Kraft Heinz (KHC) Traded Down Due to Mixed Earnings Results

Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Large Cap Disciplined Value Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The S&P 500 rose 10.9% in Q2 2025, despite recent volatility. After the “liberation day” tariff announcement on April 2, the index plunged over 12% in four days. The market rebounded from this low, nearly +25% over the next ~11 weeks, to finish the quarter at an all-time high. In this environment, the fund performed in line with the Russell 1000 Value Index and returned 3.37% vs. 3.79% for the index. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its second-quarter 2025 investor letter, Hotchkis & Wiley Large Cap Disciplined Value Fund highlighted stocks such as The Kraft Heinz Company (NASDAQ:KHC). The Kraft Heinz Company (NASDAQ:KHC) manufactures and markets food and beverage products. The one-month return of The Kraft Heinz Company (NASDAQ:KHC) was 5.54%, and its shares lost 18.89% of their value over the last 52 weeks. On July 29, 2025, The Kraft Heinz Company (NASDAQ:KHC) stock closed at $28.56 per share, with a market capitalization of $33.802 billion.

Hotchkis & Wiley Large Cap Disciplined Value Fund stated the following regarding The Kraft Heinz Company (NASDAQ:KHC) in its second quarter 2025 investor letter:

“The Kraft Heinz Company (NASDAQ:KHC) is the third largest U.S. food and beverage company. KHC shares declined following mixed earnings results in the quarter. While organic sales growth over the medium term is likely to be just 1-2%, we believe the company can also make bolt-on acquisitions and share repurchases to further ensure positive earnings per share (EPS) growth. Modest EPS growth combined with a dividend yield above 4% should result in a competitive total return.”

Kraft Heinz’s (KHC) Role in the Food Dividend Market: What Investors Should Know

A closeup of an assembly line worker inspecting a newly produced jar of condiments and sauces.

The Kraft Heinz Company (NASDAQ:KHC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held The Kraft Heinz Company (NASDAQ:KHC) at the end of the first quarter, which was 43 in the previous quarter. While we acknowledge the risk and potential of The Kraft Heinz Company (NASDAQ:KHC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than The Kraft Heinz Company (NASDAQ:KHC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered The Kraft Heinz Company (NASDAQ:KHC) and shared the list of the best food stocks with dividends. The Kraft Heinz Company (NASDAQ:KHC) detracted from Longleaf Partners Fund’s performance in the second quarter of 2025. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.