Kraft Heinz (KHC) Stock Forecast & Price Target

Kraft Heinz has implemented substantial promotional investments totaling approximately $300 million in 2025 year-to-date, alongside an additional $80 million in marketing expenses, indicating a strong commitment to revitalizing its brand and driving growth after previous under-investments. The anticipated split of its global sauces arm from the North American grocery segment is expected to enhance focus and operational efficiency, potentially leading to improved brand equity and market share. Despite projected challenges in organic sales growth and EPS performance from 2025 to 2027, the strategic moves suggest a positive long-term outlook as the company seeks to leverage its expansive global distribution network and diverse product portfolio to capitalize on market opportunities.

Kraft Heinz's financial outlook has been negatively impacted by a significant decline in U.S. retail sales, with reported declines of -3.6% in 4Q25 to date, compounded by a 4.6 percentage point drag on organic sales growth in Emerging Markets primarily due to weak consumer sentiment in Indonesia. The company's dependence on its Global Growth segment, which constitutes approximately 60% of total sales, poses additional risks, particularly with the sluggish performance of the ABC brand in Indonesia and broader challenges affecting consumption in that region. Furthermore, the recent underperformance of Kraft Heinz shares has been attributed to diminished support from Berkshire Hathaway, its largest shareholder, which could further affect investor confidence and future growth prospects.