Kraft Heinz (KHC) Stock Forecast & Price Target

Kraft Heinz's strategic decision to separate its global sauces arm from its North American grocery segment by the second half of 2026 is viewed positively, as it is expected to improve focus and drive brand equity. The company currently generates around 25% of its consolidated sales from international markets, highlighting its global reach and opportunity for growth in regions outside North America. Despite anticipated challenges in organic sales growth and earnings per share over the next few years, the increased investments in marketing and promotional activities are likely to support its long-term growth trajectory.

Kraft Heinz has experienced significant challenges in its Emerging Markets segment, particularly in Indonesia, where weakened consumer sentiment resulted in a notable 4.6 percentage point decline in organic sales growth during the third quarter of 2025. The underperformance of the stock is further impacted by the absence of support from Berkshire Hathaway, which owns approximately 27% of the company's shares, contributing to concerns regarding the overall growth of Kraft Heinz's business, particularly the impact of its Global Growth Company, which accounts for around 60% of total sales. Additionally, the firm has revised its price targets downward, reflecting weak momentum and challenging sales trends, with target valuations assigned using lower multiples that account for the ongoing difficulties faced by both its Global Growth and Grocery segments.