01—Abstract
Summary
Summary of the 8-K filed August 5, 2026. Cited figures are marked; the original filing is the authoritative source.
The Kraft Heinz Company reported second-quarter 2026 results for the quarter ended June 27, 2026.
Net sales decreased 1.4% to $6.26 billiona, and Organic Net Sales decreased 1.3%. Price rose 1.3 percentage points, while volume/mix declined 2.6 percentage points, driven by meats and spoonables and a shift in Easter timing. The company reported an operating loss of $6.43 billion, reflecting non-cash impairment losses of $7.35 billion, and a net loss of $5.46 billion, or $(4.60) per diluted share.
Adjusted Operating Income decreased 18.4% to $1.04 billionb, mainly due to higher advertising expense, unfavorable volume/mix, manufacturing and logistics inflation, and higher variable compensation. Adjusted EPS was $0.56, down 18.8%. Year-to-date net cash provided by operating activities was $2.09 billion, up 8.2%, and Free Cash Flow was $1.66 billion, up 10.3%.
The company paid $949 millionc in dividends year to date and did not repurchase shares under its publicly announced program. Free Cash Flow Conversion was 123% for the six months. For fiscal 2026, the company raised its Organic Net Sales outlook to down 0.5% to down 2.0%, from down 3.5% to down 1.5%.
It narrowed its Adjusted EPS outlook to $2.03 to $2.09d, from $1.98 to $2.10, and now expects approximately $700 million of incremental investments compared with 2025. It also expects Free Cash Flow Conversion of approximately 110%, up from approximately 100%. The filing states that work on the previously announced separation of Kraft Heinz into two companies is currently paused.
02—Key points
Key Highlights
- Net sales were $6.26 billion in the second quarter, down 1.4%, with Organic Net Sales down 1.3%; Emerging Markets grew 10.4% while North America fell 2.7%.
- Operating loss of $6.43 billion reflected impairment losses of $7.35 billion, though the impairment charge was $1.9 billion lower than in the prior-year quarter.
- Net loss of $5.46 billion, or $(4.60) per diluted share, compared with a net loss of $7.82 billion, or $(6.60) per share, a year earlier.
- Adjusted Operating Income fell 18.4% to $1.04 billion and Adjusted EPS fell 18.8% to $0.56, pressured by higher advertising expense and unfavorable volume/mix.
- Year-to-date Free Cash Flow of $1.66 billion rose 10.3%, driven by favorable working capital changes, primarily in accounts payable.
- Raised the fiscal 2026 Organic Net Sales outlook to down 0.5% to down 2.0%, and narrowed the Adjusted EPS outlook to $2.03 to $2.09.
- Increased 2026 incremental investments by $100 million to approximately $700 million, and raised the Free Cash Flow Conversion outlook to approximately 110%.
03—Questions
Frequently Asked Questions
Why did Kraft Heinz report a large operating loss if underlying performance was stable?
The operating loss of $6.43 billion was driven by non-cash impairment losses of $7.35 billion. The company excludes these from Adjusted Operating Income, which fell 18.4% to $1.04 billion on higher advertising, unfavorable volume/mix, cost inflation, and higher variable compensation.
What drove the decline in sales volume?
The filing says volume/mix declined 2.6 percentage points, primarily from declines in meats and spoonables and a shift in Easter timing, which had an approximate 100 basis point impact. This was partially offset by an approximate 80 basis point benefit from inventory pull-forward in the quarter.
How did the company change its 2026 guidance?
The company raised its Organic Net Sales outlook to down 0.5% to down 2.0% from down 3.5% to down 1.5%. It narrowed Adjusted EPS guidance to $2.03 to $2.09 from $1.98 to $2.10 and raised Free Cash Flow Conversion to approximately 110% from approximately 100%.
How is the company managing cash and shareholder returns?
Net cash provided by operating activities was $2.09 billion year to date, and Free Cash Flow was $1.66 billion. The company paid $949 million in cash dividends and did not repurchase any shares under its share repurchase program during the period. Long-term debt was $17.62 billion at June 27, 2026, down from $19.31 billion at December 27, 2025.
What is the status of the planned separation?
The forward-looking statements section refers to the previously announced separation of Kraft Heinz into two independent publicly traded companies and states that work related to the separation is currently paused.
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