Overview

• U.S. food and beverage maker's Q1 net sales rose 0.8%, beating analyst expectations

• Adjusted EPS for Q1 beat consensus

• Organic net sales fell 0.4% as higher prices offset by lower volume/mix

Outlook

• Kraft Heinz sees 2026 organic net sales down 1.5% to 3.5% versus prior yr

• Company expects 2026 constant currency adj operating income down 14% to 18% yr-on-yr

• Kraft Heinz projects 2026 adj EPS in range of $1.98 to $2.10

Result Drivers

• PRICE INCREASES - Higher prices across all segments helped offset input cost inflation, per company

• VOLUME DECLINES - Lower volume/mix, especially in coffee, cold cuts, and Indonesia, weighed on organic net sales

• HIGHER COSTS - Increased advertising, manufacturing and logistics costs, and restructuring expenses reduced operating income and adjusted EPS

Company press release: ID:nBw3z2ngJa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Beat	$6.05 bln	$5.89 bln (14 Analysts)
Q1 Adjusted EPS	Beat	$0.58	$0.50 (17 Analysts)
Q1 EPS		$0.67
Q1 Net Income		$799 mln
Q1 Organic Sales Growth		-0.40%

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 18 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the food processing peer group is "buy."

• Wall Street's median 12-month price target for Kraft Heinz Co is $23.00, about 2% above its May 5 closing price of $22.54

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

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