Contacts: Kraft Heinz Media Team Anne-Marie Megela (investors)
• Gross profit margin increased 60 basis points to 32.5%; Adjusted Gross Profit Margin (1) decreased 40 basis points to 31.9%
• Operating income decreased 14.6% to $0.9 billion; Adjusted Operating Income (1) decreased 15.2% to $0.9 billion
Year-to-date net cash provided by operating activities was $3.0 billion, down 4.1%; Free Cash Flow (1) was $2.4 billion, down 5.2%; and Free Cash Flow Conversion (1) increased 11pp to 120%
PITTSBURGH & CHICAGO – Nov. 4, 2026 – The Kraft Heinz Company (NYSE: KHC) (“Kraft Heinz” or the “Company”) today reported financial results for the third quarter of 2026. “Our 2026 operating plan to turn around the U.S. business and accelerate growth internationally is on track,” said Steve Cahillane, CEO of Kraft Heinz. “Relative to last year, our market share, sales, and volume trends are improving in every region. We are increasingly meeting consumers where they are, and giving them more reasons to choose our brands.”
Cahillane concluded, “As we approach the end of the year, we are raising the low end of our Organic Net Sales outlook, reflecting the momentum we have built. That progress is supported by a strong balance sheet, which gives us the flexibility to keep investing in our brands and our people.”
decreased 2.0 percent versus the year-ago period to $6.1 billion, including a 0.3 percentage point unfavorable impact from foreign currency and a 0.6 percentage point unfavorable impact from divestitures.
(1) decreased 1.1 percent versus the prior year period. Price was flat, with positive price in the Emerging Markets segment offsetting negative price in both the North America and Europe and Pacific Developed Markets segments. Volume/mix declined 1.1 percentage points versus the prior year period, with declines in North America and Europe and Pacific Developed Markets segments, partially offset by growth in the Emerging Markets segment. The unfavorable volume/mix impact was primarily driven by declines in North America across meats, sauces, and refreshment beverages, in addition to an approximate 80 basis point headwind from inventory pull forward into the second quarter.
of $0.9 billion decreased 14.6 percent versus the year-ago period, primarily due to increased inflationary pressures in procurement and logistics costs, higher variable compensation expense, non-cash impairment losses that were $37 million higher in the current year period, unfavorable volume/mix, and increased advertising expenses. These unfavorable impacts more than offset efficiency initiatives and favorable changes in unrealized losses/(gains) on commodity hedges.
(1) decreased 15.2 percent versus the year-ago period to $0.9 billion, primarily due to inflationary pressures in procurement and logistics costs, higher variable compensation expense, unfavorable volume/mix, and increased advertising expenses. These unfavorable impacts more than offset efficiency initiatives.
decreased 11.5 percent versus the prior year period to $0.46. This decrease was primarily due to the unfavorable changes in operating income discussed above.
(1) was $0.53, down 13.1 percent versus the prior year period, primarily driven by lower Adjusted Operating Income and unfavorable changes in other expense/(income). These impacts were partially offset by lower interest expense and lower taxes on adjusted earnings, primarily due to the impact of certain discrete deferred tax adjustments and a more favorable geographic mix of pre-tax income in various non-U.S. jurisdictions.
Net cash provided by/(used for) operating activities was $3.0 billion, down 4.1 percent versus the year-ago period. This decrease was driven by lower Adjusted Operating Income, partially offset by favorable changes in working capital. The changes in working capital were driven by favorable changes in accounts payable, which were partially offset by higher cash outflows for inventory related to stock rebuilding and increased input costs, and higher cash outflows for advertising.
(1) was $2.4 billion, down 5.2 percent versus the prior year period, driven by the same net cash provided by/(used for) operating activities discussed above.
• Capital Return: Year to date, the Company has paid $1.4 billion in cash dividends. The Company’s strong cash flow profile supports disciplined capital allocation across all priorities including investing in the business, sustaining the dividend, and reducing debt. This financial flexibility is viewed by the Company as a competitive advantage. The Company did not repurchase any shares under its publicly announced share repurchase program. 3
For fiscal year 2026, the Company is updating its outlook. The Company now expects: •
(1)(2) down 0.5 percent to down 1.25 percent versus the prior year. This outlook includes an approximate 100 basis point impact from incremental SNAP headwinds.
(1)(2) down 16 percent to down 18 percent versus the prior year. This outlook contemplates Adjusted Gross Profit Margin (1)(2) that is now expected to be at the low end of the previously provided range of down 10 basis points to down 50 basis points versus the prior year, incremental investments of approximately $700 million compared to 2025, and an approximate 500 basis point headwind from lapping lower incentive compensation.
(1)(2) is now expected to be in the range of $2.07 to $2.13. Additionally, the Company expects an effective tax rate on Adjusted EPS of approximately 23.5%, interest expense of approximately $890 million, and other expense/(income) of approximately $210 million of income for the full year.
Current and Prior Outlook: Current Outlook Prior Outlook Organic Net Sales (1.25)% to (0.5)% (2)% to (0.5)% Constant Currency Adjusted Operating (18)% to (16)% (18)% to (16)% Income Adjusted Gross Profit Low End of (50)bps to (50)bps to (10)bps Margin (10)bps Adjusted EPS $2.07 to $2.13 $2.03 to $2.09 Effective Tax Rate on ~23.5% ~24.5% Adjusted EPS Interest Expense ~$890M ~$890M Other Expense/(Income) ~$(210)M ~$(200)M Free Cash Flow ~110% ~110% Conversion
(1) Organic Net Sales, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Constant Currency Adjusted Operating Income, Adjusted EBITDA, Adjusted EPS, Free Cash Flow, Free Cash Flow Conversion, and Net Leverage are non-GAAP financial measures. Please see discussion of non-GAAP financial measures and the reconciliations at the end of this press release for more information. 4 (2) Guidance for Organic Net Sales, Adjusted Gross Profit Margin, Constant Currency Adjusted Operating Income, Adjusted EPS, Free Cash Flow, and Free Cash Flow Conversion is provided on a non-GAAP basis only because certain information necessary to calculate the most comparable GAAP measure is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of such items impacting comparability, including, but not limited to, the impact of currency, acquisitions and divestitures, divestiture-related license income, restructuring activities, deal costs, separation costs, unrealized losses/(gains) on commodity hedges, impairment losses, certain non-ordinary course legal and regulatory matters, equity award compensation expense, nonmonetary currency devaluation, and debt prepayment and extinguishment (benefit)/costs, among other items. Therefore, as a result of the uncertainty and variability of the nature and amount of future adjustments, which could be significant, the Company is unable to provide a reconciliation of these measures without unreasonable effort.
A pre-recorded management discussion of The Kraft Heinz Company's third quarter 2026 earnings is available at ir.kraftheinzcompany.com . The Company will host a live question-and-answer session beginning today at 9:00 a.m. Eastern Standard Time. A webcast of the session will be accessible at ir.kraftheinzcompany.com .
Kraft Heinz (NYSE: KHC) is one of the world’s largest food and beverage companies, with approximately $25 billion in net sales in 2025 and a portfolio of iconic brands enjoyed by consumers in more than 40 countries. By investing in our capabilities and brands, including Heinz , Kraft , Philadelphia , Primal Kitchen , and Lunchables , we are unlocking the full power of our portfolio. We deliver high-quality, great-tasting, and affordable food for the consumers of today, while shaping the future of food. Learn more at www.kraftheinzcompany.com . 5
This press release contains a number of forward-looking statements. Words such as “accelerate,” “anticipate,” “believe,” “commit,” “continue,” “expect,” “will,” “guidance,” and “outlook,” and variations of such words and similar future or conditional expressions are intended to identify forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding the Company's plans, impacts of accounting standards and guidance, growth, legal matters, taxes, costs and cost savings, impairments, dividends, expectations, investments, innovations, opportunities, capabilities, execution, initiatives, and pipeline. These forward-looking statements reflect management's current expectations and are not guarantees of future performance and are subject to a number of risks and uncertainties, many of which are difficult to predict and beyond the Company's control.
Important factors that may affect the Company's business and operations and that may cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, operating in a highly competitive industry; the Company’s ability to correctly predict, identify, and interpret changes in consumer preferences and demand, to offer new products to meet those changes, and to respond to competitive innovation; changes in the retail landscape or the loss of key retail customers; changes in the Company's relationships with significant customers or suppliers, or in other business relationships; the Company’s ability to maintain, extend, and expand its reputation and brand image; the Company’s ability to effect the previously announced separation of Kraft Heinz into two independent publicly traded companies and to meet the conditions related thereto, including obtaining applicable regulatory approvals, if work related to the separation is resumed; negative effects of the announcement pendency of the separation, including the current pause on work related to the separation, on the market price of the Company’s securities and/or on the Company’s financial performance; the Company’s ability to leverage its brand value to compete against private label products; the Company’s ability to drive revenue growth in its key product categories or platforms, increase its market share, or add products that are in faster-growing and more profitable categories; product recalls or other product liability claims; climate change and legal or regulatory responses; the Company’s ability to identify, complete, or realize the benefits from strategic acquisitions, divestitures, alliances, joint ventures, or investments; the Company's ability to successfully execute its strategic initiatives; the impacts of the Company's international operations; the Company's ability to protect intellectual property rights; the Company’s ability to realize the anticipated benefits from prior or future streamlining actions to reduce fixed costs, simplify or improve processes, and improve its competitiveness; the influence of the Company's largest stockholder; the Company's level of indebtedness, as well as our ability to comply with covenants under our debt instruments; additional impairments of the carrying amounts of goodwill or other indefinite-lived intangible assets; foreign exchange rate fluctuations; volatility in commodity, energy, and other input costs; volatility in the market value of all or a portion of the commodity derivatives we use; compliance with laws and regulations and related legal claims or regulatory enforcement actions; failure to maintain an effective system of internal controls; a downgrade in the Company's credit rating; the impact of sales of the Company's common stock in the public market; the impact of the Company’s share repurchases or any change in the Company’s share repurchase activity; the Company’s ability to continue to pay a regular dividend and the amounts of any such dividends; disruptions in the global economy caused by geopolitical conflicts (including the ongoing conflicts in the Middle East), unanticipated business disruptions and natural events in the locations in which the Company or the Company's customers, suppliers, distributors, or regulators operate; economic and political conditions in the United States and in various other nations where the Company does business (including inflationary pressures, the imposition 6 of increased or new tariffs, instability in financial institutions, general economic slowdown, recession, or a potential U.S. federal government shutdown); changes in the Company's management team or other key personnel and the Company's ability to hire or retain key personnel or a highly skilled and diverse global workforce; our dependence on information technology and systems, including service interruptions, misappropriation of data, or breaches of security; increased pension, labor, and people-related expenses; changes in tax laws and interpretations and the final determination of tax audits, including transfer pricing matters, and any related litigation; volatility of capital markets and other macroeconomic factors; and other factors. For additional information on these and other factors that could affect the Company's forward- looking statements, see the Company's risk factors, as they may be amended from time to time, set forth in its filings with the Securities and Exchange Commission (“SEC”). The Company disclaims and does not undertake any obligation to update, revise, or withdraw any forward-looking statement in this press release, except as required by applicable law or regulation.
We use our investor relations website, ir.kraftheinzcompany.com , as a routine channel for distribution of important, and often material, information about Kraft Heinz, including quarterly and annual earnings results and presentations, press releases and other announcements, webcasts, analyst presentations, investor days, sustainability initiatives, financial information, and corporate governance practices, as well as archives of past presentations and events. We encourage you to follow our investor relations website in addition to our filings with the SEC to receive timely information about the Company. The information on our website is not part of this press release and shall not be deemed to be incorporated by reference into any filings we make with the SEC. 7
The non-GAAP financial measures provided in this press release should be viewed in addition to, and not as an alternative for, results prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
To supplement the financial information provided, the Company has presented Organic Net Sales, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Constant Currency Adjusted Operating Income, Adjusted EBITDA, Adjusted Net Income/(Loss), Adjusted EPS, Free Cash Flow, and Net Leverage which are considered non-GAAP financial measures. The non-GAAP financial measures presented may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define these non-GAAP financial measures in the same way. These measures are not substitutes for their comparable GAAP financial measures, such as net sales, net income/(loss), operating income/(loss), gross profit, diluted earnings per share (“EPS”), net cash provided by/(used for) operating activities, or other measures prescribed by GAAP, and there are limitations to using non-GAAP financial measures.
Management uses these non-GAAP financial measures to assist in comparing the Company’s performance on a consistent basis for purposes of business decision making by removing the impact of certain items that management believes do not directly reflect the Company’s underlying operations. The Company believes:
Organic Net Sales, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Constant Currency Adjusted Operating Income, Adjusted EBITDA, Adjusted Net Income/(Loss), and Adjusted EPS provide important comparability of underlying operating results, allowing investors and management to assess the Company’s operating performance on a consistent basis; and
• Free Cash Flow and Net Leverage provide measures of the Company’s core operating performance, the cash-generating capabilities of the Company’s business operations, and are factors used in determining the Company’s borrowing capacity and the amount of cash available for debt repayments, dividends, acquisitions, share repurchases, and other corporate purposes.
Management believes that presenting the Company’s non-GAAP financial measures is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items, (ii) permits investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating the Company’s results. The Company believes that the presentation of these non-GAAP financial measures, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provides investors with additional understanding of the factors and trends affecting the Company’s business than could be obtained absent these disclosures. 8
is defined as net sales excluding, when they occur, the impact of currency, acquisitions and divestitures, and a 53rd week of shipments. The Company calculates the impact of currency on net sales by holding exchange rates constant at the previous year's exchange rate, with the exception of highly inflationary subsidiaries, for which the Company calculates the previous year's results using the current year's exchange rate.
is defined as operating income/(loss) excluding, when they occur, the impacts of restructuring activities, deal costs, separation costs, unrealized gains/(losses) on commodity hedges (the unrealized gains and losses are recorded in general corporate expenses until realized; once realized, the gains and losses are recorded in the applicable segment’s operating results), impairment losses, and certain non-ordinary course legal and regulatory matters. The Company also presents Adjusted Operating Income on a constant currency basis (
). The Company calculates the impact of currency on Adjusted Operating Income by holding exchange rates constant at the previous year's exchange rate, with the exception of highly inflationary subsidiaries, for which it calculates the previous year's results using the current year's exchange rate.
Adjusted Gross Profit, Adjusted Net Income/(Loss), and Adjusted EPS are defined as gross profit, net income/(loss), and diluted earnings per share, respectively, excluding, when they occur, the impacts of restructuring activities, deal costs, separation costs, unrealized losses/(gains) on commodity hedges, impairment losses, certain non-ordinary course legal and regulatory matters, losses/(gains) on the sale of a business, other losses/(gains) related to acquisitions and divestitures (e.g., tax and hedging impacts), nonmonetary currency devaluation (e.g., remeasurement gains and losses), debt prepayment and extinguishment (benefit)/costs, and certain significant discrete income tax items (e.g., U.S. and non-U.S. tax reform), and including when they occur, adjustments to reflect preferred stock dividend payments on an accrual basis.
is defined as debt less cash, cash equivalents and short-term investments divided by Adjusted EBITDA.
is defined as net income/(loss) from continuing operations before interest expense, other expense/(income), provision for/(benefit from) income taxes, and depreciation and amortization (excluding restructuring activities); in addition to these adjustments, the Company excludes, when they occur, the impacts of divestiture-related license income, restructuring activities, deal costs, separation costs, unrealized losses/(gains) on commodity hedges, impairment losses, certain non-ordinary course legal and regulatory matters, and equity award compensation expense (excluding restructuring activities).
is defined as net cash provided by/(used for) operating activities less capital expenditures. The use of this non-GAAP measure does not imply or represent the residual cash flow for discretionary expenditures since the Company has certain non-discretionary obligations such as debt service that are not deducted from the measure. 9
The Kraft Heinz Company Reconci… of Adjusted Operati… Income to Constant Currency Adjusted Operati… Income For the Three Months Ended (dollars in Constant million… Currency (Unaudi… Adjusted Adjusted Septemb… Operating Operating Schedule 26, 2026 Income Currency Income 5 ────────────────────────────────────────────────────────────────────────────── North $ 911 $ -2 $ 913 America Europe and Pacific 96 -1 97 Develop… Markets Emerging 81 1 80 Markets General corpora… -149 2 -151 expenses Kraft $ 939 $ — $ 939 Heinz Septemb… 27, 2025 North $ 1,018 $ — $ 1,018 America Europe and Pacific 143 — 143 Develop… Markets Emerging 66 7 59 Markets General corpora… -121 — -121 expenses Kraft $ 1,106 $ 7 $ 1,099 Heinz
The Kraft Heinz Company Reconci… of Adjusted Operati… Income to Constant Currency Adjusted Operati… Income For the Nine Months Ended (dollars in Constant million… Currency (Unaudi… Adjusted Adjusted Septemb… Operating Operating Schedule 26, 2026 Income Currency Income 6 ────────────────────────────────────────────────────────────────────────────── North $ 2,873 $ 2 $ 2,871 America Europe and Pacific 380 11 369 Develop… Markets Emerging 256 9 247 Markets General corpora… -471 -5 -466 expenses Kraft $ 3,038 $ 17 $ 3,021 Heinz Septemb… 27, 2025 North $ 3,292 $ — $ 3,292 America Europe and Pacific 435 — 435 Develop… Markets Emerging 236 17 219 Markets General corpora… -382 — -382 expenses Kraft $ 3,581 $ 17 $ 3,564 Heinz
Year-over-year growth rates North America -12.7 % 0.1 pp -12.8 % Europe and Pacific Developed Markets -12.6 % 2.6 pp -15.2 % Emerging Markets 8.1 % (5.0) pp 13.1 % General corporate expenses 23.6 % 1.4 pp 22.2 % Kraft Heinz -15.2 % 0.0 pp -15.2 %
(a) Includes non-cash amortization of definite-lived intangible assets, which accounted for a negative impact to Adjusted EPS from results of operations of $0.04 for the three months ended September 26, 2026 and September 27, 2025.
(b) Includes divestiture-related license income, which accounted for a benefit to Adjusted EPS from results of operations of $0.01 for the three months ended September 26, 2026 and September 27, 2025. 21
(a) Includes non-cash amortization of definite-lived intangible assets, which accounted for a negative impact to Adjusted EPS from results of operations of $0.12 for the nine months ended September 26, 2026 and September 27, 2025.
(b) Includes divestiture-related license income, which accounted for a benefit to Adjusted EPS from results of operations of $0.02 for the nine months ended September 26, 2026 and September 27, 2025. 22
The Kraft Heinz Company Condensed Consolidated Balance Sheets (in millions, except per share data) September 26, December 27, (Unaudited) 2026 2025 Schedule 14 ────────────────────────────────────────────────────────────────────────────── ASSETS Cash and cash $ 1,888 $ 2,615 equivalents Trade 2,211 2,254 receivables, net Inventories 3,415 3,167 Prepaid expenses 276 291 Marketable 16 1,060 securities Other current 841 588 assets Assets held for 16 152 sale Total current 8,663 10,127 assets Property, plant and equipment, 7,179 7,318 net Goodwill 19,649 22,179 Intangible 32,328 37,529 assets, net Other non-current 4,409 4,633 assets TOTAL ASSETS $ 72,228 $ 81,786 LIABILITIES AND EQUITY Current portion of long-term $ 918 $ 1,908 debt Accounts payable 4,784 4,308 Accrued 902 801 marketing Interest payable 241 298 Other current 1,647 1,455 liabilities Liabilities held — 8 for sale Total current 8,492 8,778 liabilities Long-term debt 17,085 19,311 Deferred income 7,810 9,022 taxes Accrued postemployment 128 131 costs Long-term 1,278 1,321 deferred income Other non-current 1,345 1,434 liabilities TOTAL 36,138 39,997 LIABILITIES Redeemable noncontrolling 13 12 interest Equity: Common stock, 12 12 $0.01 par value Additional 49,937 51,287 paid-in capital Retained -8,747 -4,629 earnings/(defic… Accumulated other -2,526 -2,370 comprehensive income/(losses) Treasury stock, -2,701 -2,636 at cost Total shareholders' 35,975 41,664 equity Noncontrolling 102 113 interest TOTAL EQUITY 36,077 41,777 TOTAL LIABILITIES AND $ 72,228 $ 81,786 EQUITY
The Kraft Heinz Company Condensed Consolidated Statements of Cash Flows (in millions) (Unaudited) CASH FLOWS For the Nine FROM Months Ended OPERATING September 26, September 27, ACTIVITIES: 2026 2025 Schedule 15 ────────────────────────────────────────────────────────────────────────────── Net $ -4,125 $ -6,496 income/(los… Adjustments to reconcile net income/(los… to operating cash flows: Depreciation and 768 717 amortization Divestiture… license -39 -39 income Equity award compensation 76 70 expense Deferred income tax -1,159 -488 provision/(… Postemploym… benefit plan -11 -11 contributio… Goodwill and intangible asset 7,437 9,301 impairment losses Nonmonetary currency 34 26 devaluation Loss/(gain) on sale of -1 44 business Loss/(gain) on -264 — extinguishm… of debt Other items, -149 13 net Changes in current assets and liabilities: Trade 14 -53 receivables Inventories -366 -205 Accounts 618 312 payable Other current -149 -188 assets Other current 276 83 liabilities Net cash provided by/(used 2,960 3,086 for) operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Capital -599 -596 expenditures Purchases of marketable -105 -1,358 securities Proceeds from sale of 1,157 354 marketable securities Proceeds from sale of business, net of cash 146 9 disposed and working capital adjustments Other investing 52 -19 activities, net Net cash provided by/(used 651 -1,610 for) investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Repayments of long-term -3,982 -677 debt Proceeds from issuance of 1,152 1,620 long-term debt Dividends -1,423 -1,424 paid Repurchases of common -79 -435 stock Other financing -89 153 activities, net Net cash provided by/(used -4,421 -763 for) financing activities Effect of exchange rate changes on cash, cash -24 52 equivalents, and restricted cash Cash, cash equivalents, and restricted cash Net -834 765 increase/(d… Balance at beginning of 2,944 1,486 period Balance at end of $ 2,110 $ 2,251 period
The Kraft Heinz Company Reconcilia… of Net Cash Provided By/(Used For) Operating Activities to Free Cash Flow (in millions) For the Nine September September (Unaudited) Months Ended 26, 2026 27, 2025 Schedule 16 ────────────────────────────────────────────────────────────────────────────── Net cash provided by/(used $ 2,960 $ 3,086 for) operating activities Capital -599 -596 expenditur… Free Cash $ 2,361 $ 2,490 Flow Adjusted Net $ 1,972 $ 2,286 Income/(Lo… Free Cash Flow 120 % 109 % Conversion
Full text with the tables
Exhibit 99.1
Contacts: Kraft Heinz Media Team Anne-Marie Megela (investors)
media@kraftheinz.com Anne-Marie.Megela@kraftheinz.com
KRAFT HEINZ REPORTS THIRD QUARTER 2026 RESULTS;
UPDATES 2026 FULL YEAR OUTLOOK
Third Quarter Highlights
•
Net sales decreased 2.0%; Organic Net Sales (1) decreased 1.1%
• Gross profit margin increased 60 basis points to 32.5%; Adjusted Gross Profit
Margin (1) decreased 40 basis points to 31.9%
• Operating income decreased 14.6% to $0.9 billion; Adjusted Operating Income
(1) decreased 15.2% to $0.9 billion
•
Year-to-date net cash provided by operating activities was $3.0 billion, down
4.1%; Free Cash Flow (1) was $2.4 billion, down 5.2%; and Free Cash Flow
Conversion (1) increased 11pp to 120%
• Year-to-date return of capital to stockholders was $1.4 billion
PITTSBURGH & CHICAGO – Nov. 4, 2026 – The Kraft Heinz Company (NYSE: KHC)
(“Kraft Heinz” or the “Company”) today reported financial results for the third
quarter of 2026.
“Our 2026 operating plan to turn around the U.S. business and accelerate growth
internationally is on track,” said Steve Cahillane, CEO of Kraft Heinz.
“Relative to last year, our market share, sales, and volume trends are improving
in every region. We are increasingly meeting consumers where they are, and
giving them more reasons to choose our brands.”
Cahillane concluded, “As we approach the end of the year, we are raising the low
end of our Organic Net Sales outlook, reflecting the momentum we have built.
That progress is supported by a strong balance sheet, which gives us the
flexibility to keep investing in our brands and our people.”
…
…
…
… O…
… N… N…
… S… % S…
… S… S… C… Y…
… 2… 2… vs G…
… 2… 2… PY R… P… V…
──────────────────────────────────────────────────────────────────────────────
… $ 4… $ 4,… -3… % -3… % (0… (2…
… pp pp
…
… (0… (0…
… 9… 964 -5… % -1… % pp pp
…
…
… 7… 632 13… % 15… % 7.2 8.4
… pp pp
… $ 6… $ 6,… -2… % -1… % 0.0 (1…
… pp pp
…
…
…
… O…
… N… N…
… S… % S…
… S… S… C… Y…
… 2… 2… vs G…
… 2… 2… PY R… P… V…
──────────────────────────────────────────────────────────────────────────────
… $ 1… $ 13… -2… % -2… % 0.2 (2…
… pp pp
…
… 0.0 (0…
… 2… 2,… -2… % -0… % pp pp
…
…
… 2… 1,… 11… % 10… % 5.8 4.2
… pp pp
… $ 1… $ 18… -0… % -0… % 0.8 (1…
… pp pp
Net
In…
and
Di…
EPS
In
mi… For For
ex… the % the %
per Thr… Sep… Se… Chg Ni… Sep… Se… Chg
sh… Mon… 26, 27, vs Mo… 26, 27, vs
da… End… 2026 20… PY En… 2026 20… PY
──────────────────────────────────────────────────────────────────────────────
Gr… $ 1,9… $ 1,… -0.1 % $ 6,2… $ 6,… — %
pr…
Op… 875 1,… -14… % -4,… -5… 23.3 %
in…
Net 536 613 -12… % -4,… -6… 36.5 %
in…
Net
in…
at… 544 615 -11… % -4,… -6… 36.6 %
to
co…
sh…
Di… $ 0.46 $ 0.… -11… % $ -3.… $ -5… 36.6 %
EPS
Ad… 0.53 0.… -13… % 1.67 1.… -13… %
EP…
Ad…
Op… $ 939 $ 1,… -15… % $ 3,0… $ 3,… -15… %
In…
2
Q3 2026 Financial Summary
•
Net sales
decreased 2.0 percent versus the year-ago period to $6.1 billion, including a
0.3 percentage point unfavorable impact from foreign currency and a 0.6
percentage point unfavorable impact from divestitures.
Organic Net Sales
(1) decreased 1.1 percent versus the prior year period. Price was flat, with
positive price in the Emerging Markets segment offsetting negative price in both
the North America and Europe and Pacific Developed Markets segments. Volume/mix
declined 1.1 percentage points versus the prior year period, with declines in
North America and Europe and Pacific Developed Markets segments, partially
offset by growth in the Emerging Markets segment. The unfavorable volume/mix
impact was primarily driven by declines in North America across meats, sauces,
and refreshment beverages, in addition to an approximate 80 basis point headwind
from inventory pull forward into the second quarter.
•
Operating Income/(Loss)
of $0.9 billion decreased 14.6 percent versus the year-ago period, primarily due
to increased inflationary pressures in procurement and logistics costs, higher
variable compensation expense, non-cash impairment losses that were $37 million
higher in the current year period, unfavorable volume/mix, and increased
advertising expenses. These unfavorable impacts more than offset efficiency
initiatives and favorable changes in unrealized losses/(gains) on commodity
hedges.
Adjusted Operating Income
(1) decreased 15.2 percent versus the year-ago period to $0.9 billion, primarily
due to inflationary pressures in procurement and logistics costs, higher
variable compensation expense, unfavorable volume/mix, and increased advertising
expenses. These unfavorable impacts more than offset efficiency initiatives.
•
Diluted EPS
decreased 11.5 percent versus the prior year period to $0.46. This decrease was
primarily due to the unfavorable changes in operating income discussed above.
Adjusted EPS
(1) was $0.53, down 13.1 percent versus the prior year period, primarily driven
by lower Adjusted Operating Income and unfavorable changes in other
expense/(income). These impacts were partially offset by lower interest expense
and lower taxes on adjusted earnings, primarily due to the impact of certain
discrete deferred tax adjustments and a more favorable geographic mix of pre-tax
income in various non-U.S. jurisdictions.
•
Net cash provided by/(used for) operating activities was $3.0 billion, down 4.1
percent versus the year-ago period. This decrease was driven by lower Adjusted
Operating Income, partially offset by favorable changes in working capital. The
changes in working capital were driven by favorable changes in accounts payable,
which were partially offset by higher cash outflows for inventory related to
stock rebuilding and increased input costs, and higher cash outflows for
advertising.
Free Cash Flow
(1) was $2.4 billion, down 5.2 percent versus the prior year period, driven by
the same net cash provided by/(used for) operating activities discussed above.
• Capital Return: Year to date, the Company has paid $1.4 billion in cash
dividends. The Company’s strong cash flow profile supports disciplined capital
allocation across all priorities including investing in the business, sustaining
the dividend, and reducing debt. This financial flexibility is viewed by the
Company as a competitive advantage. The Company did not repurchase any shares
under its publicly announced share repurchase program.
3
O
utlook
For fiscal year 2026, the Company is updating its outlook. The Company now
expects:
•
Organic Net Sales
(1)(2) down 0.5 percent to down 1.25 percent versus the prior year. This outlook
includes an approximate 100 basis point impact from incremental SNAP headwinds.
•
Constant Currency Adjusted Operating Income
(1)(2) down 16 percent to down 18 percent versus the prior year. This outlook
contemplates Adjusted Gross Profit Margin (1)(2) that is now expected to be at
the low end of the previously provided range of down 10 basis points to down 50
basis points versus the prior year, incremental investments of approximately
$700 million compared to 2025, and an approximate 500 basis point headwind from
lapping lower incentive compensation.
•
Adjusted EPS
(1)(2) is now expected to be in the range of $2.07 to $2.13. Additionally, the
Company expects an effective tax rate on Adjusted EPS of approximately 23.5%,
interest expense of approximately $890 million, and other expense/(income) of
approximately $210 million of income for the full year.
•
Free Cash Flow Conversion
(1)(2) of approximately 110 percent.
Current and Prior
Outlook:
Current Outlook Prior Outlook
Organic Net Sales (1.25)% to (0.5)% (2)% to (0.5)%
Constant Currency
Adjusted Operating (18)% to (16)% (18)% to (16)%
Income
Adjusted Gross Profit Low End of (50)bps to (50)bps to (10)bps
Margin (10)bps
Adjusted EPS $2.07 to $2.13 $2.03 to $2.09
Effective Tax Rate on ~23.5% ~24.5%
Adjusted EPS
Interest Expense ~$890M ~$890M
Other Expense/(Income) ~$(210)M ~$(200)M
Free Cash Flow ~110% ~110%
Conversion
End Notes
(1) Organic Net Sales, Adjusted Gross Profit, Adjusted Gross Profit Margin,
Adjusted Operating Income, Constant Currency Adjusted Operating Income, Adjusted
EBITDA, Adjusted EPS, Free Cash Flow, Free Cash Flow Conversion, and Net
Leverage are non-GAAP financial measures. Please see discussion of non-GAAP
financial measures and the reconciliations at the end of this press release for
more information.
4
(2) Guidance for Organic Net Sales, Adjusted Gross Profit Margin, Constant
Currency Adjusted Operating Income, Adjusted EPS, Free Cash Flow, and Free Cash
Flow Conversion is provided on a non-GAAP basis only because certain information
necessary to calculate the most comparable GAAP measure is unavailable due to
the uncertainty and inherent difficulty of predicting the occurrence and the
future financial statement impact of such items impacting comparability,
including, but not limited to, the impact of currency, acquisitions and
divestitures, divestiture-related license income, restructuring activities, deal
costs, separation costs, unrealized losses/(gains) on commodity hedges,
impairment losses, certain non-ordinary course legal and regulatory matters,
equity award compensation expense, nonmonetary currency devaluation, and debt
prepayment and extinguishment (benefit)/costs, among other items. Therefore, as
a result of the uncertainty and variability of the nature and amount of future
adjustments, which could be significant, the Company is unable to provide a
reconciliation of these measures without unreasonable effort.
Earnings Discussion and Webcast Information
A pre-recorded management discussion of The Kraft Heinz Company's third quarter
2026 earnings is available at ir.kraftheinzcompany.com . The Company will host a
live question-and-answer session beginning today at 9:00 a.m. Eastern Standard
Time. A webcast of the session will be accessible at ir.kraftheinzcompany.com .
ABOUT THE KRAFT HEINZ COMPANY
Kraft Heinz (NYSE: KHC) is one of the world’s largest food and beverage
companies, with approximately $25 billion in net sales in 2025 and a portfolio
of iconic brands enjoyed by consumers in more than 40 countries. By investing in
our capabilities and brands, including Heinz , Kraft , Philadelphia , Primal
Kitchen , and Lunchables , we are unlocking the full power of our portfolio. We
deliver high-quality, great-tasting, and affordable food for the consumers of
today, while shaping the future of food. Learn more at www.kraftheinzcompany.com
.
5
Forward-Looking Statements
This press release contains a number of forward-looking statements. Words such
as “accelerate,” “anticipate,” “believe,” “commit,” “continue,” “expect,”
“will,” “guidance,” and “outlook,” and variations of such words and similar
future or conditional expressions are intended to identify forward-looking
statements. Examples of forward-looking statements include, but are not limited
to, statements regarding the Company's plans, impacts of accounting standards
and guidance, growth, legal matters, taxes, costs and cost savings, impairments,
dividends, expectations, investments, innovations, opportunities, capabilities,
execution, initiatives, and pipeline. These forward-looking statements reflect
management's current expectations and are not guarantees of future performance
and are subject to a number of risks and uncertainties, many of which are
difficult to predict and beyond the Company's control.
Important factors that may affect the Company's business and operations and that
may cause actual results to differ materially from those in the forward-looking
statements include, but are not limited to, operating in a highly competitive
industry; the Company’s ability to correctly predict, identify, and interpret
changes in consumer preferences and demand, to offer new products to meet those
changes, and to respond to competitive innovation; changes in the retail
landscape or the loss of key retail customers; changes in the Company's
relationships with significant customers or suppliers, or in other business
relationships; the Company’s ability to maintain, extend, and expand its
reputation and brand image; the Company’s ability to effect the previously
announced separation of Kraft Heinz into two independent publicly traded
companies and to meet the conditions related thereto, including obtaining
applicable regulatory approvals, if work related to the separation is resumed;
negative effects of the announcement pendency of the separation, including the
current pause on work related to the separation, on the market price of the
Company’s securities and/or on the Company’s financial performance; the
Company’s ability to leverage its brand value to compete against private label
products; the Company’s ability to drive revenue growth in its key product
categories or platforms, increase its market share, or add products that are in
faster-growing and more profitable categories; product recalls or other product
liability claims; climate change and legal or regulatory responses; the
Company’s ability to identify, complete, or realize the benefits from strategic
acquisitions, divestitures, alliances, joint ventures, or investments; the
Company's ability to successfully execute its strategic initiatives; the impacts
of the Company's international operations; the Company's ability to protect
intellectual property rights; the Company’s ability to realize the anticipated
benefits from prior or future streamlining actions to reduce fixed costs,
simplify or improve processes, and improve its competitiveness; the influence of
the Company's largest stockholder; the Company's level of indebtedness, as well
as our ability to comply with covenants under our debt instruments; additional
impairments of the carrying amounts of goodwill or other indefinite-lived
intangible assets; foreign exchange rate fluctuations; volatility in commodity,
energy, and other input costs; volatility in the market value of all or a
portion of the commodity derivatives we use; compliance with laws and
regulations and related legal claims or regulatory enforcement actions; failure
to maintain an effective system of internal controls; a downgrade in the
Company's credit rating; the impact of sales of the Company's common stock in
the public market; the impact of the Company’s share repurchases or any change
in the Company’s share repurchase activity; the Company’s ability to continue to
pay a regular dividend and the amounts of any such dividends; disruptions in the
global economy caused by geopolitical conflicts (including the ongoing conflicts
in the Middle East), unanticipated business disruptions and natural events in
the locations in which the Company or the Company's customers, suppliers,
distributors, or regulators operate; economic and political conditions in the
United States and in various other nations where the Company does business
(including inflationary pressures, the imposition
6
of increased or new tariffs, instability in financial institutions, general
economic slowdown, recession, or a potential U.S. federal government shutdown);
changes in the Company's management team or other key personnel and the
Company's ability to hire or retain key personnel or a highly skilled and
diverse global workforce; our dependence on information technology and systems,
including service interruptions, misappropriation of data, or breaches of
security; increased pension, labor, and people-related expenses; changes in tax
laws and interpretations and the final determination of tax audits, including
transfer pricing matters, and any related litigation; volatility of capital
markets and other macroeconomic factors; and other factors. For additional
information on these and other factors that could affect the Company's forward-
looking statements, see the Company's risk factors, as they may be amended from
time to time, set forth in its filings with the Securities and Exchange
Commission (“SEC”). The Company disclaims and does not undertake any obligation
to update, revise, or withdraw any forward-looking statement in this press
release, except as required by applicable law or regulation.
We use our investor relations website, ir.kraftheinzcompany.com , as a routine
channel for distribution of important, and often material, information about
Kraft Heinz, including quarterly and annual earnings results and presentations,
press releases and other announcements, webcasts, analyst presentations,
investor days, sustainability initiatives, financial information, and corporate
governance practices, as well as archives of past presentations and events. We
encourage you to follow our investor relations website in addition to our
filings with the SEC to receive timely information about the Company. The
information on our website is not part of this press release and shall not be
deemed to be incorporated by reference into any filings we make with the SEC.
7
Non-GAAP Financial Measures
The non-GAAP financial measures provided in this press release should be viewed
in addition to, and not as an alternative for, results prepared in accordance
with accounting principles generally accepted in the United States of America
(“GAAP”).
To supplement the financial information provided, the Company has presented
Organic Net Sales, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted
Operating Income, Constant Currency Adjusted Operating Income, Adjusted EBITDA,
Adjusted Net Income/(Loss), Adjusted EPS, Free Cash Flow, and Net Leverage which
are considered non-GAAP financial measures. The non-GAAP financial measures
presented may differ from similarly titled non-GAAP financial measures presented
by other companies, and other companies may not define these non-GAAP financial
measures in the same way. These measures are not substitutes for their
comparable GAAP financial measures, such as net sales, net income/(loss),
operating income/(loss), gross profit, diluted earnings per share (“EPS”), net
cash provided by/(used for) operating activities, or other measures prescribed
by GAAP, and there are limitations to using non-GAAP financial measures.
Management uses these non-GAAP financial measures to assist in comparing the
Company’s performance on a consistent basis for purposes of business decision
making by removing the impact of certain items that management believes do not
directly reflect the Company’s underlying operations. The Company believes:
•
Organic Net Sales, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted
Operating Income, Constant Currency Adjusted Operating Income, Adjusted EBITDA,
Adjusted Net Income/(Loss), and Adjusted EPS provide important comparability of
underlying operating results, allowing investors and management to assess the
Company’s operating performance on a consistent basis; and
• Free Cash Flow and Net Leverage provide measures of the Company’s core
operating performance, the cash-generating capabilities of the Company’s
business operations, and are factors used in determining the Company’s borrowing
capacity and the amount of cash available for debt repayments, dividends,
acquisitions, share repurchases, and other corporate purposes.
Management believes that presenting the Company’s non-GAAP financial measures is
useful to investors because it (i) provides investors with meaningful
supplemental information regarding financial performance by excluding certain
items, (ii) permits investors to view performance using the same tools that
management uses to budget, make operating and strategic decisions, and evaluate
historical performance, and (iii) otherwise provides supplemental information
that may be useful to investors in evaluating the Company’s results. The Company
believes that the presentation of these non-GAAP financial measures, when
considered together with the corresponding GAAP financial measures and the
reconciliations to those measures, provides investors with additional
understanding of the factors and trends affecting the Company’s business than
could be obtained absent these disclosures.
8
Definitions
Organic Net Sales
is defined as net sales excluding, when they occur, the impact of currency,
acquisitions and divestitures, and a 53rd week of shipments. The Company
calculates the impact of currency on net sales by holding exchange rates
constant at the previous year's exchange rate, with the exception of highly
inflationary subsidiaries, for which the Company calculates the previous year's
results using the current year's exchange rate.
Adjusted Operating Income
is defined as operating income/(loss) excluding, when they occur, the impacts of
restructuring activities, deal costs, separation costs, unrealized
gains/(losses) on commodity hedges (the unrealized gains and losses are recorded
in general corporate expenses until realized; once realized, the gains and
losses are recorded in the applicable segment’s operating results), impairment
losses, and certain non-ordinary course legal and regulatory matters. The
Company also presents Adjusted Operating Income on a constant currency basis (
Constant Currency Adjusted Operating Income
). The Company calculates the impact of currency on Adjusted Operating Income by
holding exchange rates constant at the previous year's exchange rate, with the
exception of highly inflationary subsidiaries, for which it calculates the
previous year's results using the current year's exchange rate.
Adjusted Gross Profit, Adjusted Net Income/(Loss), and Adjusted EPS are defined
as gross profit, net income/(loss), and diluted earnings per share,
respectively, excluding, when they occur, the impacts of restructuring
activities, deal costs, separation costs, unrealized losses/(gains) on commodity
hedges, impairment losses, certain non-ordinary course legal and regulatory
matters, losses/(gains) on the sale of a business, other losses/(gains) related
to acquisitions and divestitures (e.g., tax and hedging impacts), nonmonetary
currency devaluation (e.g., remeasurement gains and losses), debt prepayment and
extinguishment (benefit)/costs, and certain significant discrete income tax
items (e.g., U.S. and non-U.S. tax reform), and including when they occur,
adjustments to reflect preferred stock dividend payments on an accrual basis.
Adjusted Gross Profit Margin
is defined as Adjusted Gross Profit divided by net sales.
Net Leverage
is defined as debt less cash, cash equivalents and short-term investments
divided by Adjusted EBITDA.
Adjusted EBITDA
is defined as net income/(loss) from continuing operations before interest
expense, other expense/(income), provision for/(benefit from) income taxes, and
depreciation and amortization (excluding restructuring activities); in addition
to these adjustments, the Company excludes, when they occur, the impacts of
divestiture-related license income, restructuring activities, deal costs,
separation costs, unrealized losses/(gains) on commodity hedges, impairment
losses, certain non-ordinary course legal and regulatory matters, and equity
award compensation expense (excluding restructuring activities).
Free Cash Flow
is defined as net cash provided by/(used for) operating activities less capital
expenditures. The use of this non-GAAP measure does not imply or represent the
residual cash flow for discretionary expenditures since the Company has certain
non-discretionary obligations such as debt service that are not deducted from
the measure.
9
The
Kraft
Heinz
Comp…
Cond…
Cons…
Stat…
of
Inco…
(in
mill…
exce… For For
per the the
share Three Septe… Septe… Nine Septe… Septe…
data) Months 26, 27, Months 26, 27, Schedu…
(Una… Ended 2026 2025 Ended 2026 2025 1
──────────────────────────────────────────────────────────────────────────────
Net $ 6,115 $ 6,237 $ 18,424 $ 18,588
sales
Cost
of 4,127 4,247 12,189 12,351
prod…
sold
Gross 1,988 1,990 6,235 6,237
prof…
Sell…
gene…
and
admi… 1,041 930 3,209 2,689
expe…
excl…
impa…
loss…
Good…
impa… 69 35 2,510 6,729
loss…
Inta…
asset 3 — 4,927 2,572
impa…
loss…
Sell…
gene…
and 1,113 965 10,646 11,990
admi…
expe…
Oper… 875 1,025 -4,411 -5,753
inco…
Inte… 210 240 415 709
expe…
Other -39 -22 -164 -120
expe…
Inco…
befo… 704 807 -4,662 -6,342
inco…
taxes
Prov…
for/…
from) 168 194 -537 154
inco…
taxes
Net 536 613 -4,125 -6,496
inco…
Net
inco…
attr… -8 -2 -7 1
to
nonc…
inte…
Net
inco…
attr… $ 544 $ 615 $ -4,118 $ -6,497
to
comm…
shar…
Basic
shar… 1,186 1,184 1,186 1,188
outs…
Dilu…
shar… 1,192 1,186 1,186 1,188
outs…
Per
share
data
appl…
to
comm…
shar…
Basic
earn… $ 0.46 $ 0.52 $ -3.47 $ -5.47
per
share
Dilu…
earn… 0.46 0.52 -3.47 -5.47
per
share
10
The
Kr…
He…
Co…
Re…
of
Net
Sa…
to
Or…
Net
Sa…
For
the
Th…
Mo…
En…
(d…
in
mi…
(U…
Se… Ac… Org…
26, Net and Net Sch…
20… Sal… Cur… Di… Sal… Pri… Vo… 2
──────────────────────────────────────────────────────────────────────────────
No… $ 4,4… $ -8 $ — $ 4,…
Am…
Eu…
and
Pa… 910 -2 — 912
De…
Ma…
Em… 720 16 — 704
Ma…
Kr… $ 6,1… $ 6 $ — $ 6,…
He…
Se…
27,
20…
No… $ 4,6… $ — $ — $ 4,…
Am…
Eu…
and
Pa… 964 — 41 923
De…
Ma…
Em… 632 23 — 609
Ma…
Kr… $ 6,2… $ 23 $ 41 $ 6,…
He…
Year-o…
growth
rates
North -3.4 % (0.2) pp 0.0 pp -3.2 % (0.8) pp (2.4)
America pp
Europe
and (0.9)
Pacific -5.6 % (0.1) pp (4.2) pp -1.3 % (0.4) pp pp
Develo…
Markets
Emergi… 13.8 % (1.8) pp 0.0 pp 15.6 % 7.2 pp 8.4 pp
Markets
Kraft -2.0 % (0.3) pp (0.6) pp -1.1 % 0.0 pp (1.1)
Heinz pp
11
T…
K…
H…
C…
R…
of
N…
S…
to
O…
N…
S…
F…
t…
N…
M…
E…
(…
in
m…
(…
S… Ac… Or…
2… Net and Net Sc…
2… Sa… Cu… Di… Sa… Pr… Vo… 3
──────────────────────────────────────────────────────────────────────────────
N… $ 13… $ 12 $ — $ 13…
A…
E…
a…
P… 2,… 90 — 2,…
D…
M…
E… 2,… 87 — 2,…
M…
K… $ 18… $ 189 $ — $ 18…
H…
S…
2…
2…
N… $ 13… $ — $ — $ 13…
A…
E…
a…
P… 2,… — 123 2,…
D…
M…
E… 1,… 61 — 1,…
M…
K… $ 18… $ 61 $ 123 $ 18…
H…
Year-over…
growth
rates
North -2.3 % 0.1 pp 0.0 pp -2.4 % 0.2 pp (2.6) pp
America
Europe and
Pacific -2.0 % 3.2 pp (4.3) pp -0.9 % 0.0 pp (0.9) pp
Developed
Markets
Emerging 11.1 % 1.1 pp 0.0 pp 10.0 % 5.8 pp 4.2 pp
Markets
Kraft -0.9 % 0.7 pp (0.7) pp -0.9 % 0.8 pp (1.7) pp
Heinz
12
The
Kraft
Heinz
Comp…
Reco…
of
Oper…
Inco…
to
Adju…
Oper…
Inco… For For
(dol… the the
in Three Septe… Septe… Nine Septe… Septe…
mill… Months 26, 27, Months 26, 27, Schedu…
(Una… Ended 2026 2025 Ended 2026 2025 4
──────────────────────────────────────────────────────────────────────────────
Oper… $ 875 $ 1,025 $ -4,411 $ -5,753
inco…
Rest… 7 6 38 10
acti…
Unre…
loss…
on -39 23 -116 6
comm…
hedg…
Impa… 72 35 7,437 9,301
loss…
Sepa… 24 17 90 17
costs
Adju…
Oper… $ 939 $ 1,106 $ 3,038 $ 3,581
Inco…
Segm…
Adju…
Oper…
Inco…
North $ 911 $ 1,018 $ 2,873 $ 3,292
Amer…
Euro…
and
Paci… 96 143 380 435
Deve…
Mark…
Emer… 81 66 256 236
Mark…
Total
Segm…
Adju… 1,088 1,227 3,509 3,963
Oper…
Inco…
Gene…
corp… -149 -121 -471 -382
expe…
Adju…
Oper… $ 939 $ 1,106 $ 3,038 $ 3,581
Inco…
13
The
Kraft
Heinz
Company
Reconci…
of
Adjusted
Operati…
Income
to
Constant
Currency
Adjusted
Operati…
Income
For the
Three
Months
Ended
(dollars
in Constant
million… Currency
(Unaudi… Adjusted Adjusted
Septemb… Operating Operating Schedule
26, 2026 Income Currency Income 5
──────────────────────────────────────────────────────────────────────────────
North $ 911 $ -2 $ 913
America
Europe
and
Pacific 96 -1 97
Develop…
Markets
Emerging 81 1 80
Markets
General
corpora… -149 2 -151
expenses
Kraft $ 939 $ — $ 939
Heinz
Septemb…
27, 2025
North $ 1,018 $ — $ 1,018
America
Europe
and
Pacific 143 — 143
Develop…
Markets
Emerging 66 7 59
Markets
General
corpora… -121 — -121
expenses
Kraft $ 1,106 $ 7 $ 1,099
Heinz
Year-over-year growth rates
North America -10.5 % (0.2) pp -10.3 %
Europe and Pacific Developed Markets -32.8 % (0.4) pp -32.4 %
Emerging Markets 22.5 % (13.1) pp 35.6 %
General corporate expenses 24.0 % (0.5) pp 24.5 %
Kraft Heinz -15.2 % (0.6) pp -14.6 %
14
The
Kraft
Heinz
Company
Reconci…
of
Adjusted
Operati…
Income
to
Constant
Currency
Adjusted
Operati…
Income
For the
Nine
Months
Ended
(dollars
in Constant
million… Currency
(Unaudi… Adjusted Adjusted
Septemb… Operating Operating Schedule
26, 2026 Income Currency Income 6
──────────────────────────────────────────────────────────────────────────────
North $ 2,873 $ 2 $ 2,871
America
Europe
and
Pacific 380 11 369
Develop…
Markets
Emerging 256 9 247
Markets
General
corpora… -471 -5 -466
expenses
Kraft $ 3,038 $ 17 $ 3,021
Heinz
Septemb…
27, 2025
North $ 3,292 $ — $ 3,292
America
Europe
and
Pacific 435 — 435
Develop…
Markets
Emerging 236 17 219
Markets
General
corpora… -382 — -382
expenses
Kraft $ 3,581 $ 17 $ 3,564
Heinz
Year-over-year growth rates
North America -12.7 % 0.1 pp -12.8 %
Europe and Pacific Developed Markets -12.6 % 2.6 pp -15.2 %
Emerging Markets 8.1 % (5.0) pp 13.1 %
General corporate expenses 23.6 % 1.4 pp 22.2 %
Kraft Heinz -15.2 % 0.0 pp -15.2 %
15
… …
… … …
… … … …
… … … …
… … … … … … … … …
… … … … … … … … 7
──────────────────────────────────────────────────────────────────────────────
$ $ $ $ $ $ $ $
$ $
16
… …
… … …
… … … …
… … … …
… … … … … … … … …
… … … … … … … … 8
──────────────────────────────────────────────────────────────────────────────
$ $ $ $ $ $ $ $
$ $
17
… …
… … …
… … … …
… … … …
… … … … … … … … …
… … … … … … … … 9
──────────────────────────────────────────────────────────────────────────────
$ $ $ $ $ $ $ $
$ $
18
──────────────────────────────────────────────────────────────────────────────
… … … … … … 1 … …
… — … … 9 9 — 9 …
6 — — 6 1 5 — 5 —
… — — … … … — … …
… — — … 4 … — … …
— — … … — … — … …
— — … … — … — … …
— — — — … … — … …
… … …
19
The
Kra…
Hei…
Com…
Adj…
Gro…
Pro…
Mar… For For
(do… the the
in Three Sept… Sept… Nine Sept… Sept…
mil… Mont… 26, 27, Mont… 26, 27, Sche…
(Un… Ended 2026 2025 Ended 2026 2025 11
──────────────────────────────────────────────────────────────────────────────
Adj…
Gro… $ 1,950 $ 2,015 $ 6,150 $ 6,244
Pro…
Net 6,115 6,237 18,4… 18,5…
sal…
Adj…
Gro… 31.9 % 32.3 % 33.4 % 33.6 %
Pro…
Mar…
20
The
Kraft
Heinz
Company
Key
Drivers
of
Change
in
Adjusted
EPS
(Unaudi…
Key
drivers For the
of Three
change Months
in Ended
Adjusted Septemb… September Schedule
EPS: 26, 2026 27, 2025 $ Change 12
──────────────────────────────────────────────────────────────────────────────
Results
of $ 0.62 $ 0.72 $ -0.10
operati…
Interest -0.14 -0.16 0.02
expense…
Other 0.04 0.05 -0.01
expense…
Effecti… 0.01 — 0.01
tax rate
Adjusted $ 0.53 $ 0.61 $ -0.08
EPS
(a) Includes non-cash amortization of definite-lived intangible assets, which
accounted for a negative impact to Adjusted EPS from results of operations of
$0.04 for the three months ended September 26, 2026 and September 27, 2025.
(b) Includes divestiture-related license income, which accounted for a benefit
to Adjusted EPS from results of operations of $0.01 for the three months ended
September 26, 2026 and September 27, 2025.
21
The
Kraft
Heinz
Company
Key
Drivers
of
Change
in
Adjusted
EPS
(Unaudi…
Key
drivers For the
of Nine
change Months
in Ended
Adjusted Septemb… September Schedule
EPS: 26, 2026 27, 2025 $ Change 13
──────────────────────────────────────────────────────────────────────────────
Results
of $ 1.91 $ 2.24 $ -0.33
operati…
Interest -0.43 -0.44 0.01
expense…
Other 0.12 0.12 —
expense…
Effecti… 0.07 — 0.07
tax rate
Adjusted $ 1.67 $ 1.92 $ -0.25
EPS
(a) Includes non-cash amortization of definite-lived intangible assets, which
accounted for a negative impact to Adjusted EPS from results of operations of
$0.12 for the nine months ended September 26, 2026 and September 27, 2025.
(b) Includes divestiture-related license income, which accounted for a benefit
to Adjusted EPS from results of operations of $0.02 for the nine months ended
September 26, 2026 and September 27, 2025.
22
The Kraft Heinz
Company
Condensed
Consolidated
Balance Sheets
(in millions,
except per share
data) September 26, December 27,
(Unaudited) 2026 2025 Schedule 14
──────────────────────────────────────────────────────────────────────────────
ASSETS
Cash and cash $ 1,888 $ 2,615
equivalents
Trade 2,211 2,254
receivables, net
Inventories 3,415 3,167
Prepaid expenses 276 291
Marketable 16 1,060
securities
Other current 841 588
assets
Assets held for 16 152
sale
Total current 8,663 10,127
assets
Property, plant
and equipment, 7,179 7,318
net
Goodwill 19,649 22,179
Intangible 32,328 37,529
assets, net
Other
non-current 4,409 4,633
assets
TOTAL ASSETS $ 72,228 $ 81,786
LIABILITIES AND
EQUITY
Current portion
of long-term $ 918 $ 1,908
debt
Accounts payable 4,784 4,308
Accrued 902 801
marketing
Interest payable 241 298
Other current 1,647 1,455
liabilities
Liabilities held — 8
for sale
Total current 8,492 8,778
liabilities
Long-term debt 17,085 19,311
Deferred income 7,810 9,022
taxes
Accrued
postemployment 128 131
costs
Long-term 1,278 1,321
deferred income
Other
non-current 1,345 1,434
liabilities
TOTAL 36,138 39,997
LIABILITIES
Redeemable
noncontrolling 13 12
interest
Equity:
Common stock, 12 12
$0.01 par value
Additional 49,937 51,287
paid-in capital
Retained -8,747 -4,629
earnings/(defic…
Accumulated
other -2,526 -2,370
comprehensive
income/(losses)
Treasury stock, -2,701 -2,636
at cost
Total
shareholders' 35,975 41,664
equity
Noncontrolling 102 113
interest
TOTAL EQUITY 36,077 41,777
TOTAL
LIABILITIES AND $ 72,228 $ 81,786
EQUITY
23
The Kraft
Heinz
Company
Condensed
Consolidated
Statements
of Cash
Flows
(in
millions)
(Unaudited)
CASH FLOWS For the Nine
FROM Months Ended
OPERATING September 26, September 27,
ACTIVITIES: 2026 2025 Schedule 15
──────────────────────────────────────────────────────────────────────────────
Net $ -4,125 $ -6,496
income/(los…
Adjustments
to reconcile
net
income/(los…
to operating
cash flows:
Depreciation
and 768 717
amortization
Divestiture…
license -39 -39
income
Equity award
compensation 76 70
expense
Deferred
income tax -1,159 -488
provision/(…
Postemploym…
benefit plan -11 -11
contributio…
Goodwill and
intangible
asset 7,437 9,301
impairment
losses
Nonmonetary
currency 34 26
devaluation
Loss/(gain)
on sale of -1 44
business
Loss/(gain)
on -264 —
extinguishm…
of debt
Other items, -149 13
net
Changes in
current
assets and
liabilities:
Trade 14 -53
receivables
Inventories -366 -205
Accounts 618 312
payable
Other
current -149 -188
assets
Other
current 276 83
liabilities
Net cash
provided
by/(used 2,960 3,086
for)
operating
activities
CASH FLOWS
FROM
INVESTING
ACTIVITIES:
Capital -599 -596
expenditures
Purchases of
marketable -105 -1,358
securities
Proceeds
from sale of 1,157 354
marketable
securities
Proceeds
from sale of
business,
net of
cash 146 9
disposed and
working
capital
adjustments
Other
investing 52 -19
activities,
net
Net cash
provided
by/(used 651 -1,610
for)
investing
activities
CASH FLOWS
FROM
FINANCING
ACTIVITIES:
Repayments
of long-term -3,982 -677
debt
Proceeds
from
issuance of 1,152 1,620
long-term
debt
Dividends -1,423 -1,424
paid
Repurchases
of common -79 -435
stock
Other
financing -89 153
activities,
net
Net cash
provided
by/(used -4,421 -763
for)
financing
activities
Effect of
exchange
rate changes
on cash,
cash -24 52
equivalents,
and
restricted
cash
Cash, cash
equivalents,
and
restricted
cash
Net -834 765
increase/(d…
Balance at
beginning of 2,944 1,486
period
Balance at
end of $ 2,110 $ 2,251
period
24
The Kraft
Heinz
Company
Reconcilia…
of Net Cash
Provided
By/(Used
For)
Operating
Activities
to Free
Cash Flow
(in
millions) For the Nine September September
(Unaudited) Months Ended 26, 2026 27, 2025 Schedule 16
──────────────────────────────────────────────────────────────────────────────
Net cash
provided
by/(used $ 2,960 $ 3,086
for)
operating
activities
Capital -599 -596
expenditur…
Free Cash $ 2,361 $ 2,490
Flow
Adjusted
Net $ 1,972 $ 2,286
Income/(Lo…
Free Cash
Flow 120 % 109 %
Conversion
25