The Kraft Heinz 2025 Q2 Earnings Misses Targets with Net Income Plummet

The Kraft Heinz (KHC) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. The company missed analyst expectations as it reported a significant decline in net income compared to the previous year. The adjusted earnings per share of $0.69 exceeded the analyst consensus estimate of $0.64, while the quarterly sales of $6.352 billion surpassed the Street view of $6.261 billion. However, the company's guidance for full-year 2025 adjusted earnings per share remains in line with previous forecasts.

Revenue

Earnings/Net Income
The Kraft Heinz swung to a loss of $6.60 per share in 2025 Q2 from a profit of $0.08 per share in 2024 Q2 (8350.0% negative change). Meanwhile, the company reported a net loss of $-7.82 billion in 2025 Q2, reflecting a 7923.0% deterioration from the net income of $100 million achieved in 2024 Q2. The company experienced a challenging quarter with a substantial decrease in earnings.

Price Action

Post-Earnings Price Action Review
The strategy of investing in Kraft Heinz (KHC) post-earnings when results exceeded expectations and holding for 30 days resulted in a -14.26% return, considerably underperforming the benchmark return of 87.61%. This strategy's Sharpe ratio was -0.14, indicating a negative risk-adjusted return. Despite avoiding further losses as reflected by a maximum drawdown of 0.00%, the investment approach failed to generate positive returns. Overall, the post-earnings price action strategy for KHC has not been favorable for investors seeking gains within the specified holding period.

CEO Commentary
"We are proud to play a vital role in families’ lives, and our commitment to delivering superior, affordable, and accessible products is unwavering," said Carlos Abrams-Rivera, CEO of Kraft Heinz. The second quarter results reflect a dedication to improvement, showing progress from the first quarter. Investments in product enhancements and manufacturing capabilities are driving brand superiority that resonates with consumers. Abrams-Rivera expressed confidence in the company's ability to achieve long-term profitable growth, highlighting strong cash flow generation, maintenance of the target Net Leverage ratio, and a commitment to returning capital to stockholders.

Guidance
Kraft Heinz is excited about its future, indicating confidence in building momentum across its business. The company expects to continue generating strong cash flow while maintaining its target Net Leverage ratio. The leadership is focused on driving long-term profitable growth and enhancing financial flexibility, suggesting a positive outlook for the remainder of 2025 and beyond.

Additional News
Kraft Heinz recently announced its decision to reaffirm its full-year 2025 adjusted earnings per share guidance, despite ongoing challenges and significant impairment losses. The company remains committed to its growth strategy, particularly focusing on expanding in emerging markets, where it aims for double-digit growth despite a $9.3 billion non-cash impairment. In other news, Kraft Heinz declared a regular quarterly dividend of $0.40 per share of common stock, payable on September 26, 2025. The company has also been evaluating potential strategic transactions to unlock long-term shareholder value and is actively progressing with its evaluation, which includes a comprehensive review of various options. However, there is no assurance that this assessment will result in any transaction or its timing.