Kraft Heinz Q3 profit beats estimates on emerging markets growth

Overview

• U.S. food and beverage maker's Q3 net sales fell 2%, slightly beating analyst expectations

• Adjusted EPS for Q3 declined but beat analyst expectations

• Company updated 2026 outlook, narrowing organic net sales decline and raising low end of EPS guidance

Outlook

• Kraft Heinz raises low end of 2026 organic net sales outlook to down 1.25% to down 0.5%

• Company expects 2026 adjusted EPS of $2.07 to $2.13, up from prior $2.03 to $2.09

• Kraft Heinz sees 2026 constant currency adjusted operating income down 16% to 18% vs prior year

Result Drivers

• VOLUME DECLINES - Co said Q3 volume/mix fell 1.1 pp, mainly due to declines in North America meats, sauces, and beverages, and an inventory pull-forward into Q2

• INFLATIONARY PRESSURES - Co attributed lower operating income to increased procurement and logistics costs, as well as higher variable compensation and advertising expenses

• EMERGING MARKETS GROWTH - Co reported organic net sales growth of 15.6% in emerging markets, with positive price and volume/mix contributions

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 15 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "hold"

• Wall Street's median 12-month price target for The Kraft Heinz Company is $23.50, about 4.2% below its November 3 closing price of $24.52

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)