Kraft Heinz Stock Drops As Higher Prices Eat Into Demand (2024)

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Kraft Heinz Stock Drops As Higher Prices Eat Into Demand? ›

Higher prices weighed on demand for Kraft Heinz (KHC) products, and shares dropped over 6% in early trading Wednesday after the food and beverage giant reported first-quarter results that missed analysts' estimates.

The intrinsic value of one KHC stock under the Base Case scenario is 47.38 USD. Compared to the current market price of 36.05 USD, Kraft Heinz Co is Undervalued by 24%.

KHC Stock 12 Month Forecast

Based on 14 Wall Street analysts offering 12 month price targets for Kraft Heinz in the last 3 months. The average price target is $37.50 with a high forecast of $43.00 and a low forecast of $34.00. The average price target represents a 4.63% change from the last price of $35.84.

Aim to make 100% recyclable, reusable or compostable packaging by 2025. Create a fully circular Heinz tomato ketchup bottle in Europe by 2022. New Goal: Aim to reduce our use of virgin plastic globally by 20% by 2030 (versus 2021).

For fiscal 2024, one analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0 to $3.02 per share. KHC boasts an average earnings surprise of 4.7%. With a solid Zacks Rank and top-tier Value and VGM Style Scores, KHC should be on investors' short list.

The Kraft Heinz Company KHC has not been in its best shape lately as it navigates the pressures of a difficult consumer environment and underlying commodity cost inflation. This food and beverage giant has seen its shares slide 10.7% in the past three months.

The consensus among 7 Wall Street analysts covering (NASDAQ: KHC) stock is to Buy KHC stock.

Kraft Heinz Statistics states that in the first quarter of 2024, the Kraft Heinz Company reported net sales of USD 6.4 billion. This decline was influenced by a negative 0.6% point impact from foreign currency and a 0.1% point impact from divestitures.

25. Over the past three months, KHC's shares have declined 11.1%, underperforming Invesco Food & Beverage ETF (PBJ), which fell 5.6% during the same period. In the long term, KHC is down 12.6% on a YTD basis, and the shares have declined 9.1% over the past 52 weeks.

Is Kraft Heinz in debt? ›

Total debt on the balance sheet as of June 2024 : $19.93 B.

KHC boasts an average earnings surprise of 4.7%. KHC should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.

Kraft Heinz

Even Warren Buffett -- who largely orchestrated the deal -- now concedes he misjudged the math that motivated the pairing. The giant food company is neither achieving the cost savings nor the sales leverage it expected from the merger.

Failed Acquisitions and Internal Affairs 🏢

Kraft-Heinz has tried to acquire up-and-coming brands to align with health trends, but these attempts have not been successful. Additionally, the company faced an SEC investigation for accounting misconduct, leading to a $62 million fine.

Kraft Heinz (KHC)

In 2013, Buffett bought the H.J. Heinz Company for $23 billion. Two years later, in 2015, he engineered a merger between Heinz and Kraft Foods to form Kraft Heinz Co. KHC stock began trading at $71 a share.

As of 2024-09-15, the Fair Value of Kraft Heinz Co (KHC) is 39.74 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 35.59 USD, the upside of Kraft Heinz Co is 11.7%.

Examining The Kraft Heinz Co's Dividend Yield and Growth

The Kraft Heinz Co currently boasts a 12-month trailing dividend yield of 4.60% and a 12-month forward dividend yield of 4.60%, indicating an expectation of same dividend payments over the next 12 months.

Kraft Heinz has impressed us by growing EPS at 61% per year over the past five years. While EPS is growing rapidly, Kraft Heinz paid out a very high 102% of its income as dividends. If earnings continue to grow, this dividend may be sustainable, but we think a payout this high definitely bears watching.