UBS Group AG expects Kraft Heinz Company (KHC.US) to have weak sales and pressure on profit margins in the third quarter, and maintains a "neutral" rating.

The Kraft Heinz Company (KHC.US) and its subsidiaries are engaged in the production and sale of food and beverage products in North America and global markets. On October 20, 2025, UBS Group AG reiterated its "neutral" rating on the company's stock and maintained its target price of $27 unchanged, ahead of the company's third-quarter earnings report scheduled for release on October 29. UBS Group AG described the current market environment ahead of the earnings season as "challenging," noting that while the market focus has shifted to the upcoming corporate spin-off, investors remain concerned about the company's weak fundamentals and have not yet seen signs of recovery. UBS Group AG expects the third quarter to face dual challenges: continued weak and deteriorating sales trends in the US market, and lingering profit margin pressures that are difficult to ease in the short term. The report also pointed out that since the release of the second quarter earnings report, Kraft Heinz Company's stock has continued to underperform, despite the current price appearing to be undervalued compared to historical averages. UBS Group AG stated that they will remain cautious until clearer signs of improvement in the fundamentals or stronger confidence in whether the upcoming corporate spin-off can create substantial value for shareholders are observed. Despite facing numerous challenges, Kraft Heinz Company continues to attract income-focused investors with its stable and consistent dividend payouts. As of October 21, 2025, the company pays a quarterly dividend of $0.40 per share, with a dividend yield of 6.25%. Against a backdrop of pressured fundamentals, this resilient dividend strategy still provides investors with a steady source of income.