Investing.com -- Mizuho downgraded Kraft Heinz (NASDAQ: KHC) Co to "Neutral" as it sees limited earnings upside amid reinvestment pressures and weakening U.S. market share.

The firm lowered its 2025 earnings per share estimate to $3.00 from $3.08. It also revised its 2025 EBIT forecast to a 1% decline, down from prior expectations of 1% growth.

While years of reformulations positioned KHC for market share gains, volume softness and reinvestment are creating headwinds, Mizuho (NYSE: MFG) analysts said noting that while past promotional cuts boosted margins, the company now faces softer center-store volumes.

Despite Kraft Heinz trading at an 8.7x estimated 2025 EBITDA—at a 20% discount to U.S. food peers—the firm expects shares to remain range-bound amid macroeconomic and execution uncertainties.

Mizuho recommended Mondelez (NASDAQ: MDLZ) as a preferred alternative for large-cap investors.