Kraft Heinz (KHC) announced on Tuesday that it was suspending its spin-off plans, with new CEO Steve Cahillane saying “the challenges are solvable and within our control.”
The company plans to spin off its catering business Global Taste Elevation Co. and grocery business North American Grocery Co., and plans to invest $600 million in marketing, sales, research and development and pricing.
“We are confident in the opportunities ahead and believe this investment will accelerate our return to profitable growth,” said Steve Cahillane. He took over as CEO on January 1 and previously led Kellanova, which successfully spun off from Kellogg Co. in 2023.
Shares fell more than 6% in premarket trading.
In its fourth-quarter results, the company reported adjusted earnings of $0.67, beating estimates of $0.61, according to Bloomberg consensus data. Revenue was slightly below expectations of $6.37 billion, coming in at $6.35 billion.
Prices rose 0.5%, slightly below expectations for a 0.79% rise.
The company expects organic net sales to decline 1.5% to 3.5% in 2026. Wall Street expects organic revenue to decline 0.56% in 2026. Adjusted earnings per share are expected to be in a range of $1.98 to $2.10, compared with Wall Street forecasts of $2.50.
