The core business continues to shrink (organic sales -0.4%, adjusted op income -11.8%) despite the headline EPS beat from tax/timing items. The reaffirmed weak 2026 guidance confirms no near-term inflection. Watch for volume recovery in North America and whether the $600M investment yields market share gains by Q3.
Price Chart
Executive Summary
Kraft Heinz reported Q1 2026 GAAP diluted EPS of $0.67, a 13.6% YoY increase, on net sales of $6.047B (+0.8% YoY). However, Adjusted EPS fell 6.5% to $0.58 and Adjusted Operating Income declined 11.8%, as the company maintained its full-year 2026 outlook for continued declines in organic net sales and adjusted operating income. The headline EPS beat is driven by lower taxes and favorable other income, not underlying operational improvement.
Key Financial Metrics
Key Facts
- GAAP diluted EPS $0.67 vs $0.59 YoY (+13.6%), but Adjusted EPS fell 6.5% to $0.58
- Net sales $6.047B (+0.8% YoY), but Organic Net Sales declined 0.4%
- Adjusted Operating Income decreased 11.8% to $1.058B, driven by higher advertising costs and inflationary pressures
- Full-year 2026 outlook reaffirmed: Organic Net Sales down 1.5% to 3.5%, Constant Currency Adjusted Operating Income down 14% to 18%
- Free Cash Flow improved 58.9% to $0.8B, with Free Cash Flow Conversion of 111%
- No share repurchases in Q1; $474M in dividends paid; $1.5B remaining buyback authorization
Financial Impact
Adjusted EPS guidance of $1.98-$2.10 implies a 19-24% decline from 2025's $2.60 Adjusted EPS, reflecting the $600M investment drag
Risk Factors
- Persistent volume/mix declines (-1.2% in Q1) signal ongoing market share losses to private label
- Full-year guidance implies H2 2026 will be worse than H1, as lapping of lower variable comp becomes a 300bp headwind
- SNAP headwinds expected to impact organic sales by ~100bps in 2026
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001637459-26-000020 |
| Document: khc-20260506.htm | 0001637459-26-000020 |
| Document: 0001637459-26-000020-index-headers.html | 0001637459-26-000020 |
| Document: 0001637459-26-000020-index.html | 0001637459-26-000020 |
| Document: 0001637459-26-000020.txt | 0001637459-26-000020 |
| 8-K Data (Synthetic) | 0001637459-26-000020 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 26, 2026 5w ago | 8-K | $24.79 $25.13 | ▲ +1.37% | ▲ +0.72% | $22.16 (−10.63%) |
Aug 5, 2026 8w ago | 8-K | $25.73 $24.96 | ▼ −2.99% | ▼ −2.83% | $22.16 (−13.89%) |
Jul 9, 2026 12w ago | Institutional Cluster | $24.68 $24.85 | ▼ −0.69% | ▼ −0.26% | $22.16 (+10.23%) |
Jun 18, 2026 15w ago | 8-K | $22.82 $22.03 | ▼ −3.46% | ▼ −3.15% | $22.16 (−2.91%) |
Jun 8, 2026 16w ago | 8-K | $23.43 $24.05 | ▲ +2.65% | ▲ +4.22% | $22.16 (−5.44%) |
May 21, 2026 19w ago | 8-K | $23.79 $23.85 | ▲ +0.25% | ▼ −0.33% | $22.16 (−6.86%) |
May 7, 2026 21w ago | 8-K | $23.65 $23.95 | ▲ +1.27% | ▲ +0.44% | $22.16 (−6.31%) |
May 7, 2026 21w ago | 424B5 | $23.65 $23.95 | ▲ +1.27% | ▲ +0.44% | $22.16 (−6.31%) |
May 6, 2026 21w ago | 8-K | $23.05 $23.65 | ▼ −2.60% | ▼ −2.93% | $22.16 (+3.87%) |
Apr 3, 2026 26w ago | DEFA14A | $23.57 $23.19 | ▼ −1.62% | ▼ −1.69% | $22.16 (−6.00%) |
US Market Status
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