Kraft Heinz raised its annual forecasts on Wednesday after quarterly sales topped analysts’ estimates, a result that CEO Steve Cahillane credited to his turnaround plan’s emphasis on heavier marketing and innovation outlays.
The company now expects organic sales to decline between 0.5% and 2.0% for the full year, an improvement from its prior outlook of a 1.5% to 3.5% decline. It also expects annual adjusted earnings per share of $2.03 to $2.09, compared with its earlier forecast of $1.98 to $2.10. Kraft Heinz said it would increase its incremental investments by $100 million to approximately $700 million in 2026.
Quarterly net sales totaled $6.26 billion, a 1.4% drop from the same period last year. That result surpassed the consensus estimate of $6.12 billion, which implied a 3.6% decline, according to Reuters, citing LSEG data. Adjusted earnings came to 56 cents per share, an 18.8% year-over-year decline, though still ahead of the 53-cent figure analysts had forecast, according to Reuters.
Price increases helped drive the sales outperformance, but demand by unit count continued to soften across several major markets. CFO Andre Maciel noted in prepared remarks that gains in Canada and the Away From Home channel could not fully compensate for weakness in U.S. Retail, where the meat category was a primary drag. A non-cash impairment charge of $7.4 billion contributed to an operating loss during the quarter, though one smaller than the company reported a year earlier.
Maciel said the company’s hedging coverage on energy and edible oils extended through most of 2026, whereas its protection on certain resins and metals was set to expire around mid-third quarter. “As those roll off, we expect greater exposure to spot prices in the fourth quarter,” he said.
Cahillane, who became CEO in January, has steered Kraft Heinz toward offerings such as protein-heavy foods and electrolyte-infused drinks in a bid to win over shoppers prioritizing their health. Kraft Heinz stock remained largely unchanged in premarket trading on Wednesday.
When Kraft Heinz reported first-quarter results in May, it kept its full-year outlook unchanged, with Cahillane citing rising inflation and weak consumer sentiment as reasons for caution. At the time, the company said 35% of its business was gaining or holding market share, up from 21% a year earlier.
