Kraft Heinz pauses plans to split into 2 companies as it faces consumer headwinds, pricing challenges

Core Viewpoint - Kraft Heinz has decided to pause its plans to split into two separate entities, indicating that the challenges faced by the company are manageable and within its control [1][2]. Group 1: Company Strategy - The company plans to invest $600 million in marketing, sales, research and development, and pricing to drive growth [1]. - New CEO Steve Cahillane expressed confidence in the company's future and believes the investment will help accelerate a return to profitable growth [2]. Group 2: Financial Performance - In the fourth quarter, Kraft Heinz reported adjusted earnings of $0.67, surpassing the expected $0.61, while revenue was slightly lower at $6.35 billion compared to the anticipated $6.37 billion [3]. - The company expects organic net sales to decline by 1.5% to 3.5% for 2026, which is worse than the 0.6% drop previously expected by Wall Street [5]. - Kraft Heinz's profit forecasts are also below estimates, projecting adjusted earnings per share between $1.98 and $2.10, compared to the $2.50 expected by analysts [5]. Group 3: Market Reaction - Following the announcement of the pause in the split, Kraft Heinz's stock initially fell by as much as 6% in premarket trading but later rose by about 1% in morning trading [2].