Emerging Markets And E-Commerce Will Fuel Future Upside

Analyst price targets for Kraft Heinz remain unchanged at $29.82 as the planned split into two public companies raises uncertainty around long-term growth, value creation, and weak fundamentals, keeping valuations subdued.

Analyst Commentary

• Announcement of Kraft Heinz's planned split into two publicly traded companies has raised investor uncertainty regarding potential value creation versus value destruction, with debate fueled by Berkshire Hathaway’s public disappointment and lack of a shareholder vote.
• Bearish analysts cite continued soft fundamentals, with persistent volume declines, market share losses across top categories, and long-term structural growth concerns, particularly in North America retail.
• Ongoing headwinds for center-store food companies, including rising cost pressures, weak consumer volume trends, competition from private label and smaller brands, and a requirement for several quarters of improved execution to regain investor confidence.
• Bullish analysts recognize that the corporate split may strengthen the stock’s support level and present sum-of-the-parts value creation potential, though near-term upside is seen as limited due to unresolved growth questions.
• Analyst valuation models have shifted lower to reflect Kraft Heinz now trading below long-term average price-to-earnings multiples and remaining toward peer group averages amid persistent uncertainty over earnings recovery and future investment needs.

What's in the News

• Kraft Heinz is nearing a major corporate break-up, with an announcement on the spin-off of a large portion of its grocery business expected as soon as next week (WSJ, 2025-08-29).
• The potential split may separate Kraft Heinz’s grocery and sauce units, effectively reversing much of the 2015 merger between Kraft and Heinz orchestrated by Berkshire Hathaway and 3G Capital (WSJ, 2025-08-29).
• Food industry scrutiny is rising in the U.S. due to claims from the MAHA movement that highly processed foods, additives, and pesticides are driving chronic illness; Kraft Heinz, among other major food companies, is under the spotlight (WSJ, 2025-06-20).
• Agricultural and chemical industry leaders defend the use of pesticides and additives as vital for food production, amidst growing regulatory and public scrutiny affecting companies like Kraft Heinz (WSJ, 2025-06-20).
• Kraft Heinz plans to eliminate artificial dyes from all U.S. products by 2027, aligning with new regulatory pressure to remove synthetic dyes, and will reformulate or discontinue affected brands such as Jell-O, Kool-Aid, and Crystal Light (WSJ, 2025-06-17).

Valuation Changes

Summary of Valuation Changes for Kraft Heinz

• The Consensus Analyst Price Target remained effectively unchanged, at $29.82.
• The Consensus Revenue Growth forecasts for Kraft Heinz remained effectively unchanged, at 1.0% per annum.
• The Net Profit Margin for Kraft Heinz remained effectively unchanged, at 13.14%.