A month has gone by since the last earnings report for Kraft Heinz (KHC Quick QuoteKHC - Free Report) . Shares have lost about 8.2% in that time frame, underperforming the S&P 500.

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

The Kraft Heinz Company Q4 Earnings Beat Estimates, Organic Sales Fall 4.2% Y/Y

The Kraft Heinz Company posted fourth-quarter 2025 results, with the top line missing the Zacks Consensus Estimate but the bottom line exceeding the same. However, both metrics declined year over year. 

The company has greater-than-expected potential to modernize its brands and address operational challenges, many of which are within its control. To sharpen its focus on performance improvement, the company has paused the separation initiative and shifted resources toward executing its core strategy. The Kraft Heinz Company is also launching a $600 million investment across marketing, sales, R&D, product improvement, and selective pricing, supported by a strong balance sheet and robust free cash flow, which management believes will accelerate the company’s recovery and growth trajectory.

The Kraft Heinz Company’s Quarterly Performance: Key Insights

The Kraft Heinz Company posted adjusted earnings of 67 cents per share, beating the Zacks Consensus Estimate of 61 cents. Quarterly earnings fell 20.2% year over year, mainly due to lower adjusted operating income, elevated taxes on adjusted earnings, and increased interest expense, partially offset by favorable changes in other income/expense and a lower share count.

The company generated net sales of $6,354 million, down 3.4% year over year. The metric missed the Zacks Consensus Estimate of $6,418 million. Net sales included a favorable foreign currency impact of 0.8 percentage points. Organic net sales decreased 4.2% compared with the prior year period. Pricing contributed a positive 0.5 percentage point impact, driven by increases in the International Developed Markets and Emerging Markets segments, while pricing in North America remained flat. Favorable pricing primarily reflected actions taken in select categories to offset higher input costs. Volume/mix declined by 4.7 percentage points year over year, with decreases across all segments. The unfavorable volume/mix was mainly due to declines in coffee, cold cuts, Indonesia, bacon and Ore-Ida.

The adjusted gross profit of $2,101 million decreased from the $2,262 million reported in the year-ago quarter. The adjusted gross margin contracted 130 bps to 33.1%. 

Adjusted operating income declined 15.9% to $1,164 million, primarily due to inflation in commodities and manufacturing exceeding productivity gains, while higher marketing spend and lower volumes further weighed on margins. These factors more than offset the benefits of pricing actions.

Decoding The Kraft Heinz Company’s Segment-Wise Results

North America: Net sales of $4,700 million declined 5.4% year over year. Organic sales fell 5.4%. During the quarter, pricing remained flat and the volume/mix fell 5.4 percentage points.

International Developed Markets: Net sales of $930 million were up 1.8% year over year. Organic sales declined 2.4%, with pricing up 1.8 percentage points and volume/mix dipping 4.2 percentage points.

Emerging Markets: Net sales of $724 million were up 4.3% year over year. Organic sales grew 2.2%. Pricing up 2.4 percentage points, but volume/mix down 0.2 percentage points.

The Kraft Heinz Company: Other Financial Aspects

The Kraft Heinz Company ended the quarter with cash and cash equivalents of $2,615 million, long-term debt of $19,311 million and total shareholders’ equity (excluding noncontrolling interest) of $41,664 million. Net cash provided by operating activities was $4,462 million for the year ended Dec. 27, 2025, and free cash flow was $3,661 million.

In fiscal 2025, the company returned significant capital to shareholders, paying $1.9 billion in cash dividends and repurchasing $436 million of common stock. Approximately $400 million of these repurchases were executed under the company’s publicly announced share repurchase program. As of Dec. 27, 2025, the company had approximately $1.5 billion remaining under its authorized share repurchase program.

What to Expect From Kraft Heinz in 2026?

For fiscal 2026, The Kraft Heinz Company expects organic net sales to decline 1.5% to 3.5% year over year, reflecting an estimated 100 bps impact from incremental SNAP-related headwinds. Constant currency adjusted operating income is projected to decline 14% to 18%. Adjusted gross profit margin is expected to decrease 25-75 bps versus the prior year. The company anticipates adjusted EPS to be between $1.98 and $2.10.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted -17.78% due to these changes.

VGM Scores

Currently, Kraft Heinz has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile 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 #5 (Strong Sell). We expect a below average return from the stock in the next few months.