A month has gone by since the last earnings report for Kraft Heinz (KHC Quick QuoteKHC - Free Report) . Shares have added about 4.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Kraft Heinz due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Kraft Heinz Q3 Earnings Beat, '25 View Narrowed on Soft Volumes

Kraft Heinz posted third-quarter 2025 results, wherein the top and bottom lines declined year over year, primarily due to weaker volumes in key categories. However, management emphasized steady progress in productivity initiatives, brand investments and preparation for its planned separation into two standalone public companies.

The company continues to focus on delivering affordable and high-quality products through its Brand Growth System. Ongoing investments in marketing, R&D, and manufacturing are designed to enhance consumer connection and portfolio strength. These efforts, along with its cost-efficiency initiatives and robust cash generation, remain central to Kraft Heinz’s long-term value creation strategy.

Kraft Heinz remains committed to maintaining financial discipline, optimizing its capital structure and returning value to shareholders while executing its separation into “Global Taste Elevation Co.” and “North American Grocery Co.” in the second half of 2026.

Kraft Heinz’s Quarterly Performance: Key Insights

Kraft Heinz posted adjusted earnings of 61 cents per share, beating the Zacks Consensus Estimate of 57 cents. However, quarterly earnings fell 18.7% year over year, mainly due to lower adjusted operating income, increased taxes on adjusted earnings and higher interest costs.

The company generated net sales of $6,237 million, down 2.3% year over year. The metric fell short of the Zacks Consensus Estimate of $6,247 million. Net sales included a slight 0.2 percentage point or pp benefit from favorable foreign currency exchange rates. Organic net sales were down 2.5% year over year.

Pricing rose by 1 pp across all reportable segments, primarily due to strategic price increases in certain categories — most notably coffee — to negate higher input costs. However, this was outweighed by a 3.5 pp decline in volume/mix, driven mainly by lower volumes in North America and International Developed Markets. These declines were partially offset by volume/mix gains in Emerging Markets. The adverse volume/mix was mainly attributed to declines in cold cuts, coffee, certain condiments, frozen snacks and Indonesia.

The adjusted gross profit of $2,015 million decreased from the $2,189 million reported in the year-ago quarter. The adjusted gross margin contracted 200 bps to 32.3%.

Adjusted operating income fell 16.9% year over year to $1,106 million, primarily due to commodity and manufacturing cost inflation, which outweighed gains from efficiency initiatives. Adverse volume/mix, and higher selling, general and administrative expenses (mainly due to reduced advertising) also led to the decline, partly compensated by greater pricing and a modest 0.1 pp benefit from foreign currency movements.

Decoding Kraft Heinz’s Segment-Wise Results

North America: Net sales of $4,641 million declined 3.8% year over year. Organic sales also fell 3.8%. During the quarter, pricing moved up 0.4 pp, but the volume/mix fell 4.2 pp.

International Developed Markets: Net sales of $895 million were up 1.6% year over year. Organic sales declined 1.4%, with pricing moving up 1 pp and volume/mix dipping 2.4 pp.

Emerging Markets: Net sales of $701 million increased 3.8% year over year. Also, organic sales grew 4.7%. Pricing went up 4 pp, and volume/mix increased 0.7 pp.

Kraft Heinz: Other Financial Aspects

Kraft Heinz ended the quarter with cash and cash equivalents of $2,114 million, long-term debt of $19,287 billion and total shareholders’ equity (excluding noncontrolling interest) of $41,450 million. Net cash provided by operating activities was $3,086 million for the nine months ended Sept. 27, 2025, and free cash flow was $2,490 million.

During the year-to-date period, Kraft Heinz paid cash dividends worth $1.4 billion and made share buybacks worth $435 million. As of Sept. 27, 2025, the company had shares worth $1.5 billion remaining under its buyback plan.

What to Expect From Kraft Heinz in 2025?

The company updated its full-year 2025 outlook to reflect near-term market softness. Management now expects organic net sales to decline 3% to 3.5% compared with the previous range of down 1.5% to 3.5%. This reflects expectations of softer growth in Emerging Markets, stemming from ongoing weakness in Indonesia and continued pressure within U.S. retail channels.

Constant-currency adjusted operating income is expected to fall 10% to 12% compared with the earlier 5% to 10% decline. The company now forecasts an adjusted gross profit margin decline of approximately 100 basis points for the year.

Adjusted EPS is projected in the range of $2.50-$2.57 compared with the previous outlook of $2.51 to $2.67. Management continues to expect an effective tax rate of about 26% and interest expenses of nearly $950 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -10.83% due to these changes.

VGM Scores

At this time, Kraft Heinz has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Kraft Heinz has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Kraft Heinz belongs to the Zacks Food - Miscellaneous industry. Another stock from the same industry, Sysco (SYY Quick QuoteSYY - Free Report) , has gained 1.6% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.

Sysco reported revenues of $21.15 billion in the last reported quarter, representing a year-over-year change of +3.2%. EPS of $1.15 for the same period compares with $1.09 a year ago.

For the current quarter, Sysco is expected to post earnings of $0.98 per share, indicating a change of +5.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.6% over the last 30 days.

Sysco has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.