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Kraft Heinz (KHC) announced on Tuesday that it would pause its spin-off plans, with the company’s new CEO, Steve Cahillane, saying that its “challenges are fixable and within our control.”
The company, which was set to spin off its meal business, Global Taste Elevation Co., and grocery business North American Grocery Co., plans to invest $600 million across marketing, sales, research and development, and pricing.
“We are confident in the opportunity ahead and believe this investment will accelerate our return to profitable growth,” said Steve Cahillane, who became CEO on Jan. 1 and previously led Kellanova, which successfully split from the Kellogg Company in 2023.
Shares fell more than 6% in premarket trading.
In its fourth quarter results, the company reported adjusted earnings of $0.67, a beat compared to the expected $0.61, per Bloomberg consensus data. Revenue came in slightly lower at $6.35 billion, compared with the $6.37 billion expected.
Prices increased 0.5%, slightly below expectations of a 0.79% increase.
For 2026, the company expects organic net sales to be down 1.5% to 3.5%. Wall Street expected 2026 annual organic revenue to be down 0.56%. Adjusted earnings per share are expected to be in the range of $1.98 to $2.10, whereas Wall Street forecast $2.50.