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KHCThe Kraft Heinz CompanySell4.9·$25.35+1.36%
SellModerate Confidence
Investment thesis

Despite four consecutive earnings beats with an average 10% positive surprise, Kraft Heinz's business quality falls short of minimum standards — no competitive moat, sluggish growth, and the stock already above its analyst price target — while a put/call ratio of 4.46 and 10% short interest signal the market is actively positioning against recovery.

Thesis pillars

  • Quality Below Minimum ThresholdStable
  • Consistent Earnings DeliveryStable
  • Bearish Market PositioningStable
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

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The Kraft Heinz Company (KHC) Stock Analysis

Momentum Cont setup · Catalyst-Driven edge

SellVALUE-TRAP 1/5Moderate Confidence

Consumer Defensive · Packaged Foods

Sell if holding. Engine safety override at $25.35: Quality below floor (3.9 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: High short interest: 10%; Below-average business quality.

Kraft Heinz manufactures and markets packaged food and beverage products globally under brands including Kraft, Oscar Mayer, Heinz, and Philadelphia, organized across North America, International Developed Markets, and Emerging Markets segments. The company generated... Read more

$25.35-1.4% A.UpsideScore 4.9/10#26 of 32 Packaged Foods
QualityF-score8 / 9FCF yield10.68%
IncomeYield6.31%(5y avg 4.90%)Payout73.06%
Stop $24.03Target $25.01(resistance)A.R:R -1.2:1
Analyst target$23.74-6.4%17 analysts
$25.01our TP
$25.35price
$23.74mean
$19
$42

Sell if holding. Engine safety override at $25.35: Quality below floor (3.9 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: High short interest: 10%; Below-average business quality. Chart setup: Trend continuation, RSI 58, MACD bullish. Score 4.9/10, moderate confidence.

Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 26d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

10-K grounded · weekly refresh

About The Kraft Heinz Company

About The Kraft Heinz Company

Kraft Heinz generated approximately $25 billion in net sales in 2025, with Walmart Inc. representing approximately 21% — consistent across 2023, 2024, and 2025 — as the single largest customer across both the North America and International Developed Markets reportable segments. The five largest customers in the North America segment accounted for 46% of North America net sales. The company employed approximately 35,000 people in 40 countries at December 27, 2025, organized across eight consumer-driven product platforms.

Kraft Heinz earns revenue from branded packaged food sold through chain grocery, warehouse clubs, convenience stores, foodservice distributors, and e-commerce. The Taste Elevation platform — condiments, sauces, dressings, and spreads — represented 45% of consolidated net sales in 2025, followed by Easy Ready Meals (17%), Meats (8%), Hydration (8%), and Cheese (7%). Input costs span dairy, meat, sugar, coffee, tomato products, and soybean oils sourced globally; the company uses hedging techniques to partially limit commodity price exposure but does not fully hedge against price changes. In 2025, tariff and trade policy actions elevated inflationary pressures in supply chain costs. North America brands include Kraft, Oscar Mayer, Philadelphia, and Heinz; International Developed Markets runs Heinz, Golden Circle, and Wattie's. The company competes with both branded-product manufacturers and retailer private-label offerings across all categories.

Show full overview

Commodity input costs — dairy, meat, sugar, coffee, tomato products, soybean oils, wheat, and processed grains — represent the dominant cost exposure, subject to global competition for resources, severe weather, and geopolitical conflict. Hedging provides partial protection but the company acknowledges its strategies may not guard against increases in specific raw material costs. The 2025 10-K also notes the Board's decision on February 11, 2026 to pause the proposed separation of Kraft Heinz into two publicly traded companies, announced in September 2025 — a strategic uncertainty that may affect supplier and customer relationships during the pendency of any resumed separation process.

See also: Consumer Defensive · Packaged Foods

From The Kraft Heinz Company's most recent 10-K filing, extracted June 10, 2026.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-07-06

Recent Developments — The Kraft Heinz Company

Generated 2026-07-06T04:40:27Z.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Wed, Jul 29, 202626d to earnings· next earnings call

Thesis

Rewards
No bull case signals
Risks
Target reached (-15.8% upside)
Quality below floor (3.9 < 4.0)

Key Metrics

P/E (TTM)
P/E (Fwd)12.1
Mkt Cap$30.1B
EV/EBITDA8.2
Profit Mgn-23.0%
ROE-12.6%
Rev Growth0.8%
Beta0.08
Dividend6.31%
Rating analysts29

Quality Signals

Piotroski F8/9

Options Flow

P/C1.05bearish
IV53%elevated

Concentration Risks(10-K Item 1A)

  • LOWCustomerWalmart Inc.21%
    10-K Item 1: 'Our largest customer, Walmart Inc., represented approximately 21% of our net sales in 2025, 2024, and 2023.'
  • MEDIUMCustomerfive largest customers in North America46%
    10-K Item 1: 'the five largest customers in our North America segment accounted for approximately 46% of North America segment net sales'
  • MEDIUMProductTaste Elevation45%
    10-K Item 1: 'Net sales by platform as a percentage of consolidated net sales ... Taste Elevation| 45 | %|'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.

Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.

Conflicts and positions. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

4 floor-breakers

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Quality Rank
0.3
Growth Rank
2.5
Value Rank
3.1

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

Bollinger
0.0
Support Resistance
0.4
52w Position
8.6

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Revenue Growth
2.7
Earnings Growth
4.7

Unprofitable operations — net margin -23.0%. Quality floor flags this regardless of sector context.static

Roe
0.0
Net Margin
0.0
Roa
2.3
Gross Margin
2.8
Moat
3.9
Current Ratio
4.6
Operating Margin
8.3
Piotroski F
8.9
No competitive moatStrong Piotroski F-Score: 8/9
GatesA.R:R -1.2=NEGATIVEDeath cross (50MA < 200MA)Momentum 7.4>=5.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 26d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARMomentum ContSuitability: Moderate
RSI
58 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $21.96Resistance $25.52

Price Targets

$24
$25
A.Upside-1.3%
A.R:R-1.2:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (-15.8% upside)
! Quality below floor (3.9 < 4.0)
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-07-29 (26d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is KHC stock a buy right now?

Sell if holding. Engine safety override at $25.35: Quality below floor (3.9 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.9/10. Specifically: High short interest: 10%; Below-average business quality. Chart setup: Trend continuation, RSI 58, MACD bullish. Prior stop was $24.03. Score 4.9/10, moderate confidence.

What is the KHC stock price target?

Take-profit target: $25.01 (-1.4% upside). Prior stop was $24.03. Stop-loss: $24.03.

What are the risks of investing in KHC?

Target reached (-15.8% upside); Quality below floor (3.9 < 4.0).

Is KHC overvalued or undervalued?

The Kraft Heinz Company trades at a P/E of N/A (forward 12.1). TrendMatrix value score: 7.1/10. Verdict: Sell.

What do analysts say about KHC?

29 analysts cover KHC with a consensus score of 2.8/5. Average price target: $24.

What does The Kraft Heinz Company do?Kraft Heinz manufactures and markets packaged food and beverage products globally under brands including Kraft, Oscar...

Kraft Heinz manufactures and markets packaged food and beverage products globally under brands including Kraft, Oscar Mayer, Heinz, and Philadelphia, organized across North America, International Developed Markets, and Emerging Markets segments. The company generated approximately $25 billion in net sales in 2025, with Walmart Inc. representing approximately 21% of net sales, employing approximately 35,000 people in 40 countries. Taste Elevation — condiments, sauces, and spreads — represented 45% of consolidated net sales in 2025.

Related stocks: DAR (Darling Ingredients Inc.) · POST (Post Holdings, Inc.) · SFD (Smithfield Foods, Inc.) · JBS (JBS N.V.) · MKC-V (McCormick & Company, Incorporat)
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