The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in North America and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products under the Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Maxwell House, Kool-Aid, Jell-O, Heinz, ABC, Master, Quero, Kraft, Golden Circle, Wattie's, Pudliszki, and Plasmon brands. It sells its products through its own sales organizations, as well as through independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience, value, and club stores; pharmacies and drug stores; mass merchants; foodservice distributors; institutions, including hotels, restaurants, bakeries, hospitals, health care facilities, and government agencies; and online through various e-commerce platforms and retailers. The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is based in Pittsburgh, Pennsylvania.

Kraft Heinz’s valuation looks rather restrained than expensive, but the fundamentals still do not provide a reason for a meaningful increase in the target price. On valuation multiples, the company looks inexpensive on P/B and P/FCF, as well as on P/E, however P/S is noticeably above the industry median, which limits the upside from re-rating. The trend in P/B and P/FCF over recent periods has improved, supporting the view of a more reasonable valuation given stable cash flow. At the same time, return on capital and assets, as well as ROE/ROA/ROI and net profit margin, remain at zero in the provided data, which is a serious negative for earnings quality and valuation. Operating margin also does not show any positive contribution, so the market is unlikely to pay a premium for efficiency. On the other hand, gross margin of around 33% looks sustainable and close to the industry norm, while gross profit and EBITDA remain at meaningful levels. Revenue and net income remain positive, but without convincing acceleration, and annual net income is noticeably weaker than the peak levels of the previous period. The debt burden looks moderate: debt/equity is around the median, debt is declining, and equity remains large and is growing relative to liabilities, which reduces financial risk. Liquidity, however, is not ideal: the current ratio and quick ratio are below industry benchmarks, so the working-capital cushion is limited. A dividend yield of around 1.6% supports the investment case, but it is not high enough to fully offset the weak operating return on capital. Overall, this is the profile of a mature defensive business with a reasonable valuation on cash flow and balance sheet grounds, but with insufficient profitability to justify a more aggressive increase in the target price. For an investor, this implies a moderately cautious view: the fundamentals more likely confirm the current conservative valuation than require a meaningful upward revision.

The Kraft Heinz Company

Сильный индекс, незначительно упал. Быки в растерянности.

Strong index, slightly down. The bulls are confused.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Слабый индекс, незначительно вырос

An inexpensive company by P/B and P/FCF with a stable margin and dividends, but weak return on equity and limited liquidity.

The NASDAQ 100 After Hours Indicator is down -2.61 to 29,365.83. The total After hours volume is currently 158,788,347 shares traded.
The following are the most active stocks for the after hours session:
The Kraft Heinz Company (KHC) is +0.1383 at $24.74, with 40,545,978 shares traded. KHC's current last sale is 103.08% of the target price of $24.
iShares MSCI ACWI ex U.S. ETF (ACWX) is unchanged at $77.25, with 5,214,918 shares traded. This represents a 20.95% increase from its 52 Week Low.
UiPath, Inc. (PATH) is +0.01 at $13.76, with 4,490,513 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Oct 2026. The consensus EPS forecast is $0.1. PATH's current last sale is 80.94% of the target price of $17.
Direxion Daily TSLA Bull 2X ETF (TSLL) is -0.021 at $9.69, with 4,489,472 shares traded. This represents a 44.72% increase from its 52 Week Low.
Grab Holdings Limited (GRAB) is -0.0005 at $3.05, with 4,023,594 shares traded. As reported in the last short interest update the days to cover for GRAB is 8.284295; this calculation is based on the average trading volume of the stock.
Ford Motor Company (F) is -0.0085 at $13.96, with 3,286,341 shares traded. F's current last sale is 93.08% of the target price of $15.
Legend Biotech Corporation (LEGN) is +0.0469 at $18.69, with 2,576,628 shares traded. As reported in the last short interest update the days to cover for LEGN is 9.032541; this calculation is based on the average trading volume of the stock.
Apple Inc. (AAPL) is +0.1866 at $332.46, with 2,523,920 shares traded. AAPL's current last sale is 99.24% of the target price of $335.
XPeng Inc. (XPEV) is +0.0071 at $10.55, with 2,270,861 shares traded. As reported by Zacks, the current mean recommendation for XPEV is in the "buy range".
Kenvue Inc. (KVUE) is -0.02 at $17.76, with 2,229,975 shares traded. KVUE's current last sale is 93.47% of the target price of $19.
AT&T Inc. (T) is unchanged at $26.06, with 1,870,329 shares traded. As reported by Zacks, the current mean recommendation for T is in the "buy range".
BitMine Immersion Technologies, Inc. (BMNR) is +0.0969 at $25.13, with 1,491,969 shares traded. As reported by Zacks, the current mean recommendation for BMNR is in the "buy range".

After Hours Most Active for Sep 11, 2026 : KHC, ACWX, PATH, TSLL, GRAB, F, LEGN, AAPL, XPEV, KVUE, T, BMNR

Key Points
Altria found a new profit source by using tobacco exports to unlock tax savings.
Kraft Heinz is betting Disney can help rebuild relevance for its aging food brands.
Both yields beat Treasuries, but remember, investors are accepting real business risks for that extra income.
The 30-year Treasury bond pays about 5.24% right now, which is a genuinely difficult number for dividend stocks to beat. It is also the highest that benchmark has been in years, well above its 10-year yield average of 4.74%, and it comes with a guarantee from the U.S. government that no company can match. Recently, the U.S. Treasury announced a larger-than-expected $6 billion buyback of longer-dated Treasuries, while Secretary Scott Bessent challenged this week's investors to bet against his yen strategy.
So when a consumer goods stock offers more, the honest question is not "Why is the yield so high?" but "What is the market afraid of, and is that fear correct?" Two consumer names clear the bar today. Each one is priced for something to go wrong. My read is that in two of the three cases, the market has the direction right and the magnitude wrong.
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1. Altria pays 6.4% and just found money in the tax code
Altria Group (NYSE: MO) raised its quarterly dividend 4.7% to $1.11 a share in late August, marking the 61st increase in 57 years and putting the yield at about 6.4%. What interests me more than the raise is what came three days earlier. Philip Morris USA, an Altria operating company, entered a contract manufacturing arrangement with non-U.S. affiliates of Philip Morris International Inc., with first shipments expected in early 2027.
Reuters reporter Emma Rumney explained the mechanism as a rebate called the "double duty drawback" that lets U.S. tobacco companies that export products claw back federal excise taxes already paid on domestic sales. Altria makes Marlboro in the United States and sells it nowhere else, so building an export channel is a way to unlock a money source it previously could not touch.
That is a real, structural profit source that has nothing to do with selling more cigarettes to Americans, which matters because Americans keep buying fewer of them. The risk is unresolved: Njoy Ace, Altria's vaping product, has been off shelves since April 2025 after a patent ruling, and management still has not announced when it might return. A federal judge also rejected Altria's constitutional challenge to the trade commission's authority in early September. Buy this for the cash potential, not the transition.
2. Kraft Heinz yields 6.4% and rented Disney's imagination
The Kraft Heinz Company (NASDAQ: KHC) declared its regular $0.40 quarterly dividend in August, good for roughly 6.4%. The payout has been flat for years, and the payout ratio looks alarming on paper because of writedowns, so nobody should mistake this for a growth dividend.
What changed my thinking was July's multiyear alliance with The Walt Disney Company, putting 10 Kraft Heinz brands into Disney parks, cruise ships, studios, and streaming. Kraft Heinz chief executive Steve Cahillane, who took over in January, paused the planned company split and redirected roughly $700 million into brands instead.
Here is my actual stance. Shelf space is a shrinking asset for legacy food brands.Walk into many grocery stores, and you see condiments being rebranded as the store's own brand. Building condiment stations in a massive customer park is Kraft Heinz buying cultural relevance it can no longer generate on its own. This seems to me to be a safe bet on consistent volume for consistent product sales.
Both these companies are built around consistency and solid day-to-day products, and that matters when you're looking for income. But bonds offer consistency, too, so at these yields, the choice comes down to whether you want the certainty of Treasuries or the higher potential return of owning these companies.
Should you buy stock in Kraft Heinz right now?
Before you buy stock in Kraft Heinz, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kraft Heinz wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walt Disney. The Motley Fool recommends Kraft Heinz and Philip Morris International. The Motley Fool has a disclosure policy.

2 Dividend Stocks to Buy Now With Higher Yields Than the 30-Year U.S. Treasury Bond

Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Kraft Heinz Co (Symbol: KHC), where a total volume of 88,181 contracts has been traded thus far today, a contract volume which is representative of approximately 8.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 59.2% of KHC's average daily trading volume over the past month, of 14.9 million shares. Especially high volume was seen for the $26 strike call option expiring September 11, 2026, with 21,247 contracts trading so far today, representing approximately 2.1 million underlying shares of KHC. Below is a chart showing KHC's trailing twelve month trading history, with the $26 strike highlighted in orange:
Devon Energy Corp. (Symbol: DVN) saw options trading volume of 59,769 contracts, representing approximately 6.0 million underlying shares or approximately 58.5% of DVN's average daily trading volume over the past month, of 10.2 million shares. Particularly high volume was seen for the $47.50 strike call option expiring September 18, 2026, with 31,330 contracts trading so far today, representing approximately 3.1 million underlying shares of DVN. Below is a chart showing DVN's trailing twelve month trading history, with the $47.50 strike highlighted in orange:
And Eli Lilly (Symbol: LLY) options are showing a volume of 14,789 contracts thus far today. That number of contracts represents approximately 1.5 million underlying shares, working out to a sizeable 58.3% of LLY's average daily trading volume over the past month, of 2.5 million shares. Particularly high volume was seen for the $1150 strike call option expiring September 04, 2026, with 409 contracts trading so far today, representing approximately 40,900 underlying shares of LLY. Below is a chart showing LLY's trailing twelve month trading history, with the $1150 strike highlighted in orange:
For the various different available expirations for KHC options, DVN options, or LLY options, visit StockOptionsChannel.com.
Further KHC Research:

Notable Friday Option Activity: KHC, DVN, LLY

Management is investing in the business to reinvigorate growth.
*Stock prices used were the afternoon prices of Aug. 31, 2026. The video was published on Sept. 2, 2026.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Should you buy stock in Kraft Heinz right now?
Before you buy stock in Kraft Heinz, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kraft Heinz wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $446,157!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,377,357!*
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*Stock Advisor returns as of September 3, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Kraft Heinz. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Kraft Heinz Market Share Losses are Improving: Time to Buy This Dividend Stock?

The Kraft Heinz Company KHC is sharpening its innovation focus as it works toward its goal of returning to volume-led, sustainable and profitable growth. The strategy emphasizes fewer, bigger innovations centered on consumer-driven platforms such as convenience, new occasions and nutrition, supported by increased R&D investment.
The need for stronger volumes remains evident. Organic sales declined 1.3% in the second quarter of 2026, as a 1.3-percentage-point contribution from price was more than offset by a 2.6-percentage-point decline in volume/mix.
Kraft Heinz increased R&D spending 22% year over year in the first half, supporting innovation, renovation and productivity. One notable launch is Kraft Mac & Cheese PowerMac, which has reached more than 35,000 stores nationwide. Early velocities are in the top quartile, while initial sales have been highly incremental to both the existing business and the overall category.
Capri Sun Hydrate also showed early traction after reaching major retailers in the second quarter. The product became the fastest-turning innovation in kids' single-serve beverages, with top flavors driving incrementality. Meanwhile, Philadelphia lactose-free cream cheese has started shipping. Customer sell-in has been strong, distribution is expected to ramp up as retailer resets progress, and sales are anticipated to be highly incremental to the base business.
The innovation pipeline is showing early signs of incremental sales and healthy product velocities. However, with total volume/mix still down 2.6 percentage points, these gains have not yet translated into companywide volume growth. The next phase rests on scaling this early traction across a broader portion of the business.
KHC Stock Price Performance, Valuation & Estimates
Shares of the Zacks Rank #3 (Hold) company have dipped 3.9% over the past year compared with the industry’s decline of 16.5%.
KHC Price Performance Versus Industry
From a valuation standpoint, KHC trades at a forward price-to-earnings ratio of 12.25, lower than the industry’s average of 15.14.
KHC Valuation Compared to Industry
The Zacks Consensus Estimate for KHC’s current fiscal year earnings per share (EPS) suggests a decline of 20.8% from the year-ago period figure, while the consensus mark for the next fiscal year EPS implies 3.9% year-over-year growth.
Better-Ranked Stocks to Consider
The Chefs' Warehouse, Inc. CHEF is a distributor of specialty food and center-of-the-plate products across the United States, Canada and the Middle East. CHEF currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings per share (EPS) implies growth of 10.6% and 33.7%, respectively, from the year-ago figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
The Vita Coco Company, Inc. COCO, a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.
The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and EPS calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.
Darling Ingredients Inc. DAR, a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients, currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Darling’s current fiscal-year sales suggests an 11.5% jump from the prior-year levels. The consensus estimate for current fiscal-year EPS stands at $6.98, which implies a substantial improvement from the year-ago period. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.
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Can Kraft Heinz's Innovation Pipeline Revive Volume-Led Sales Growth?

The Kraft Heinz Company KHC topped second-quarter earnings and sales expectations while raising its 2026 organic sales outlook. The results give investors some evidence that execution is improving as brand investment and international growth begin to show traction.
The recovery is still incomplete. North American volumes remain weak, full-year margins are expected to contract and adjusted operating income is projected to decline sharply, keeping the focus on whether better demand trends can become sustainable.
KHC's Q2 Beat Came With Softer Organic Sales
Kraft Heinz reported adjusted earnings of 56 cents per share, above the Zacks Consensus Estimate of 53 cents. Net sales of $6.262 billion also surpassed the consensus mark of $6.162 billion.
The beat did not erase the underlying pressure. Adjusted earnings fell 18.8% year over year, while organic net sales declined 1.3% as a 2.6-point drop in volume/mix more than offset 1.3 points of pricing.
Kraft Heinz Raised Its 2026 Sales Outlook
Management now expects fiscal 2026 organic net sales to decline 0.5% to 2%, compared with its prior forecast for a 1.5% to 3.5% decline. The updated range still includes an approximately 100-basis-point impact from incremental SNAP headwinds.
Demand trends have improved from earlier in the year. Management said consumption declined about 2.5% in the second quarter but improved to roughly 1% in July, with sequential improvement expected in the third and fourth quarters.
KHC's North America Volumes Remain the Pressure Point
North America organic net sales fell 2.7% in the second quarter. A 3.8-point decline in volume/mix overwhelmed a 1.1-point pricing contribution, with softness in U.S. meats remaining a key drag.
The pressure is not unique to Kraft Heinz. The Campbell's Company CPB reported a 4% decline in both reported and organic net sales in its fiscal third quarter of 2026, while adjusted earnings per share fell 32%.
Emerging Markets Offset Part of Kraft Heinz's Weakness
Emerging Markets net sales increased 10.4% and organic net sales rose 8.5% in the second quarter. Pricing contributed 4.5 points and volume/mix added 4 points, giving Kraft Heinz growth from both price and demand.
Management expects Emerging Markets growth to accelerate in the second half as an Indonesia-related drag is lapped. For broader branded-food context, Mondelez International, Inc. MDLZ reported second-quarter 2026 organic net revenue growth of 2.2%, including a 0.7% volume/mix increase.
KHC's Margin Outlook Limits the Earnings Upside
Adjusted gross profit margin was flat year over year at 34.1% in the second quarter. For fiscal 2026, Kraft Heinz still expects adjusted gross profit margin to decline 10 to 50 basis points.
Constant-currency adjusted operating income is projected to fall 16% to 18%. The outlook incorporates about $700 million of incremental investment versus 2025, while inflation and unfavorable volume/mix continue to pressure near-term earnings leverage.
KHC's Ratings Still Signal a Balanced Setup
Kraft Heinz's earnings beat and improved organic sales outlook strengthen the recovery narrative, but the investment case still depends on better volume trends and firmer profitability. The latest results improve visibility without removing the core execution risks.
KHC currently carries a Zacks Rank #3 (Hold). Its Value Score of A supports the value case, while the Growth Score of D, Momentum Score of F and VGM Score of C indicate that favorable valuation characteristics are not yet matched by equally strong growth and momentum signals. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Kraft Heinz Q2 Earnings Beat as 2026 Organic Sales Outlook Improves

The Kraft Heinz Company KHC offers a clear value-versus-execution trade-off. Its discounted earnings multiple and healthy cash generation support the case for patient investors seeking value.
The offset is persistent volume weakness, inflation and soft earnings trends. Until the core North American business shows firmer demand and better operating leverage, valuation alone may not be enough to drive sustained upside.
KHC's Valuation Offers a Clear Value Case
KHC trades at 12.2X forward 12-month earnings, below the food sub-industry's 15.6X, the Consumer Staples sector's 17.6X and the S&P 500's 20.3X. That discount gives the shares a meaningful relative-value argument.
The multiple is still modestly above KHC's five-year median of 11.8X, with the historical range spanning 8.9X to 16.5X. The stock therefore looks inexpensive against broader benchmarks without sitting at an unusually depressed valuation versus its own history.
Kraft Heinz Still Faces Core Volume Weakness
Second-quarter 2026 organic net sales declined 1.3% as a 2.6-point drop in volume/mix more than offset 1.3 points of pricing. North America was weaker, with organic sales down 2.7% and volume/mix falling 3.8%.
Total company volumes are projected to decline 1.6% for 2026. The Campbell's Company CPB is facing similar sector pressure, reporting a 4% net-sales decline and a 32% drop in adjusted earnings per share in its fiscal third quarter of 2026.
KHC's Cash Flow Funds the Turnaround
Free cash flow reached about $1.7 billion in the first half of 2026, up 10.3%, while free cash flow conversion improved to 123%. That cash generation gives Kraft Heinz room to keep funding its turnaround while protecting balance-sheet flexibility.
Gross efficiencies exceeded $330 million year to date. Kraft Heinz also repaid $1.9 billion of debt at its June 2026 maturity and another $1 billion due in 2027, supporting continued investment in brands, innovation and operating capabilities.
Emerging Markets Give Kraft Heinz a Growth Engine
Emerging Markets organic net sales rose 8.5% in the second quarter, including a 4-point contribution from volume/mix. Heinz organic net sales in the region increased about 12%, while total distribution points rose roughly 4%.
Management expects Emerging Markets growth to accelerate in the second half as the Indonesia drag is lapped. Mondelez International, Inc. MDLZ also showed positive volume momentum, with second-quarter 2026 organic net revenues up 2.2% and volume/mix up 0.7%.
KHC's Estimate Trend Keeps Caution in View
The Zacks Consensus Estimate for 2026 earnings is $2.06 per share, well below the $2.60 reported for 2025. The current-year earnings estimate has also moved 0.5% lower over the past four weeks.
Kraft Heinz expects fiscal 2026 inflation slightly above 4%, while adjusted gross profit margin is projected to decline 10 to 50 basis points. Affordability pressure and continued reinvestment make a faster earnings recovery harder to assume.
KHC's Mixed Style Scores Favor Patience
The valuation discount and cash generation keep KHC relevant for value-focused investors, but weak volumes and a softer estimate trend argue against treating the low multiple as a stand-alone buy signal. The setup remains balanced while the turnaround develops.
KHC currently carries a Zacks Rank #3 (Hold). Its Value Score of A supports the valuation case, but the Growth Score of D, Momentum Score of F and VGM Score of C show that value is not yet matched by favorable growth and momentum characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Is Kraft Heinz Stock a Buy as Low Valuation Meets Execution Risk?

Key Points
The stock has badly lagged the S&P 500 since the 2015 merger.
Sales have continued dropping.
Management called off a planned business split.
It's a big understatement to say that the Kraft Foods and H.J. Heinz merger has been disappointing. Since the combined company, Kraft Heinz (NASDAQ: KHC), began trading in July 2015, the shares have lost 43.4% through Aug. 14.
Including dividends, the stock returned just 2.3%. Those who invested passively in an S&P 500 index fund did much better, with the index returning 584.1% during this time.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The board of directors hired Steve Cahillane as CEO, and he started on Jan. 1. Can he turn around the company and reignite sales growth?
Uninspiring results
So far, the results have been uninspiring. Kraft-Heinz's second-quarter sales, adjusted to remove foreign-currency translations and the impact of divestitures, dropped 1.3% year over year. Even more concerning, while higher prices added 1.3 percentage points, lower volume/changing mix subtracted 2.6 percentage points. Clearly, consumers aren't willing to pay higher prices, as this has resulted in lower demand.
Turning to operating income, it's more complicated. Kraft Heinz had an operating loss of $6.4 billion. This includes impairment charges of $7.4 billion. The year-ago period also included $9.3 billion of charges. Adding these back, the company earned $1 billion. However, that's still down more than 18% year over year.
While management noted it's a non-cash charge, it still reflects poorly on management's prior judgment. This year's charges include $2.4 billion for goodwill impairment and $4.9 billion for intangible asset impairment. Management took the former charge due to the market's assessment of Kraft Heinz's ability to achieve cash flow projections from investments in marketing, sales, and research and development (R&D). The intangible asset write-down reflects a charge primarily related to trademarks that no longer have the value management once thought they had.
Management's plan
One of CEO Cahillane's first actions was to cancel the previously announced split of the businesses into groceries and sauces/spreads. Instead, management decided to increase spending on marketing, sales, and R&D by $600 million.
This hasn't worked out, at least not yet. You can see the proof in the sales results, which have continued dropping. Additionally, management's decision to take the goodwill charge also reflects this reality.
For the year, management expects sales to drop 0.5% to 2%. While that's better than the 1.5% to 3.5% decline that it previously expected, it's hard to get excited by the outlook.
Relying on dividends?
Kraft Heinz has paid steady $0.40 quarterly dividends since 2019. However, that came after the board of directors slashed the payout from $0.625 per share.
With that kind of history and the company's losses, it's not out of the question that Kraft Heinz will cut dividends at some point. That's why I wouldn't rely on future dividends, despite the stock's high 6.3% yield.
While the stock has a price-to-sales (P/S) ratio of 1.2 versus the S&P 500's 3.8, I'd avoid Kraft Heinz's shares.
That's because the company continues to face sales and profitability challenges that could threaten its dividend. That means the company has the makings of a value trap rather than a value stock.
Should you buy stock in Kraft Heinz right now?
Before you buy stock in Kraft Heinz, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kraft Heinz wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Kraft Heinz Faces a $7.4 Billion Impairment Charge. Is the 6.2% Yielding Stock a Value Trap or a No-Brainer Buy in August?

Lamb Weston Holdings, Inc. LW delivered a fiscal fourth-quarter earnings beat alongside another quarter of volume growth. Adjusted earnings and sales topped the Zacks Consensus Estimate, with North America again providing the main operating support.
The investor issue now is whether that momentum can offset weaker price/mix, margin pressure and persistent International softness as fiscal 2027 begins.
Lamb Weston’s Q4 Beat Shows Volume Momentum
Adjusted earnings were 87 cents per share, above the Zacks Consensus Estimate of 62 cents. Net sales reached $1.77 billion, increasing 6% from the prior-year quarter.
Sales volume rose 7%, marking the sixth consecutive quarter of growth. A 2% favorable currency impact and the benefit of an extra week also supported sales, while price/mix declined 3%.
Lamb Weston Price, Consensus and EPS Surprise
LW’s North America Strength Offsets Margin Pressure
North America net sales increased 9% to $1.21 billion as volume climbed 11%. Customer contract wins, market-share gains and strong retention supported the advance, while lower manufacturing costs per pound helped segment adjusted EBITDA rise 17% to $304.7 million.
The broader margin picture was less favorable. Adjusted gross margin fell 110 basis points to 19.4%, while adjusted EBITDA margin contracted 130 basis points to 16.2%. Conagra Brands, Inc. CAG, another large North American food company with a sizable frozen portfolio, also reported pressure on adjusted gross margin in its fiscal fourth quarter, underscoring the importance of cost control across packaged foods.
Lamb Weston’s International Segment Remains the Weak Link
International net sales declined 2% to $563.9 million. Volume fell 2% and price/mix dropped 4%, with growth in Asia Pacific and Latin America more than offset by difficult EMEA conditions.
Segment adjusted EBITDA sank 81% to $11.8 million because of lower sales, higher manufacturing costs per pound and increased operating expenses. The Kraft Heinz Company KHC also reported weaker volume/mix in its latest full-year results, providing another reminder that volume and mix execution remain important across large food portfolios.
LW’s FY27 Guidance Sets a Modest Growth Bar
For fiscal 2027, Lamb Weston expects net sales to range from flat to 1% growth versus an adjusted 52-week fiscal 2026 base of $6.5 billion. Adjusted EBITDA is projected at $1.1 billion to $1.2 billion, while adjusted earnings are expected between $2.95 and $3.25 per share.
The outlook assumes flat global restaurant traffic. Management expects lower raw potato costs, additional supply-chain savings, better utilization and the absence of certain fiscal 2026 costs to support earnings, but inflation in most other inputs is expected to offset much of those benefits.
Image Source: Zacks Investment Research
Lamb Weston’s Mixed Scores Fit a Cautious Outlook
The quarter showed that higher volume and North America execution can support earnings, but margin compression and International weakness keep the fiscal 2027 setup balanced. The modest sales outlook leaves cost savings, customer gains and operating efficiency carrying much of the burden for earnings improvement.
LW currently carries a Zacks Rank #3 (Hold), with a Value Score of B, Growth Score of B, Momentum Score of D and VGM Score of B. The B grades point to favorable value, growth and combined characteristics, while the D Momentum Score is less supportive. Because Style Scores are designed to complement the Zacks Rank, the current mix supports a measured stance rather than an aggressive near-term call. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Lamb Weston Q4 Volume Jumps 7% as Margin Pressure Tests FY27 Outlook

Lamb Weston Holdings, Inc. LW is showing better operating momentum, led by higher volumes and improved North America profitability. The progress matters because customer wins and lower manufacturing costs are beginning to support earnings even as restaurant traffic remains subdued.
The trade-off is that pricing pressure, International weakness and a valuation near the broader sector leave limited room for execution setbacks. That balance argues for weighing the recovery against still-visible earnings risks.
Lamb Weston Volume Gains Support the Bull Case
Fiscal fourth-quarter consolidated sales volume increased 7%, marking the sixth consecutive quarter of volume growth. North America volume rose 11%, driven by customer contract wins, share gains, strong retention and the benefit of an extra week.
North America adjusted EBITDA increased 17% to $304.7 million. Higher volume and lower manufacturing costs per pound more than offset inflation, unfavorable price/mix and higher operating expenses, showing that the core business is gaining operating leverage as execution improves.
Lamb Weston Price, Consensus and EPS Surprise
LW Valuation Leaves Less Room for Execution Misses
LW trades at 16.98X forward 12-month earnings, versus 14.78X for the Zacks sub-industry and 17.18X for the Zacks Consumer Staples sector. The stock therefore carries a premium to its sub-industry while sitting close to the broader sector multiple.
That valuation makes continued execution important. Conagra Brands CAG, a branded food company with a refrigerated and frozen portfolio, offers another packaged-food benchmark for investors assessing volume, pricing and margin trade-offs. The Kraft Heinz Company KHC, through its Ore-Ida frozen potato business, provides a more direct category reference point.
Lamb Weston Pricing Pressure Clouds Revenue Quality
Fiscal 2026 sales volume increased 7%, but price/mix declined 6%, limiting net sales growth to 2%. In the fourth quarter, company-wide price/mix fell 3%, including a 2% decline in North America.
Management expects North America price/mix to decline in the low single digits in fiscal 2027. Pricing and trade support, combined with a mix shift toward faster-growing chain customers and private-label products, could keep revenue quality under pressure even if volumes remain positive.
LW’s International Drag Keeps Risk Elevated
International adjusted EBITDA fell 55% to $115 million in fiscal 2026 and dropped 81% to $11.8 million in the fourth quarter. Lower organic sales, weaker price/mix, potato write-offs and underutilized facilities weighed on profitability.
Lamb Weston has taken capacity actions in Europe, including temporarily curtailing a line and planning to close an older Netherlands facility representing about 10% of EMEA production capacity. Fiscal 2027 guidance still calls for International net sales to decline in the low single digits, keeping the recovery dependent on better utilization and operating execution.
Image Source: Zacks Investment Research
Lamb Weston’s Hold Signal Favors Patience
The operating case is improving, but the combination of sub-industry valuation premium, persistent price/mix pressure and International weakness leaves the risk-reward profile balanced. The current fiscal-year earnings estimate has also declined 1.3% over the past four weeks, which tempers the case for chasing the stock after its operational improvement.
LW currently carries a Zacks Rank #3 (Hold), with a Value Score of B, Growth Score of B, Momentum Score of D and VGM Score of B. The favorable Value, Growth and combined VGM readings point to supportive characteristics in those styles, while the weaker Momentum Score signals less favorable momentum attributes. With the Zacks Rank at #3 rather than a top-ranked #1 or #2, the setup favors patience while investors watch for firmer pricing, International improvement and steadier earnings revisions. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.