Kraft Heinz Co (NASDAQ:KHC, ETR:KHNZ) reported better than expected financial results for the second quarter, which saw its stock edge higher on Wednesday morning.
For Q2, revenue fell 1.9% year-over-year to $6.35 billion, but above the Wall Street consensus of $6.27 billion.
Organic net sales declined about 2 % attributed to volume/mix decreases across several categories like cold cuts, coffee, Lunchables, frozen snacks, and powdered beverages.
Earnings per share were $0.69, beating estimates of $0.64 but down from $0.78 in the year-ago quarter.
The company maintained its full-year 2025 EPS outlook of $2.59, in line with estimates.
“We are proud to play a vital role in families’ lives, and our commitment to delivering superior, affordable, and accessible products is unwavering,” Kraft Heinz CEO Carlos Abrams-Rivera said. “Our second quarter top line results reflect this dedication, improving from the first quarter.”
Analysts at Jefferies attributed the Q2 revenue beat to slightly better performance in North America and Emerging Markets than expected, and international profit delivery.
They noted management’s comments about sequential improvements in 14 Accelerate categories and four key brands, which they see as “a positive step given persistent softness.”
“Management held the 2025 guide, expecting stepped up investments in H2, including on promo, marketing, innovation, and R&D,” they wrote. “Value unlock remains in focus given strength of sauces relative to other parts of portfolio.”
The analysts have a ‘Hold’ rating on Kraft Heinz and $26 price target, which implies downside of 9% from its share price at their time of writing.
Shares of Kraft Heinz added 0.75 just shy of $29 late morning on Wednesday.