Companies /Consumer Defensive

Kraft Heinz Company

NASDAQ: KHC Packaged Foods
$25.13
â–² $0.34 (+1.37%) today
Markets closed · 4:22am ET

Q2 2025 Earnings

Reported Jul 30, 2025, 7:02am ET · SEC source
$0.69
Beat +8.42%
EPS · est. $0.64
$6.4B
Beat +1.33%
Revenue · est. $6.3B
−3.5%
Trailing market
KHC vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−4%−2%0Jul 30Jul 31report 7:02am ETearnings+0.2%−3.8%
−4%−2%0Jul 30Jul 31earnings+0.2%−3.8%
KHC −3.8%S&P 500 +0.2%
−4%−2%0Jul 30Jul 31report 7:02am ETearnings+0.2%−3.8%
−4%−2%0Jul 30Jul 31earnings+0.2%−3.8%
KHC −3.8%NASDAQ +0.2%
−6%−3%0Jul 29Aug 7report 7:02am ETearnings+0.0%−4.9%
−6%−3%0Jul 29Aug 7earnings+0.0%−4.9%
KHC −4.9%S&P 500 +0.0%
−6%−3%0Jul 29Aug 7report 7:02am ETearnings+0.5%−4.9%
−6%−3%0Jul 29Aug 7earnings+0.5%−4.9%
KHC −4.9%NASDAQ +0.5%
−0.25%
Day of report
−3.62%
Next session
−4.32%
One week
−1.83%
30 days

S&P 500 over the same 30 days: +1.67%.

Did KHC Beat Earnings? Q2 2025 Results

Kraft Heinz posted a stronger-than-expected second quarter on an adjusted basis, with earnings per share of $0.69 beating the $0.64 consensus estimate by 8.42%, even as the food giant continued to grapple with volume erosion and surging commodity costs. Revenue of $6.35 billion edged past the $6.27 billion consensus by 1.33%, though it still fell 1.9% year-over-year, with organic sales dragged lower by weakness in cold cuts, coffee, Lunchables, and frozen snacks. The headline GAAP results were far grimmer, as a $9.27 billion non-cash impairment charge tied to the company's declining market capitalization swung GAAP operating income to a loss of $7.97 billion. On the adjusted operating line, margins continued to compress as commodity inflation offset efficiency gains. Looking ahead, Kraft Heinz reaffirmed its full-year adjusted EPS guidance of $2.51 to $2.67, while the company also confirmed it is actively evaluating a potential split into two separate business units, a move framed as a path to unlocking long-term shareholder value.

Key Takeaways
  • Volume/mix declined 2.7 pp driven by declines in cold cuts, coffee, Lunchables, frozen snacks, and powdered beverages
  • Pricing increased 0.7 pp driven by higher pricing in certain categories to mitigate higher input costs, primarily in coffee
  • Increased commodity cost inflation more than offset efficiency initiatives
  • Emerging Markets delivered 7.6% organic net sales growth with volume/mix growth of 2.4 pp
  • Working capital improvements and lower variable compensation outflows drove operating cash flow growth

“We are proud to play a vital role in families' lives, and our commitment to delivering superior, affordable, and accessible products is unwavering. Our second quarter top line results reflect this dedication, improving from the first quarter.”

Kraft Heinz CEO, on the earnings call

Forward Guidance & Outlook

For fiscal year 2025, Kraft Heinz reaffirmed its outlook: Organic Net Sales down 1.5% to 3.5% YoY; Constant Currency Adjusted Operating Income down 5% to 10% YoY (including ~150 bps headwind from lapping lower variable compensation in 2024); Adjusted Gross Profit Margin now expected at the lower end of down 25 to 75 bps YoY; Adjusted EPS in the range of $2.51 to $2.67 (with effective tax rate of ~26%, interest expense of ~$960 million, and other income of ~$230 million); and Free Cash Flow flat YoY with Free Cash Flow Conversion of at least 95%.

KHC YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$2.0B$4.0B$6.0B$6.5B$6.4BRevenue$2.3B$2.2BGross Profit
$0$2.0B$4.0B$6.0BRevenueGross Profit

KHC Revenue by Segment

North America$4.8B−3.3%
International Developed Markets$897.0M+1.3%
Emerging Markets$698.0M+4.2%

KHC Revenue by Geography

North America$4.8B−3.3%
International Developed Markets
Emerging Markets

Figures from SEC filings and company reports. Not investment advice.