KHC

The Kraft Heinz Company KHC topped second-quarter earnings and sales expectations while raising its 2026 organic sales outlook. The results give investors some evidence that execution is improving as brand investment and international growth begin to show traction.The recovery is still incomplete. North American volumes remain weak, full-year margins are expected to contract and adjusted operating income is projected to decline sharply, keeping the focus on whether better demand trends can become sustainable. Kraft Heinz reported adjusted earnings of 56 cents per share, above the Zacks Consensus Estimate of 53 cents. Net sales of $6.262 billion also surpassed the consensus mark of $6.162 billion.The beat did not erase the underlying pressure. Adjusted earnings fell 18.8% year over year, while organic net sales declined 1.3% as a 2.6-point drop in volume/mix more than offset 1.3 points of pricing. Management now expects fiscal 2026 organic net sales to decline 0.5% to 2%, compared with its prior forecast for a 1.5% to 3.5% decline. The updated range still includes an approximately 100-basis-point impact from incremental SNAP headwinds.Demand trends have improved from earlier in the year. Management said consumption declined about 2.5% in the second quarter but improved to roughly 1% in July, with sequential improvement expected in the third and fourth quarters. Image Source: Zacks Investment Research North America organic net sales fell 2.7% in the second quarter. A 3.8-point decline in volume/mix overwhelmed a 1.1-point pricing contribution, with softness in U.S. meats remaining a key drag.The pressure is not unique to Kraft Heinz. The Campbell's Company CPB reported a 4% decline in both reported and organic net sales in its fiscal third quarter of 2026, while adjusted earnings per share fell 32%. Emerging Markets net sales increased 10.4% and organic net sales rose 8.5% in the second quarter. Pricing contributed 4.5 points and volume/mix added 4 points, giving Kraft Heinz growth from both price and demand.Management expects Emerging Markets growth to accelerate in the second half as an Indonesia-related drag is lapped. For broader branded-food context, Mondelez International, Inc. MDLZ reported second-quarter 2026 organic net revenue growth of 2.2%, including a 0.7% volume/mix increase. Image Source: Zacks Investment Research Adjusted gross profit margin was flat year over year at 34.1% in the second quarter. For fiscal 2026, Kraft Heinz still expects adjusted gross profit margin to decline 10 to 50 basis points.Constant-currency adjusted operating income is projected to fall 16% to 18%. The outlook incorporates about $700 million of incremental investment versus 2025, while inflation and unfavorable volume/mix continue to pressure near-term earnings leverage. Kraft Heinz's earnings beat and improved organic sales outlook strengthen the recovery narrative, but the investment case still depends on better volume trends and firmer profitability. The latest results improve visibility without removing the core execution risks.KHC currently carries a Zacks Rank #3 (Hold). Its Value Score of A supports the value case, while the Growth Score of D, Momentum Score of F and VGM Score of C indicate that favorable valuation characteristics are not yet matched by equally strong growth and momentum signals. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kraft Heinz Company (KHC) : Free Stock Analysis Report The Campbell's Company (CPB) : Free Stock Analysis Report Mondelez International, Inc. (MDLZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Kraft Heinz’s second quarter was marked by ongoing sales declines and a negative market reaction, reflecting persistent challenges in core packaged food categories. Management attributed the weak top-line performance to continued softness in U.S. consumption and lower sales volumes, while incremental investment in marketing and innovation began to show early signs of stabilization in select brands. CEO Steven Cahillane acknowledged, “Nobody is doing a victory lap that we’re declining less than we anticipated, but it is moving in the right direction,” highlighting cautious optimism amid gradual improvement in consumption rates and market share trends. Is now the time to buy KHC? Find out in our full research report (it’s free). Revenue: $6.26 billion vs analyst estimates of $6.12 billion (1.4% year-on-year decline, 2.3% beat) Adjusted EPS: $0.56 vs analyst estimates of $0.53 (5.6% beat) Management slightly raised its full-year Adjusted EPS guidance to $2.06 at the midpoint Organic Revenue fell 1.3% year on year (miss) Sales Volumes fell 2.6% year on year, in line with the same quarter last year Market Capitalization: $29.23 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Andrew Lazar (Barclays) pressed on whether margin trough has shifted, given the inflation outlook. CEO Steven Cahillane explained that productivity and incremental investment should support margins, calling the outlook “manageable.” Peter Galbo (Bank of America) asked about improving consumption trends and the expected cadence for the rest of the year. CFO Andre Maciel confirmed sequential improvement in Q3 and Q4, with share performance now near historical levels. Stephen Robert Powers (Deutsche Bank) requested details on market share progression and proof points for back-half improvement. Maciel pointed to specific product launches and innovation traction in categories like Capri Sun Hydrate and PowerMac. Scott Marks (Jefferies) focused on Oscar Mayer’s turnaround actions. Cahillane detailed new packaging and innovation as drivers of early improvement, particularly isolating challenges to Deli Fresh. Leah Jordan (Goldman Sachs) inquired about pricing strategy and competitive response. Cahillane highlighted surgical pricing adjustments and emphasized that incremental investment would now be directed mostly toward marketing rather than further price changes. Looking ahead, the StockStory team will be monitoring (1) whether increased marketing and innovation spending translates into sustained consumption and market share gains, (2) the pace of improvement in underperforming categories such as Oscar Mayer and cold cuts, and (3) continued international momentum, particularly in emerging markets. Execution on product launches and the effectiveness of partnerships like Disney and NFL will also be important markers of progress. Kraft Heinz currently trades at $24.69, down from $26.64 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Friday, Aug. 7, 2026 at 9:00 a.m. ET Investor Relations - Anne-Marie Megela Chief Executive Officer - Steve Cahillane Chief Financial Officer - Andre Maciel Operator: Greetings, and welcome to the Kraft Heinz Company Q2 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Anne-Marie Megela. Thank you. You may begin. Anne-Marie Megela: Thank you, and thank you all for joining us today. Welcome to the Q&A session for our second quarter 2026 business update. During today's call, we may make forward-looking statements regarding our expectations for the future. These statements are based on how we see things today, and actual results may differ materially due to risks and uncertainties. Please see the cautionary statements and risk factors contained in today's earnings release and our most recent SEC filings for more information regarding these risks and uncertainties. Additionally, we may refer to non-GAAP financial measures. Please refer to today's earnings release and the non-GAAP information available on our website for a discussion of our non-GAAP financial measures and reconciliations to the comparable GAAP financial measures. Joining me today to answer your questions is our Chief Executive Officer, Steve Cahillane, and our Chief Financial Officer, Andre Maciel. Operator, please open the call for the first question. Operator: [Operator Instructions] Our first question comes from the line of Andrew Lazar with Barclays. Andrew Lazar: It's encouraging to see some of the incremental investments starting to pay off. I know much can still change by the time we get to 2027. In the prepared remarks, you mentioned expected inflation next year in a 4% to 5% range and that Kraft will try and offset as much as possible through incremental productivity. I know you had mentioned previously that '26 would also be the margin trough year. So I'm trying to get a sense of whether we should read that inflation commentary for next year, maybe is implying that perhaps this year won't be the margin trough. And I guess some of the incremental investment now planned for next -- for the second half of this year will also have to [ lap ] in the first half of next year, too. So I'm just trying to get a sense of how we should sort of read the commentary about next year in the prepared remarks? Steven Cahillane: Yes, Andrew, this is Steve. Thanks for the question. I think what we were trying to get across in those comments was that despite the macroeconomic uncertainty, despite all the challenges that we're facing, that the inflation outlook for next year is not anything that we're fearful of. In fact, we can absolutely manage it. But as always, our first line of defense is productivity. If we could cover all of the inflation with productivity, we would do that. But we are looking to maintain and strengthen our margins over time. So that's the way we're looking at it. It's a manageable year next year despite all of that. We like the way we've set ourselves up. It's more than halfway through the year with this incremental investment coming in. We like the setup. We like the momentum, and we like the way we're setting ourselves up for 2027, including on the COGS line. Operator: Our next question comes from the line of Peter Galbo with Bank of America. Peter Galbo: I wanted to ask a little bit about just the consumption rates. I know there's a bit of noise with the inventory pull forward in Q2 that's also kind of disrupting Q3. But I think if I back all that out, your consumption was something like down 2% in the second quarter. I think the 3Q guidance implies it improves to something like down 1% in 3Q. So I just want to make sure I understand that cadence correctly. And then maybe just as a follow-up, like what that says about how you feel about the exit rate on the year from consumption? So are we going from this down 2% to down 1% to something improved in Q4? I know there's comparables to think about. So there's a lot in there, but maybe you can just speak to the consumption more broadly and the cadence over the balance of the year. Steven Cahillane: Yes. Thanks for the question, Pete. I'll start and Andre can certainly fill in. But you're reading it right. We had obviously first quarter that was flattered by Easter, second quarter that reversed. We had snowstorms that we tried to adjust for in the first quarter as well. But by and large, the consumption rate is improving. And the amount of our business that is maintaining or holding share is also improving. And we're seeing real green shoots in part of our Taste Elevation portfolio, certainly in Capri Sun, even in Mac & Cheese in terms of consumption rates. And so we hope to exit the year with the best consumption rates in the fourth quarter and enter 2027 with real momentum. Now it's too early to give guidance, obviously, and talk about 2027, but you're reading the consumption puts and takes exactly right. And the momentum is growing. Nobody is doing a victory lap that we're declining less than we anticipated, but it is moving in the right direction, and that's what gives us the confidence to invest even more to double down on improving consumption and improve on our share performance. Andre Maciel: Yes. I think just to complement, Peter, I think directionally, you are right in Q2, with about 2.5% decline on the consumption. As we are ramping up -- starting to ramp up investments at the end of Q2 and now we're going to be a lot more intense in the second half. We do expect a gradual step-up. I don't want to set up an expectation about the specific sellout we're going to be in Q3 and Q4, but we should expect an improvement in Q3 and then a further sequential improvement in Q4. July, just to put in perspective, we were about minus 1%. So there is already an improvement that we observed in July and the market share, even more important. We were in the first half, we lost 30 bps, which is, in a way, is good because we go back to the historical levels. Remember that in 2025, at some point, we're losing 90 bps of market share at the beginning of the year. So it's a very significant improvement. Look at the most recent weeks, we are now 20 bps, even a little bit better. So it's good to see that things are moving in the right direction. Operator: Our next question comes from the line of Steve Powers with Deutsche Bank. Stephen Robert Powers: Great. Actually, I want to kind of follow up on that and just get a better sense of how you're thinking about the market share progression? Because as you say, Andre, down 30 bps in the first half, certainly improved versus where we were in '25. But if I compare kind of where you were coming out of the first quarter, it looks like there wasn't a whole lot of progress made in the second quarter. And certainly, percentage of WIN BIG gaining or holding share went down, especially versus the March exit rates that you shared coming out of 1Q. So just maybe a little bit more perspective on how you're seeing progression. And then as we look to the back half, if there are specific pockets of the business where you expect to see the most traction that we should look for as specific proof points, that would be helpful to be able to highlight. Andre Maciel: Yes. And you are correct. The share trend Q2 and Q1 is similar. And if you remember the last earnings call, we already anticipated that. We said that we do not expect in part because, as we said, we built into the year 100 bps headwind from SNAP and part of that would be a share pressure. So in a way, it's good that we were able to offset that share pressure coming out of SNAP because we are seeing the SNAP headwinds, and we were able to protect the share as we anticipated. Now as the investments ramp up and have all the innovations that we put in market getting traction, you saw in prepared remarks, I think there is very encouraging early signs coming out of Capri Sun Hydrate, out of the PowerMac & Cheese, out of Ore-Ida Shapes. So there's good momentum there. And I think that's also contributing for the share improvement we are seeing. So you should expect Mac & Cheese to continue to improve. We should expect Taste Elevation in general to continue to improve from where we are right now. We should expect momentum on the desserts business. We should expect cold cuts to start to improve the trends given now that we're going to lap the decline that started in July last year. So all those things would be signs of progress. Steven Cahillane: And if I just build on that, and Andre mentioned this, if you look at the last 4 weeks, we are seeing proof of that. So we're seeing that. And only 1/3 of our incremental first $600 million has been spent. So we still have a lot in market to go, including the additional $100 million that we announced this morning. Operator: Our next question comes from the line of Scott Marks with Jefferies. Scott Marks: I wanted to just dive in a little bit on the meats and meals side of the business. That's one area where you specifically called out plenty of work to do, talked about the targeted actions. Just wondering if you can kind of help us understand how you're approaching those actions and what we can expect in terms of timing for the improvements beyond just the lapping dynamic that you mentioned. Steven Cahillane: Yes. So I'll start, and again, Andre can build on it. One of the biggest issues that we've had are with our Oscar Mayer brand and specifically in Deli Fresh. We have new packaging, which is almost now completely in the market, and we're seeing better performance based on that. And some of that has to do with lapping the big declines that we saw. So we know we have work to do clearly on the Oscar Mayer front, but the new packaging is in place and early signs are encouraging. And we want to plug that leaky bucket for sure. On bacon and hotdogs, better performances, better -- much better than Deli Fresh. So it's really isolated around Deli Fresh. Lunchables, we've also had some innovations coming in the market, Lunchables Snackables. We made some product improvements in Lunchables as well, which is showing early encouraging signs as well. And you mentioned meals. So Mac & Cheese, obviously, we already mentioned, is showing improved consumption -- significant improved consumption. And PowerMac is -- continues to be off to a good start. I think we mentioned on the last call, terrific distribution, 35,000 stores out there with PowerMac and its consumption is in the first quartile of innovation. So feeling very good about that. And the early read is it is very, very incremental to us and to the category. So retailers have been quite pleased with that. So all in, work to do, but progress being made. Operator: Our next question comes from the line of Michael Lavery with Piper Sandler. Michael Lavery: Just was wondering if you could help us understand a little bit of what's working and between some of the product investments, the price investments, the marketing, what are you seeing the most effective that's running ahead of your expectations? How much can you transfer it across brands and categories? And how does it inform how you deploy the incremental $100 million? Steven Cahillane: Yes, I see it's working virtually everywhere we're putting it. And so condiments is probably the first area where we've seen really marked improvement. Heinz is back to growth as it should be, strong growth -- strong consumption growth, which is terrific. So across the board in the U.S., we're seeing better performance. We haven't even mentioned though, emerging markets and what's happening there. Emerging markets had a terrific quarter. Heinz is up 12% in the quarter in emerging markets, driven by distribution and consumption. And so if you look at the totality of our portfolio, we've said the investment is largely in the U.S. to turn around the U.S. business. We're seeing early green shoots on that. But the rest of the portfolio is performing well in emerging markets, as I already mentioned, and global Away From Home is back to growth as well. That's a very strategic channel for us, one that we were not performing well in last year, and we're performing well now. And so we're investing there in product, in customer and in distribution, and it's paying off. Andre Maciel: And just a couple of quick complements. Heinz is really having a very strong year. Worldwide, we grew 3% year-to-date and with the expectation to accelerate from where we are right now. Condiments in the U.S., which last year was flat, and that's one of the places where we started the step-up investments in the second half of last year. Condiments in total in the U.S. is also growing 3% year-to-date, which is very good. And again, with prospects to continue to improve. Operator: Our next question comes from the line of Tom Palmer with JPMorgan. Thomas Palmer: I wanted to follow up a little bit on Andrew's question on 2027 and maybe focus it a bit more on the investment side. You noted earlier in the call that only around 1/3 of the spend had kind of stepped up in the first half of the year. So I think that would imply like a $200 million step-up, $500 million then comes in the back half of the year. One, any help on kind of how much of that step-up comes in 3Q versus 4Q? And then when we start thinking about next year, is a reasonable starting point looking at kind of the 4Q run rate and then extrapolating what that would imply for kind of the step-up next year? Or are there more meaningful considerations on top of that? Steven Cahillane: Yes. Again, I'll start. I think you should think about the third quarter and the fourth quarter being broadly even in terms of how we spend that money. And then as you think about 2027, again, too early to give guidance, but you should think about not necessarily a fourth quarter run rate, but think about 2026 being the base year in terms of getting the investment level right. And we mentioned this in the prepared remarks, but I would like to underscore that we're spending the additional $100 million because we can from a position of strength. And if you're a shareowner, would you rather we spend too much or too little? And it's not an exactly precise science, but we felt $600 million was the right number, a very good number and a strong number. The fact that we can add $100 million to it really helps us think about 2027 being the year that we've got it really right with a very strong marketing spend in order to drive our volume-led sustainable share type growth. And so we like the way we're setting ourselves up for 2027. When we get to the fourth quarter results, we'll obviously give guidance against that. But I like where we are, and I think we're in a differentiated position versus some of our peers in terms of the investments that we're making and the momentum that we're starting to build. Andre Maciel: And just to be crystal clear, like we do not expect any wraparound of investments into next year. So this '26 is the base. Operator: Our next question comes from the line of David Palmer with Evercore. David Palmer: From a category and brand perspective, I wonder, is the best ROI on spending the brands you highlighted in the slides, Capri Sun, Heinz, Ore-Ida, Mac & Cheese and Philly, those are getting the majority of incremental gross spending. If those are the highest ROI, why do you think that is? I can imagine some of it is the category responsiveness from a top line perspective and some of it's the incremental margins of the category. But also, I would imagine a lot of this comes down to your own readiness with ideas and innovation and the marketing messages. So any color on why those guys -- those particular brands are getting the incremental spend would be interesting to hear. Andre Maciel: Thanks for the question, and I think you already answered. So it is a combination of all of that, right? Those categories that were highlighted, they do have very strong brand equity. They do typically have very high gross margins, pretty much all of them. We did start earlier. Last year, if you remember, the first place where we started to step up investments in headcount, innovation, marketing was Taste Elevation. That's why you see those plans already coming to fruition in a stronger way. And we said in the earnings call, I believe, in February that some of these other categories, we were catching up. And that's part of where the incremental headcount investments and marketing and R&D were for us to be able to build bolder plans. And that's why we're starting to see some of those starting right now, but even more strongly towards the end of the year and into next year. So you're right. David Palmer: Yes. And I guess if I had to have a follow-up, it's really a follow-up not just on that one, but some of the other questions as well because I think your -- the incremental spend is $500 million or so versus $200 million so far or 1/3 of the $600 million. So if you're going to be doing that sort of spending and that $0.5 billion works, I wonder how much you would try to keep the flywheel going into next year and make that $1 billion or more if you just keep that run rate. How -- what -- how should we think about how you're thinking about that and those decisions on incremental spend in '27? Steven Cahillane: Yes, you should think about 2026 being the year where we got our base right. And the incremental $100 million just gives us that much more confidence that we've got the right amount of investment behind our brands, and we'll continue to turn our attention to getting the maximum ROI from those investments. And we'll always be dynamic in the way we think about allocating that investment as we go forward. But we feel like this has given us a great opportunity being ahead of plan to put the incremental $100 million in to just bolster our confidence that we've got the right amount of investment behind our brands to win in 2027. Andre Maciel: I think having all these investments in the base now in '26 gives the optionality next year. If you need to dial up marketing and do a little less in price or if you need to do more product and less marketing, I think we have the flexibility, but I think we're going to have a very solid base to invest. And I don't want it to go unnoticed. We show in prepared remarks that at the same time, we continue to work on ROI. So we saw progress in both marketing and promotional ROIs year-to-date, which is also good. Operator: Our next question comes from the line of Chris Carey with Wells Fargo. Christopher Carey: I certainly don't want to belabor the investment point, but maybe just one final follow-up here. It's -- there's like this dynamic where you've made the decision to increase investment because you're running ahead of plan, which is certainly a great thing. As we mature in this strategy, ultimately, you're going to want to get back to organic sales growth, I would imagine. And so what if organic sales trails for longer than expected? Would you lean in more? Or is this more about making sure that your market shares are back to healthy levels? And then, of course, the categories will always do what they do. So just that context between top line evolution versus getting your market shares back to a good place, which I think was a core premise of the initial investment. And then just as a kind of second question, that would be more of a follow-up. You've got better momentum in the business, Steve. You've been there for a bit now, getting your arms wrapped around the business. Does a bit better underlying momentum give you more ability to consider portfolio reshaping? Clearly, there's been headlines in recent quarters and years about potential avenues for portfolio reshaping. Does this better trend line give you a line of sight into maybe being a bit more proactive about making those decisions that are going to put you in a good place for the longer term? Steven Cahillane: Yes. So on the first one, I'd just reiterate that we have increasing confidence that we're doing the right thing to drive better share performance and better organic sales growth. I feel very confident about that, that we're doing the right things. And with the investment announced today, again, just bolsters our confidence. In terms of the second question, I think you're always wanting to operate from a position of momentum and strength, and we'll always continue to look at what's right for our shareowners as we think about our portfolio. So we're very comfortable in looking at the portfolio. And if the right opportunities come to make moves that add shareowner value, we'll absolutely be in a place to do that. Andre Maciel: And I just want to add a comment that's not directly linked to your question, but I think it's worth mentioning as well. You might -- you have noticed that at the same time that we are stepping up the investments, we also protected the cash flow. So we increased cash conversion expectation for the year. So free cash flow is the same dollar amount essentially that we have committed at the beginning of the year. That's -- we keep a close eye on the free cash flow. Our balance sheet remains very strong. You have seen that we have paid down $1.9 billion of debt in the quarter. After the quarter closed, we also paid another $1 billion in 2027. We did a very successful refinancing of an expensive debt maturity that we have also that was very successful. So it is great for us to be in a position to step up the investments, get those returns, position the company for growth while at the same time, preserving a very strong balance sheet and cash flow. Operator: Our next question comes from the line of Robert Moskow with TD Cowen. Robert Moskow: Andre, I just want to make sure I understand the guidance range, like what's in the low end and what's in the high end, because it sounds from the tone here that you're pretty confident that things will keep accelerating from a sales perspective in third and fourth quarter. But if I just go to the midpoint of the guidance, the total organization would have weaker sales growth in the second half than the first half just at the midpoint. So just to be consistent with the tone, it sounds like you have more confidence in the high end than the low end. So just -- do I interpret that correctly? Andre Maciel: Yes. So first, on the tone, yes, I think you are hearing confidence, and I think we are stepping up investments because we are seeing early signs of traction. We do feel good about emerging markets, and we believe our ability to continue to accelerate the growth from where we are, Away From Home back to growth, we believe this might be sustainable. And on the U.S. Retail, we already talked about the places that we still have work to do in the places of strength. Industry is still a bit volatile, right? So the industry, if you normalize by cost inflation and tariff-related inflation, the industry is still soft. So that's always a point of pause for us. So that's why what we've been focusing a lot in the U.S. in particular is the share improvement. And the industry, we believe over time, will go back to where it was. Now in terms of the guidance, you are totally correct. At the midpoint, the second half implies worse performance than the first half. However, remember that we did have in Q1 a relevant benefit related to snowstorms that in the first half represents about 0.7 percentage points, and we did have 0.8% in the second quarter that is shipment phasing into Q3. So if you normalize those 2 effects, we're actually improving the performance -- the underlying performance in the second half compared to the first half, approximately 70, 80 bps, but you are right. Operator: Our next question comes from the line of Leah Jordan with Goldman Sachs. Leah Jordan: So I understand that more of your investments are still expected to ramp from here. But curious where you've already made investments on the pricing side so far. How do you view your price gaps? What are you seeing in terms of any competitive response? And then ultimately, how are you thinking about maintaining the right gaps in the back half as we're also hearing retailers have recently stepped up price investments in their own private label and have plans to do even more in the back half? So risk that those gaps could widen. And that's really incremental versus what you initially -- versus when you initially laid out your plan. So how are you thinking about maintaining that with that change in the marketplace? Steven Cahillane: Yes. So, I'll start, and Andre can certainly fill in. We feel very good about the investments in price that we've made, and we've been very surgical. So it hasn't been just base price adjustments. It's been maintaining distribution. It's been opening price points. It's been price package architecture. It's been making sure that our gaps to private label and competitors are appropriate. And so we've done all that, and I think we've done it effectively. The incremental $100 million that we announced this morning is going to be almost entirely in marketing because we feel like we've done the right thing on price, even given some of the commentary that you just made about what the future may hold. So we feel like we've made the right investments in terms of that surgical pricing that we've done, and it gives us the confidence to spend the $100 million in incremental marketing against our brands in the back half of the year. Anne-Marie Megela: Operator, we have time for one more question. Operator: Our last question comes from the line of Rob Dickerson with U.S. Bancorp BTIG. Robert Dickerson: I think all my questions have been answered. So I'll ask maybe a fun one. Could you just talk a little bit about the Disney partnership, just kind of the magnitude of that? Is that partnership such that maybe even as soon as Q4, I would assume in '27 that we should be seeing some co-branding? And if so, where would we expect to see that? Steven Cahillane: Yes. So we're very excited about the Disney partnership. And you think about all the things that we can do with the Walt Disney Company, the iconic characters that they have and the things that we can do in co-branding and merchandising and licensing, things that we can do to activate in their parks and their cruise lines in their hotels. And so there is a multitude of really exciting things that we can do with Disney. They're great partners. They're brilliant marketers, and they just -- they mean so much to consumers in such a meaningful emotional way. So making that emotional connection with Disney in partnership is something we're really excited about. We're also really excited about the NFL partnership. So I think we're showing up in a very different way with consumers and with our retailers, and we're going to use both of those properties to really drive consumer emotional connections and something we're very excited about. So thanks for the question. Operator: And we have reached the end of the question-and-answer session. Therefore, I'll turn it back over to management for closing remarks. Anne-Marie Megela: Thank you, and thank you, everyone, for joining us. Operator: Thank you. And this concludes today's conference, and you may disconnect your lines at this time. We thank you for your participation. Have a great day. Before you buy stock in Kraft Heinz, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kraft Heinz wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Kraft Heinz. The Motley Fool has a disclosure policy. Kraft Heinz (KHC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

The Kraft Heinz Company KHC used its Q2 2026 earnings call to increase brand investment after early improvements in consumption and market share. Management framed the added spending as preparation for volume-led growth in 2027. Adjusted earnings of $0.56 per share topped the Zacks Consensus Estimate of $0.53. Revenues of $6.26 billion also exceeded the $6.16 billion estimate, although organic net sales declined 1.3%. Kraft Heinz Company price-consensus-eps-surprise-chart | Kraft Heinz Company Quote Chief executive officer (CEO) Steve Cahillane said Kraft Heinz raised incremental fiscal 2026 investments to approximately $700 million versus 2025. The extra $100 million will go almost entirely toward second-half marketing. A JPMorgan analyst asked about the spending cadence. Cahillane said third- and fourth-quarter investment should be broadly even. Global CFO Andre Maciel said management does not expect spending to wrap into next year. Fiscal 2026 is intended to establish the base while preserving flexibility across marketing, pricing and product support. Kraft Heinz raised its fiscal 2026 organic net sales outlook to a decline of 0.5% to 2.0%, compared with the previous forecast for a 1.5% to 3.5% decrease. A Bank of America analyst pressed management on consumption. Global CFO Andre Maciel said the measure declined about 2.5% in the second quarter but improved to roughly negative 1% in July, with sequential progress expected through year-end. The global chief financial officer said market share declined 30 basis points in the first half and about 20 basis points in recent weeks. Steve Cahillane cited better trends in Capri Sun, Mac & Cheese and Taste Elevation, while stressing that the turnaround remains unfinished. An Evercore ISI analyst asked why Heinz, Capri Sun, Ore-Ida, Kraft Mac & Cheese and Philadelphia were receiving more support. Andre Maciel cited brand equity, attractive gross margins and more advanced innovation plans. Heinz grew 3% worldwide and U.S. condiments have increased 3% year to date. Cahillane said Heinz grew 12% in emerging markets during the quarter, while global Away From Home returned to growth. Results remained uneven elsewhere. The CEO identified Oscar Mayer Deli Fresh as a major weakness, though new packaging was nearly fully deployed. PowerMac reached about 35,000 stores and ranked in the first quartile of innovation performance. A Barclays analyst asked whether expected inflation of 4% to 5% in 2027 threatened margin recovery. CEO Steve Cahillane said productivity would remain the first defense, and management intends to strengthen margins over time. Second-quarter adjusted gross margin was flat at 34.1%. Adjusted operating income fell 18.4% as advertising, weaker volume and inflation outweighed efficiency gains and pricing. Kraft Heinz expects fiscal 2026 constant-currency adjusted operating income to decline 16% to 18%. Adjusted earnings guidance was narrowed to $2.03-$2.09 per share from $1.98-$2.1. Andre Maciel emphasized that higher spending has not changed the cash commitment. Year-to-date free cash flow is up 10.3% to $1.7 billion, and the conversion outlook has increased to approximately 110% from 100%. Maciel also cited $1.9 billion of debt repayment during the quarter. Kraft Heinz paid $949 million in dividends during the first half. A Wells Fargo analyst asked whether improving momentum created room for portfolio changes. Cahillane said management would consider transactions that add shareholder value, without outlining a specific action. Management's tone was confident about early traction but measured about the work ahead. North American demand remains pressured, the broader industry is soft and volume recovery is still developing. Kraft Heinz is prioritizing sustained brand support, targeted pricing, innovation and productivity. Its near-term objective is to improve consumption and share through the second half and enter 2027 with a stronger operating base. KHC carries a Zacks Rank #2 (Buy), with an A Value Score, C Growth Score, C Momentum Score and A VGM Score. The combined reading is favorable, while the individual scores show greater strength in value than in growth or momentum. Zacks methodology favors Rank #1 (Strong Buy) and 2 stocks paired with an A or B Style Score. The current combination is constructive, but the Zacks Rank can change as earnings estimates are revised after the reported results. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kraft Heinz Company (KHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended June 2026, Kraft Heinz (KHC) reported revenue of $6.26 billion, down 1.4% over the same period last year. EPS came in at $0.56, compared to $0.69 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $6.16 billion, representing a surprise of +1.62%. The company delivered an EPS surprise of +5.66%, with the consensus EPS estimate being $0.53. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Kraft Heinz performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Sales- International Developed Markets: $865 million versus the four-analyst average estimate of $867.8 million. The reported number represents a year-over-year change of -3.6%. Net Sales- North America: $4.63 billion compared to the $4.56 billion average estimate based on four analysts. The reported number represents a change of -2.8% year over year. Net Sales- Emerging Markets: $771 million versus the four-analyst average estimate of $729.03 million. The reported number represents a year-over-year change of +10.5%. Segment Adjusted Operating Income- Emerging Markets: $107 million versus $83.95 million estimated by four analysts on average. Segment Adjusted Operating Income- General corporate expenses: $-178 million compared to the $-141.74 million average estimate based on four analysts. View all Key Company Metrics for Kraft Heinz here>>> Shares of Kraft Heinz have returned +5.3% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kraft Heinz Company (KHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Kraft Heinz (KHC) came out with quarterly earnings of $0.56 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.66%. A quarter ago, it was expected that this processed food company with dual headquarters in Pittsburgh and Chicago would post earnings of $0.5 per share when it actually produced earnings of $0.58, delivering a surprise of +16%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Kraft Heinz, which belongs to the Zacks Food - Miscellaneous industry, posted revenues of $6.26 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.62%. This compares to year-ago revenues of $6.35 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Kraft Heinz shares have added about 9.9% since the beginning of the year versus the S&P 500's gain of 13%. While Kraft Heinz has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Kraft Heinz was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.47 on $6.06 billion in revenues for the coming quarter and $2.07 on $24.45 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Miscellaneous is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, JBS N.V. (JBS), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This company is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of -39.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. JBS N.V.'s revenues are expected to be $22.96 billion, up 9.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kraft Heinz Company (KHC) : Free Stock Analysis Report JBS N.V. (JBS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research