Kraft Heinz Earnings: Beefed Up Brand Spending Should Reignite Waning Volumes; Shares Attractive

Kraft Heinz's organic sales sank 2.5% on weak volumes (3.5%). Inflation weighed on adjusted gross margins, down 200 basis points to 32.3%. Management now expects 2025 organic sales to fall 3.0%-3.5% (down 1.5%-3.5% prior) and adjusted operating income to plummet 10%-12% (down 5%-10%).