Kraft Heinz (KHC) Stock Forecast & Price Target

Kraft Heinz has announced plans to separate its global sauces arm from its North American grocery segment, a strategic move anticipated to enhance brand focus and drive growth. The company has significantly increased its promotional investments by approximately $300 million in 2025 year-to-date, which, coupled with an additional $80 million in marketing spend, is aimed at revitalizing its brand equity and share momentum after years of under-investment. Despite some challenges, including expectations of stagnant organic sales growth and declining EPS over the next few years, the firm's extensive global distribution network and the diverse brand portfolio—including well-known names like Oscar Mayer and Philadelphia—position it well for potential future recovery and resilience in the market.

Kraft Heinz is experiencing significant challenges, particularly reflected in a -3.6% decline in U.S. measured retail sales for the fourth quarter to date, which highlights weak consumer sentiment and sluggish consumption. The company's emerging markets segment, notably impacted by a 4.6 percentage point drag from Indonesia, accounts for approximately 12% of its emerging market sales, indicating vulnerability in international growth. The assessment suggests a negative outlook due to diminishing momentum, with the lowered price targets reflecting weakened sales trends for both its Global Growth Company and Grocery Company segments, and a notable overhang from Berkshire Hathaway's significant stake in Kraft Heinz.