Core Viewpoint - It is challenging to build a bullish case for Kraft Heinz (NASDAQ: KHC) at this time due to weak fundamentals despite the stock appearing cheap and closing at its lowest level in nearly five years [1]. Group 1: Company Performance - Kraft Heinz's market share, sales volumes, and profits are all declining, indicating underlying weaknesses in the company's performance [1].

Financial Performance - The Kraft Heinz Company expects net sales of approximately $26 billion for 2024[14]. - Net sales decreased 3.0% to $25.8 billion in 2024 compared to $26.6 billion in 2023, impacted by unfavorable foreign currency and acquisitions[176]. - Operating income decreased 63.2% to $1.7 billion in 2024, primarily due to non-cash impairment losses that were $3.0 billion higher than the previous year[179]. - Net income decreased 3.5% to $2.7 billion in 2024, influenced by unfavorable changes in operating income factors[180]. - Adjusted Operating Income increased 1.2% to $5.4 billion in 2024, driven by higher pricing and lower procurement costs[181]. - Organic Net Sales decreased 2.1% to $25.9 billion in 2024, primarily due to unfavorable volume/mix[176]. - Total net sales decreased to $25,846 million in 2024 from $26,640 million in 2023, representing a decline of 2.9%[200]. - Organic Net Sales for 2024 were $25,949 million, down from $26,496 million in 2023, reflecting a decrease of 2.1%[201]. - North America net sales decreased by 2.9% to $19,543 million in 2024 compared to $20,126 million in 2023[205]. - Emerging Markets net sales decreased to $2,768 million in 2024 from $2,891 million in 2023, a decline of 4.3%[200]. Market and Competitive Environment - The food and beverage industry remains highly competitive, with pressures on pricing and market share due to private label products and inflation[55][56]. - Consumer preferences are rapidly changing, necessitating continuous innovation and adaptation in product offerings to maintain market share[59]. - Retail consolidation is increasing purchasing power among larger customers, which may demand lower pricing and improved efficiency, adversely affecting the company's financial performance[64]. - The company must compete against private label products, which may affect market share and sales volume if consumers shift preferences[74]. Operational Structure and Strategy - Kraft Heinz operates through four segments: North America, International Developed Markets, West and East Emerging Markets, and Asia Emerging Markets[17][18]. - The company has restructured its product portfolio into eight consumer-driven platforms, with "Taste Elevation" accounting for 44% of consolidated net sales in 2024[29][32]. - The company divided its International segment into three operating segments to enhance focus on regional strategies as part of its long-term plan[165]. - The company has implemented initiatives to reduce costs and improve competitiveness, but future success depends on realizing the benefits of these initiatives[92]. Risks and Challenges - The company faces risks from economic conditions, geopolitical conflicts, and public perceptions that could adversely affect product sales and financial performance[60][62]. - The company faces risks from disputes with significant suppliers, which could affect product supply and sales[69]. - Climate change and regulatory responses may increase operating costs and impact demand for products[79]. - The company faces potential disruptions from natural disasters, geopolitical conflicts, and labor shortages, which could adversely affect product delivery and operational results[119]. - The company is exposed to volatility in commodity prices, which could materially and adversely affect its financial condition and operating results[105]. - The company faces heightened risks of legal claims and regulatory enforcement actions, which could adversely impact profitability and financial condition[110]. Employee and Corporate Culture - Kraft Heinz had approximately 36,000 employees globally as of December 28, 2024[41]. - Employee engagement reached an all-time high since the 2015 Merger, achieving top-quartile ranking on the Inclusion Index[43]. - The company emphasizes a culture of ownership and continuous learning, aiming to unlock employee potential through programs like Ownerversity[48]. - Total Rewards philosophy includes a flexible spectrum of compensation and benefits designed to support workforce equity and promote high-performance culture[49]. Financial Health and Debt - The company has a substantial amount of indebtedness, which could adversely affect its financial condition and ability to fund operations[94]. - The company’s long-term debt is rated BBB by S&P Global Ratings and Fitch Ratings, and Baa2 by Moody's, with a stable outlook from all three agencies[112]. - The company reported goodwill impairment losses of $1.6 billion and intangible asset impairment losses of $2.0 billion in 2024, compared to $510 million and $152 million respectively in 2023[167]. Innovation and Product Development - The company’s research and development focuses on product innovation, food safety, and supply chain optimization[26]. - The company's growth relies on the successful development and marketing of innovative new products, with inherent risks in consumer acceptance and potential impacts on existing offerings[63]. International Operations - Approximately 31% of the company's 2024 net sales were generated outside of the United States, indicating significant international exposure[87]. - The company derives a substantial portion of net sales from international markets, exposing net sales and net income to foreign exchange rate fluctuations[102]. - Changes in foreign currency values and economic conditions in international markets could significantly affect the company's profitability[88]. Cybersecurity and IT Risks - Information technology systems are critical for operations, and any severe disruptions or cybersecurity breaches could lead to significant business interruptions and reputational damage[123]. - The company has developed a cybersecurity risk management program to mitigate risks to employees, customers, and stakeholders, focusing on industry-recognized standards[136]. - Cybersecurity policies include identity and access control, network controls, and incident management to safeguard against threats[137].

Core Insights - Kraft Heinz (KHC) shares fell 3.5% intraday as the company reported fourth-quarter sales that missed analysts' estimates and issued disappointing guidance for 2025 [1][4] - Fourth-quarter sales declined 4% year-over-year to $6.58 billion, falling short of Visible Alpha consensus, while adjusted earnings per share (EPS) of 84 cents rose nearly 8% and surpassed forecasts [1][4] - The company attributed weaker sales to "continued shifts in consumer behavior due to economic uncertainty" and a decline in Lunchables-branded foods [2][4] Sales and Financial Performance - Kraft Heinz reported fourth-quarter sales of $6.58 billion, a 4% decline from the previous year [1][4] - Adjusted EPS for the quarter was 84 cents, reflecting an increase of nearly 8% [1] - The company expects 2025 organic sales to be between 2.5% lower and flat, with adjusted EPS projected between $2.63 and $2.74, both missing analysts' estimates [4] Strategic Decisions and Market Response - The company removed Lunchables prepackaged meal kits from schools due to opposition from health advocates, citing that demand did not meet targets, with the business impact deemed "negligible" [3] - CEO Carlos Abrams-Rivera described 2024 as "a challenging year," noting that sales of $25.85 billion were below expectations [3] - Kraft Heinz shares have lost more than a fifth of their value over the past 12 months [4]

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Is Kraft Heinz losing its flavor? Kraft Heinz stock is under pressure and there's no easy way back.Shares of food producer Kraft Heinz (KHC -3.69%) posted a significant price drop on Wednesday morning. A mixed fourth-quarter report left a bad taste in investors' mouths, and the stock opened 7.9% lower. It recovered to a 3.5% price drop as of 11 a.m. ET, but Kraft Heinz's stock is still exploring multiyear lows today.Kraft Heinz's results by the numbersThe company behind popular food brands such as Oscar May ...

The Kraft Heinz Company (KHC) posted fourth-quarter 2024 results, wherein the bottom line grew year over year and surpassed the Zacks Consensus Estimate, while the top line declined and missed the consensus mark. Sales continued to be pressurized by volatile consumer behavior stemming from economic uncertainty.Looking ahead to 2025, the company remains focused on executing its strategic priorities, particularly advancing product innovation, strengthening brand equity through the Brand Growth System, expandi ...

FEBRUARY 12, 2025 February 12, 2025 Q4 2024 BUSINESS UPDATE TO ACCOMPANY MANAGEMENT COMMENTARY FORWARD-LOOKING STATEMENTS This presentation contains a number of forward-looking statements as defined under U.S. federal securities laws, including, but not limited to, statements, estimates, and projections relating to our business and long-term strategy; our ambitions, goals, targets, and commitments; our activities, efforts, initiatives, plans, and programs, and our investments in such activities, efforts, in ...

Kraft Heinz (KHC) came out with quarterly earnings of $0.84 per share, beating the Zacks Consensus Estimate of $0.78 per share. This compares to earnings of $0.78 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.69%. A quarter ago, it was expected that this processed food company with dual headquarters in Pittsburgh and Chicago would post earnings of $0.74 per share when it actually produced earnings of $0.75, delivering a su ...

The Kraft Heinz Company (NASDAQ:KHC) Q4 2024 Earnings Conference Call (Pre-Recorded) February 12, 2025 8:00 AM ET Company Participants Anne-Marie Megela - Global Head, Investor Relations Carlos Abrams-Rivera - Chief Executive Officer Andre Maciel - Executive Vice President & Global Chief Financial Officer Conference Call Participants Anne-Marie Megela Hello. This is Anne-Marie Megela, Head of Global Investor Relations at The Kraft Heinz Company. I'd like to welcome you to our fourth quarter and full year 20 ...

Kraft Heinz delivered earnings that surpassed expectations, despite a dip in revenue.Kraft Heinz (KHC 2.14%), the global food and beverage company behind iconic brands like Kraft, Heinz, and Oscar Mayer, released its fourth-quarter results on February 12, 2025. The company reported adjusted earnings per share (EPS) of $0.84, exceeding the anticipated $0.78, thanks largely to unexpected tax benefits and a reduced number of outstanding shares. However, it faced challenges on the revenue front, with net sales ...