• Kraft Heinz published its management discussion and analysis for Q1 2026, reporting organic net sales down 0.4% versus prior year, beating its initial outlook for a low-single-digit decline on a roughly 150-basis-point lift from winter storms.
• Adjusted gross margin fell 30 basis points to 34.1%; constant-currency adjusted operating income dropped 12.5% as inflation and higher marketing spend outweighed productivity gains.
• Adjusted EPS declined 6.5% to $0.58; free cash flow rose 59% to about USD 800 million on working-capital improvements, lifting free-cash-flow conversion to 111%.
• Plan calls for USD 600 million of incremental investment across product, pricing, marketing, sales, and R&D, with marketing spend targeted at at least 5.5% of net sales; R&D investment targeted up about 20% to roughly 0.9% of net sales.
• Full-year outlook reiterated: organic net sales down 3.5% to down 1.5%, adjusted gross margin down 75 to down 25 basis points, constant-currency adjusted operating income down 18% to down 14%, adjusted EPS USD 1.98 to USD 2.10, free-cash-flow conversion about 100%.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. The Kraft Heinz Company published the original content used to generate this news brief on May 06, 2026, and is solely responsible for the information contained therein.