Kraft Heinz Is Ending Its Planned Split. Its CEO Thinks Its 'Challenges Are Fixable.'

Key Takeaways

• Kraft Heinz has reversed a planned split, with new CEO Steve Cahillane calling it “prudent to pause” amid fixable challenges.
• The company reported Q4 net sales fell 3.4% and 2026 guidance that missed estimates.

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Kraft Heinz plans to stay together.

The food giant on Wednesday reversed a course set in September, when it announced plans to split in two and undo a merger that was just a decade old. New Kraft Heinz (KHC) CEO Steve Cahillane in the company’s latest quarterly financial report said the company’s “challenges are fixable and within our control.”

The news lifted the company’s stock slightly, with Kraft Heinz shares recently up about 0.5% as broader indexes slipped. Read today’s full markets coverage here.

Why This Matters

With its planned separation paused, Kraft Heinz will focus on addressing operational declines, signaling cautious near-term strategy and potential pressure on its stock performance.

“We believe it is prudent to pause work related to the separation and we will no longer incur related dis-synergies this year,” Cahillane said.

Kraft Heinz’s Q4 net sales declined 3.4% year-over-year to $6.35 billion, slightly worse than expectations of analysts surveyed by Visible Alpha, with declines in each segment.

Although Q4 adjusted earnings per share of $0.67 topped estimates, its fiscal 2026 adjusted EPS guidance range of $1.98 to $2.10 was well below the consensus $2.48.

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Kraft Heinz shares entered the day down more than 15% over the past year. Wall Street analysts’ mean price target is right around recent prices, according to Visible Alpha data.

Cahillane was Kellanova’s chief executive until its December acquisition by Mars, took over as Kraft Heinz’s CEO on Jan. 1.

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