The Kraft Heinz Company (KHC)

FairStock Score: 69/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable brands at a sensible price. Kraft Heinz owns condiments, sauces, cheese, and frozen foods, the kind of everyday products that can have a moat, though private label and changing tastes erode it. The filed numbers show why FairStock's Lynch category is TURNAROUND: loss in the latest year after earlier profits. In fiscal Q2 2026, the quarter ended 2026-06-27, revenue was $6.3B and net income was $-5.5B, or diluted EPS $-4.60. Fiscal Q1 2026, ended 2026-03-28, earned $798.0M, or $0.67 per diluted share, so results are wildly uneven. Full-year fiscal 2025, ended 2025-12-27, produced revenue of $24.9B and a net loss of $5.8B, or diluted EPS $-4.93, after fiscal 2024 net income of $2.7B. Revenue has slipped from $26.6B in fiscal 2023 to $24.9B in fiscal 2025. At the 2026-10-13 close of $22.43, FairStock shows P/B 0.74, a negative P/E, ROE -8.76%, ROCE 3.63%, and an Altman Z-Score of 0.39, cheap-looking but financially stressed. The offset is cash: trailing free cash flow is $3.8B, a 14.3% FCF yield, and the dividend yield is 6.55%. Graham would demand a margin of safety; Buffett would ask whether the brands can earn decent returns again. I see a low-expectations asset with real cash generation but weak profitability and a damaged balance-sheet score. The next quarters must show whether the loss is an anomaly or a permanent impairment of earning power.

In plain English: Kraft Heinz makes everyday food and drink products like sauces, cheese, and frozen meals. The business has been weak lately, with falling sales and large losses in some recent periods, though it still produces a lot of cash. At the current price, the stock looks cheap compared with its cash and accounting value, but the weak profits make it a risky, uncertain situation.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-27) · fiscal Q1 2026 10-Q (period ended 2026-03-28) · fiscal Q3 2025 10-Q (period ended 2025-09-27) · fiscal Q2 2025 10-Q (period ended 2025-06-28) · FY2025 10-K (period ended 2025-12-27) · FY2024 10-K (period ended 2024-12-28) · FY2023 10-K (period ended 2023-12-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer