Kraft Heinz (KHC) Stock Forecast & Price Target

Kraft Heinz's strategic decision to separate its global sauces arm from its North American grocery segment, set for the second half of 2026, is anticipated to enhance operational focus and brand equity, which could drive volume growth. The company has committed to increasing its promotional investments by approximately $300 million for 2025, recognizing the need for greater spending after years of under-investment to stimulate sales. With a distribution network that spans over 190 countries and territories, and approximately 25% of its consolidated sales generated from international markets, Kraft Heinz's broad global reach positions it favorably for future growth opportunities.

Kraft Heinz's negative outlook is primarily driven by sluggish consumer sentiment in emerging markets, particularly in Indonesia, which resulted in a significant drag of approximately 4.6 percentage points on organic sales growth in the third quarter of 2025. Additionally, the company's reliance on the growth company segment, which constitutes around 60% of total sales, has raised concerns, particularly due to reduced support from major shareholder Berkshire Hathaway, which holds a 27% stake. As a response to weakening sales trends across both its Global Growth Company and Grocery Company segments, the firm's projected target price has been reduced, reflecting a lowered earnings multiple applied to estimated future earnings.