Kraft Heinz Cut to Neutral by JPMorgan, Pauses Split and Plans $950M Capex
JPMorgan downgraded Kraft Heinz to Neutral and paused its planned split after management issued a weak full-year outlook. The packaged-food maker forecasts $950 million in 2026 capital spending, a year-over-year increase earmarked for new production capacity and strategic marketing initiatives.
1. Analyst Downgrade and Split Pause
JPMorgan lowered Kraft Heinz’s rating to Neutral after the company issued a subdued full-year outlook, highlighting concerns over near-term revenue and profit growth. The bank also advised halting the planned split of the company into separate consumer and international units until underlying performance improves.
2. 2026 Capital Spending Increase
Kraft Heinz projects approximately $950 million in capital expenditures for 2026, up from last year’s outlay. Management plans to deploy the additional funds into expanded production lines, supply chain upgrades and targeted marketing efforts to drive volume growth.