Why Kraft Heinz (KHC) Shares Are Falling Today

What Happened?

Shares of packaged foods company Kraft Heinz (NASDAQ:KHC) fell 6.5% in the pre-market session after the company reported weak fourth-quarter results: Sales and EBITDA (a profit measure) fell short of Wall Street's estimates. The weak sales performance was influenced by shifting consumer behavior and economic uncertainty, particularly in the U.S. Away From Home segment​. On the other hand, Kraft Heinz beat analysts' EPS expectations this quarter. Overall, this quarter could have been better.

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What The Market Is Telling Us

Kraft Heinz’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Kraft Heinz is down 7.1% since the beginning of the year, and at $28.59 per share, it is trading 26% below its 52-week high of $38.65 from April 2024. Investors who bought $1,000 worth of Kraft Heinz’s shares 5 years ago would now be looking at an investment worth $951.32.

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