Back to top

Image: Bigstock

Kraft Heinz's Q2 Earnings on Horizon: What Surprise Awaits Investors?

Read MoreHide Full Article

Key Takeaways

  • Weakness in the U.S. Away from Home segment adds to Kraft Heinz's revenue challenges.
  • Evolving consumer behavior and tariffs are straining the company's organic sales.
  • Organic net sales are projected to fall 3.2% in the second quarter due to persistent volume weakness.

The Kraft Heinz Company ((KHC - Free Report) ) is likely to register a decline in both the top and bottom lines when it reports second-quarter 2025 earnings on July 30. The Zacks Consensus Estimate for revenues is pegged at $6.3 billion, indicating a 2.9% drop from the prior-year quarter’s reported figure.

The consensus mark for quarterly earnings has remained unchanged in the past 30 days at 64 cents per share, projecting a decline of 18% from the figure reported in the year-ago quarter. KHC has a trailing four-quarter earnings surprise of 4.8%, on average.

Factors Likely to Impact KHC’s Upcoming Results

Kraft Heinz has been facing headwinds in its volume performance, which have been exerting pressure on its top-line growth. The company has been grappling with evolving consumer behavior and macro-economic pressures like tariffs and inflation, alongside weakness in the U.S. Away from Home segment. These persistent challenges pose a threat to Kraft Heinz’s organic sales, ultimately impacting overall revenues.

Our model suggests a 3.2 percentage point year-over-year decline in volume/mix for the second quarter of 2025. As a result, we project a 3.2 percentage point drop in organic net sales during the same period.

In addition to weak volume trends, Kraft Heinz has also been dealing with margin pressure. The downside can be attributed to unfavorable volume/mix shifts, rising manufacturing and procurement costs, and unfavorable foreign currency impacts. We expect the company’s adjusted gross margin to contract 190 basis points year over year, reaching 33.6% in the second quarter of 2025.

Kraft Heinz has been strategically driving growth through effective pricing, operational efficiencies and innovation. Kraft Heinz's Brand Growth System is scaling while expanding in emerging markets.

Kraft Heinz Company Price and EPS Surprise

Kraft Heinz Company Price and EPS Surprise

Kraft Heinz Company price-eps-surprise | Kraft Heinz Company Quote

Earnings Whispers for KHC Stock

Our 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 chance of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Kraft Heinz currently has an Earnings ESP of +0.31% and a Zacks Rank of 3.

More Stocks With the Favorable Combination

Here are a few more companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle.

Freshpet ((FRPT - Free Report) ) currently has an Earnings ESP of +40.68% and a Zacks Rank of 3. The company is likely to register growth in the top line when it reports second-quarter 2025 numbers. The consensus mark for revenues is pegged at $267.7 million, which indicates an increase of 13.8% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Freshpet’s quarterly earnings per share of 12 cents implies a sharp rise from the loss per share of three cents reported in the year-ago quarter. The consensus mark has gone down a penny in the past 30 days. FRPT has a trailing four-quarter earnings surprise of 22.3%, on average.

Anheuser-Busch InBev SA/NV ((BUD - Free Report) ), alias AB InBev, has an Earnings ESP of +7.06% and a Zacks Rank of 3 at present. BUD is likely to register a bottom-line decline when it releases second-quarter 2025 results. The consensus estimate for AB InBev’s quarterly earnings has risen a couple of cents in the past 30 days to 89 cents per share, implying a drop of 1.1% from the year-ago quarter’s number.

The Zacks Consensus Estimate for quarterly revenues is pegged at $15.3 billion, which implies a drop of 0.5% from the figure reported in the year-ago quarter. BUD delivered an earnings surprise of 10.9%, on average, in the trailing four quarters.

Monster Beverage ((MNST - Free Report) ) currently has an Earnings ESP of +0.37% and a Zacks Rank of 3. The company is expected to register growth in its top and bottom lines when it reports second-quarter 2025 results. The Zacks Consensus Estimate for MNST’s quarterly earnings has moved down a penny in the last 30 days to 48 cents per share, indicating 17.1% growth from the year-ago quarter's number.

The consensus estimate for Monster Beverage’s quarterly revenues is pegged at $2.1 billion, implying a rise of 9.4% from the figure in the prior-year quarter. MNST reported a negative earnings surprise of 4.1%, on average, in the trailing four quarters.

Published in