** Shares of packaged foods company Kraft Heinz KHC.O up 2.2% at $23.03 premarket

** Company beats first-quarter estimates, as demand in its U.S. business improves and new CEO Steve Cahillane's turnaround strategy starts to pay off

** Q1 sales of $6.05 billion beat analysts' estimate of $5.89 billion, while adjusted EPS of 58 cents surpasses expectations by 8 cents - data compiled by LSEG

** Company also reaffirms annual forecasts; Cahillane says the decision reflects a volatile operating environment with increasing inflationary pressures and persistently low consumer sentiment

** Up to last close, shares down 7% this year