Kraft Heinz Struggles Amid Mixed Q4 Results and Investor Concerns

Valued at a market cap of $37.2 billion, Pittsburgh, Pennsylvania-based The Kraft Heinz Company (KHC) stands as a leading global food and beverage manufacturer. The company produces and markets a diverse array of products under well-known brands such as Kraft, Heinz, Oscar Mayer, Philadelphia, Velveeta, and Maxwell House.

Classified as a “large-cap” stock, Kraft Heinz meets the criteria of being valued at $10 billion or more. Its products reach consumers through various channels, including grocery stores, wholesale distributors, foodservice providers, and e-commerce platforms.

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Recently, shares of the processed food company are trading 22.2% below their 52-week high of $38.96. KHC has experienced a decline of nearly 4% over the past three months, which is less severe than the broader Dow Jones Industrials Average’s ($DOWI) dip of 5.8% during the same period.

Looking at the year-to-date figures, KHC is down 1.3%, which is more favorable in comparison to DOWI’s decrease of 2.8%. However, over the last 52 weeks, Kraft Heinz shares have decreased by 12.4%, trailing behind DOWI’s 6% return during that time.

Despite the fluctuations, KHC has been trading below its 50-day and 200-day moving averages since late October of last year.

On February 12, shares of Kraft Heinz fell 3.3% after the company released mixed Q4 results. Although the adjusted EPS came in at $0.84, exceeding expectations, revenue fell short at $6.6 billion, marking a 4.1% year-over-year decline. The company reported a significant $40 million loss in operating income, largely due to a non-cash impairment charge associated with the Oscar Mayer brand. Additionally, KHC provided weak fiscal 2025 guidance, predicting organic net sales to decrease by up to 2.5% and projecting full-year EPS between $2.63 and $2.74, which dampened investor confidence.

In comparison, Kraft Heinz has underperformed against its rival, General Mills, Inc. (GIS), which has recorded an 8.7% dip over the past 52 weeks. General Mills, however, has experienced a steeper YTD decline of 5.9% compared to KHC.

Due to KHC’s weak performance, analysts are cautious about its prospects. The stock carries a consensus rating of “Hold” from the 18 analysts covering it. Currently, KHC is trading slightly below the mean price target of $30.67.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.