgan Chase & Co. raised their price target on Kraft Heinz from $21.00 to $22.00 and gave the company an “underweight” rating in a research report on Wednesday, July 15th. Finally, Deutsche Bank Aktiengesellschaft lifted their price target on Kraft Heinz from $20.00 to $22.00 and gave the stock a “hold” rating in a research note on Thursday, May 7th. 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. According to data from MarketBeat.com, the company currently has an average rating of “Reduce” and an average price target of $23.62.

View Our Latest Report on Kraft Heinz Kraft Heinz Price Performance KHC stock opened at $24.82 on Wednesday. Kraft Heinz Company has a 1 year low of $21.03 and a 1 year high of $28.10. The firm has a market cap of $29.43 billion, a P/E ratio of -8.68 and a beta of 0.08. The stock’s 50 day moving average price is $24.91 and its 200 day moving average price is $23.84. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.68 and a current ratio of 1.06.

Kraft Heinz (NASDAQ:KHC – Get Free Report) last issued 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 business had revenue of $6.26 billion for 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 business’s revenue was down 1.4% on a year-over-year basis. During the same period 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. On average, sell-side analysts expect that Kraft Heinz Company will post 2.06 earnings per share for the current fiscal year.

Kraft Heinz Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Friday, September 25th. Investors of record on Friday, September 4th will be paid 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 6.4%. Kraft Heinz’s payout ratio is presently -55.94%.

Insider Transactions at Kraft Heinz In other Kraft Heinz news, insider Diana Frost sold 18,502 shares of the firm’s 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 sale, the insider directly owned 102,667 shares of the company’s stock, valued at $2,366,474.35. This trade represents a 15.27% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.24% of the company’s stock.

About Kraft Heinz (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.

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Posted by Defense World Staff on Aug 9th, 2026

Bank of America Corp DE cut its holdings in shares of Kraft Heinz Company (NASDAQ:KHC – Free Report) by 17.2% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 4,148,992 shares of the company’s stock after selling 861,084 shares during the quarter. Bank of America Corp DE owned 0.35% of Kraft Heinz worth $93,311,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in KHC. Auto Owners Insurance Co grew its stake in shares of Kraft Heinz by 3,034.1% in the fourth quarter. Auto Owners Insurance Co now owns 16,477,002 shares of the company’s stock worth $39,957,000 after acquiring an additional 15,951,271 shares in the last quarter. Norges Bank purchased a new position in Kraft Heinz in the fourth quarter valued at $332,382,000. Barclays PLC grew its stake in Kraft Heinz by 77.8% during the 4th quarter. Barclays PLC now owns 8,973,146 shares of the company’s stock worth $217,599,000 after purchasing an additional 3,926,141 shares in the last quarter. California Public Employees Retirement System grew its stake in Kraft Heinz by 94.8% during the 1st quarter. California Public Employees Retirement System now owns 4,347,594 shares of the company’s stock worth $97,777,000 after purchasing an additional 2,116,175 shares in the last quarter. Finally, KBC Group NV increased its holdings in Kraft Heinz by 226.3% during the 1st quarter. KBC Group NV now owns 2,990,755 shares of the company’s stock worth $67,262,000 after purchasing an additional 2,074,270 shares during the period. Hedge funds and other institutional investors own 78.17% of the company’s stock.

Kraft Heinz Price Performance Shares of NASDAQ KHC opened at $25.32 on Friday. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.82 and a current ratio of 1.06. Kraft Heinz Company has a fifty-two week low of $21.03 and a fifty-two week high of $28.10. The firm has a market capitalization of $30.03 billion, a PE ratio of -8.85 and a beta of 0.08. The stock’s 50-day simple moving average is $24.65 and its 200-day simple moving average is $23.76.

Kraft Heinz (NASDAQ:KHC – Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.56 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.53 by $0.03. The firm 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 firm’s quarterly revenue was down 1.4% compared to the same quarter last year. During the same period in the prior year, the company posted $0.69 earnings per share. Kraft Heinz has set its FY 2026 guidance at 2.030-2.090 EPS. As a group, equities research analysts forecast that Kraft Heinz Company will post 2.06 EPS for the current fiscal year.

Kraft Heinz Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be given a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 6.3%. The ex-dividend date is Friday, September 4th. Kraft Heinz’s payout ratio is currently -55.94%.

Insider Activity In other news, insider Diana Frost sold 18,502 shares of the company’s stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $23.05, for a total value of $426,471.10. Following the completion of the transaction, the insider owned 102,667 shares in the company, valued at approximately $2,366,474.35. This represents a 15.27% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 0.24% of the company’s stock.

Analyst Ratings Changes A number of research firms have issued reports on KHC. Morgan Stanley set a $22.00 price target on Kraft Heinz in a research report on Thursday, April 23rd. Deutsche Bank Aktiengesellschaft upped their target price on shares of Kraft Heinz from $20.00 to $22.00 and gave the stock a “hold” rating in a research note on Thursday, May 7th. TD Cowen boosted their price target on shares of Kraft Heinz from $20.00 to $22.00 and gave the stock a “hold” rating in a report on Thursday. Zacks Research upgraded shares of Kraft Heinz from a “strong sell” rating to a “hold” rating in a report on Tuesday, April 21st. Finally, Wall Street Zen cut shares of Kraft Heinz from a “buy” rating to a “hold” rating in a research report on Saturday. One investment 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, the stock presently has an average rating of “Reduce” and an average target price of $23.62.

View Our Latest Research Report on KHC

Key Stories Impacting Kraft Heinz Here are the key news stories impacting Kraft Heinz this week:

Positive Sentiment: Quarterly results exceeded expectations: Kraft Heinz reported Q2 sales of approximately $6.26 billion and adjusted EPS of $0.56, ahead of consensus estimates of $6.18 billion and $0.53, respectively. The company also maintained its 2026 adjusted EPS outlook of $2.03–$2.09. Kraft Heinz Q2 Earnings Beat Estimates Despite Organic Sales Dip Positive Sentiment: Early signs of stabilization are encouraging: Management said consumption trends and market share are improving, with losses narrowing to 30 basis points. Kraft Heinz plans to add $100 million in second-half marketing investment to support brand momentum and pursue volume-led growth in 2027. KHC Q2 Earnings Call Raises Brand Spending on Early Traction Positive Sentiment: Credit outlook improved: JPMorgan upgraded Kraft Heinz’s credit recommendation to Overweight, citing better results, disciplined balance-sheet management and confidence that the company can fund brand investment while controlling leverage. JPMorgan Upgrades Kraft Heinz Credit to Overweight Neutral Sentiment: Income support remains intact: Kraft Heinz declared a quarterly dividend of $0.40 per share, preserving an annualized payout of $1.60. The high yield may attract income investors, although it also reflects concerns about the company’s growth and valuation. 3 Big Dividends and One Case Study in How a Yield Trap Ends Negative Sentiment: Headline results were severely distorted: Kraft Heinz posted a net loss of roughly $5.46 billion, primarily because of goodwill and intangible-asset impairment charges totaling about $7.4 billion. Although noncash, the write-down highlights weaker expectations for certain brands and weighs on confidence. Kraft Heinz Is Down After Massive Impairment-Fueled Loss Negative Sentiment: Turnaround costs and weak demand remain risks: Organic sales declined, while inflation, lower volumes and increased marketing and innovation spending are expected to make 2026 the company’s margin trough. Analysts therefore characterize the recovery as promising but cautious rather than established. Kraft Heinz Earnings Call Signals Cautious Turnaround Kraft Heinz Company 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.

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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.

Key Takeaways KHC added $100 million to second-half marketing after early gains in consumption and market share.Organic sales guidance improved as consumption moved from about -2.5% in Q2 to roughly -1% in July.Kraft Heinz is backing stronger brands with marketing, innovation and productivity ahead of 2027. The Kraft Heinz Company (KHC - Free Report) used its Q2 2026 earnings call to increase brand investment after early improvements in consumption and market share. Management framed the added spending as preparation for volume-led growth in 2027.

Adjusted earnings of $0.56 per share topped the Zacks Consensus Estimate of $0.53. Revenues of $6.26 billion also exceeded the $6.16 billion estimate, although organic net sales declined 1.3%.

KHC Adds $100 Million to Brand SupportChief executive officer (CEO) Steve Cahillane said Kraft Heinz raised incremental fiscal 2026 investments to approximately $700 million versus 2025. The extra $100 million will go almost entirely toward second-half marketing.

A JPMorgan analyst asked about the spending cadence. Cahillane said third- and fourth-quarter investment should be broadly even.

Global CFO Andre Maciel said management does not expect spending to wrap into next year. Fiscal 2026 is intended to establish the base while preserving flexibility across marketing, pricing and product support.

Kraft Heinz Sees Consumption ImproveKraft Heinz raised its fiscal 2026 organic net sales outlook to a decline of 0.5% to 2.0%, compared with the previous forecast for a 1.5% to 3.5% decrease.

A Bank of America analyst pressed management on consumption. Global CFO Andre Maciel said the measure declined about 2.5% in the second quarter but improved to roughly negative 1% in July, with sequential progress expected through year-end.

The global chief financial officer said market share declined 30 basis points in the first half and about 20 basis points in recent weeks. Steve Cahillane cited better trends in Capri Sun, Mac & Cheese and Taste Elevation, while stressing that the turnaround remains unfinished.

KHC Directs Spending to Stronger BrandsAn Evercore ISI analyst asked why Heinz, Capri Sun, Ore-Ida, Kraft Mac & Cheese and Philadelphia were receiving more support. Andre Maciel cited brand equity, attractive gross margins and more advanced innovation plans.

Heinz grew 3% worldwide and U.S. condiments have increased 3% year to date. Cahillane said Heinz grew 12% in emerging markets during the quarter, while global Away From Home returned to growth.

Results remained uneven elsewhere. The CEO identified Oscar Mayer Deli Fresh as a major weakness, though new packaging was nearly fully deployed. PowerMac reached about 35,000 stores and ranked in the first quartile of innovation performance.

Kraft Heinz Calls 2027 Inflation ManageableA Barclays analyst asked whether expected inflation of 4% to 5% in 2027 threatened margin recovery. CEO Steve Cahillane said productivity would remain the first defense, and management intends to strengthen margins over time.

Second-quarter adjusted gross margin was flat at 34.1%. Adjusted operating income fell 18.4% as advertising, weaker volume and inflation outweighed efficiency gains and pricing.

Kraft Heinz expects fiscal 2026 constant-currency adjusted operating income to decline 16% to 18%. Adjusted earnings guidance was narrowed to $2.03-$2.09 per share from $1.98-$2.1.

KHC Protects Cash While InvestingAndre Maciel emphasized that higher spending has not changed the cash commitment. Year-to-date free cash flow is up 10.3% to $1.7 billion, and the conversion outlook has increased to approximately 110% from 100%.

Maciel also cited $1.9 billion of debt repayment during the quarter. Kraft Heinz paid $949 million in dividends during the first half.

A Wells Fargo analyst asked whether improving momentum created room for portfolio changes. Cahillane said management would consider transactions that add shareholder value, without outlining a specific action.

Kraft Heinz Keeps 2027 in FocusManagement's tone was confident about early traction but measured about the work ahead. North American demand remains pressured, the broader industry is soft and volume recovery is still developing.

Kraft Heinz is prioritizing sustained brand support, targeted pricing, innovation and productivity. Its near-term objective is to improve consumption and share through the second half and enter 2027 with a stronger operating base.

Zacks Signals Favor Value Over GrowthKHC carries a Zacks Rank #2 (Buy), with an A Value Score, C Growth Score, C Momentum Score and A VGM Score. The combined reading is favorable, while the individual scores show greater strength in value than in growth or momentum.

Zacks methodology favors Rank #1 (Strong Buy) and 2 stocks paired with an A or B Style Score. The current combination is constructive, but the Zacks Rank can change as earnings estimates are revised after the reported results.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Steve Cahillane, Kraft Heinz CEO, joins Squawk on the Street to discuss the company's Q2 earnings beat, growth strategy, potential for innovation, and more.

Anne-Marie Megela
VP & Global Head of Investor Relations

Hello. This is Anne-Marie Megela, Head of Global Investor Relations at The Kraft Heinz Company. I'd like to welcome you to our second quarter 2026 business update. During the following remarks, we will make forward-looking statements regarding our expectations for the future, including related to our business plans and expectations, strategy, efforts and investments and related timing and expected impacts.

These statements are based on how we see things today, and actual results may differ materially due to risks and uncertainties. Please see the cautionary statements and risk factors contained in today's earnings release, which accompanies these remarks as well as our most recent 10-K, 10-Q and 8-K filings for more information regarding these risks and uncertainties.

Additionally, we will refer to non-GAAP financial measures, which exclude certain items from our financial results reported in accordance with GAAP. Please refer to today's earnings release and the non-GAAP information that accompany these remarks, which are available on our website at ir.kraftheinzcompany.com under News & Events for a discussion of our non-GAAP financial measures and reconciliations to the comparable GAAP financial measures.

Today, our Chief Executive Officer, Steve Cahillane, will provide an update on our business performance and overall strategy. Andre Maciel, our Chief Global Financial Officer, will then provide a financial review of the second quarter results, and we will conclude by discussing our 2026 outlook. We have also scheduled a separate live question-and-answer session with analysts. You can access our question-and-answer session at ir.kraftheinzcompany.com. A replay will also be available following the event through the same website. With that, I will now turn

Key Takeaways Kraft Heinz beat Q2 earnings and sales estimates despite year-over-year declines in both metrics. KHC's organic sales fell 1.3% as pricing gains were offset by weaker volume/mix and Easter timing. Kraft Heinz narrowed its 2026 organic sales decline outlook to 0.5-2% and updated EPS guidance. The Kraft Heinz Company (KHC - Free Report) posted second-quarter 2026 results, wherein both top and bottom lines beat the Zacks Consensus Estimate, while decreasing from the year-ago period’s actuals.

KHC’s Quarterly Performance: Key InsightsKraft Heinz 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%. We expected an adjusted gross margin decline of 40 bps to 33.7%.

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.

Shares of this Zacks Rank #2 (Buy) company have gained 18.2% in the past three months compared with the industry’s growth of 6.1%.

Image Source: Zacks Investment Research

Other Stocks to ConsiderDarling Ingredients Inc. (DAR - Free Report) develops, produces and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America and internationally. At present, Darling Ingredients sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Darling Ingredients’ current fiscal-year sales and earnings implies growth of 13.2% and 685.3%, respectively, from the year-ago figures. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.

The Chefs' Warehouse, Inc. (CHEF - Free Report) distributes specialty food and center-of-the-plate products in the United States, the Middle East and Canada. At present, CHEF holds a Zacks Rank #2. Chefs' Warehouse delivered a trailing four-quarter earnings surprise of 30.4%, on average.

The consensus estimate for Chefs' Warehouse’s current fiscal-year sales and earnings implies growth of 10.8% and 24.7%, respectively, from the year-ago reported figures.

US Foods Holding Corp. (USFD - Free Report) engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank #2. US Foods Holding delivered a trailing four-quarter earnings surprise of 1.4%, on average.

The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.1% and 16.3%, respectively, from the year-ago figures.

For the quarter ended June 2026, Kraft Heinz (KHC - Free Report) reported revenue of $6.26 billion, down 1.4% over the same period last year. EPS came in at $0.56, compared to $0.69 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $6.16 billion, representing a surprise of +1.62%. The company delivered an EPS surprise of +5.66%, with the consensus EPS estimate being $0.53.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Kraft Heinz performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Net Sales- International Developed Markets: $865 million versus the four-analyst average estimate of $867.8 million. The reported number represents a year-over-year change of -3.6%.Net Sales- North America: $4.63 billion compared to the $4.56 billion average estimate based on four analysts. The reported number represents a change of -2.8% year over year.Net Sales- Emerging Markets: $771 million versus the four-analyst average estimate of $729.03 million. The reported number represents a year-over-year change of +10.5%.Segment Adjusted Operating Income- Emerging Markets: $107 million versus $83.95 million estimated by four analysts on average.Segment Adjusted Operating Income- General corporate expenses: $-178 million compared to the $-141.74 million average estimate based on four analysts.View all Key Company Metrics for Kraft Heinz here>>>

Shares of Kraft Heinz have returned +5.3% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

Heinz ketchup for sale at a supermarket in Queens, New York City, U.S., September 3, 2025. REUTERS/Kylie Cooper/File Photo Purchase Licensing Rights, opens new tab

Aug 5 (Reuters) - Kraft Heinz (KHC.O), opens new tab raised its annual forecasts after beating quarterly sales estimates on Wednesday, as CEO Steve Cahillane's turnaround efforts gained traction and price hikes ​helped counter lower volumes in North America and other markets.

The better-than-expected results give ‌credence to Cahillane's turnaround strategy, which has driven an uptick in marketing and innovation spends as the company leans aggressively into protein-heavy foods and electrolyte-infused drinks to attract health-conscious consumers.

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The packaged goods company said ​it would increase its incremental investments by $100 million to about $700 million in 2026, ​a cash injection Cahillane had hinted at during an interview with Reuters in ⁠June. Cahillane became Kraft Heinz's CEO in January.

The company now expects annual organic ​sales to fall between 0.5% and 2.0%, compared with its prior view of a 1.5% ​to 3.5% decline.

It also expects annual adjusted earnings per share of $2.03 to $2.09, compared with its prior forecast of $1.98 to $2.10.

While Kraft Heinz benefited from price-led growth, its volumes remained under pressure in key markets including ​North America. "Growth in Canada and Away From Home was offset by declines in U.S. ​Retail, which were primarily driven by meats," CFO Andre Maciel said in prepared remarks.

Shares of the company remained ‌largely ⁠unchanged in volatile premarket trading. A non-cash $7.4 billion impairment charge contributed to an operating loss during the quarter, though one smaller than the company reported a year earlier.

Kraft Heinz has been navigating a challenging environment as energy and raw material costs surge amid ongoing geopolitical ​conflicts.

Maciel said the company ​was well hedged on ⁠energy and edible oils for most of 2026, but was hedged on certain resins and metals only through the middle of ​the third quarter.

"As those roll off, we expect greater exposure to ​spot prices ⁠in the fourth quarter," he said.

Kraft Heinz's quarterly sales fell 1.4% to $6.26 billion from a year earlier, compared with analysts' expectations of a 3.6% decline to $6.12 billion, according to data compiled ⁠by ​LSEG.

On an adjusted basis, the company reported a profit ​of 56 cents per share, down 18.8% from a year ago but beating analysts' estimates of 53 cents per share.

Reporting ​by Anuja Bharat Mistry in Bengaluru and Alexander Marrow in London; Editing by Jonathan Ananda

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Big Beautiful Boycott: Can It Really Hurt Coca-Cola, Amazon, and Kraft Heinz Stocks?Kraft Heinz NASDAQ: KHC said second-quarter results came in ahead of its expectations, prompting the food company to raise its full-year outlook for organic net sales while increasing planned 2026 investments by $100 million to approximately $700 million.

Chief Executive Officer Steve Cahillane said the company’s performance reflected better-than-expected results in U.S. retail, global away-from-home operations and emerging markets. He said Kraft Heinz is accelerating investment because early results from its brand, pricing, innovation and marketing programs have been encouraging.

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The USMCA Review Is Coming: 3 Border-Sensitive Stocks to Watch“We are increasing investments from a position of strength, not because what we are doing is not working, but precisely because it is,” Cahillane said. The additional investment will be concentrated primarily in marketing, with a focus on building brand equity and supporting innovation.

Second-Quarter Results Organic net sales declined 1.3% during the second quarter. Price contributed 1.3 percentage points, while volume and mix declined 2.6 percentage points. The company said results included a roughly 100-basis-point headwind from the timing of Easter.

5 High-Yield Stocks to Shield Your Portfolio From the StormAdjusted gross profit margin was flat from a year earlier as productivity initiatives and pricing offset inflationary pressures. Constant-currency adjusted operating income fell 18.4%, while adjusted operating income margin declined 350 basis points. The decline reflected increased marketing investment, which accounted for more than 8 percentage points of the operating-income decline, and higher variable compensation expense, which accounted for nearly 7 percentage points.

Adjusted earnings per share were $0.56, down about $0.13, or 18.8%, from the second quarter of 2025. Kraft Heinz also recorded a non-cash impairment charge of $7.4 billion during the quarter.

Year-to-date free cash flow totaled approximately $1.7 billion, up 10% from the prior year. Free-cash-flow conversion reached 123%, an increase of 27 percentage points, driven largely by working-capital improvements related to payables. CFO Andre Maciel said free cash flow also benefited from marketing accruals, with the cash impact expected in subsequent quarters.

Regional Performance and Share Trends North America organic net sales declined 2.7% from a year earlier. Growth in Canada and the away-from-home business was offset by lower U.S. retail sales, primarily in meats. Maciel said U.S. retail results also benefited from customer inventory pull-forwards tied to summer grilling and Fourth of July activations, estimated at roughly 80 basis points for total company sales.

International Developed Markets organic net sales fell 0.7%, reflecting market-share pressure after customer negotiations in select regions and promotional timing. Those pressures were partly offset by growth in Benelux and the U.K., where Kraft Heinz gained share.

Emerging Markets organic net sales increased 8.5%, supported by both price and volume/mix. Growth across most countries was partly offset by a roughly 100-basis-point impact from declines in Indonesia. The company expects emerging-markets growth to accelerate in the second half after fully lapping the Indonesia headwind by the third quarter.

Kraft Heinz said the percentage of its revenue gaining or holding share rose to 36% year to date, from 21% in 2025. In its “win big” portfolio, 45% of revenue was gaining or holding share year to date. The Heinz brand gained or held share across market and category combinations representing more than 70% of its revenue, Cahillane said.

In U.S. retail, the portion of revenue gaining or holding share improved to 30% year to date from 12% at the end of 2025. The company cited progress in Taste Elevation, hydration and dessert categories, while acknowledging continuing declines in meats and meals. Kraft Heinz is targeting price, product and packaging investments for Oscar Mayer and increasing innovation and media support for Kraft Mac & Cheese.

Investment, Innovation and International Growth Marketing spending is expected to reach at least 6% of net sales for the full year. Marketing expense rose about 36% during the first half, while research-and-development spending increased 22%. The company said global return on ad spend improved by 6 percentage points based on its latest data, while promotional-spending return on investment increased 3.4 percentage points year to date.

Kraft Heinz highlighted several recent launches, including Kraft Mac & Cheese PowerMac, which reached distribution in more than 35,000 stores. Cahillane said initial velocities were in the top quartile and that sales appeared highly incremental to the base business and broader category. Capri Sun Hydrate has become the fastest-turning innovation in kids’ single-serve beverages, according to the company, while Philadelphia Lactose Free cream cheese has begun shipping to customers.

Internationally, Heinz sales grew approximately 12% in emerging markets during the quarter. The company also reported a roughly 4% increase in distribution points in those markets. Global away-from-home organic net sales increased 2.9%, aided by a return to growth in the U.S. and continued emerging-markets growth. The company said U.S. away-from-home sales received an approximately 150-basis-point benefit from World Cup-driven demand and lapping a prior-year inventory reduction; it does not expect those benefits to recur.

Updated 2026 Outlook Kraft Heinz raised its full-year organic net sales outlook to a decline of 2% to 0.5%, compared with its prior forecast for a decline of 3.5% to 1.5%. The outlook continues to include an estimated 100-basis-point headwind from lower SNAP benefits.

Adjusted gross profit margin is now expected to decline 50 basis points to 10 basis points, an improvement from the prior outlook for a 75-basis-point to 25-basis-point decline. Constant-currency adjusted operating income is expected to decline 18% to 16%, compared with the prior range of down 18% to 14%. Adjusted EPS is forecast at $2.03 to $2.09, versus the prior range of $1.98 to $2.10. Free-cash-flow conversion is expected to be approximately 110%, up from the previous expectation of 100%. For the third quarter, the company expects organic net sales to decline 2.5% to 1%. It expects the second-quarter inventory pull-forward to create an approximately 80-basis-point headwind to consolidated results, alongside a promotional-timing headwind as investments increase. Adjusted operating income is projected to decline 25% to 23% in the third quarter, primarily because of the further step-up in investments.

Maciel said Kraft Heinz expects full-year inflation to be slightly above 4%, with inflation peaking heading into the fourth quarter. The company delivered more than $330 million in gross efficiencies year to date, representing at least 4% of cost of goods sold, and expects to maintain that pace through the remainder of the year.

About Kraft Heinz (NASDAQ:KHC)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.

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].

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Should You Invest $1,000 in Kraft Heinz Right Now?Before you consider Kraft Heinz, you'll want to hear this.

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Key Takeaways Kraft Heinz is expected to post lower Q2 revenues and earnings than those reported in the year-ago quarter.KHC faces pressure from Easter timing, lower SNAP benefits and softer food category demand.Kraft Heinz expects emerging markets and Away From Home to help offset ongoing headwinds. The Kraft Heinz Company (KHC - Free Report) is likely to witness top and bottom-line declines when it reports second-quarter 2026 earnings on Aug. 5, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $6.2 billion, indicating a 3% decrease from the prior-year quarter’s reported figure.

The consensus mark for earnings has been unchanged over the past 30 days at 53 cents per share, implying a decline of 23.2% from the year-ago quarter’s reported figure.

KHC has a trailing four-quarter earnings surprise of 10.2%, on average. In the last reported quarter, the company’s bottom line topped the Zacks Consensus Estimate by 16%.

Things to Know About KHC’s Upcoming ResultsKraft Heinz's second-quarter top-line performance is expected to have been under pressure. On its first-quarter earnings call, management projected second-quarter organic net sales to decline 3-5% year over year due to the unfavorable timing of Easter, an approximately 100-basis-point headwind from lower SNAP benefits and continued softness across several food categories, which likely weighed on volumes during the second quarter. Our model suggests volumes to slip 4.3% in the second quarter of 2026.

The bottom line is likely to have been under pressure. Kraft Heinz continued increasing investments across marketing, sales, pricing, product superiority, and research and development to support its long-term growth strategy, while broader inflationary pressures likely remained a risk to margins despite productivity initiatives.

Despite these near-term pressures, Kraft Heinz’s second-quarter performance is likely to have benefited from continued execution improvements across targeted areas of its portfolio. Investments in product renovations, packaging enhancements, innovation and advertising have been driving stronger market-share trends, particularly within the U.S. Taste Elevation portfolio. The company planned to accelerate investments in e-commerce capabilities and add resources intended to improve retailer partnerships and strengthen in-store and online execution, supporting its market-share recovery efforts.

Emerging markets and the global Away From Home business are expected to have continued to offsets these headwinds. Continued support for the Heinz brand, distribution expansion in Emerging markets and expected improvement in Away From Home, together with disciplined price management and productivity savings, were expected to partially offset pressure from the Easter shift, SNAP-related headwinds and category softness.

Earnings Whispers for KHCOur proven model predicts an earnings beat for Kraft Heinz this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here.

Kraft Heinz currently carries a Zacks Rank #2 and has an Earnings ESP of +0.82%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Other Stocks With the Favorable CombinationHere are a few other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings this reporting cycle.

US Foods Holding Corp. (USFD - Free Report) currently has an Earnings ESP of +1.10% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for US Foods’ upcoming quarter’s EPS is pegged at $1.37, which implies 15.1% growth year over year. The consensus estimate for the quarterly revenues is pinned at $10.46 billion, which indicates 3.8% growth from the figure reported in the prior-year quarter. USFD delivered a trailing four-quarter earnings surprise of 1.4%, on average.

Primo Brands Corporation (PRMB - Free Report) presently has an Earnings ESP of +16.51% and a Zacks Rank of 2. The consensus estimate for the quarterly revenues is pegged at $1.76 billion, which indicates an increase of 1.8% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Primo Brands’ upcoming quarter’s EPS is pegged at 34 cents, which implies a 5.6% decrease year over year. PRMB delivered a trailing four-quarter earnings surprise of 1.4%, on average.

Monster Beverage Corporation (MNST - Free Report) currently has an Earnings ESP of +2.61% and a Zacks Rank of 3. The consensus mark for the upcoming quarter’s revenues is pegged at $2.42 billion, which indicates 14.5% growth from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for Monster Beverage’s quarterly earnings per share is pegged at 59 cents, implying an increase of 13.5% from the figure reported in the year-ago quarter. MNST delivered a trailing four-quarter earnings surprise of 9.6%, on average.

An interesting thing about famous investors is that they're not all investors by trade. Bill Gates, the 19th-richest person in the world, is an example of that.

Along with the late Paul Allen, Gates was a co-founder of Microsoft. Thanks to his Gates Foundation, a charitable organization, Gates is, in fact, a famous investor. The foundation manages $33 billion in assets, or slightly less than a third of Gates' net worth of $106.2 billion.

Kraft Heinz is a Gates Foundation holding, but it needs more than that to return to old highs. Image source: Getty Images.

Obviously, $33 billion is a lot of dough, and the Gates Foundation holds 22 equity positions, but nearly 78% of the portfolio is allocated to just four stocks: Berkshire Hathaway, Canadian National Railway, Waste Management, and Caterpillar. Further down the list is Kraft Heinz (KHC -3.44%), arguably one of the foundation's more intriguing holdings.

Investing like one of his buddies Even the rich and famous aspire to invest like Warren Buffett, and the Gates Foundation is home to some stocks that look like Warren Buffett investments. That's interesting because Buffett and Gates are friends, and because Berkshire Hathaway, the company Buffett led, is one of Kraft Heinz's largest shareholders.

Like Buffett, Gates approached the ketchup maker with a long-term view. His foundation started a position in consumer staples stock nearly four years ago, so, like Berkshire, it's sitting on a dud. Unlike Berkshire, the Gates Foundation has shown a willingness to part with some of its Kraft Heinz, selling 150,000 shares in July 2025.

Buffett has admitted Kraft Heinz was one of his rare gaffes. Earlier this year, there was even chatter that under new CEO Greg Abel, Berkshire could consider parting ways with Kraft Heinz. That talk has since gone by the wayside, and the consumer staples stock is up an S&P 500-beating 9.5% year to date.

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Without Gates and his investing team publicly explaining why they're sticking by Kraft Heinz, investors are left to guess. Maybe one of the lessons is that they can afford to endure a couple of duds. The Gates Foundation's average buy price on Kraft Heinz is $37.20, and the stock closed at $26.22 on July 27, confirming the foundation is saddled with a loser.

Perhaps another lesson is that even famous investors make mistakes (clearly, they do), and ordinary investors need to know how to avoid short-term losers becoming regrettable long-term commitments.

The dividend lesson Another page from the Buffett playbook Gates adopted is an affinity for dividend stocks. While Berkshire itself isn't a dividend payer, the conglomerate has a long track record of owning dividend payers, including many known for consistently growing payouts.

At the Gates Foundation, Caterpillar and Waste Management, among others, check the dividend and payout growth boxes. With a yield of 6.2%, Kraft Heinz checks the dividend box, but it slashed the payout to conserve cash and reduce debt.

The Gates Foundation got involved several years later, potentially sensing a turnaround opportunity. That may play out because Kraft is generating $3.7 billion in free cash flow, and the dividend can provide some support for the shares, but the turnaround story needs to bear fruit.

Kraft Heinz Co (NASDAQ:KHC, XETRA:KHNZ) is scheduled to report second quarter earnings before the market opens on August 5, with investors expected to focus less on the quarterly results and more on whether improving market share trends are translating into more durable demand.

UBS forecasts adjusted earnings per share of $0.52 for the quarter, one cent below the Visible Alpha and FactSet consensus estimate.

The firm expects another quarter of top-line pressure but believes the key question will be whether recent share gains support the company's goal of returning to top-line growth by fiscal 2027.

"While we expect another quarter of pressured topline performance from KHC, we believe the primary focus this quarter will center less on the reported results and more on whether improving share trends are beginning to translate into a more durable improvement in demand, such that the company remains on track to deliver topline growth by fiscal year 2027," UBS wrote.

The brokerage noted that Kraft Heinz shares have risen 6.7% since reporting Q1 earnings, outperforming both the Consumer Staples Select Sector SPDR Fund (XLP) and US food peers over the same period.

UBS expects management to reaffirm its fiscal 2026 guidance, which calls for a net sales decline of 1.5% to 3.5%, an adjusted operating income decline of 14% to 18%, and adjusted earnings per share of $1.98 to $2.10.

For the full year, the firm projects an organic sales decline of 1.7%, slightly better than the Street expectation of a 2.0% decline. It forecasts pricing growth of 0.4% and a 2.1% decline in volume and mix. UBS also expects adjusted EPS of $2.08 for the year, near the upper end of the company's guidance range and one cent above consensus.

For the second quarter, UBS expects organic sales to decline 3.7%, compared with the consensus estimate for a 3.6% decline, reflecting continued weak retail takeaway trends during the period.

The firm forecasts North America organic sales to fall 5%, while International Developed Markets are expected to decline 2.2%. Emerging Markets are projected to remain a source of growth, with organic sales increasing 3.5%.

On costs, UBS believes Kraft Heinz is relatively well positioned despite ongoing inflation concerns across the packaged food sector.

"From a cost perspective, while inflation remains an area of debate across packaged food, we believe KHC remains largely insulated given its FY26 outlook already contemplates ~4% inflation, with hedging and productivity expected to offset much of the pressure," UBS wrote.

UBS maintained a ‘Neutral’ rating and a $25 price target on the stock, which traded hands at about $28 on Wednesday, describing the investment case as balanced until the company demonstrates that improving market share can translate into sustained top-line growth.

"Valuation remains attractive, but until KHC can demonstrate that these changes can result in durable top-line growth, we expect the investment case to remain a 'show me' story and view the risk/reward as balanced," the firm wrote.

The market expects Kraft Heinz (KHC - Free Report) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on August 5, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis processed food company with dual headquarters in Pittsburgh and Chicago is expected to post quarterly earnings of $0.53 per share in its upcoming report, which represents a year-over-year change of -23.2%.

Revenues are expected to be $6.16 billion, down 3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.32% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. 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.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Kraft Heinz?For Kraft Heinz, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.82%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that Kraft Heinz will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Kraft Heinz would post earnings of $0.5 per share when it actually produced earnings of $0.58, delivering a surprise of +16.00%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Kraft Heinz appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAmong the stocks in the Zacks Food - Miscellaneous industry, Ingredion (INGR - Free Report) , is soon expected to post earnings of $2.73 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -4.9%. This quarter's revenue is expected to be $1.81 billion, down 1.4% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Ingredion has been revised 0.3% down to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Ingredion will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Kraft Heinz's new lactose-free Philadelphia cream cheese targets the 30 to 50 million Americans who are lactose intolerant and one of the company's big strategic moves.

Courtesy Kraft Heinz

Kraft Heinz spent two years, and refused to charge a premium, solving a problem most of the food industry ignores: an estimated 30 to 50 million Americans who love cream cheese but cannot digest lactose. The result is a lactose-free version of Philadelphia cream cheese that costs exactly what the original does, contains no added preservatives, flavors or dyes, and tastes like real dairy cream. The launch is just one of the first visible outputs of a broader $600 million investment the company is making under new leadership.

Kraft Heinz Strategic Direction Under New LeadershipWhen CEO Steve Cahillane took the helm of Kraft Heinz in January 2026, the company posted its fiscal 2025 year-end results with a 3.5% sales decline. Still, the company made bold commitments to invest in U.S. operations and future innovation. Recently appointed to a new role, Jerome Drolet, President of Taste Elevation for Kraft Heinz, is excited about the roadmap for the company.

“We talk about $600 million worth of investment in the business. It's marketing, it's R&D, it's people, and all that is going toward fueling that growth. It's giving me an immense amount of confidence that we can be successful again, being consumer centric, but supporting that with the right levels of resources and investments,” said Drolet in an exclusive interview.

Two things excite Drolet most about his new role: his personal connection to the brands, rooted in backyard barbecues with his dad growing up, and the challenge of helping his team evolve as fast as consumer preferences shift, without losing focus on the consumer across a large, global business. “This combination is what makes the job both difficult and super interesting.”

Jerome Drolet, President of Taste Elevation at Kraft Heinz, is leading the company's $600 million push into consumer-driven innovation.

Courtesy Kraft Heinz

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Two Years to Get Lactose-Free RightThe company revealed one of its first products to market, backed by substantial research and development behind the scenes. The new lactose-free Philadelphia cream cheese targets millions of Americans who are lactose intolerant, as well as, a wider group of consumers who avoid lactose by choice. The global market for lactose-free dairy products is projected to grow from $10.6 billion in 2017 to $17.8 billion by 2027. Drolet explained that Kraft Heinz starts every innovation effort by studying why consumers leave or avoid a category. Once the company decides to invest in a specific product category based on shifting consumer diets, it works to bring a new product to market that meets Kraft Heinz's standards for quality, taste and price. “We don't want to put a product to market that's just an innovation for the sake of innovation,” said Drolet.

Kraft Heinz took two years to bring lactose-free Philadelphia cream cheese to market, a timeline Drolet attributes to a refusal to compromise on taste, texture, or price. “We're launching a product that tastes the same, looks the same, but also costs the same. There's no price premium to this it's making sure that we are democratizing the cream cheese consumption within the lactose intolerant consumer,” explained Drolet. Part of the two-year development process is testing the product.

Early this year, Kraft Heinz introduced JELL-O Simply, made with no FD&C Colors or artificial sweeteners as consumer demand for simpler ingredients continues to grow across market.

Courtesy Kraft Heinz

“We can sit in our Illinois Innovation Center and feel really good about the product in the kitchen, but until you put it to the test of how consumers actually use it like in a cream cheese recipe, not just on its own, you don't know if it holds up. A lot of the work was making sure that across every usage occasion; the product was a true one-for-one substitution. We tested it internally and externally, in our kitchen and in consumers' kitchens, across multiple recipes. That's what takes the time, but it's also why we're so proud of the product we're launching,” explained Drolet. The process that produced lactose-free Philadelphia is the same one applied across Heinz, Jell-O, and the rest of the portfolio.

Where the Innovation Dollars GoLarger brands like Philadelphia and Heinz command the biggest share of innovation investment, reflecting their scale and category weight. But smaller, more agile brands such as Grey Poupon, Lea & Perrins, Smart Ones, and Velveeta still receive purposeful innovation dollars when the opportunity fits, rather than being starved in favor of the flagship names. Drolet believes, “The brand choices are the last question. It starts first with the consumer.”

Balancing shifting consumer eating habits with new product development is a constant consideration. “As the consumer palate and needs are changing, we want to be there with them along for the journey,” said Drolet. Nearly 6 in 10 Americans report following a specific diet in the past year, a rising trend since 2018, according to a survey from the International Food Information Council (IFIC).

Retail partners are another consideration when bringing new products to market. “The process keeps us disciplined. There's a need for us to think about it from an internal resource perspective, but it's also pushing us to make the right decision, not just for ourselves and the consumers, but for what's accretive for retailers,” explains Drolet.

Why Some Trends Don't Make the CutThat discipline shows up in how the company distinguishes between ideas that look similar on the surface. Lactose-free and plant-based cream cheese, for instance, appear to serve the same dietary-restriction need, but Drolet's team treats them as distinct consumer needs: taste-and-texture loyalists managing a specific dietary limitation versus consumers avoiding dairy altogether. “Conflating the two would mean building the wrong product for both groups,” said Drolet.

Consumer Trends Kraft Heinz Is Betting OnThe IFIC survey reports the top diets Americans follow are high protein (23%) and mindful eating (19%), with clean eating (13%) ranking fifth. Drolet pointed to several forces he expects to shape the next five years of the business. Simple ingredients are one, reflected in products like Simply Ketchup. Fiber is emerging as a follow-on to protein's rise in consumer attention. Diet and weight-management shifts tied to GLP-1 medications are already showing up in zero-sugar Jell-O and ketchup.

Extending Trust Instead of Building New BrandsRather than following the consumer packaged goods industry’s habit traditional CPG habit of spinning up new brands to chase emerging trends, Kraft Heinz is focused on extending the trust and scale of the brands it already has. “You already have the trust with consumers, you already have a preferred product, and you already have the scale. Consumers don't want to compromise,” said Drolet. The consumer, not the brand roster, always drives the first decision, a philosophy that runs through every example Drolet raised, from cream cheese to condiments.

Kraft Heinz Bets On Consumer Emotional ConnectivityKraft Heinz's calculation is that lactose-free Philadelphia isn't really a cream cheese story, but a preview of how the company intends to spend the next several years of its $600 million innovation budget. Sugar comes out of Jell-O, ingredients get simplified in Simply Ketchup, and dips get built around chicken's rise as the protein of choice. All of these decisions run through the same funnel: identify why consumers are opting out, then ask which existing brand has the credibility to bring them back in. “There's something around real passion and emotional connectivity with our business, the products, and the brands,” expressed Drolet. The wager is simple: Kraft Heinz is betting that consumers will follow a name they already trust into new categories faster than they'll adopt one they've never seen before.

Kraft Heinz (KHC +1.91%) is a top food company whose business has been struggling in recent years. Its returns have been atrocious as its valuation has plummeted 35% in five years. But amid the decline, its yield has shot up to around 6.3%, potentially still making it an attractive option for dividend investors.

It's also been more stable of late, rising by 6% since the beginning of the year. And the business has abandoned controversial plans to break up under its new CEO. With earnings on deck next week, on Aug. 5, is now a good time to buy this troubled food stock, while its valuation remains low?

Image source: Getty Images.

Are Kraft's problems as fixable as the CEO claims? Steve Cahillane took over as Kraft CEO earlier this year and abandoned the company's plans to break up its business, instead opting to invest $600 million in a turnaround effort that involves focusing on marketing, sales, and research and development. Cahillane believes that the main issues plaguing the company are "fixable and within our control."

Throwing money at a problem, however, is by no means enough to fix a troubled business. Kraft's brand has been associated with unhealthy products, such as Mac and Cheese, which, while convenient, is high in sodium and highly processed. As consumers have been eating healthier in recent years and GLP-1 weight-loss pills are also curbing appetite, Kraft has faced considerable challenges. And that's evident in its incredibly poor growth rate.

KHC Revenue (Quarterly YoY Growth) data by YCharts

Kraft's stock may look cheap, but that doesn't mean it's a good buy There's no reason to expect Kraft's upcoming earnings report to show any significant improvement over prior quarters. While it does have some strong brands, others are simply associated with unhealthy eating habits. Demand has at best been stable in some quarters, but for much of the past few years, the business has struggled to achieve any positive growth whatsoever.

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Kraft's valuation has fallen significantly, and at a forward price-to-earnings multiple of just 13 (based on analyst projections), it may seem like it's too cheap to pass up on, but I don't think that's the case. This is looking like a value trap given all the question marks, challenges, and uncertainty around the business today. Even its dividend may not prove to be all that safe if its turnaround effort falls short of expectations. This may be a stock worth watching, but there is no reason to rush to buy it right now, given all the risk.

Kraft Heinz (KHC - Free Report) closed at $25.36 in the latest trading session, marking a -2.31% move from the prior day. This move lagged the S&P 500's daily loss of 1.21%. At the same time, the Dow lost 0.97%, and the tech-heavy Nasdaq lost 2.15%.

The stock of processed food company with dual headquarters in Pittsburgh and Chicago has risen by 13.16% in the past month, leading the Consumer Staples sector's gain of 3.66% and the S&P 500's gain of 0.42%.

Analysts and investors alike will be keeping a close eye on the performance of Kraft Heinz in its upcoming earnings disclosure. The company's earnings report is set to go public on August 5, 2026. In that report, analysts expect Kraft Heinz to post earnings of $0.53 per share. This would mark a year-over-year decline of 23.19%. Simultaneously, our latest consensus estimate expects the revenue to be $6.15 billion, showing a 3.13% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.07 per share and revenue of $24.44 billion, which would represent changes of -20.38% and -2.01%, 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% higher. Kraft Heinz is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, Kraft Heinz is holding a Forward P/E ratio of 12.53. For comparison, its industry has an average Forward P/E of 12.97, which means Kraft Heinz is trading at a discount to the group.

The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 205, this industry ranks in the bottom 17% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.