Kraft Heinz (KHC) Halts Spin-Off Amid Consumer Headwinds and Pricing Pressures

Kraft Heinz (KHC) has paused its plan to split into two entities, Global Taste Elevation and North American Grocery, as it faces consumer headwinds and pricing challenges. The company will instead invest $600 million in marketing, sales, R&D, and pricing to address these issues. CEO Steve Cahillane said the challenges are "fixable and within our control," and the investment will "accelerate our return to profitable growth." The decision follows a 0.5% price rise in the latest quarter and slightly lower-than-expected revenue of $6.35 billion in Q4 2025, versus adjusted earnings of $0.67 per share, beating the $0.61 consensus. For 2026, Kraft Heinz projects organic net sales to be 1.5%–3.5% lower than the 0.6% annual revenue decline previously expected, and adjusted EPS between $1.98 and $2.10, below the $2.50 estimate. Cahillane attributed some weakness to recent SNAP changes, vowing to adjust entry price points, pack sizes, and product availability.