KHC US S&P 500NASDAQ-100Russell 1000 Earnings call · transcribed from the recording
Kraft Heinz (KHC) · Q3 2026 results and valuation
Share price: $24.27 · 2026-11-11
Results Q3 2026 vs Q2 2026 · previous quarter · published 4 Nov 2026 and 7 Aug 2026
Net income turned to a profit from a loss last quarter, guidance raised. Tone in line with last period.
Only a basic analysis is available for this company at the moment.
1 · Numbers
Turned profit
Net income vs Q2 2026
Guidance raised
Net income 544.0M vs -5.46B
Revenue −2.3%
2 · How management spoke
Unchanged
Language tone vs last period
Language: typical — about as upbeat as in Q2 2026.
3 · What stood out
Key theme
This, combined with a healthy balance sheet, allow us to confidently support Kraft Heinz's free cash flow conversion remains strong at 120%, up 11…
Valuation
Is Kraft Heinz undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-27), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At −2.0% growth a year (3-year revenue growth), the model's fair value is $14.96 a share — the stock trades 62% above it. Today's price assumes 1.7% growth a year.
Current price
$24.27
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+1.7% for 10 yrs
Fair value / share
$14.96
Buy below
$11.22
Price vs fair value
Overvalued 62%
Price vs buy-below price
Overvalued 116%
Read between the lines
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Guidance ↑
Kraft Heinz is raising its outlook for adjusted EPS to be in the range of $2.07 to $2.13 versus its previous expectation of $2.03 to $2.09.
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Guidance
For the full year, Kraft Heinz expects marketing to be at least 6% of net sales.
-
Figure
In Europe and Pacific developed markets, adjusted operating income declined 32.8%.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Typical — about as upbeat as in Q2 2026.
Sentences that drove the tone
“Away from Home remains a strategic channel for us where we see significant opportunities, including growing beyond catch-up, expansion into non-commercial channels, and increased penetration in QSRs.”
“Our investments here are designed to accelerate momentum with growth led by our Heinz brand and distribution expansion in emerging markets.”
“The investments we've made in our brands, the stronger velocities we're now delivering, and the innovation we're bringing to market give our retail partners more reasons to expand our shelf...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-26)
| Metric | Q3 2026period end 2026-09-26 | Q2 2026period end 2026-06-27 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 6.12B | 6.26B | −2.3% | 6.24B | −2.0% |
| Gross profit | 1.99B | 2.03B | −2.0% | 1.99B | −0.1% |
| Operating income | 875.0M | -6.43B | Turned profit | 1.02B | −14.6% |
| Net income | 544.0M | -5.46B | Turned profit | 615.0M | −11.5% |
| EPS | 0.46 | -4.60 | Turned profit | 0.52 | −11.5% |
| P/E | 12-mo loss | 12-mo loss | — | 12-mo loss | — |
Topics
Most discussed now
- New As Kraft Heinz looks at the remainder of the year, it is raising the low end of its organic net sales...
- New Kraft Heinz is maintaining its constant currency adjusted operating income expectations while increasing adjusted EPS primarily due to a…
- New This reflects the inventory headwind Kraft Heinz expected, along with some additional inventory reductions by retailers.
- This reflects an approximate 100 basis point impact from negative cash flow businesses that Kraft Heinz exited in Australia and New...
- The actions Kraft Heinz is taking are from a position of strength, with strong free cash flow conversion, a healthy...
Faded since Q2 2026
- Fading Kraft Heinz made some product improvements in Lunchables as well, which is showing early encouraging signs as well.
- Fading Kraft Heinz is seeing real green shoots in part of its Taste Elevation portfolio, certainly in Capri Sun, even in Mac &...
Latest announcements
Official filings, newest first.
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Other events · SEC 8-K
- Director or officer change · SEC 8-K
- Listing notice; Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Articles or bylaws amended · SEC 8-K · routine
- Director or officer change · SEC 8-K