The Kraft Heinz Company KHC is sharpening its innovation focus as it works toward its goal of returning to volume-led, sustainable and profitable growth. The strategy emphasizes fewer, bigger innovations centered on consumer-driven platforms such as convenience, new occasions and nutrition, supported by increased R&D investment.
The need for stronger volumes remains evident. Organic sales declined 1.3% in the second quarter of 2026, as a 1.3-percentage-point contribution from price was more than offset by a 2.6-percentage-point decline in volume/mix.
Kraft Heinz increased R&D spending 22% year over year in the first half, supporting innovation, renovation and productivity. One notable launch is Kraft Mac & Cheese PowerMac, which has reached more than 35,000 stores nationwide. Early velocities are in the top quartile, while initial sales have been highly incremental to both the existing business and the overall category.
Capri Sun Hydrate also showed early traction after reaching major retailers in the second quarter. The product became the fastest-turning innovation in kids' single-serve beverages, with top flavors driving incrementality. Meanwhile, Philadelphia lactose-free cream cheese has started shipping. Customer sell-in has been strong, distribution is expected to ramp up as retailer resets progress, and sales are anticipated to be highly incremental to the base business.
The innovation pipeline is showing early signs of incremental sales and healthy product velocities. However, with total volume/mix still down 2.6 percentage points, these gains have not yet translated into companywide volume growth. The next phase rests on scaling this early traction across a broader portion of the business.
KHC Stock Price Performance, Valuation & Estimates
Shares of the Zacks Rank #3 (Hold) company have dipped 3.9% over the past year compared with the industry’s decline of 16.5%.
KHC Price Performance Versus Industry
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From a valuation standpoint, KHC trades at a forward price-to-earnings ratio of 12.25, lower than the industry’s average of 15.14.
KHC Valuation Compared to Industry
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The Zacks Consensus Estimate for KHC’s current fiscal year earnings per share (EPS) suggests a decline of 20.8% from the year-ago period figure, while the consensus mark for the next fiscal year EPS implies 3.9% year-over-year growth.
Better-Ranked Stocks to Consider
The Chefs' Warehouse, Inc. CHEF is a distributor of specialty food and center-of-the-plate products across the United States, Canada and the Middle East. CHEF currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings per share (EPS) implies growth of 10.6% and 33.7%, respectively, from the year-ago figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
The Vita Coco Company, Inc. COCO, a leading beverage company that develops, markets and distributes coconut water and other plant-based beverages, currently sports a Zacks Rank #1. COCO delivered a trailing four-quarter earnings surprise of 21.9%, on average.
The Zacks Consensus Estimate for The Vita Coco Company’s current fiscal-year sales and EPS calls for growth of 31.6% and 64.7%, respectively, from the year-ago figures.
Darling Ingredients Inc. DAR, a global developer and producer of sustainable natural ingredients derived from edible and inedible bio-nutrients, currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Darling’s current fiscal-year sales suggests an 11.5% jump from the prior-year levels. The consensus estimate for current fiscal-year EPS stands at $6.98, which implies a substantial improvement from the year-ago period. DAR delivered a trailing four-quarter earnings surprise of 38.9%, on average.
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Kraft Heinz Company (KHC): Free Stock Analysis Report
Vita Coco Company, Inc. (COCO): Free Stock Analysis Report
Darling Ingredients Inc. (DAR): Free Stock Analysis Report
The Chefs' Warehouse, Inc. (CHEF): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).