Dow, S&P 500, Nasdaq waver after January jobs report smashes expectations
Kraft Heinz (KHC) announced Tuesday that it would pause its spin-off plans, with the company’s new CEO, Steve Cahillane, saying “the challenges are solvable and within our control.”
Catering business Global Taste Elevation Co. and grocery business North American Grocery Co., plans to invest $600 million in marketing, sales, research and development and pricing.
“We are confident in the opportunity before us and believe this investment will accelerate our return to profitable growth,” said Steve Cahillane, who became CEO on January 1 and previously led Kellanova. successfully split From Kellogg Company in 2023.
Shares fell more than 6% in premarket trading.
In its fourth-quarter results, the company reported adjusted earnings of $0.67, higher than the $0.61 expected, according to Bloomberg consensus data. Revenue came in at $6.35 billion, slightly lower than the $6.37 billion expected.
Prices increased by 0.5%, slightly below the expectation of a 0.79% increase.
The company expects organic net sales to decline between 1.5% and 3.5% for 2026. Wall Street expected 2026 annual organic revenue to decrease by 0.56%. Adjusted earnings per share are expected to be in the range of $1.98 to $2.10, while Wall Street’s estimate is $2.50.
