Kraft Heinz Lifts 2026 EPS Outlook Despite 2.0% Q3 Sales Decline; Adds Two Directors
Kraft Heinz raised the low end of its 2026 sales outlook and lifted its adjusted EPS guidance even as third-quarter sales and profit declined, according to its 8-K released Wednesday. The food maker also added two former grocery and retail finance chiefs to its board.
Net sales fell 2.0% to $6.115 billion, and organic net sales slipped 1.1%. Diluted EPS dropped 11.5% to $0.46, and adjusted EPS fell 13.1% to $0.53. Adjusted operating income declined 15.2% to $939 million.
North America still shrinking
North America sales fell 3.4% to $4.485 billion, with organic sales down 3.2% on lower price and volume. Europe and Pacific Developed Markets declined 5.6%. Emerging Markets was the bright spot, with sales up 13.8% to $720 million and organic growth of 15.6%.
Gross profit margin rose 60 basis points to 32.5%, while adjusted gross margin fell 40 basis points to 31.9%.
"Our 2026 operating plan to turn around the U.S. business and accelerate growth internationally is on track," said CEO Steve Cahillane, adding that market share, sales and volume trends are improving in every region compared with last year.
Updated outlook
Kraft Heinz now expects 2026 organic net sales to range from a 1.25% decline to a 0.5% decline, versus a prior range of down 2% to down 0.5%. Adjusted EPS guidance rises to $2.07 to $2.13 from $2.03 to $2.09. The company kept its forecast for a 16% to 18% decline in constant-currency adjusted operating income.
Year-to-date free cash flow was $2.4 billion, down 5.2%, and the company has returned $1.4 billion to stockholders so far this year.
Board additions
In a separate 8-K, Kraft Heinz said Nordstrom CFO Kelly Dilts and former Kroger CFO Mike Schlotman joined its board effective Nov. 4. Schlotman spent more than 30 years at Kroger and previously served on Kellanova's board.
By the numbers
- Q3 net sales: $6.115 billion, down 2.0%
- Organic net sales: down 1.1%
- Adjusted EPS: $0.53, down 13.1%
- Emerging Markets organic growth: 15.6%
- New 2026 adjusted EPS guidance: $2.07 to $2.13
Sources
- Kraft Heinz Form 8-K with third-quarter 2026 earnings release, filed Nov. 4, 2026 (accession 0001637459-26-000078)
- Kraft Heinz Form 8-K on board of directors changes, filed Nov. 4, 2026 (accession 0001637459-26-000079)
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