Kraft Heinz(US:KHC) ZACKS·2026-02-11 16:56Core Insights - The Kraft Heinz Company (KHC) reported fourth-quarter 2025 results, with revenue missing the Zacks Consensus Estimate while earnings per share exceeded expectations, although both metrics showed a year-over-year decline [1][10]. Financial Performance - Adjusted earnings were 67 cents per share, surpassing the Zacks Consensus Estimate of 61 cents, but fell 20.2% year over year due to lower adjusted operating income, higher taxes, and increased interest expenses [3]. - Net sales totaled $6,354 million, down 3.4% year over year, missing the Zacks Consensus Estimate of $6,418 million, with organic net sales decreasing by 4.2% [4][10]. - Adjusted gross profit was $2,101 million, down from $2,262 million in the prior year, with an adjusted gross margin contraction of 130 basis points to 33.1% [6]. - Adjusted operating income declined 15.9% to $1,164 million, primarily due to inflation in commodities and manufacturing costs exceeding productivity gains [7]. Segment Performance - North America: Net sales were $4,700 million, a decline of 5.4% year over year, with organic sales also down 5.4% [8]. - International Developed Markets: Net sales increased by 1.8% to $930 million, but organic sales fell 2.4% [9]. - Emerging Markets: Net sales rose 4.3% to $724 million, with organic sales growing 2.2% [9]. Strategic Initiatives - The company is investing $600 million in marketing, sales, R&D, product improvement, and selective pricing to drive recovery and growth, pausing its separation initiative to focus on core strategies [2][10]. - For fiscal 2026, KHC anticipates organic net sales to decline by 1.5% to 3.5%, with adjusted EPS projected between $1.98 and $2.10 [13]. Shareholder Returns - In fiscal 2025, KHC returned $1.9 billion in cash dividends and repurchased $436 million of common stock, with approximately $1.5 billion remaining under its authorized share repurchase program [12].