Latest news with #KHC
Yahoo
3 days ago
- Business
- Yahoo
Kraft Heinz Could Be Breaking Up. How Should You Play the High-Yield Dividend Stock Here?
What happens when a Wall Street legend finds itself at a crossroads, battered by market underperformance yet dangling one of the juiciest dividend yields in its sector? Kraft Heinz (KHC), one of America's most iconic food companies, is grabbing headlines with reports of a breakup swirling. According to the Wall Street Journal, Kraft Heinz could spin off a 'sizable' chunk of its grocery business and retool it for new growth. This possibility, viewed positively by analysts, comes as the packaged food titan's stock stands out for its industry-leading dividend yield. More News from Barchart Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Investors can't ignore the numbers. Kraft Heinz basks in a forward dividend yield of nearly 6%, a figure that's almost triple the consumer staples sector average. Yet, that high yield betrays a deeper story: KHC shares have dropped more than 17% over the past year, sharply underperforming the S&P 500 Index ($SPX). Is this bold breakup plan the catalyst Kraft Heinz needs to rewrite its growth story and reward loyal shareholders, or just another twist in the tale of a stock stuck in neutral? Let's dive into KHC. KHC's Financial Position Kraft Heinz (KHC), the global food and beverage giant behind household staples like Kraft macaroni and cheese, Heinz ketchup, Capri Sun, and Lunchables, holds a market capitalization of $33.3 billion. The company remains a magnet for income-seeking investors, offering an annual dividend of $1.60 per share, a yield of 5.8%. Kraft Heinz trades at a forward price-earnings ratio of 10.7x, well below the packaged foods sector median of 16.12x, with a price-sales ratio of 1.27x, just a tick above the industry's 1.2x median, marking KHC as attractively valued in comparison to peers. Earnings haven't helped the case, though, as on April 30, Kraft Heinz delivered a first-quarter report that highlighted its ongoing operational challenges. Net sales slipped 6.4%, reflecting persistent headwinds, while the gross profit margin contracted by 60 basis points to 34.4%. Diluted earnings per share landed at $0.59, a year-over-year drop of 10.6%, and adjusted EPS came in at $0.62, down 10.1%. Despite sluggish top-line results, the company's free cash flow remained stable at $500 million. So far in 2025, Kraft Heinz has returned $700 million to shareholders, including $477 million in dividends and $225 million in share repurchases. As of March 29, the company had $1.7 billion in buyback authorization remaining, giving it flexibility in capital returns. Kraft Heinz's Strategic Pivot Kraft Heinz is exploring a major breakup that could involve spinning off a large chunk of its grocery business, including many familiar Kraft-branded staples. The new standalone entity could be valued as high as $20 billion. What remains would center around faster-growing segments like sauces, condiments, and spreads, brands like Heinz ketchup and Grey Poupon mustard, where growth has been steadier and margins more attractive. In Italy, Kraft Heinz just agreed to sell its infant and specialty food division to NewPrinces S.p.A., a top food producer in the region. The deal includes well-known brands like Plasmon, Nipiol, Dieterba, Aproten, and Biaglut, plus a key manufacturing plant in Latina, Italy. If approved by regulators, the transaction is expected to close by the end of 2025. Meanwhile, in the U.S., the company is putting $3 billion into upgrading its 30 American factories, the biggest investment it's made in over a decade. Management says the modernization will speed up new product launches and help the company defend its market share. What the Analysts Are Saying The market's read on Kraft Heinz right now is a mix of caution and curiosity, as investors await its next earnings report set for July 30, 2025. For the current quarter, analysts are expecting earnings per share of $0.64, down from $0.78 a year ago, a 17.95% drop, and for the full year 2025, the consensus is $2.57, a sharp decline from $3.06 in 2024. Analysts remain neutral. The 21 surveyed rate KHC a consensus 'Hold.' The average price target sits at $28.75, pointing to marginal upside from the current price. Conclusion Kraft Heinz is undergoing a transition, streamlining its operations, investing in its core, and is now potentially considering spinning off a major part of its business. With a nearly 6% dividend yield, the stock still earns its place in income portfolios, but the case for growth remains unclear. For now, it looks more like a 'wait-and-see' play than a breakout story. Unless the company shows real progress on execution or unlocks value through the rumored breakup, the stock probably stays rangebound. On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Kraft Heinz (KHC) Rises Higher Than Market: Key Facts
In the latest close session, Kraft Heinz (KHC) was up +1.7% at $27.58. The stock exceeded the S&P 500, which registered a gain of 0.32% for the day. On the other hand, the Dow registered a gain of 0.53%, and the technology-centric Nasdaq increased by 0.26%. The stock of processed food company with dual headquarters in Pittsburgh and Chicago has risen by 5.32% in the past month, leading the Consumer Staples sector's loss of 2.09% and the S&P 500's gain of 4.51%. Investors will be eagerly watching for the performance of Kraft Heinz in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 30, 2025. The company's upcoming EPS is projected at $0.64, signifying a 17.95% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.26 billion, indicating a 3.36% decrease compared to the same quarter of the previous year. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.57 per share and a revenue of $24.97 billion, indicating changes of -16.01% and -3.38%, respectively, from the former year. Any recent changes to analyst estimates for Kraft Heinz should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system. The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. At present, Kraft Heinz boasts a Zacks Rank of #4 (Sell). In terms of valuation, Kraft Heinz is presently being traded at a Forward P/E ratio of 10.56. This denotes a discount relative to the industry average Forward P/E of 15.81. It's also important to note that KHC currently trades at a PEG ratio of 3.18. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Food - Miscellaneous was holding an average PEG ratio of 1.66 at yesterday's closing price. The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 30% of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. You can find more information on all of these metrics, and much more, on Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kraft Heinz Company (KHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
The Guardian
15-07-2025
- Politics
- The Guardian
Former UK Middle East minister accused of breaching transparency rules in Bahrain advisory role
A former UK Middle East minister has been accused of breaching transparency rules over a paid advisory role with an influential Bahraini centre that has links to the Gulf state's government. The Conservative peer Lord Tariq Ahmad, who denies wrongdoing, was cleared by a watchdog to take up his role as a paid adviser to the King Hamad Global Center for Peaceful Coexistence (KHC). The centre is supervised by Bahrain's ministry of foreign affairs, but the UK's Advisory Committee on Business Appointments (Acoba) said Ahmad was free to undertake the role – for which the salary has not been disclosed – because he said he 'did not have official dealings/contact with the KHC during [his] time in office.' Documents unearthed by human rights activists appear to show that Ahmad, who served between 2017 and 2025, had official contact with the centre while in office, visiting it at least twice and holding meetings on official trips in 2022 and 2023. The Bahrain Institute for Rights and Democracy (Bird) said that Acoba should now review its advice and it has submitted a formal complaint. It also criticised the former minister, who also held the human rights brief, for taking up the role with such a close association to a repressive government. According to the most recent reports from Human Rights Watch, the Bahraini government has in effect silenced political opposition, banned independent media and subjected internal opponents to brutal treatment including torture. In a letter to Ahmad from April, Acoba advised that the risk in Ahmad taking up the role was low. It said: 'You said that you had no involvement in policy development, contractual and/or commercial decisions specific to the KHC. You also said that you did not have official dealings/ contact with the KHC during your time in office. 'You did not have any involvement in decisions specific to the KHC during your time in office. The committee therefore considered the risk this appointment could reasonably be perceived as a reward for decisions made, or actions taken in office, is low.' However, in the complaint submitted to Acoba and seen by the Guardian, Ahmad was photographed at the centre in February 2022 alongside the British ambassador, in his role as the prime minister's special envoy for preventing sexual violence. Two days later, the Bahraini news agency filed a report saying that Ahmad 'praises the King Hamad Global Centre for Peaceful Coexistence's programmes in combating hate speech and extremism' and was pictured receiving a trophy box from the deputy chair of the centre. Documents released under a Freedom of Information request confirm that the KHC was on Ahmad's itinerary for an official government visit. In February 2023, Bahraini media reported Ahmad meeting Betsy Mathieson, the vice-chair of the KHC, where he is quoted as saying: 'Our cooperation with the Kingdom of Bahrain and the King Hamad Global Centre for Peaceful Coexistence will continue in every possible area.' Sayed Ahmed Alwadaei, Bird's advocacy director, who filed the complaint, said: 'It is impossible to conclude that the risk of benefiting from his former role is low, given that he concealed his involvement with the centre while occupying a ministerial position. This decision must be urgently reviewed in light of the ample evidence of those contacts.' Sign up to First Edition Our morning email breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion Alwadaei said it was 'morally indefensible' to accept the role. 'Lord Ahmad must now step aside from this role and explain how he failed to declare his official visits to the centre, given the high-profile meetings he held with senior officials at the centre that dominated Bahrain's headlines less than two years ago,' he said. In a statement, Ahmad said: 'I have acted in accordance with the requirements and processes of the Acoba process, and my appointment as is declared in my register of interests.' Bird also called for Ahmad to disclose who paid for two further visits to Bahrain in January and May this year – saying it should be revealed under House of Lords rules if it was paid by the Bahraini government. Ahmad did not respond to the request by the Guardian to disclose this. It is understood Ahmad believes the Acoba process was thorough and that the Foreign Office was fully consulted about his role. He is also understood to have met Bird during his time as Middle East minister. An Acoba spokesperson said: 'Acoba does not endorse any role; its function is to provide independent advice under the government's business appointment rules to protect the integrity of government. The committee seeks information from the applicant and a former minister's department before formulating its advice. Acoba publishes its advice letters – including the information provided and consideration – on its website when a role is taken up. If there are allegations of non-compliance with the government's rules or Acoba's advice, these will be investigated. Findings of any breaches are published online and reported to government.'
Yahoo
14-07-2025
- Business
- Yahoo
Kraft Heinz Weighs $20 Billion Grocery Spinoff to Unlock Shareholder Value
Kraft Heinz (KHC, Financials) is considering spinning off a large portion of its grocery business into a separate entity; the transaction could be valued at up to $20 billion, according to a person familiar with the matter; while no final decision has been made, the potential deal reflects mounting pressure on consumer goods giants to boost shareholder returns amid weakening consumer demand. Warning! GuruFocus has detected 4 Warning Sign with KHC. The possible splitfirst reported by The Wall Street Journalwould likely leave Kraft Heinz with brands like Heinz ketchup and Grey Poupon mustard, while legacy Kraft-branded items would go to the new company. A spokesperson confirmed that the company has been evaluating strategic transactions since May to unlock shareholder value. Kraft Heinz stock closed up 2.5% on the day; the company currently holds a market capitalization of $31.3 billion. A final decision on the spinoff could emerge in the coming weeks, though plans may still change. The proposed move echoes Kellogg's (KLG, Financials) 2023 decision to spin off its cereal businesswhich had suffered volume declinesinto WK Kellogg, which was recently acquired by Ferrero for $3.1 billion. Analysts say other packaged food makers could follow suit; the industry faces a tough mix of inflationary headwinds, cost-conscious consumers, and demand for healthier, fresher alternatives. Kraft Heinz, backed by Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway and Brazil's 3G Capital, has struggled in recent years. In April, the company slashed its full-year forecast after a weak quarter; last month, it also halted U.S. product launches involving artificial food dyes after U.S. Health Secretary Robert F. Kennedy Jr. pushed for regulatory action. Connor Rattigan of Consumer Edge said the move is part of a larger trend in which consumer packaged goods companies are reevaluating their category exposure; M&A or corporate restructurings may offer a way out, he said; but investors will be watching closely to see whether this is a quick fixor the start of something more strategic. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-07-2025
- Business
- Yahoo
What You Need to Know Ahead of Kraft Heinz's Earnings Release
Pittsburgh, Pennsylvania-based The Kraft Heinz Company (KHC) manufactures and markets food and beverage products. With a market cap of $31.3 billion, the company distributes dairy products, sauces, flavored milk powders, and other products. The food giant is expected to announce its fiscal second-quarter earnings for 2025 before the market opens on Wednesday, Jul. 30. Ahead of the event, analysts expect KHC to report a profit of $0.64 per share on a diluted basis, down 18% from $0.78 per share in the year-ago quarter. The company has consistently surpassed Wall Street's EPS estimates in its last four quarterly reports. Creating a 38% 'Dividend' on SOFI Stock Using Options Joby Aviation Just Hit a New 52-Week High. Should You Buy the Flying Car Stock Here? Nvidia Stock Regains Momentum. Is It Time to Buy, Sell, or Hold NVDA? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! For the full year, analysts expect KHC to report EPS of $2.57, down 16% from $3.06 in fiscal 2024. However, its EPS is expected to rise 3.1% year over year to $2.65 in fiscal 2026. KHC stock has underperformed the S&P 500 Index's ($SPX) 11.5% gains over the past 52 weeks, with shares down 17.1% during this period. Similarly, it underperformed the Consumer Staples Select Sector SPDR Fund's (XLP) 4.8% gains over the same time frame. On Apr. 29, KHC shares closed up marginally after reporting its Q1 results. Its adjusted EPS of $0.62 beat Wall Street expectations of $0.60. The company's revenue was $6 billion, matching Wall Street forecasts. KHC expects full-year adjusted EPS in the range of $2.51 to $2.67. Analysts' consensus opinion on KHC stock is cautious, with a 'Hold' rating overall. Out of 20 analysts covering the stock, 17 advise a 'Strong Buy' rating, one gives a 'Moderate Sell,' and two recommend a 'Strong Sell.' KHC's average analyst price target is $28.95, indicating a potential upside of 9.4% from the current levels. On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
