Will Kraft Heinz’s (KHC) Breakup and New Products Shift Its Growth and Cash Flow Narrative?

  • In the past week, Kraft Heinz unveiled plans to break up its business into two separate entities and launched new product initiatives including Heinz Leftover Gravy in the US and Heinz Ketchup Zero in Dubai, aiming to attract millennial hosts and health-conscious consumers.

  • This restructuring marks a major shift in Kraft Heinz’s approach, as the company seeks to revive growth and unlock greater shareholder value amid evolving consumer preferences and changing holiday traditions.

  • We’ll explore how Kraft Heinz’s planned business separation could reshape the investment outlook, especially regarding future growth initiatives and cash flow priorities.

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To be a Kraft Heinz shareholder today, you need confidence that the upcoming business separation can unlock value while stabilizing core North American revenues in the face of persistent volume declines. The recent announcement broadly supports the company’s push for relevance, but the restructuring itself remains the biggest short-term catalyst and source of risk, new product launches alone are unlikely to materially shift this calculus in the immediate future.

Among recent product initiatives, the launch of Heinz Ketchup Zero in Dubai stands out. This move directly ties into Kraft Heinz’s ongoing focus on health-conscious innovation, a potential catalyst as health and wellness trends influence consumer choices and could impact the company’s future revenue mix.

Yet, it’s important to recognize that unlike the promise of new products, the risk of execution missteps and cost pressures tied to the business separation represents information that investors should be aware of…

Read the full narrative on Kraft Heinz (it’s free!)

Kraft Heinz’s outlook forecasts $26.1 billion in revenue and $3.3 billion in earnings by 2028. This assumes a yearly revenue growth rate of 1.0% and a $8.6 billion increase in earnings from the current -$5.3 billion.

Uncover how Kraft Heinz’s forecasts yield a $27.13 fair value, a 7% upside to its current price.

KHC Community Fair Values as at Nov 2025

Fair value estimates from 22 Simply Wall St Community members range from US$23.95 to US$68.79, showing wide disagreement about Kraft Heinz’s true worth. Many are watching whether innovation can meaningfully offset weak core market performance, making it valuable to explore several alternative viewpoints.

Explore 22 other fair value estimates on Kraft Heinz – why the stock might be worth 5% less than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include KHC.

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