Kraft Heinz raises 2026 outlook after quarterly sales beat estimates

USA – Kraft Heinz has raised its full-year 2026 forecasts after quarterly sales exceeded analysts’ expectations, with CEO Steve Cahillane pointing to marketing and innovation investment as part of his turnaround strategy. 

The company now expects organic sales to decline 0.5% to 2.0% this year, improving from its previous forecast for a 1.5% to 3.5% decline. Adjusted earnings per share are now expected at US$2.03 to $2.09, compared with the earlier range of US$1.98 to US$2.10. 

Kraft Heinz also plans to increase incremental investments by US$100 million to approximately US$700 million in 2026, as Cahillane focuses on marketing, innovation and products aligned with changing consumer preferences. 

Second-quarter net sales reached US$6.26 billion, down 1.4% from a year earlier but above the US$6.12 billion analyst consensus cited by Reuters and LSEG. Adjusted earnings fell 18.8% year over year to 56 cents per share, but exceeded the 53-cent analyst estimate. 

Price increases supported the sales performance, while unit demand remained weaker across several major markets. CFO Andre Maciel said gains in Canada and the Away From Home channel were insufficient to offset weakness in U.S. Retail, particularly in the meat category. 

A $7.4 billion non-cash impairment charge contributed to an operating loss during the quarter, although the loss was smaller than that recorded in the same period a year earlier. 

Maciel said the company’s hedging coverage for energy and edible oils extended through most of 2026, while protection for certain resins and metals was expected to expire around mid-third quarter. 

“As those roll off, we expect greater exposure to spot prices in the fourth quarter,” Maciel said. 

Cahillane, who became Kraft Heinz CEO in January, has been directing the company toward products including protein-focused foods and electrolyte-infused drinks as it seeks to respond to consumer interest in health-oriented offerings. 

The company’s forecast marks an improvement from its May outlook, when it maintained its full-year guidance amid inflation and weak consumer sentiment. At that time, Kraft Heinz said 35% of its business was gaining or holding market share, up from 21% a year earlier. 

Kraft Heinz said the investment level reflects its turnaround plan while maintaining its revised 2026 financial outlook. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.