Kraft Heinz (KHC) Stock Forecast & Price Target

Kraft Heinz is restructuring by separating its global sauces arm from its North American grocery segment, which is anticipated to enhance focus on each division and potentially improve brand equity and share momentum. The company's promotional investments have increased significantly, with approximately $300 million committed in 2025 YTD, along with an additional $80 million designated for marketing, suggesting a strategic push to revitalize growth after years of under-investment. Despite expectations of modest organic sales growth and a decline in EPS, the extensive global distribution network across more than 190 countries and the significant retail channel contribution of 85% of total sales underpin a positive long-term outlook for the firm's financial performance.

Kraft Heinz is experiencing significant challenges, with a -3.6% decline in U.S. measured retail sales in the fourth quarter of 2025, reflecting weak consumer sentiment and slowing consumption in critical markets such as Indonesia, which negatively impacted organic sales growth. The company's reliance on retail sales, accounting for approximately 85% of total sales, coupled with underperformance in emerging markets, raises concerns about future growth potential. Additionally, the lack of support from major shareholder Berkshire Hathaway, which holds around 27% of the company, contributes to a negative outlook, prompting a downward revision of target prices in light of weaker momentum and sales trends.