Kraft Heinz Beats Q3 Estimates, Raises Full-Year Guidance and Sells Coffee Unit for $650 Million

Kraft Heinz posted a stronger-than-expected third quarter on November 4, 2026, with adjusted EPS of $0.53 beating the $0.42 consensus estimate by $0.11, even as the figure represented a 13.1% decline from a year earlier. Net sales came in at $6.12 billion, slightly above the $6.09 billion estimate but down roughly 2% year over year. Adjusted operating income of $939 million handily topped the $849 million estimate despite falling 15.2% from the prior-year period. Organic net sales declined 1.1%, better than the 1.9% drop analysts had expected.

The company raised its full-year 2026 adjusted EPS guidance to a range of $2.07 to $2.13, up from the prior range of $2.03 to $2.09, and above the $2.05 consensus. Kraft Heinz also tightened its full-year organic net sales outlook to a decline of 0.5% to 1.25%, compared with the previous range of negative 0.5% to negative 2%, signaling improving sales momentum. The company left its constant-currency adjusted operating income outlook unchanged at negative 16% to negative 18% and guided free cash flow conversion of approximately 110% for the full year. Year-to-date free cash flow through Q3 stood at $2.4 billion, with conversion of 120%, up 11 percentage points year over year.

By segment, North America net sales fell 3.4% to $4.49 billion, Europe and Pacific Developed Markets dropped 5.6% to $910 million, while Emerging Markets surged 13.8% to $720 million. CEO Steve Cahillane said the 2026 plan to turn around the U.S. business and accelerate international growth is on track, noting improving market share, sales, and volume trends in every region.

Separately, Kraft Heinz announced it has entered into a definitive agreement to divest its North America coffee business, which includes the Maxwell House brand, to One Rock Capital Partners at an enterprise value of $650 million. Kraft Heinz will retain a 30% non-controlling equity stake in the business after the transaction closes. The divestiture is part of CEO Cahillane's broader turnaround strategy to sharpen the company's brand portfolio. Shares were up approximately 4.4% in pre-market trading following the announcements.

The company also declared a regular quarterly dividend of $0.40 per share, payable December 23, 2026, to stockholders of record as of December 4, 2026. In addition, Kraft Heinz appointed Kelly Dilts and J. Michael Schlotman to its board of directors, effective November 4, 2026, adding consumer sector leadership experience to the board.