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Kraft Heinz Co

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Kraft Heinz Co
KHC Food Products
$22.61 ▲ +0.62%
+$0.14 today · as of 06 Jun 2026
50 S.I.F.T
S.I.F.T.™ Analysis
Red
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Caution – significant pillar weakness detected.
Last updated: 06 Jun 2026 · Confidence: 55%
Pillar Breakdown
🛡 Safety 35
Balance sheet or moat concerns are weighing on the score.
💰 Income 43
High cyclicality and lack of recurring revenue are limiting stability.
📊 Fundamentals 35
Strong growth but valuation is elevated.
⏱ Time 85
Shorter track record or weaker tailwinds.
🧠 Munger Reality Filter AVOID

Weak moat; established brands offset by high leverage and poor fundamentals in a competitive sector.

Strengths: Strong time_in_market score of 85 reflecting longevity, High dividend yield near 7%, Large market cap in stable food products sector
Risks: Extremely high debt_to_cfo ratio of 39.76 indicating heavy leverage, Very low safety (35) and fundamentals (35) pillar scores, Zero warchest with no cash reserves for downturns
📈 Price History

Business Overview

Key Metrics
ROE (10yr)
1.0%
Debt / CFO
N/A
Div. Yield
0.00%
FCF Growth
0.0%

FAQ

Financial Details

Recent Quarters
Quarter Revenue Gross Profit EPS
No quarterly data available.
Segment Breakdown
Data Center 56%
Client 28%
Gaming 9%
Embedded 7%

Management

Leadership Summary
  • Strong emphasis on zero-based budgeting and operational efficiency inherited from 3G Capital influence.
  • Focus on portfolio simplification through divestitures of non-core brands to improve margins.
  • Leadership has prioritized digital transformation and e-commerce growth amid shifting consumer habits.
  • Continued alignment with Berkshire Hathaway's long-term value creation philosophy.
Track Record

Since the 2015 merger, management has delivered mixed results with initial cost synergies but faced challenges including goodwill impairments, declining organic growth, and multiple CEO transitions. Recent years show margin recovery through pricing and productivity initiatives.

Recent Commentary

“In the latest earnings call, leadership highlighted resilient demand for core products and ongoing investments in marketing, while acknowledging inflationary pressures on commodities.”

Analyst Reviews & Risks

Wall Street Consensus
4.6
out of 5 (Strong Buy)
Average Target: $485.00
Key Investment Risks
  • Extremely high debt_to_cfo ratio of 39.76 indicating heavy leverage
  • Very low safety (35) and fundamentals (35) pillar scores
  • Zero warchest with no cash reserves for downturns
Ownership & Sentiment

Institutional Ownership: N/A%

Short Interest: N/A%

AI Investment Thesis
  • Iconic brand portfolio with strong consumer loyalty in condiments, cheese, and meals providing pricing power.
  • Defensive business model with consistent demand for essential packaged food products across economic cycles.
  • Attractive dividend yield supported by stable free cash flow generation and mature market position.
  • Opportunities for margin expansion through supply chain efficiencies, zero-based budgeting, and digital initiatives.
  • Potential for portfolio optimization via divestitures or targeted M&A to focus on high-growth categories.
Key Catalysts & Risks
Catalysts
  • Accelerated cost savings from ongoing restructuring and procurement initiatives.
  • Post-pandemic recovery in foodservice and away-from-home channels.
  • Successful launch of health-conscious and premium product innovations driving volume growth.
Risks
  • Intense competition from private-label brands and shifting consumer preferences toward fresh/organic options.
  • Commodity inflation and supply chain disruptions pressuring gross margins.
  • High leverage from the original merger limiting strategic flexibility and increasing interest rate sensitivity.
Peer Comparison
Company P/E Rev Growth Gross Margin ROE Debt/Equity
NVDA N/A N/A% N/A% 61.51% 0.51
INTC N/A N/A% N/A% -1.64% 8.05
AVGO N/A N/A% N/A% 14.7% 3.03
AMD N/A N/A% N/A% 8.08% 999
  • ...

    Investors

     0

  • Ticker

     KHC
  • ...

    Sector

     Food Products

  • Current Price

     $22.61

  • S.I.F.T. Score

     50
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