Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
KHC reported a deeply negative FY2025, swinging to a net loss of $5.85B and operating loss of $4.67B, driven by a massive $5.69B surge in SG&A expenses that overwhelmed a modest cost-of-revenue improvement.
Cost of Revenue
$16.63B
-1.45% YoY
EPS (Diluted)
-$4.93
-318.14% YoY
Operating Income
-$4.67B
-377.42% YoY
Source: SEC XBRL
Kraft Heinz (KHC) reported FY2025 revenue of $16.63B, down 1.5% year over year. Operating cash flow was $4.46B, up 6.6% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.56 | 0.53 | Beat +4.8% |
| Mar 2026 | 0.58 | 0.51 | Beat +14.2% |
| Dec 2025This filing | 0.67 | 0.62 | Beat +8.6% |
| Sep 2025 | 0.61 | 0.58 | Beat +4.4% |
Reported EPS of $0.67 versus the $0.62 analyst consensus — a +8.6% beat for Dec 2025.
Compiled by AI from this SEC filing
Total revenue (Cost of Revenue + Gross Profit) was approximately $24.94B, down from ~$25.85B in the prior year. Gross profit fell 7.3% YoY to $8.31B, reflecting pricing and volume pressures across KHC's brand portfolio.
Source: 10-K Income Statement
SG&A expenses surged 78.1% YoY to $12.98B from $7.29B, which is the primary driver of the $4.67B operating loss compared to a $1.68B operating income in the prior year. This likely reflects significant goodwill/intangible asset impairment charges embedded in SG&A.
Source: 10-K Income Statement
KHC swung from a net income of $2.74B to a net loss of $5.85B, a deterioration of over $8.5B. Basic EPS collapsed from $2.27 to -$4.93, reflecting the magnitude of non-cash charges and operational headwinds.
Source: 10-K Income Statement
Despite the large reported net loss, operating cash flow increased 6.6% YoY to $4.46B, suggesting the net loss is heavily influenced by non-cash charges (D&A of $968M plus likely large impairments) rather than a deterioration in underlying cash generation.
Source: 10-K Cash Flow Statement
Stockholders' equity declined 15.3% to $41.66B while total liabilities rose 2.7% to $40.0B, pushing the debt-to-equity ratio to approximately 0.96. Total assets shrank 7.4% to $81.79B, reflecting the impairment write-downs.
Source: 10-K Balance Sheet
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
The dramatic increase in SG&A to $12.98B strongly suggests large goodwill or brand impairment charges were recorded in FY2025. KHC has historically carried significant goodwill from the 2015 Kraft-Heinz merger, and continued brand value erosion could trigger further write-downs in future periods. This is a recurring risk given the company's heavy reliance on legacy consumer brands.
Source: 10-K Income Statement & Balance Sheet
Gross profit fell 7.3% YoY to $8.31B despite a 1.5% reduction in cost of revenue, implying net revenue declined more sharply than costs. This signals weakening pricing power or volume loss across key product categories, which could compress margins further if consumer trade-down behavior persists.
Source: 10-K Income Statement
With total liabilities of approximately $40.0B against stockholders' equity of $41.66B (debt-to-equity of ~0.96) and a net loss year, KHC's balance sheet is under pressure. Continued losses could further erode equity and tighten financial flexibility, particularly given annual dividend payments of $1.90B.
Source: 10-K Balance Sheet & Cash Flow Statement
KHC paid $1.90B in dividends in FY2025 despite reporting a net loss of $5.85B. While operating cash flow of $4.46B currently covers the dividend, sustained losses and potential credit rating downgrades could force a dividend reduction, which would be a significant negative signal to income-oriented investors.
Source: 10-K Cash Flow Statement
ROE of -14.0% and ROA of -7.1% indicate that KHC is currently destroying value on both its equity and asset base. If these metrics do not recover, it raises questions about the long-term viability of the company's brand portfolio strategy and capital allocation.
Source: 10-K Key Ratios
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Cost of Revenue $B | 16.63 $B | 16.88 $B | -1.45% |
Gross Profit $B | 8.31 $B | 8.97 $B | -7.35% |
Operating Income $B | -4.67 $B | 1.68 $B | -377.42% |
Net Income $B | -5.85 $B | 2.74 $B | -313.05% |
EPS (Basic) $ | -4.93 $ | 2.27 $ | -317.18% |
EPS (Diluted) $ | -4.93 $ | 2.26 $ | -318.14% |
R&D Expense $M | 167.00 $M | 150.00 $M | +11.33% |
SG&A Expense $B | 12.98 $B | 7.29 $B | +78.15% |
Answers draw on this SEC filing and the data on this page
Kraft Heinz reported a GAAP net loss of $5.5 billion in Q2 FY2026 due to $7.4 billion in non-cash impairment charges, while adjusted EPS fell 18.8% to $0.56 on organic sales decline and cost pressures.
Kraft Heinz delivered a mixed Q1 2026 with gross profit rising 7.5% YoY to $2.22B and net income up 12.1% to $798M, but operating income fell 4.3% to $1.15B as SG&A expenses surged 23.7%, while total assets declined 9.1% reflecting significant balance sheet contraction.
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