Kraft Heinz (KHC) Stock Forecast & Price Target

Kraft Heinz has undertaken significant promotional investments of approximately $300 million in 2025 year-to-date, along with an additional $80 million in marketing spend, aimed at revitalizing its brand equity after years of under-investment. Despite anticipated challenges in organic sales growth and EPS CAGR from 2025 to 2027, the company's global reach, with nearly 25% of consolidated sales generated outside of North America, bolsters its long-term potential. The planned separation of its global sauces arm from the North American grocery segment is expected to enhance focus and operational efficiency, thereby potentially driving better brand momentum and volume growth in the future.

Kraft Heinz has experienced substantial challenges, evidenced by a -3.6% decline in US measured retail sales and a significant -4.6 percentage point drag on organic sales in emerging markets, primarily due to weakening consumer sentiment in Indonesia. This adverse performance is concerning, particularly given that the emerging markets contribute nearly 25% to the company's consolidated sales and include a sizeable presence in Indonesia with its ABC brand. Additionally, the dependence on retail, which accounts for around 85% of total sales, alongside the lack of strong support from major shareholder Berkshire Hathaway, raises further uncertainties about Kraft Heinz's growth trajectory and overall market position, leading analysts to adjust target prices downwards based on weaker momentum.