Kraft Heinz (NASDAQ:KHC) traded slightly lower in pre-market trading on Wednesday despite reporting second-quarter results that exceeded market expectations and improving its full-year outlook.
The food manufacturer posted earnings per share of $0.56, ahead of analysts’ forecast of $0.53. Revenue reached $6.26 billion, surpassing the consensus estimate of $6.11 billion.
Organic sales remain under pressure
Organic net sales declined 1.3% during the quarter, reflecting a 2.7% drop in North America and a 0.7% decline across developed international markets. Those declines were partially offset by strong 8.5% organic growth in emerging markets.
Adjusted gross profit margin remained unchanged at 34.1%.
CEO highlights improving brand performance
Chief Executive Officer Steve Cahillane said the company delivered another quarter of stronger-than-expected performance across several key businesses.
“We delivered another solid quarter, with results that exceeded our expectations across U.S. Retail, Global Away From Home, and Emerging Markets,” said Steve Cahillane, CEO of Kraft Heinz. “Our brands are resonating with consumers, and our share performance is improving. The progress we are seeing gives us the confidence to raise our Organic Net Sales outlook for the year.”
Company raises full-year guidance
Kraft Heinz increased its fiscal 2026 earnings guidance to a range of $2.03 to $2.09 per share, compared with its previous forecast of $1.98 to $2.10. The midpoint is broadly in line with analysts’ consensus estimate of $2.06.
The company also improved its organic net sales outlook, now expecting a decline of between 0.5% and 2.0%, compared with its previous forecast for a decline of 1.5% to 3.5%. The updated guidance includes an estimated 100-basis-point impact from additional SNAP-related headwinds.
Management also lifted its adjusted gross profit margin outlook, now forecasting a decline of between 10 and 50 basis points, compared with its earlier expectation of a 25 to 75 basis-point decline.
Investment plans and dividend maintained
Kraft Heinz said it will increase planned investments by an additional $100 million, bringing total incremental investment for 2026 to around $700 million.
Separately, the board approved a quarterly dividend of $0.40 per share, payable on September 25, 2026, to shareholders of record as of September 4, 2026.
Kraft Heinz stock price
