Kraft Heinz vs General Mills

Kraft Heinz Company, The and General Mills, Inc. This page compares their business models, financial performance, and market context in a neutral, accessible manner to help readers understand how these manufacturers operate and compete. Educational content, not financial advice.

Kraft Heinz Company, The and General Mills, Inc. This page compares their business models, financial performance, and market context in a neutral, accessible manner to help readers understand how thes...

Comparison Snapshot

Key Financial Metrics

KHC

Metric

GIS

$27.91B

Market Cap

$23.81B

10.86%

Potential Profit

18.54%

Hold

Analyst Rating

Hold

Why It's Moving

Kraft Heinz appoints proven CEO Steve Cahillane amid Berkshire Hathaway's potential stake reduction and planned company split.

Cahillane, with a strong track record at Kellanova, will steer the faster-growing unit with $15B in annual sales post-split, sparking optimism for revitalized performance.
Berkshire Hathaway's SEC filing for resale of 325 million shares fuels speculation of a major exit, driving KHC to a 5-year low near $22.
Q4 and full-year 2025 results set for February 11, with analysts mixed amid competitive pressures and new dietary guidelines hitting food stocks.

Sentiment:

🌋Volatile

General Mills Earnings Beat Sparks Valuation Debate Amid Revenue Pressures

EPS hit $1.10, topping expectations of $1.03 by $0.07, highlighting strong cost controls and operational efficiency.
Revenue came in at $4.86B versus $4.78B forecast but dropped 7.2% year-over-year, reflecting cautious consumer spending on staples.
Stock seen as 15.2% undervalued at fair value of $52.47 versus recent $44.49 close, fueling optimism for core brand rebounds.

Sentiment:

🐃Bullish

Kraft Heinz appoints proven CEO Steve Cahillane amid Berkshire Hathaway's potential stake reduction and planned company split.

Cahillane, with a strong track record at Kellanova, will steer the faster-growing unit with $15B in annual sales post-split, sparking optimism for revitalized performance.
Berkshire Hathaway's SEC filing for resale of 325 million shares fuels speculation of a major exit, driving KHC to a 5-year low near $22.
Q4 and full-year 2025 results set for February 11, with analysts mixed amid competitive pressures and new dietary guidelines hitting food stocks.

Sentiment:

🌋Volatile

General Mills Earnings Beat Sparks Valuation Debate Amid Revenue Pressures

EPS hit $1.10, topping expectations of $1.03 by $0.07, highlighting strong cost controls and operational efficiency.
Revenue came in at $4.86B versus $4.78B forecast but dropped 7.2% year-over-year, reflecting cautious consumer spending on staples.
Stock seen as 15.2% undervalued at fair value of $52.47 versus recent $44.49 close, fueling optimism for core brand rebounds.

Sentiment:

🐃Bullish

Investment Analysis

Kraft Heinz

KHC

Pros

Kraft Heinz maintains a substantial institutional ownership of approximately 78%, indicating strong confidence from large investors in its long-term prospects.
The company has demonstrated an ability to generate gross profit with recent gross profit reported at $2.18 billion, suggesting potential for operational improvements.
Stock price forecasts suggest a potential upside with predicted average price increases of around 35% for 2025 compared to recent prices.

Considerations

Kraft Heinz's 2025 earnings guidance was revised down slightly below analyst expectations, reflecting challenges in meeting consensus forecasts.
The company reported negative profitability metrics recently, including a negative EBIT margin of -30% and an ROE of -9.62%, indicating operational and financial difficulties.
Organic net sales and revenue have declined year-over-year, with updated 2025 guidance projecting a 3%-3.5% decline in organic sales and a significant drop in adjusted operating income.

General Mills

GIS

Pros

General Mills shows a strong return on equity near 31%, indicating efficient use of shareholder capital and robust profitability.
The company typically exhibits lower volatility than Kraft Heinz, suggesting a more stable stock price performance.
General Mills has a diverse product portfolio and a solid market position in the packaged food industry, supporting steady revenue streams.

Considerations

General Mills faces exposure to commodity cost inflation and supply chain challenges, which can pressure margins and earnings.
The food industry’s mature market limits high growth potential, potentially constraining significant top-line expansion.
Macroeconomic factors such as consumer spending patterns and changing dietary trends may pose demand risks for General Mills’ products.

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