The Kraft Heinz Company KHC is placing a greater emphasis on affordability as consumers continue to face economic pressure. Its pricing approach includes improving the return on promotional spending, expanding access to opening price points and making selective base-price adjustments. The company has also introduced smaller, more accessible pack sizes in categories such as pasta sauce, cheese and salad dressings as part of its broader effort to return to volume-led, sustainable and profitable top-line growth.
The focus comes as volume trends remain under pressure. In the second quarter of 2026, Kraft Heinz’s volume/mix declined 2.6 percentage points year over year, while North America volume/mix fell 3.8 percentage points. Results included an approximately 100-basis-point headwind from Easter timing and an approximately 80-basis-point benefit from customer inventory pull-forward related to summer grilling and anticipated Fourth of July activations.
Kraft Heinz has been working to strengthen the effectiveness of its promotional activity. During the year, the company improved promotional ROI while laying the groundwork for second-half price investments. It has also partnered with retailers on stronger joint business plans, with an emphasis on quality merchandising through displays and features.
The reported returns show progress in promotional efficiency. Year to date, return on promotions increased 3.4 percentage points versus the prior year, while the percentage of promotional spending with net positive ROI increased 6.6 percentage points. Kraft Heinz plans to step up investments further in the second half, with promotional timing expected to be a headwind in the third quarter.
The promotional strategy centers on improving affordability while generating better returns from the dollars being deployed. With volume/mix still declining, the second-half investment cycle will provide a clearer indication of how these actions are reflected in Kraft Heinz’s volume performance.
KHC Stock Price Performance, Valuation & Estimates
The Zacks Rank #3 (Hold) stock has risen 8.5% over the past three months, outpacing the industry’s growth of 2.9%.
KHC Price Performance Versus Industry
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From a valuation standpoint, KHC trades at a forward price-to-earnings ratio of 11.55, below the industry’s average of 14.22.
KHC Valuation Compared to Industry
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The Zacks Consensus Estimate for The Kraft Heinz Company’s earnings per share (EPS) implies a year-over-year decline of 13.5%, while the consensus mark for the next fiscal year EPS suggests 4.9% growth.
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.
Utz Brands, Inc. UTZ, a leading U.S. manufacturer of branded salty and savory snacks, currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Utz Brands’ current fiscal-year sales suggests a 3.7% jump from the prior-year levels. However, the consensus estimate for current fiscal-year EPS indicates a 2.4% decline from the year-ago period. UTZ delivered a trailing four-quarter surprise of 1.8%, on average.
Laird Superfood, Inc. LSF is a consumer product company that develops, manufactures and markets plant-based, natural and functional food and beverage products. LSF currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Laird Superfood’s current fiscal-year sales and EPS calls for growth of 188.2% and 104%, respectively, from the year-ago figures. LSF delivered an earnings surprise of 100% in the last reported quarter.
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Kraft Heinz Company (KHC): Free Stock Analysis Report
The Chefs' Warehouse, Inc. (CHEF): Free Stock Analysis Report
Utz Brands, Inc. (UTZ): Free Stock Analysis Report
Laird Superfood, Inc. (LSF): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).