Kraft Heinz Co. (NASDAQ: KHC) reported third-quarter results that narrowly missed revenue estimates as it continues to navigate a difficult operating environment marked by higher input costs, weaker demand, and tariff-related headwinds. Shares dropped more than 5% in intra-day trading on Wednesday.
Net sales fell 2.3% year-over-year to $6.24 billion, just shy of Bloomberg’s $6.25 billion consensus. North American volumes declined as the company raised prices to offset rising coffee and commodity costs. Adjusted EPS, however, came in above expectations at $0.61 versus $0.58.
In September, Kraft Heinz announced plans to split into two separate companies — one focused on grocery products and another on sauces and spreads — in an effort to simplify operations and unlock growth potential. CEO Carlos Abrams-Rivera said the tax-free spin-off, expected to complete in the second half of 2026, would enable each business to “improve execution, reduce complexity, and enhance efficiency.”
However, some investors, including Berkshire Hathaway’s Warren Buffett, expressed skepticism that the breakup would resolve the company’s longer-term challenges. Since Kraft Heinz’s merger with 3G Capital in 2015, shares have struggled amid softer consumer spending and inflationary pressures.
