Analysis for KHC
- 📈 Growth — 10/30
- 💰 Profitability — 9/20
- 🏦 Financial Health — 16/20
- 💵 Valuation — 6/20
- ⚠️ Risk — 7/10
Summary:
📈 Growth & Financial Trajectory
Over the eight quarters, revenue remained in a narrow band around $6.0B–$6.4B, starting near $6.48B in mid-2024 and ending at $6.26B in 2026 Q2, a modest overall decline. Net income swung from positive in early 2025/2024 to a substantial loss by 2026 Q2 (from roughly +$0.7–0.8B to about -$5.46B). The trend shows flat top-line growth but pronounced earnings volatility, with notable deterioration in late 2025 into 2026.
Overall revenue is largely flat across the eight quarters, while net income trends from modest profitability to sizable losses, signaling episodic cost and impairment effects that outpaced revenue gains.
💰 Margins & Cash Flow
- Gross margins run in the low-to-mid 30% range (e.g., Q2 2026: gross profit $2.03B on $6.26B revenue ≈ 32%). Several quarters show margin consistency in the 32–35% band.
- Operating income oscillates, remaining positive in some quarters (e.g., 2026 Q1) but negative in others (2026 Q2), indicating uneven operating leverage.
- Net cash flow from operating activities is generally positive (roughly $0.7B–$1.1B per quarter in several periods), while investing cash flow is typically negative and financing activity flow is mixed, implying ongoing capital allocation and working-capital needs.
🛡️ Balance Sheet & Liquidity
As of 2026 Q2, Kraft Heinz reports assets ≈ $73.1B, liabilities ≈ $36.9B, and equity ≈ $36.1B. Current assets ≈ $9.25B and current liabilities ≈ $8.72B yield a mildly positive current ratio (~1.06), supporting short-term liquidity. Noncurrent liabilities ≈ $28.22B indicate substantial long-term obligations, but equity remains meaningful, providing a reasonable balance-sheet cushion.
⚠️ Key Drivers & Risks
- Drivers: Brand portfolio strength in consumer staples; scale via distribution and channel mix; ongoing cost controls and efficiency.
- Risks: Significant earnings volatility and quarterly losses (late 2025–2026), commodity input/cost pressures, and sensitivity to macro factors that could affect consumer demand and pricing.