Kraft Heinz Company (KHC)

Over the past six months, The Kraft Heinz Co. (KHC) stock price has experienced a decline. As of July 18, 2025, the share price was $27.82, representing a 15.23% decline from July 22, 2024. The stock was down 16.27% for the past 12 months and 6.31% over the past six months as of July 21, 2025. This underperformance reflects persistent volume declines, with organic net sales contracting for eight consecutive quarters, and pressure on earnings due to higher input costs and tariffs. The company has seen total revenue decline for six straight quarters, and in April, it forecast organic sales to decline 1.5% to 3.5% during its 2025 fiscal year. A significant event impacting the stock is the company's exploration of potential strategic transactions to unlock shareholder value, which includes considering a spin-off of its slower-growing grocery brands, such as Velveeta and Oscar Mayer, which could be valued at up to $20 billion.

Demand for Kraft Heinz products is influenced by seasonal factors and promotional pressures. The company has noted increased seasonal demand for certain products during holidays and back-to-school periods. During the COVID-19 pandemic, Kraft Heinz experienced an unprecedented surge in demand for products, leading to 24/7 factory operations to meet the demand. The company's demand forecasting incorporates machine learning to account for these seasonal shifts and external factors like promotions.

The Kraft Heinz Company (KHC) is a multinational food and beverage company formed in 2015 through the merger of Kraft Foods Group and H.J. Heinz Company. It is the third-largest food and beverage company in North America and the fifth-largest globally, headquartered in Chicago and Pittsburgh. Kraft Heinz operates within the consumer staples sector, manufacturing and marketing a diverse portfolio of food and beverage products across various categories, including condiments and sauces, cheese and dairy, meals, meats, snack foods, and coffee. Its brand portfolio includes iconic names such as Heinz, Kraft, Oscar Mayer, and Philadelphia Cream Cheese.

Kraft Heinz has a significant global presence, operating in over 190 countries worldwide. The company maintains offices and factories across the United States, Canada, South America, Europe, Asia, and Australia, demonstrating a broad geographic footprint that helps diversify its market dependence.

In the past year, Kraft Heinz has focused on enhancing its brand reputation through strategic initiatives, particularly in sustainability and product innovation. The company has committed to removing FD&C colors from its U.S. portfolio by the end of 2027 and will not launch new products with these colors, effective immediately. Kraft Heinz is also working towards having 100% recyclable, reusable, or compostable packaging by 2025 and achieving net-zero greenhouse gas emissions by 2050. Despite these efforts, the company has faced challenges, with its grocery division experiencing sales declines due to price-conscious shoppers and shifting consumer tastes towards healthier or more affordable options. The company is actively innovating its portfolio to meet changing consumer demands.

The Kraft Heinz Company has a mixed ownership structure, with a significant portion held by institutional investors, approximately 56% to 73.82% of the company's stock. Berkshire Hathaway Inc. held approximately 26.6% of outstanding shares as of late 2023, making it a primary investor. Other significant institutional owners are Vanguard Group Inc., BlackRock, Inc., and State Street Corp. Individual insiders own a small percentage, around 0.29% to 0.38%, while the general public and individual investors hold the remaining shares.