What's Going On With Kraft Heinz Stock Today?

Kraft Heinz KHC shares remained relatively flat in premarket trading on Friday following a legal setback and the discontinuation of its reworked Lunchables meals for U.S. schools.

A federal judge recently ruled that Kraft Heinz must face a proposed nationwide class action lawsuit over its Kraft Mac & Cheese product, Reuters reports.

The lawsuit, filed by consumers in Illinois, California, and New York, alleges that the company misled customers by claiming its iconic macaroni and cheese contains “No Artificial Flavors, Preservatives or Dyes.”

The plaintiffs argue that the product contains synthetic citric acid, which differs from the natural variety, as well as sodium phosphates, both of which function as preservatives.

U.S. District Judge Mary Rowland found the claims credible, pointing to academic studies and FDA guidelines that support the plaintiffs’ allegations, Reuters added.

If the lawsuit proceeds, it could lead to changes in labeling practices or potential penalties for the company.

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This legal challenge follows Kraft Heinz’s recent decision to discontinue a new version of Lunchables designed to meet school nutrition standards. Introduced for the 2023-2024 school year, these meals were criticized by nutritionists and advocacy groups for high sodium content, despite efforts to reduce saturated fat and sodium.

Kraft Heinz cited low demand for the product, which accounted for less than 1% of overall Lunchables sales.

As Kraft Heinz navigates these controversies, its ability to address growing consumer concerns about product transparency and health impacts might be closely watched.

According to Benzinga Pro, KHC stock has lost over 5% in the past year. Investors can gain exposure to the stock via First Trust Nasdaq Food & Beverage ETF FTXG.

Price Action: KHC shares are trading higher by 0.16% to $31.79 premarket at last check Friday.

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