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The Kraft Heinz Company
S&P 500 Nasdaq 100
🏹 Trader: 🎯 Near 52W High 💎 VCP Breakout | BRS 61 Forming View all →
$30.4B
Market Cap
13.6
P/E
7.22
PEG
-7.9%
ROCE
-12.8%
ROE
0.46
D/E
-18.7%
OPM
-10.2%
% from 52W High
34
α RS
🔍 KHC is showing a sector-leadership setup because Sector RRG has Consumer Staples in the Leading quadrant with the trail still strengthening and it's within 10.2% of its 52-week high. Net: Partial signal stack, not a recommendation. ? RRG 52W High
Sources
Consumer Staples in Leading quadrant · 10.2% from 52W high
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Currency-adjusted total returns for KHC including FX impact
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📈 Price History
Ratio Health
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About

The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in North America and internationally.

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📈 Growth Pattern
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⭐ Superinvestors Holding KHC
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Manager Shares Value % of Fund Period
Warren Buffett Berkshire Hathaway Inc 325.63M $7.3B 2.78% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$6.3B
-1.4% YoY (Organic -1.3%)
Operating Income (GAAP)
$(6.4)B
+19.4% YoY (loss narrowed)
Adjusted Operating Income
$1.0B
-18.4% YoY
Adjusted Operating Margin (calc.)
16.6%
-3.5pp YoY
Net Income
$(5.5)B
+30.2% YoY (loss narrowed)
Adjusted EPS
$0.56
-18.8% YoY
What Went Right
  • Q2 results exceeded expectations across U.S. Retail, Global Away From Home and Emerging Markets, supporting a raised FY2026 Organic Net Sales outlook.
  • Emerging Markets organic sales grew 8.5% in Q2, with Heinz EM sales up 12%; Heinz worldwide is up 3% YTD.
  • Market share loss narrowed to 30bps in H1 from 90bps early in 2025, and U.S. consumption improved from about -2.5% in Q2 to about -1% in July.
What to Watch
  • Organic sales still declined 1.3% in Q2, with volume/mix down 2.6pp and weakness in meats and spoonables.
  • Profitability remains under pressure: Adjusted Operating Income fell 18.4% and Adjusted EPS fell 18.8% on higher advertising, input-cost inflation and variable compensation.
  • Management sees 2027 inflation of 4%-5%, a 100bps SNAP headwind in 2026, and a soft, tariff-affected industry; retailers are also stepping up private-label price investment.
Management Guidance
  • Raised FY2026 Organic Net Sales outlook; no specific numeric range was disclosed on the call.
  • Incremental 2026 investments increased by $100M to approximately $700M, with the additional spend largely in marketing; Q3 and Q4 investment levels are expected to be broadly even.
  • No explicit Q3 revenue or operating income guidance was provided; management expects sequential consumption and share improvement through H2 and no investment wraparound into 2027.
Investor Lens
The thesis is modestly stronger after this call: management beat its own expectations, raised the FY Organic Net Sales outlook, and added $100M of marketing because early returns are visible. Share losses are narrowing (30bps in H1 vs 90bps early 2025) and consumption improved sequentially from about -2.5% in Q2 to about -1% in July. The cost is continued near-term margin pressure, with Adjusted Operating Income down 18.4% and 2026 framed as the margin trough. If volume and share momentum carries into 2027, the higher investment base could compound; the key proof will be sustained organic growth and margin recovery.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Q2 beat; organic sales -1.3%; incremental investment raised to $700M
Revenue
Q2 net sales decreased 1.4% to $6.3B, with Organic Net Sales down 1.3% (price +1.3pp, volume/mix -2.6pp). North America fell 2.7%, International Developed Markets fell 3.5%, and Emerging Markets grew 10.4% (organic +8.5%).
Profitability
GAAP operating loss narrowed 19.4% to $6.4B, driven by $7.4B of non-cash impairments; Adjusted Operating Income fell 18.4% to $1.0B. Net loss attributable to common shareholders was $5.5B versus a $7.8B loss a year ago, and Adjusted EPS declined 18.8% to $0.56.
Margins
GAAP gross margin fell 200bps to 32.4%, while adjusted gross margin was flat at 34.1%. Calculated adjusted operating margin was about 16.6%, roughly 3.5pp below the prior-year period, reflecting higher advertising, manufacturing/logistics inflation and variable compensation.
Balance Sheet
Year-to-date operating cash flow rose 8.2% to $2.1B and free cash flow rose 10.3% to $1.7B, with free cash flow conversion up 27pp to 123%. The company paid down $1.9B of debt in the quarter and another $1.0B after quarter-end, keeping the balance sheet strong.
Key Risks
Management flagged a still-soft industry with tariff-related inflation, a 100bps SNAP headwind, and 4%-5% expected inflation in 2027. Analysts also raised the risk of retailer private-label price investment, while meats (notably Oscar Mayer Deli Fresh) and spoonables remain challenged.
Outlook
FY2026 Organic Net Sales guidance was raised, although no numeric range was given, and incremental 2026 investment was increased to about $700M. Management expects sequential consumption/share improvement in H2 and views 2026 as the investment and margin base for 2027.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 [Q&A] 2026-08-05
Management is confident in sequential improvement for consumption and market share, supported by increased investments and strong brand performance, especially in condiments and emerging markets. An additional $100 million in marketing brings total incremental spend to $700 million for 2026.
Q1 2026 Q1 2026 [Q&A] 2026-05-06
Portfolio strategy updated with targeted investments driving improved market share and performance. Q1 benefited from timing factors, but underlying gains were strong, with increased marketing spend and prudent guidance maintained amid inflation and SNAP headwinds.
Q4 2025 Q4 2025 [Q&A] 2026-02-11
Leadership is pausing the planned separation to focus on a $600M investment in brands, targeting organic growth and improved market share, especially in the U.S. The plan includes price, product, and marketing enhancements, with results expected in the year's second half.
Q3 2025 Q3 2025 [Q&A] 2025-10-29
Q3 saw modest top-line recovery but continued challenges from weak consumer sentiment and inflation. Both pro forma companies declined low single digits, with increased promotional and marketing investments. The planned separation into two companies remains on track for 2026.
Q2 2025 Q2 2025 Prepared Remarks 2025-07-30
Second quarter results met expectations, with improved year-over-year sales trends and strong cash flow. Emerging markets and focus brands showed robust growth, while a $9.3 billion impairment charge impacted results. 2025 guidance was reiterated despite ongoing macroeconomic volatility.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
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Information Sources:
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