Kraft Heinz stock slips further after Q4 revenue miss

Kraft Heinz (KHC) shares slip further ahead of Wednesday's closing bell after reporting mixed fourth-quarter earnings results. The food brand points to inflation and price hikes for declining year-over-year sales.

Yahoo Finance Live monitors Kraft Heinz's intraday stock action.

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Editor's note: This article was written by Luke Carberry Mogan.

Video Transcript

ALEXANDRA CANAL: Well, from home buying to buying products for your home, shares of the Kraft Heinz Company tanking today as the food company saw fourth quarter net sales fall short of expectations and declined 7.1% year-over-year. Now, the company blamed the revenue declines on food cost inflation, with customers essentially trading down or not buying as much. And we have heard this narrative from a few food makers out there, many of which have raised prices to try and combat some of those inflationary pressures. Companies like Krispy Kreme, Coca-Cola, Heineken all echoing that similar messaging this week that inflation is going to hurt earnings and margins down the line.

And then there's always a lingering question right, Josh, of how much consumers are willing to pay when you raise prices. And it seems like we're finally getting that answer. They don't want to pay as much for their-- for their snacks and their sodas.

JOSH LIPTON: Yeah, for fiscal '24 in terms of forecasts, the company says they're going to be looking for organic net sales growth. They call between 0% to 2% versus the prior year. They expect positive contribution from price volumes. They did talk about they see an inflection inflecting positive in the second half. But an interesting note from the team of analysts at Bloomberg, they call this a lackluster end to fiscal '23 for the company. It seems like investors agree with that and that expectations for that positive inflection in volume the back half, they argue that could be tough to achieve. We'll see.