The Kraft Heinz Company
KHCFinancial Snapshot
ticker: KHC step: 04 generated: 2026-05-12 source: quick-research
The Kraft Heinz Company (KHC) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | $26.49B | $26.64B | $25.85B | -3.0% |
| Gross Margin | ~34% | ~34% | ~34.7% | +70bps |
| Operating Margin (adj.) | ~20% | ~20% | ~21% | ~flat |
| Net Income (GAAP) | ~$2.4B loss* | ~$2.9B | ~$5.8B loss* | |
| Adj. EPS | ~$2.87 | ~$2.98 | $3.06 | +2.7% |
*GAAP net income heavily distorted by non-cash goodwill/intangible impairment charges in 2022 and 2024. Adjusted EPS is the most relevant profitability metric. FY2025 GAAP EPS was ~$(4.93) due to $9.3B non-cash impairment charges; Adj. Operating Income declined ~11.5%; FCF was $3.7B (up 15.9%).
Note: FY2025 revenue $24.94B (-3.5% YoY). FY2026 guidance: organic net sales -1.5% to -3.5%; Adj. EPS $1.98–$2.10 (continued decline as the company reinvests heavily in brand marketing).
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$3.5B |
| Free Cash Flow | $3.2B |
| FCF Margin | ~12% |
| Cash & Equivalents | ~$0.9B |
| Total Debt | ~$20B |
| Net Debt / EBITDA | ~4.0x (elevated) |
FY2025 FCF improved to $3.7B despite lower adj. operating income, reflecting working capital improvements and reduced capex.
Key Ratios (approximate, based on FY2024)
- P/E (adj.): ~10x | FCF Yield: ~11% at current market cap
- EV/EBITDA: ~9x | Dividend Yield: ~5.5%
- Revenue Growth (2-yr trend): ~-1% to -3% annually | FCF Margin: ~12–13%
- Leverage: ~4x Net Debt/EBITDA (elevated; limiting financial flexibility)
Growth Profile
Kraft Heinz is in a prolonged reset. After years of 3G Capital's zero-based budgeting stripped marketing investment to the bone, brands atrophied — volumes have been declining as consumers trade to private labels and healthier alternatives. The company is now attempting a "Restoration" strategy: a $600M investment in marketing and pricing (2026), scaling the Brand Growth System to 40% of the portfolio, and growing in emerging markets (Heinz international grew 13% organically in 2025). However, underlying organic sales continue to decline (guided -1.5% to -3.5% for FY2026), and $9.3B in FY2025 impairment charges reflect the structural impairment of several core brands.
Forward Estimates
- FY2026: Organic net sales -1.5% to -3.5%; Adj. EPS $1.98–$2.10 (management guidance); Adj. Operating Income decline 14–18% as marketing reinvestment offsets efficiency savings
- Dividend: ~$1.60/year; ~5.5% yield at current price; management has maintained the payout despite earnings pressure, though coverage is thin
- Strategic optionality: Company paused a planned split ("Good Co/Bad Co") to focus on business turnaround; split remains an option if organic growth doesn't materialize within 12–24 months
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $KHC.