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Will Kraft Heinz's NFL Deal Strengthen Its Growth Recovery Plan?
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Key Takeaways
KHC signs a five-year global NFL partnership to boost visibility and engagement.
The deal adds themed packaging, co-branded promotions and retail activations.
Stadium presence can expand foodservice reach and support KHC's recovery plan.
The Kraft Heinz Company (KHC - Free Report) is at a stage where restoring growth is becoming just as important as protecting margins. As the company is dealing with softer sales trends and market share pressure, the bigger challenge is not only improving execution but also finding stronger ways to stay relevant with consumers and create demand around everyday eating occasions.
To this end, KHC’s new five-year global partnership with the National Football League (“NFL”) stands out as more than a marketing move. The agreement gives The Kraft Heinz Company access to one of the largest and most engaged fan bases in the United States while creating fresh opportunities in retail promotion, stadium visibility, foodservice and brand-led consumer engagement tied to game-day consumption.
Why the Deal Matters to KHC
The NFL gives KHC a platform that naturally fits many of its core brands, such as Heinz, Kraft, Velveeta and Philadelphia. The real value lies not just in exposure but in the ability to turn that exposure into stronger sales through themed packaging, co-branded promotions, in-store activations and deeper consumer engagement.
The timing also works in KHC’s favor. The company is trying to make its brands feel more relevant and better connected to moments that matter to consumers. By placing itself at the center of a major food-and-sports occasion, The Kraft Heinz Company can improve the efficiency of its marketing spending and potentially drive better volume during key periods such as the NFL season, playoffs and Thanksgiving.
The partnership could also support the company’s away-from-home business. A stronger presence in stadiums and live events can help widen its foodservice reach, giving it another channel through which it can build demand.
Image Source: Zacks Investment Research
NFL Deal: A Strategic Fit Within KHC’s Turnaround Effort
The NFL deal fits neatly into KHC’s broader recovery push. The company is increasing investments in marketing, innovation, pricing, packaging and in-store execution as it works to rebuild momentum. It is also trying to align its brands more closely with what consumers currently want, especially around value, convenience and relevance.
The partnership provides The Kraft Heinz Company a high-visibility platform that can support both long-term brand building and near-term sales opportunities. By linking its brands with major consumption occasions and expanding its visibility across retail and foodservice, KHC is improving its chances of reigniting demand. If executed well, this deal could become a meaningful part of the company’s broader growth recovery strategy.
KHC, which currently carries a Zacks Rank #4 (Sell), has seen its shares slide 8.9% year to date compared to the industry’s growth of 0.3%.
The Zacks Consensus Estimate for Hershey’s current financial-year sales and earnings indicates growth of 4.8% and 30.1%, respectively, from the prior-year reported levels. HSY delivered a trailing four-quarter earnings surprise of 17.2%, on average.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA sports a Zacks Rank #1. Mama's Creations delivered a trailing four-quarter earnings surprise of 133.3%, on average.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago figures.
US Foods Holding Corp. (USFD - Free Report) engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank of 2 (Buy). US Foods Holding delivered a trailing four-quarter earnings surprise of 2.2%, on average.
The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.4% and 20.9%, respectively, from the year-ago figures.
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Will Kraft Heinz's NFL Deal Strengthen Its Growth Recovery Plan?
Key Takeaways
The Kraft Heinz Company (KHC - Free Report) is at a stage where restoring growth is becoming just as important as protecting margins. As the company is dealing with softer sales trends and market share pressure, the bigger challenge is not only improving execution but also finding stronger ways to stay relevant with consumers and create demand around everyday eating occasions.
To this end, KHC’s new five-year global partnership with the National Football League (“NFL”) stands out as more than a marketing move. The agreement gives The Kraft Heinz Company access to one of the largest and most engaged fan bases in the United States while creating fresh opportunities in retail promotion, stadium visibility, foodservice and brand-led consumer engagement tied to game-day consumption.
Why the Deal Matters to KHC
The NFL gives KHC a platform that naturally fits many of its core brands, such as Heinz, Kraft, Velveeta and Philadelphia. The real value lies not just in exposure but in the ability to turn that exposure into stronger sales through themed packaging, co-branded promotions, in-store activations and deeper consumer engagement.
The timing also works in KHC’s favor. The company is trying to make its brands feel more relevant and better connected to moments that matter to consumers. By placing itself at the center of a major food-and-sports occasion, The Kraft Heinz Company can improve the efficiency of its marketing spending and potentially drive better volume during key periods such as the NFL season, playoffs and Thanksgiving.
The partnership could also support the company’s away-from-home business. A stronger presence in stadiums and live events can help widen its foodservice reach, giving it another channel through which it can build demand.
Image Source: Zacks Investment Research
NFL Deal: A Strategic Fit Within KHC’s Turnaround Effort
The NFL deal fits neatly into KHC’s broader recovery push. The company is increasing investments in marketing, innovation, pricing, packaging and in-store execution as it works to rebuild momentum. It is also trying to align its brands more closely with what consumers currently want, especially around value, convenience and relevance.
The partnership provides The Kraft Heinz Company a high-visibility platform that can support both long-term brand building and near-term sales opportunities. By linking its brands with major consumption occasions and expanding its visibility across retail and foodservice, KHC is improving its chances of reigniting demand. If executed well, this deal could become a meaningful part of the company’s broader growth recovery strategy.
KHC, which currently carries a Zacks Rank #4 (Sell), has seen its shares slide 8.9% year to date compared to the industry’s growth of 0.3%.
Better-Ranked Stocks to Grab
The Hershey Company (HSY - Free Report) engages in the manufacture and sale of confectionery products and pantry items in the United States and internationally. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hershey’s current financial-year sales and earnings indicates growth of 4.8% and 30.1%, respectively, from the prior-year reported levels. HSY delivered a trailing four-quarter earnings surprise of 17.2%, on average.
Mama's Creations, Inc. (MAMA - Free Report) manufactures and markets fresh deli-prepared foods in the United States. At present, MAMA sports a Zacks Rank #1. Mama's Creations delivered a trailing four-quarter earnings surprise of 133.3%, on average.
The consensus estimate for Mama's Creations’ current fiscal-year sales and earnings implies growth of 39.9% and 44.4%, respectively, from the year-ago figures.
US Foods Holding Corp. (USFD - Free Report) engages in the marketing, sale and distribution of fresh, frozen and dry food and non-food products to foodservice customers in the United States. USFD currently carries a Zacks Rank of 2 (Buy). US Foods Holding delivered a trailing four-quarter earnings surprise of 2.2%, on average.
The Zacks Consensus Estimate for US Foods Holding’s current fiscal-year sales and earnings implies growth of 5.4% and 20.9%, respectively, from the year-ago figures.