The Kraft Heinz Company today reported it would pause its plan to separate into two companies as it released fourth quarter and fiscal 2025 financial statements. 

“When I decided to join Kraft Heinz, I knew that this was an exciting opportunity to contemporize iconic brands, better serve consumers and customers, and build meaningful shareholder value.” said Steve Cahillane, CEO of Kraft Heinz. “Since joining the company, I have seen that the opportunity is larger than expected and that many of our challenges are fixable and within our control. My number one priority is returning the business to profitable growth, which will require ensuring all resources are fully focused on the execution of our operating plan. As a result, we believe it is prudent to pause work related to the separation and we will no longer incur related dis-synergies this year.”

The Kraft Heinz board of directors last fall unanimously approved a plan to separate the company into two independent, publicly traded companies through a tax-free spin-off. 

The separation was designed to maximize Kraft Heinz’s capabilities and brands while reducing complexity, allowing both new companies to more effectively deploy resources toward their distinct strategic priorities.

Officials today announced a plan to invest $600 million in marketing, sales and R&D to “accelerate the momentum we are already seeing in our Taste Elevation portfolio and to drive recovery in our U.S. business,” Cahillane said. “Thanks to disciplined financial stewardship, our balance sheet is strong and our Free Cash Flow capabilities, robust – positioning us well to fund these investments and execute on the plan, while still generating excess cash. We are confident in the opportunity ahead and believe this investment will accelerate our return to profitable growth.”

For fiscal 2026, the company expects organic net sales to decline 1.5% versus the 3.5% decline in fiscal '25. This includes an approximate 100 basis point impact from “incremental SNAP headwinds.”

Unfavorable volume/mix was primarily driven by declines in cold cuts, coffee, frozen meals, bacon and snacks. 

You can see the complete financial report here. 

About the Kraft Heinz Company
We are driving transformation at The Kraft Heinz Company, inspired by our Purpose, Let’s Make Life Delicious. Consumers are at the center of everything we do. With 2025 net sales of approximately $25 billion, we are committed to growing our iconic and emerging food and beverage brands on a global scale. We leverage our scale and agility to unleash the full power of Kraft Heinz across a portfolio of eight consumer-driven product platforms. As global citizens, we’re dedicated to making a sustainable, ethical impact while helping feed the world in healthy, responsible ways.