Kraft Heinz falls after second-quarter results, annual forecast update
KHC•Analyst reaction
"Combined with remarks about elevated inflation in 2027 and the still awaited return to positive volume growth, we suspect skepticism regarding 2027 will remain" - Max Gumport, analyst at BNP Paribas.
Forecast and spending outlook
The company said it will raise FY26 investments by $100 million to about $700 million, as CEO Steve Cahillane's turnaround efforts ramp up marketing and innovation spending.
Kraft Heinz now expects annual adjusted operating profit to decline 16% to 18%, compared with a prior forecast of a 14% to 18% fall. It also forecast annual organic sales to fall 0.5% to 2.0%, and annual adjusted EPS at $2.03 to $2.09.
Quarterly sales and volume trends
Second-quarter organic sales fell 1.3% as consecutive price hikes pressured volumes.
In North America, the company's largest market, volumes declined 3.8 percentage points from a year earlier, while prices rose 1.1 percentage points.
Shares fall after second-quarter update
Shares of Kraft Heinz (KHC.O) were down about at after the company reported second-quarter results and updated its annual forecast.
