A Fresh Look at Kraft Heinz (KHC) Valuation as Company Plans 2026 Split

Kraft Heinz (KHC) is making headlines after announcing plans to split into two independent companies in 2026. This decision comes after a period of weak consumer demand and declining operating margins.

See our latest analysis for Kraft Heinz.

News of the planned split arrives after Kraft Heinz shares touched a new 52-week low, which highlights how weak consumer demand and skepticism from large shareholders have weighed on sentiment. The 1-year total shareholder return sits at -25.68%, reflecting both business pressures and a fading momentum story for now.

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But after months of pressured stock performance and a bold new strategy, is Kraft Heinz now trading at a discount to its true value? Or has the market already accounted for every potential turnaround?

Most Popular Narrative: 13.8% Undervalued

Kraft Heinz's current share price sits below the narrative fair value, suggesting a potential valuation opportunity linked to future growth drivers and strategic initiatives. The market discount indicates that investors are either skeptical or waiting for clear evidence of a turnaround.

"Sustained investment in emerging markets, where both volume and margins are expanding at a double-digit rate, positions Kraft Heinz to capitalize on the rapid rise of the global middle class and urbanization, driving top line revenue growth and long-term earnings potential."

Read the complete narrative.

What drives this surprisingly high estimate? Imagine a scenario marked by a dramatic shift from deep losses to genuine profits and a margin improvement that could reset investor expectations. Learn about the full formula behind this optimistic valuation assessment.

Result: Fair Value of $29.24 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing questions about Kraft Heinz’s brand strength and uncertainty around the pending split could still challenge any turnaround story in the near term.

Find out about the key risks to this Kraft Heinz narrative.

Build Your Own Kraft Heinz Narrative

If you find yourself seeing things differently or would rather dive into the details your own way, you can build a personalized Kraft Heinz narrative in just a few minutes, and Do it your way.

A great starting point for your Kraft Heinz research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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