Kraft Heinz raised its full-year guidance on Wednesday following better-than-expected second-quarter performance. The company now projects organic sales to decline between 0.5% and 2.0% for the full year, compared with its prior forecast of a 1.5% to 3.5% decline. The company also adjusted its annual adjusted earnings per share outlook to a range of $2.03 to $2.09, up from the earlier guidance of $1.98 to $2.10. As part of its strategic shift, Kraft Heinz said it would boost incremental investments by $100 million to reach approximately $700 million in 2026.
Quarterly net sales reached $6.26 billion, reflecting a 1.4% decline from the prior year period. This result exceeded the consensus analyst estimate of $6.12 billion, which had anticipated a 3.6% decline. Adjusted earnings per share came in at 56 cents, representing an 18.8% year-over-year decrease, though still surpassing the 53-cent forecast that analysts had projected.
Price increases contributed to the sales outperformance, though unit-volume demand continued to weaken in several key markets. The company faced particular headwinds in the U.S. retail channel, where the meat category experienced notable softness. Strength in Canada and the Away From Home segment provided some offset but could not fully compensate for domestic retail weakness. A non-cash impairment charge of $7.4 billion led to an operating loss during the quarter.
CEO Steve Cahillane, who assumed the role in January, has redirected the company toward health-oriented products including protein-rich foods and electrolyte-infused beverages. The company noted that its hedging protection on energy and edible oils extends through most of the year, while coverage on certain resins and metals is set to expire around mid-third quarter, potentially exposing the company to greater spot price volatility in the fourth quarter. Kraft Heinz shares showed little movement in premarket trading on Wednesday.
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