KKraft Heinz makes packaged foods and drinks for households, restaurants and other foodservice operators around the world. Its portfolio includes Heinz ketchup and spans sauces, cheese, ready meals, coffee and refrigerated foods. The company develops recipes, manufactures products in its factories and works with outside producers to supply different markets. It earns revenue by selling through grocery chains, wholesalers, online retailers and distributors that serve commercial kitchens. With operating roots in Heinz's 1869 business and its combined group formed by a 2015 merger, it is co-headquartered in Pittsburgh, Pennsylvania, and Chicago, Illinois.
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Amid market turmoil, The Motley Fool's Jack Delaney favours Colgate-Palmolive over Kraft Heinz as a defensive stock pick. Colgate-Palmolive's FY 2025 revenue rose about 1.4% to nearly $20.4 billion, with net income of roughly $2.1 billion. Kraft Heinz's revenue fell about 3.5% to nearly $24.9 billion, and it posted a net loss of nearly $5.8 billion. Kraft Heinz looks cheaper, with a forward P/E of 11.5x against 23.6x for Colgate. Its dividend yield is 6.5%, versus 2.2% for Colgate. Delaney still prefers Colgate. Its third-quarter net sales rose 4.6%, while Kraft Heinz's fell 2%. Colgate has also raised its dividend for 63 consecutive years.
What Kraft Heinz (KHC) said on its Q3 earnings call. Kraft Heinz (NASDAQ:KHC) reported third-quarter organic net sales declined 1.1% from a year earlier, as weakness in U.S. retail was partly offset by growth in emerging markets and the company's global Away From Home business. Management raised the low end of its full-year organic net sales outlook while maintaining its constant-currency adjusted operating income forecast. Chief Executive Officer Steve Cahillane said the company has continued to build momentum during 2026, citing improving volume trends across all regions, stronger emerging-market growth and progress in foodservice channels. However, he said the U.S. retail turnaround remains incomplete. "Sales and share are recovering, volumes are improving in every region, and the rest of our $700 million investment will be put to work in the fourth quarter," Cahillane said. The company's incremental investments are focused on product quality, pricing, marketing, sales, research and development, and staffing. Third-Quarter results and margins. Organic net sales declined 1.1% in the quarter, landing at the upper end of Kraft Heinz's guidance range, according to Chief Global Financial Officer Andre Maciel. Price was flat, as pricing gains in emerging markets were offset by planned price investments in North America. Volume and mix declined 1.1 percentage points, primarily reflecting North American softness, including meats. Maciel said the quarterly sales result included an approximately 80-basis-point headwind from inventory pulled forward into the second quarter. Lower-than-expected trade spending provided roughly a 40-basis-point benefit in the third quarter, though the company expects trade spending to increase in the fourth quarter. Adjusted gross margin declined 40 basis points year over year due to higher procurement and logistics inflation, partly offset by productivity actions. Kraft Heinz said transportation costs were higher than anticipated during the quarter, though favorable costs for commodities including dairy and bellies helped mitigate the pressure. Constant-currency adjusted operating income declined 14.6%, while adjusted operating income fell 15.2% and adjusted operating income margin declined 230 basis points. Management attributed the operating-income decline to inflation, investments in marketing, R&D and personnel, as well as comparisons against lower variable compensation expense in 2025. Adjusted earnings per share were $0.53, down approximately 13.1%, or $0.08, from the prior-year quarter. Year-to-date free cash flow totaled approximately $2.4 billion, down 5.2% from a year earlier, while free cash flow conversion increased 11 percentage points to 120%. Regional performance. * North America: Organic net sales declined 3.2%, driven by U.S. retail and retailer inventory reductions. Growth in Canada and Away From Home partly offset the decline. * Europe and Pacific developed markets: Organic net sales fell 1.3%. The company said exits from negative-cash-flow businesses in Australia and New Zealand reduced sales by about 100 basis points, while Europe posted volume-led growth and market-share gains. * Emerging markets: Organic net sales rose 15.6%, with balanced contributions from price and volume/mix. Indonesia contributed about 3 percentage points of the segment's growth after a prior-year distributor disruption was resolved. Cahillane said Heinz grew approximately 16% in emerging markets during the quarter, with growth across condiments, mayonnaise and pasta sauce. He highlighted Heinz Zero ketchup in Brazil, which has gained nearly three points of market share since its launch earlier this year. The company said about 80% of Heinz Zero sales are incremental to the ketchup category. Global Away From Home organic net sales increased 2.6%, with growth across North America, Europe and Pacific developed markets, and emerging markets. The business grew approximately 8% in emerging markets, while U.S. growth was supported by net new business wins. U.S. Retail recovery efforts. Kraft Heinz said its U.S. retail revenue gaining or holding market share improved to 25% year to date, compared with 12% at the end of 2025. Across the company, the percentage of revenue gaining or holding share rose to 31% from 21% in 2025. The company said investment has supported better consumption trends in several categories. Condiments returned to growth and rose more than 4% in the third quarter, compared with 2.5% growth in the first half. Desserts grew 2.5%, while Kraft Mac & Cheese consumption increased 1.4% after declining in recent years. Management also identified continuing areas of pressure. The meat business remained the largest contributor to U.S. retail declines, although Maciel said it is improving following last year's cold-cuts packaging issue. Cream cheese performance weakened as price investments did not deliver the expected consumer response, prompting Kraft Heinz to pull back part of that investment in the fourth quarter. Maciel said sandwich cheese remains a challenging category and that the company is not assuming a sharp recovery. Planned actions include a new Kraft Singles creative campaign, price-pack architecture initiatives, innovation and updated product claims targeting health-conscious consumers. Salad dressing has also become a larger drag following a disruption affecting the broader category. Investment and outlook. The company is increasing marketing spending to at least 6% of net sales for the full year. Marketing was up approximately 25% year to date and represented 6.1% of net sales, while R&D spending rose 20%. Kraft Heinz said promotional return on investment improved by 4 percentage points year to date, and global return on ad spend improved by 2 percentage points. For full-year 2026, Kraft Heinz now expects organic net sales to decline between 1.25% and 0.5%, improving from its previous forecast for a decline of 2% to 0.5%. The outlook includes an estimated 100-basis-point impact from reduced SNAP benefits. The company reiterated its forecast for constant-currency adjusted operating income to decline 18% to 16%. It expects adjusted gross profit margin to be down 50 to 10 basis points, with inflation expected to peak at approximately 6% in the fourth quarter. The company maintained its full-year inflation outlook of slightly above 4%. Kraft Heinz raised its adjusted EPS outlook to a range of $2.07 to $2.13, from $2.03 to $2.09 previously, primarily due to an expected effective tax rate of about 23.5%. Management said the tax benefits are discrete and are not expected to recur in 2027. The company continues to expect free cash flow conversion of approximately 110% for the year and net leverage of between 3.2 times and 3.3 times. Cahillane said the company remains committed to supporting its dividend while funding investments and reducing debt. About Kraft Heinz (NASDAQ:KHC). The Kraft Heinz Company (NASDAQ: KHC) is a global food and beverage company that develops, manufactures and markets branded products for consumers, retailers and foodservice customers. Its portfolio includes condiments and sauces, cheese and dairy products, meals, meats, snacks, beverages and desserts. The company's brands include Kraft, Heinz, Oscar Mayer, Philadelphia, Velveeta, Jell-O, Maxwell House, Lunchables, Capri Sun, Planters and Classico, among others. Products are sold through grocery stores, mass merchants, club stores, convenience retailers, e-commerce channels and foodservice distributors. Kraft Heinz was created in 2015 through the merger of Kraft Foods Group and H.J.
Big name brands signal Americans have more price pain to endure. By Jack McGeever Americans could face another round of price increases on everyday household products as major consumer brands raise prices to offset soaring costs, with one manufacturer reporting an 18% price hike even as customers bought fewer products. Reynolds Consumer Products, Kraft Heinz and other household names are warning that rising commodity, transportation and manufacturing expenses are squeezing their businesses, prompting price increases that threaten to deepen Americans' affordability struggles. Recent corporate earnings reports show companies are already passing higher costs to consumers while confronting declining sales volumes, suggesting shoppers are increasingly resisting higher prices. Reynolds Consumer Products, the company behind Reynolds Wrap aluminum foil and Hefty household products, reported an 18% pricing increase in its Cooking & Kitchen Essentials division during the third quarter to recover higher input costs, according to its Wednesday earnings report. The company's Hefty Waste & Clean-Up division also reported a 5% price increase, while its Home & Tableware and Storage & Organization divisions each recorded 4% pricing increases. Across Reynolds' entire business, pricing increased 9% from a year earlier, while retail sales volume declined 7%. Within the Cooking & Kitchen Essentials division, retail volume fell 6% despite the substantial price increase, illustrating the difficulty manufacturers face when attempting to recover rising costs from increasingly price-conscious customers. Reynolds reported $944 million in quarterly revenue, up from $931 million a year earlier, while net income declined to $58 million from $79 million. The company said price increases fully offset higher input costs in its cooking and kitchen division, but declining sales volumes still weighed on earnings. Kraft Heinz CEO Steve Cahillane warned Wednesday that additional price increases are likely in 2027 as the food manufacturer confronts mounting fuel, transportation and commodity expenses, according to The Wall Street Journal. The company plans to pursue productivity improvements to absorb some expenses before selectively raising prices, particularly as it attempts to preserve market-share gains. Kraft Heinz reported $6.1 billion in third-quarter net sales, a 2% decline from the previous year, while its North American organic sales fell 3.2%, according to its latest results. The company's North American pricing contribution actually declined 0.8 percentage points during the quarter, even as volume and product mix fell 2.4 percentage points. Its results demonstrate how weakening demand can complicate efforts to offset rising expenses through higher prices. Kraft Heinz also warned in a Securities and Exchange Commission filing that inflationary pressures could increase during the fourth quarter, partly because of the conflict with Iran. The company identified efficiency initiatives, pricing actions, alternative sourcing and hedging as methods to mitigate higher costs, while acknowledging that previous price increases have sometimes hurt its market share. The trend extends beyond food manufacturers. Clorox, which sells household cleaning supplies and other consumer products, reported Monday that its gross profit margin fell to 40.4% from 41.7% a year earlier, citing higher commodity, manufacturing and logistics costs, according to its quarterly report. The company lowered its gross margin expectations for fiscal 2027 to approximately 41.5%, warning that unusually high inflation and an unfavorable product mix would more than offset anticipated savings and pricing actions. Procter & Gamble, the manufacturer behind Tide, Gillette and Pampers, also expects substantial cost pressures in the coming year. The company projected approximately $1.4 billion in after-tax commodity cost headwinds for fiscal 2027, driven by higher raw material, energy and transportation expenses, according to its October earnings announcement. P&G reported that pricing contributed 3.5% to sales growth in its grooming division and 2.8% in health care during the July-September quarter, although companywide pricing increased only 0.4%. Wholesale inflation surged 6.3% annually in September, its fastest pace in nearly four years, according to federal data. Although wholesale inflation does not translate directly into equivalent consumer price increases, the latest corporate results demonstrate how some manufacturers are already responding to higher costs through pricing adjustments. All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include its logo, its reporter's byline and their DCNF affiliation. For any questions about its guidelines or partnering with Yournews, please contact [email protected]. Posted by yournews media newsroom. yourNEWS.com is a premier news dissemination platform operating at local, state, and national levels. Its unwavering commitment lies in the restoration of journalistic integrity. Yournews envision news delivery in its purest form: untainted by bias and firmly grounded in truth. Embracing transparency, Yournews refrain from censorship. By circumventing the gatekeepers of misinformation and government narratives, Yournews empower 'the people' with the rightful control over the press. yourNEWS is on the cusp of reshaping the media landscape, cultivating the largest news platform globally. Yournews is not just forecasting change - Yournews is creating it. (Note: Articles may not be original content. Reference byline for original source.)
Hawkish signals from the US Federal Reserve are rattling growth stocks and heavily indebted firms, but they may favour dividend payers with strong cash flow and balance sheets. A Simply Wall St screen of US defensive, dividend-paying value stocks highlights three. Ingredion (INGR) makes sweeteners, starches, and other ingredients for food and industrial products. Its market cap is about $6.1 billion. Hershey (HSY) has a market cap near $35.1 billion. Its candy and chocolate arm generates about $9.8 billion of roughly $12.3 billion in segment revenue. Kraft Heinz has a market cap of about $30.1 billion. It paid $474 million in cash dividends in the first quarter, at $0.40 per share, and management called the dividend a capital allocation priority.
Kraft Heinz to divest coffee business, adds 2 directors. Maxwell House and sister brands go to One Rock Capital at $650M value; former Kroger CFO one of the board additions The Kraft Heinz Company announced Nov. 4 that it will divest its North America coffee business to private equity firm One Rock Capital Partners. At the same time, the company released its third quarter results showing improving trends in every region and appointed two new independent directors - including longtime Kroger CFO Mike Schlotman - as the company advances its transformation strategy. Coffee business sold at $650 million value. Kraft Heinz entered a definitive agreement to sell its North America coffee business - including the Maxwell House, Gevalia, Nabob, Yuban, Tassimo, Ethical Bean and Sanka brands - to an affiliate of One Rock Capital Partners at an enterprise value of $650 million. Kraft Heinz will retain a 30 percent non-controlling equity stake. The transaction is expected to close in mid-2027, subject to regulatory approval. Approximately 250 full-time employees are expected to transition with the business, along with coffee manufacturing facilities in Jacksonville, Florida, and Vancouver, British Columbia. Net cash proceeds of approximately $500 million are planned for debt paydown, and the company expects the deal to be growth and margin accretive. "This transaction is a meaningful step in unlocking value from our portfolio and will further accelerate the momentum behind our transformation," said Steve Cahillane, CEO of Kraft Heinz. "We are proud of the role these brands have played in the lives of generations of coffee drinkers, and our continued stake reflects the confidence we have in their long-term potential under One Rock's focused ownership." "We have long admired Kraft Heinz's iconic coffee brands, such as Maxwell House and Gevalia, which have been household staples for more than 100 years," said Tony W. Lee, managing partner of One Rock. "We intend to accelerate investment across the brand portfolio to drive growth and innovation, enhance the consumer experience, and strengthen relationships with retail partners." Q3 sales dip as outlook's low end rises. Net sales decreased 2 percent to $6.1 billion in the third quarter ended Sept. 26, with organic net sales down 1.1 percent. North America sales fell 3.4 percent, with volume/mix declines in meats, sauces and refreshment beverages, while emerging markets grew 13.8 percent. Price was flat companywide. "Our 2026 operating plan to turn around the U.S. business and accelerate growth internationally is on track," Cahillane said. "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." The company raised the low end of its full-year organic net sales outlook to a range of down 0.5 percent to down 1.25 percent, a forecast that includes an approximate 100 basis point impact from incremental SNAP challenges. Operating income declined 14.6 percent to $875 million, pressured by inflation in procurement and logistics costs, higher variable compensation and increased advertising investment, the company said. Dilts, Schlotman join the board. Effective Nov. 4, Kelly Dilts and J. Michael "Mike" Schlotman were appointed to the Kraft Heinz board of directors. Dilts, CFO of Nordstrom, brings more than 30 years of experience in retail finance, strategic planning and operations. She previously spent six years at Dollar General, most recently as EVP and CFO. Schlotman spent more than 30 years at The Kroger Co., including almost 20 years as CFO, helping shape initiatives in cost efficiency, digital growth, analytics and new profit streams. He served on the board of Kellanova prior to its acquisition by Mars in December 2025. "Kelly and Mike have spent their careers deeply connected to the consumers, customers and market forces that shape our industry," Cahillane said. "Their experience leading scaled businesses through change will be invaluable as we sharpen our focus, strengthen our brands, and continue to build a more profitable Kraft Heinz." Kraft Heinz, with dual headquarters in Pittsburgh and Chicago, reported approximately $25 billion in net sales in 2025, with brands including Heinz, Kraft, Philadelphia, Primal Kitchen and Lunchables sold in more than 40 countries.
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Industries
Company Size
10,001+
Company Stage
IPO
Headquarters
Pittsburgh, PA
Founded
1869
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