Kraft Heinz Q2 profit beats estimates on higher pricing

The Kraft Heinz

05/08/2026 12:10

Overview
U.S. food and beverage maker's Q2 adjusted EPS beat analyst expectations despite 1.3% organic sales decline
Adjusted operating income for Q2 fell 18.4% due to higher advertising and inflationary costs
Company raised full-year organic net sales outlook and will boost investments by $100 mln

Outlook
Kraft Heinz sees 2026 organic net sales down 0.5% to 2.0% vs prior year
Company expects 2026 adjusted EPS of $2.03 to $2.09
Kraft Heinz raises incremental investments by $100 mln to about $700 mln in 2026

Result Drivers
VOLUME/MIX DECLINE - Co said lower volume/mix, especially in meats and spoonables, and Easter timing shift drove organic net sales decrease
INFLATIONARY COSTS - Adjusted operating income fell due to inflationary pressures in manufacturing and logistics, per co
PRICE INCREASES - Co raised prices in certain categories, mainly coffee and ready-to-drink beverages, to offset higher input costs

Company press release: ID:nBw8Qcl9la

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted EPS
Beat
$0.56
$0.53 (15 Analysts)
Q2 Organic Sales Growth
 
-1.30%
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 15 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "hold"
Wall Street's median 12-month price target for Kraft Heinz Co is $24.00, about 9.9% below its August 4 closing price of $26.64
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Aug 5 - Utz Brands Q2 adjusted EPS misses estimates, expects Intersnack acquisition to close by Q4 FY26
Aug 3 - Tyson Foods cuts profit forecast as tight US cattle supplies hurt beef business
Aug 3 - Coffee maker BRC posts smaller Q2 loss as revenue gets boost from wholesale, DTC demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)