# The Kraft Heinz Company (KHC) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-13  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/KHC/thesis · /stocks/KHC/memo

## Financial 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/KHC/fundamental

## Navigation

- Overview: /stocks/KHC
- Financials (this page): /stocks/KHC/financials
- Thesis: /stocks/KHC/thesis
- Investment Memo: /stocks/KHC/memo
- Coverage universe: /stocks