Kraft Heinz: ‘On-Track’ To Split In 2026

Kraft Heinz reported another quarter of sales declines and narrowing margins as it prepares to separate into two companies during the second half of 2026.

In its third-quarter earnings this morning, net sales in Kraft Heinz North America segment fell 3.8% to $4.6 billion versus $4.8 billion in Q3 2024.

Referencing the planned separation of the food conglomerate into two separate business entities, Kraft Heinz CEO Carlos Abrams-Rivera said in prepared remarks that it is expected to “allow each business to more sharply focus resources, improve execution, reduce complexity, and drive further efficiencies.”

“In the meantime, our priority is to drive improved performance and position both companies for long-term success,” he added.

The split will carve out Heinz, Philadelphia and Kraft Mac & Cheese brands into a new entity, “Global Taste Elevation Co.” On the other side, the “North America Grocery Co.” will consist of Oscar Mayer, Kraft Singles, and Lunchables.

Responding to an analyst question about “living two separate lives” with the impending split, Abrams-Rivera said that the company was already seeing “progress” as it prepared to formally separate.

“The Global Taste Innovation trajectory is improving in the very low single-digit territory at this point,” he said. “We are committed to ensuring that we keep the net debt at reasonable levels. Our capital allocation priority has not changed.”

Looking at the third-quarter results, company leadership announced a year-over-year sequential recovery in top-line growth, driven by its volume/mix. The dollar sales of Capri Sun and Lunchables brands ticked back up compared to the first half of 2025; however, retail sales of Mac & Cheese, Spoonables, and Frozen Snacks declined year-over-year in Q3.

In the prepared remarks, leadership emphasized it was putting resources toward its marketing and R&D to drive category expansion and connect with its consumers in new ways. The company is using AI-driven marketing paired with “human creativity” from its TasteMaker platform.

Kraft Heinz is also focusing on health and wellness trends, citing the success of its zero-sugar and -salt product Heinz Zero in European countries.

Kraft Heinz cautioned that its Q4 revenue is expected to be below Q3 as there is “inventory phasing in” while promotional expenses and lower consumption rates weigh on the end-of-year results, Abrams-Rivera said.

“The consumer continues to navigate a tough environment with sentiment worsening, costs continuing to rise and SNAP-related headwinds expected to intensify,” he said in a prepared statement. “We see these pressures as persisting beyond the fourth quarter, leading to a longer path to consumer recovery.”

Kraft Heinz adjusted its full-year outlook and is now expecting organic net sales to fall 3% to 3.5%, a steeper drop from the previously forecast decline of 1.5% to 3%. Adjusted EPS is now in the range of $2.50 to $2.57, compared to the previous forecast of $2.51 to $2.67.