Kraft Heinz (KHC) is expected to report Q4 earnings in line with estimates, according to a note from UBS Securities emailed Thursday.

The firm forecasts Q4 earnings of $0.78, in line with consensus expectations.

While the company did exceed its Q3 estimates, the margin of the beat was "somewhat disappointing" as it was largely driven by a reduction in expenses.

Since then, the company's stock price has declined 10% and investor sentiment remains negative despite a favorable stock reaction to Kraft's peer Mondelez (MDLZ) after it reported a difficult quarter and outlook.

UBS noted that investors' concerns are largely centered around whether Kraft Heinz will need greater levels of investment in 2025.

Kraft has already indicated that it does not expect to meet its algorithm in 2025, and its initial guidance for the year could reflect the challenges within the packaged food category, UBS added.

"While Street estimates largely reflect a below algorithm year looking ahead, we sense some debate in terms of where initial guidance will land, with some investors suggesting that Street estimates that call for slightly positive EPS growth remain far too optimistic," according to the note.

The firm also said it expects organic sales to grow by 0.3% in fiscal 2025, which is broadly in line with street expectations.

UBS has a neutral rating on the company's stock with a price target of $31.

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