Kraft Heinz (KHC, $32.01) sells off its Breakstone’s business to lower debts
Amidst persisting challenges in the dairy industry, Kraft Heinz is planning to slim its business by selling one of its long time brands, Breakstone’s, which sells cottage cheese, butter and sour cream. This move is part of the company’s broader review of its dairy business conducted by the Royal Bank of Canada. It is estimated that Breakstone’s sales could garner a valuation of roughly $400 million.
The dairy industry has been increasingly losing its relevance as customers are turning to non-dairy alternatives like oat, soy and almond milk. Last year, Kraft Heinz announced the sale of its Canadian natural cheese business to Italian dairy group Parmalat for C$1.62 billion ($1.23 billion).
Falling shares of dairy products is another cause for companies to make such selling decisions. Shares of leading U.S. dairy producer Dean Foods (DF), owner of brands like Organic Valley milk, DairyPure sour cream and TruMoo milk, have fallen 68% over the past year. Kraft Heinz’s own shares fell by 25% after the company announced its dismal fourth quarter results in February.
Other food giants like General Mills (GIS) to Kellogg (K) have also felt the pressure of a constraining industry, but Kraft Heinz’s fall was even sharper when two years ago Unilever rejected its acquisition request. Further, the cost cutting strategy of 3G capital, the creator of Kraft Heinz, in important areas like research and development backfired resulting in poor performance.
Now, Kraft Heinz is slimming its portfolio to bring leverage down to three times EBITDA, rather than the four times at which analysts say it is currently pegged. Analysts note it has $3 billion of debt coming due in 2020, which may have to be refinanced.
KHC's RSI Indicator ascending out of oversold territory
The RSI Indicator for KHC moved out of oversold territory on November 07, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 37 similar instances when the indicator left oversold territory. In of the 37 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 12, 2025. You may want to consider a long position or call options on KHC as a result. In of 70 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for KHC just turned positive on November 12, 2025. Looking at past instances where KHC's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where KHC advanced for three days, in of 312 cases, the price rose further within the following month. The odds of a continued upward trend are .
KHC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KHC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for KHC entered a downward trend on November 10, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.713) is normal, around the industry mean (38.485). P/E Ratio (13.041) is within average values for comparable stocks, (80.171). Projected Growth (PEG Ratio) (1.001) is also within normal values, averaging (2.821). Dividend Yield (0.064) settles around the average of (0.038) among similar stocks. P/S Ratio (1.188) is also within normal values, averaging (139.989).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. KHC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. KHC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.
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General Information
a manufacturer of packaged food products
Industry FoodMajorDiversified
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