Valued at a market cap of $37.2 billion, Pittsburgh, Pennsylvania-based The Kraft Heinz Company (KHC) is a leading global food and beverage manufacturer. It produces and markets a wide range of products under well-known brands such as Kraft, Heinz, Oscar Mayer, Philadelphia, Velveeta, and Maxwell House.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Kraft Heinz fits this criterion perfectly. Kraft Heinz sells its products through various channels, including grocery stores, wholesale distributors, foodservice providers, and e-commerce platforms.
Shares of the processed food company are trading 22.2% below its 52-week high of $38.96. KHC has declined nearly 4% over the past three months, a less severe decline than the broader Dow Jones Industrials Average’s ($DOWI) 5.8% dip over the same time frame.
In the longer term, KHC stock is down 1.3% on a YTD basis, which is less pronounced compared to DOWI’s 2.8% decrease. However, shares of Kraft Heinz have decreased 12.4% over the past 52 weeks, lagging behind DOWI’s 6% return over the same time frame.
Despite recent fluctuations, KHC has been trading below its 50-day and 200-day moving averages since late October last year.
Shares of Kraft Heinz fell 3.3% on Feb. 12 after reporting mixed Q4 results. While the company posted a better-than-expected adjusted EPS of $0.84, revenue came in at $6.6 billion, falling short of the estimate and marking a 4.1% year-over-year decline. A significant $40 million operating income loss, largely due to a non-cash impairment charge on the Oscar Mayer brand. Additionally, weak fiscal 2025 guidance, projecting organic net sales to decline up to 2.5% and lower-than-anticipated full-year EPS between $2.63 and $2.74, dampened investor confidence.
Kraft Heinz has lagged behind its rival, General Mills, Inc. (GIS), which has recorded an 8.7% dip over the past 52 weeks. Nevertheless, General Mills has dropped 5.9% on a YTD basis, a steeper decline than KHC.
Due to KHC’s weak performance, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from the 18 analysts covering the stock, and as of writing, the stock is trading slightly below the mean price target of $30.67.
