Parkev Tatevosian, CFAPublished 2026-09-02
“Kraft Heniz Market Share Losses are Improving: Time to Buy This Dividend Stock?”
$KHCBullish
KHC is a buy with low conviction; stock is undervalued ($25 vs $40 FV) despite operational headwinds (inflation, margin decline).
Kraft Heinz told investors that its market share losses are moderating from 90 basis point loss seen in early 2025. That improved to a 30 basis point loss in the first half of 2026.
Still, headwinds remain for the company as the management team is anticipating cost inflation of about 4 to 5% in 2027. To mitigate some of these headwinds, the management team is committed to additional marketing spending, adding an incremental $100 million for the second half of 2026, bringing the total incremental investment to $600 million.