Update shared on 27 Nov 2025
Fair value Decreased 0.19%Kraft Heinz's analyst price target has been revised downward by $0.05 to $27.08. This reflects a cautious analyst outlook amid ongoing concerns about industry headwinds, soft fundamentals, and uncertainty following the company's planned split.
Analyst Commentary
Recent analyst updates following Kraft Heinz's earnings report and announced company split reflect a mix of cautious sentiment and guarded optimism. While the consensus leans toward concern about headwinds and execution risks, some analysts see potential longer-term stabilization.
Bullish Takeaways
- Bullish analysts highlight that the planned corporate split could strengthen the floor for Kraft Heinz shares, potentially limiting downside even amid uncertainty.
- There is recognition that the company’s recent restructuring plans are well-communicated, which suggests management is proactive in addressing challenges.
- Some see the creation of two independent companies as a possible long-term catalyst if clear value-unlocking strategies emerge after the split.
Bearish Takeaways
- Bearish analysts remain cautious due to ongoing soft fundamentals, with several pointing to deteriorating industry conditions and higher investment spending anticipated in the coming years.
- There is concern about shareholder responses, especially since key investors, such as Berkshire Hathaway, have expressed disappointment and will not have a vote on the split.
- Valuation remains pressured as analysts lower earnings forecasts and price targets in light of muted expectations for near-term growth.
- Uncertainty surrounding the company’s ability to execute a successful split and drive sustainable growth continues to weigh on sentiment.
What's in the News
- Kraft Heinz break-up announcement could come as early as next week. This marks a significant strategic shift for the company and could potentially undo the 2015 merger of Kraft and Heinz, according to the Wall Street Journal.
- The USDA will use contingency funds for partial November SNAP payments. This decision impacts many Kraft Heinz customers as well as the wider food industry, as reported by Reuters.
- Kraft Mac & Cheese is launching a major new campaign, Best Thing Ever, which features comedian John Mulaney and introduces attention-grabbing initiatives such as Mac Friday boxes at Walmart.
- HEINZ is debuting its first-ever squeezable Homestyle Turkey Gravy bottle for Thanksgiving leftovers in response to popular trends around holiday meal customization.
- Kraft Mac & Cheese is releasing a limited-time Apple Pie flavor and partnering with actor Jason Biggs to celebrate daring flavor combinations for the holiday season.
Valuation Changes
- Consensus Analyst Price Target: Decreased marginally from $27.13 to $27.08, reflecting a cautious market outlook.
- Discount Rate: Remained essentially flat, ticking down slightly from 6.96% to 6.96%.
- Revenue Growth: Dropped from 0.47% to 0.46%, indicating lower expected top-line expansion.
- Net Profit Margin: Edged down from 12.77% to 12.74%, suggesting tighter profitability forecasts.
- Future P/E: Increased from 11.30x to 11.73x, which points to higher valuation expectations compared to forward earnings.
Disclaimer
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