Kraft Heinz’s (KHC, $32.75) in deep trouble after the departure of its CEO
The iconic food company, Kraft Heinz, has been struggling to keep up with changing consumer tastes and stiff competition from new brands. The news of the exit of CEO, Bernardo Hees, only adds to its ongoing troubles by denting the company’s reputation.
Nevertheless, the company’s shares rose 1.3% on Monday following the announcement that former Anheuser-Busch InBev executive Miguel Patricio will be the new CEO.
Valued at $40.2 billion, the company’s stock fell more than 43% in the last year. Sales have stagnated coupled with increased commodity costs resulting in shortage of cost cutting.
But there's more. The company received a subpoena from the SEC earlier this year over accounting policies and internal controls. Further, it slashed its dividend by 36% taking down $15.4 billion on Kraft and Oscar Mayer, two of its biggest brands. Revenue and earnings also fell short of Wall Street estimates. Soon after, Warren Buffett, who in 2015 teamed up with Brazilian private equity firm 3G Capital to finance the merger between Kraft and Heinz, disclosed that he overpaid for Kraft. 3G, one of Kraft’s biggest shareholders, also trimmed its stake in the company by 7% bringing its total ownership to about 22%.
Because of these troubles, Kraft Heinz is contemplating a number of divestitures of some of its renowned brands like Maxwell House coffee business and Breakstone’s sour cream and cottage cheese brand.
KHC in downward trend: 10-day moving average broke below 50-day moving average on September 09, 2025
The 10-day moving average for KHC crossed bearishly below the 50-day moving average on September 09, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 08, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on KHC as a result. In of 69 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for KHC turned negative on September 02, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 42 similar instances when the indicator turned negative. In of the 42 cases the stock turned lower in the days that followed. This puts the odds of success at .
KHC moved below its 50-day moving average on September 08, 2025 date and that indicates a change from an upward trend to a downward trend.
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 September 04, 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.
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where KHC advanced for three days, in of 317 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.
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 (0.742) is normal, around the industry mean (38.895). P/E Ratio (13.041) is within average values for comparable stocks, (33.796). Projected Growth (PEG Ratio) (0.988) is also within normal values, averaging (2.759). KHC has a moderately high Dividend Yield (0.062) as compared to the industry average of (0.034). P/S Ratio (1.230) is also within normal values, averaging (134.016).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average 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 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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