KHC Hits Key Support – Is This The Buying Opportunity?

September 2nd, 2025 by Trefis Team
KHC: Kraft Heinz logo
KHC
Kraft Heinz

Kraft Heinz (KHC) should be on your watchlist. Here is why – it is currently trading in the support zone ($24.72 – $27.32), levels from which it has bounced meaningfully before. In the last 10 years, the stock received buying interest at this level 6 times and subsequently went on to generate 22.1% in average peak returns.

  Peak Return Days to Peak Return
11/24/2020 5.3% 34
1/27/2021 29.5% 117
12/1/2021 15.6% 44
2/9/2022 28.1% 93
9/27/2022 30.6% 101
10/6/2023 23.5% 206

But is the price action enough alone? It certainly helps if the fundamentals check out. For KHC Read Buy or Sell KHC Stock to see how convincing this buy opportunity might be.

Here are some quick data points:

  • Revenue Growth: -3.8% LTM and -0.3% last 3 year average.
  • Cash Generation: Nearly 13.8% free cash flow margin and 20.4% operating margin LTM.
  • Recent Revenue Shocks: The minimum annual revenue growth in last 3 years for KHC was -3.8%.
  • Valuation: KHC trades at a PE multiple of -5.8
  • Opportunity vs S&P: Compared to S&P, you get lower valuation, lower revenue growth, and better margins

Kraft Heinz provides manufacturing and marketing of food and beverage products, including condiments, dairy, meals, and meats, distributed through sales teams, brokers, agents, and distributors globally.

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  KHC S&P Median
Sector Consumer Staples –
Industry Packaged Foods & Meats –
PE Ratio -5.8 23.9
   
LTM* Revenue Growth -3.8% 5.1%
3Y Average Annual Revenue Growth -0.3% 5.3%
Min Annual Revenue Growth Last 3Y -3.8% -0.3%
   
LTM* Operating Margin 20.4% 18.6%
3Y Average Operating Margin 19.5% 17.8%
LTM* Free Cash Flow Margin 13.8% 13.2%

*LTM: Last Twelve Months

That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure

What Is Stock-Specific Risk If The Market Crashes?

That said, KHC is no stranger to big dips. It fell over 71% in the 2018 correction, about 36% during the Covid pandemic, and nearly 26% in the inflation shock. Even with solid fundamentals, these drops show the stock isn’t immune to market turmoil. Good businesses can take a hit when investors pull back hard.

But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read KHC Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.