Kraft Heinz beats on earnings as sales and core profit keep falling
Kraft Heinz earned $0.53 per share on an adjusted basis, above the $0.43 analysts expected but down 13.1% from a year earlier. Net sales fell 2.0% to $6.1 billion as North American sales of meats, sauces and drinks dropped, and higher costs cut core profit.
The results
Q3 2026
+23.8%
Adj. earnings
-0.6%
Revenue
+3.8%
The stock
Adjusted earnings per share
Expected $0.43
$0.53
Revenue
Expected $6.15B
$6.12B
What the company expects
For 2026, Kraft Heinz now expects organic net sales down 0.5% to 1.25% (previously down 0.5% to 2%), constant currency adjusted operating income down 16% to 18% (unchanged), adjusted EPS of $2.07 to $2.13 (previously $2.03 to $2.09), adjusted gross profit margin at the low end of its range, and free cash flow conversion of about 110%.
Results for Q3 2026, released on November 4, before the open. Expected: average of analysts' forecasts. Earnings per share under GAAP accounting rules: $0.46.
Who holds it
AI analysis
Nov 4
What drove the quarter
Rising costs cut core profit
Adjusted operating income fell 15.2% to $0.9 billion. Adjusted operating income is profit from the core business before one-off items. The release blames higher procurement and logistics costs, higher variable pay for staff, a weaker sales mix and more advertising, and says efficiency savings did not cover these costs.
North America keeps shrinking
Organic net sales, which leave out currency moves and businesses sold, fell 1.1%, and fell 3.2% in North America. The release points to lower sales of meats, sauces and refreshment beverages there. Shipments that customers pulled forward into the second quarter cost about 0.8 percentage points.
Emerging markets grow
Organic net sales in Emerging Markets rose 15.6%, helped by both higher prices and higher volumes. Segment adjusted operating income there rose to $81 million from $66 million, but the segment is too small to offset the declines in North America.
What it changes
Forecast nudged up
Kraft Heinz raised the low end of its 2026 organic sales outlook. It now expects a decline of 0.5% to 1.25%, against up to 2% before, and raised its adjusted EPS range to $2.07 to $2.13 from $2.03 to $2.09.
Profit still set to fall this year
The company still expects adjusted operating income in constant currency to drop 16% to 18% in 2026. That outlook includes about $700 million of extra investment compared with 2025.
Coffee unit to be sold
CNBC reported on November 4, 2026 that Kraft Heinz will sell its North American coffee business, which includes Maxwell House, in a deal valuing the unit at $650 million. The company plans to use about $500 million of after-tax proceeds to pay down debt once the deal closes in mid-2027.
What it does not say
One session is not a verdict
The shares closed 3.8% higher on November 4, 2026, a reaction to a single day of news that also included the coffee sale. Sales and core profit are still falling, and one quarter that beat expectations does not show whether the turnaround will work.
Analysis written by an AI from public data. It is not investment advice.