Company Reports

Organic sales slipped 1.3% in Kraft Heinz's second quarter, as a 1.3% benefit from inflation-driven pricing was offset by a 2.6% pullback in volumes. The adjusted operating margin contracted 350 basis points to 16.6%, reflecting inflationary headwinds and stepped-up brand spending.

The 2015 Kraft Heinz merger has yet to deliver a durable improvement in sales and profits. But newly appointed CEO Steve Cahillane sees opportunities to invest in its brands and capabilities—to the tune of an incremental $600 million. With this as its prime directive, he's put the pending plans to split the business on ice. We never thought that separating its operations would bring an enhanced level of focus that would ultimately boost its competitive position or financial prospects. While we look favorably upon this strategic pivot, we recognize it will take time for the benefits from this stepped-up spending to manifest.

Kraft Heinz's organic sales slipped 0.4% in the first quarter, better than its 4% fourth-quarter decline. Inflation, particularly around manufacturing and logistics, negated cost savings and higher prices, sending its adjusted gross margin down 30 basis points to 34.1%.

In an about-face, Kraft Heinz scrapped its plans to split and instead is plowing another $600 million into its brands and capabilities. This news came alongside a 4.2% downdraft in fourth-quarter organic sales and a 130-basis-point erosion in the adjusted gross margin to 33.1%.

The 2015 Kraft Heinz merger has failed to deliver a durable improvement in sales and profitability. But recently appointed CEO Steve Cahillane sees opportunities to invest in its brands and capabilities—to the tune of an incremental $600 million. With this slated as its prime directive, he's put the firm's pending plans to split on ice. We never thought that separating its operations would bring an enhanced level of focus that would ultimately boost its competitive position or financial prospects. While we look favorably upon this strategic pivot, we recognize it will take time for the fruits of this stepped-up spending to manifest.

Kraft Heinz's shares tumbled 4% in after-hours trading on Jan. 20, 2026, on news that Berkshire Hathaway intends to exit its position (325 million shares, or more than one-fourth of shares outstanding). Greg Abel recently replaced legendary investor Warren Buffett as Berkshire's CEO.

Carlos Abrams-Rivera is set to leave Kraft Heinz, ceding the top spot to former Kellanova CEO Steve Cahillane on Jan. 1. Executive Chairman Miguel Patricio is also stepping aside, with John Cahill assuming the independent chairman role, but Patricio will remain on the board.

The merger of Kraft Heinz failed to generate a durable improvement in sales and profitability. As such, management now intends to separate the business into two independent, publicly traded companies: sauces, spreads, and seasonings ($15.4 billion in annual sales) and North American grocery ($10.4 billion). Despite the increased focus that management claims this affords, we fail to see how this enhances its competitive position or financial prospects. In our view, the motivation rests on unlocking a higher multiple for the faster-growing condiments business once it's unencumbered by the more mature North American grocery brands.

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%).

Kraft Heinz intends to split its sauces, spreads, and seasonings arm ($15.4 billion in annual sales) from its North American grocery brands ($10.4 billion). The transaction to create two separate public companies is slated to close in 2026's second half. Shares fell 5% on the news.

The merger of Kraft Heinz failed to generate a durable improvement in sales and profitability. As such, management now intends to separate the business into two independent, publicly traded companies: sauces, spreads, and seasonings ($15.4 billion in annual sales) and North American grocery ($10.4 billion). Despite the increased focus that management claims this affords, we fail to see how this enhances its competitive position or financial prospects. In our view, the motivation leans more toward unlocking a higher multiple for the faster-growing condiments business once it's unencumbered by the more mature North American grocery brands.

Kraft Heinz benefited from consumers’ penchant for eating at home during the pandemic, with 85% of its sales resulting from traditional retail channels (brick-and-mortar and online). Although Kraft Heinz has succumbed to the waning consumer narrative, we view its revamped strategic roadmap as prudent for the long term. This has been reflected in its improved market share and gains in shelf space over the past few years. As a part of these efforts, since mid-2019, Kraft Heinz has prioritized the pursuit of efficiencies that prove lasting: enhancement of its capabilities (category management and e-commerce) and scale leverage to more nimbly respond to changing market conditions and elevate its brand spending (marketing and product innovation), which we perceive as prudent.

Kraft Heinz's second-quarter organic sales sank 2%, while adjusted operating margin plunged 120 basis points to 20.1%. However, the firm held the line on full-year expectations for a 1.5% to 3.5% decline in organic sales against $2.51-$2.67 in adjusted EPS.

Kraft Heinz traded about 3% higher on July 11 following a report by The Wall Street Journal that it could separate its operations. Details were scant as to the composition of either business and the timing is unclear.

Kraft Heinz benefited from consumers’ penchant for eating at home during the pandemic, with 85% of its sales resulting from traditional retail channels (brick-and-mortar and online). And while Kraft Heinz has succumbed to the weakening consumer narrative, we see the prudence in its revamped strategic road map over the longer term. This has been reflected in its improved share position and shelf space gains in the past few years. As a part of these efforts, since mid-2019, Kraft Heinz has prioritized the pursuit of efficiencies that prove lasting: brand spending elevation (marketing and product innovation), enhancement of its capabilities (category management and e-commerce), and scale leverage to more nimbly respond to changing market conditions, which we perceive as prudent.

Kraft Heinz's first-quarter organic sales slumped 4.7%, reflecting a 5.6% hit from lower volumes and unfavorable mix. Despite this, the adjusted operating margin ticked up 30 basis points to 20%.

The US Department of Health and Human Services and the Food and Drug Administration plan to eliminate a wide range of petroleum-based food dyes in packaged foods by the end of 2026. This builds off of pending statewide bans, including in California.

Kraft Heinz benefited from consumers’ penchant for eating at home during the pandemic, with 85% of its sales resulting from traditional retail channels (brick-and-mortar and online). And while Kraft Heinz hasn't been immune to the weakening consumer narrative, we see the prudence in its revamped strategic road map longer term. Over the past few years, this has been reflected in its improved share position and shelf space gains. As a part of these efforts, since mid-2019, Kraft Heinz has prioritized the pursuit of efficiencies that prove lasting, brand spending elevation (marketing and product innovation), enhancement of its capabilities (category management and e-commerce), and scale leverage to more nimbly respond to changing market conditions, which we perceive as prudent.

Kraft Heinz's fourth-quarter marks left a bitter taste, with shares down a low-single-digit percentage. While its adjusted operating margin jumped 90 basis points to 21.1%, organic sales tumbled 3% on a 4% volume slump.

Kraft Heinz benefited from consumers’ penchant for eating at home during the pandemic, with 85% of its sales resulting from traditional retail channels (brick and mortar and online). And while Kraft Heinz hasn't been immune to the weakening consumer narrative, we see the prudence in its revamped strategic road map longer term. We think this has been reflected over the past few years in its improved share position and recent shelf space gains. As a part of these efforts, since mid-2019, Kraft Heinz has prioritized the pursuit of efficiencies that prove lasting, brand spending elevation (marketing and product innovation), enhancement of its capabilities (category management and e-commerce), and scale leverage to more nimbly respond to changing market conditions, which we perceive as prudent.