Kraft Heinz Pauses Separation Plan and Issues Weak 2026 Outlook

Core Viewpoint - Kraft Heinz Co. has suspended its planned company separation and provided 2026 guidance that significantly underperforms analyst expectations [1][2] Group 1: Financial Performance - The company reported fourth-quarter adjusted earnings per share (EPS) of $0.67, surpassing analyst estimates of $0.61 [1] - Revenue for the quarter was $6.35 billion, slightly below the consensus of $6.38 billion and down 3.4% year-over-year [1] - Organic sales declined by 4.2%, worse than the expected drop of 3.72% [1] Group 2: Strategic Changes - Under new CEO Steve Cahillane, Kraft Heinz is focusing on restoring profitable growth [2] - The company announced a $600 million investment plan targeting marketing, sales, and research and development, particularly for its U.S. operations [2] Group 3: Future Projections - For 2026, Kraft Heinz projected adjusted EPS between $1.98 and $2.10, significantly below analyst expectations of $2.49 [2] - Organic net sales are expected to decline between 1.5% and 3.5%, with adjusted operating profit forecasted to fall by 14% to 18% [2] Group 4: Full-Year Results - For the full year 2025, Kraft Heinz reported a net loss of $5.85 billion, compared to a profit of $2.74 billion in 2024, primarily due to $9.3 billion in non-cash impairment charges [3] - Adjusted EPS for 2025 decreased by 15% to $2.60 from $3.06 in the previous year [3]